Case: KRISHAN KUMAR MADAN Vs. ASHOK KUMAR

3. On 28 March 1999, the U.P. Public Service Commission issued an advertisement, inviting applications for 170 vacancies in the post of Personal Assistant in the U.P. Secretariat. The results of the selection process were published in the newspapers on March 2000. The appellants were selected. The U.P. Public Service Commission directed the appellants to furnish certified copies of certain documents. The selection process was challenged before the High Court of Allahabad and was stayed. Meanwhile, the erstwhile State of Uttar Pradesh was reorganized into the State of Uttar Pradesh and the State of Uttaranchal (now Uttarakhand) under the Uttar Pradesh Reorganization Act, 2000, which came into force on 9 November 2000. Following the dismissal of the Writ Petition before the Allahabad High Court, the appellants were appointed as Personal Assistants on 29 January 2001 in the U.P. Secretariat at Lucknow.The State of U.P. provided options to its employees, including the appellants on whether they desired to serve in the State of UP or the reorganised state of Uttarakhand. The appellants exercised the option to serve the State of Uttarakhand and expressed their willingness for appointment in the Uttarakhand State Secretariat. The State of U.P. issued orders on 22 May 2001 and 28 July 2001 listing out employees who were approved for appointment in the Uttarakhand State Secretariat by the Governor of the State of Uttar Pradesh. The appellants joined the Uttarakhand Secretariat on 23 May 2001 and 1 August 2001.As the newly formed State of Uttarakhand was facing a scarcity of employees to run the administration, the Government of Uttarakhand issued two orders dated 28 November 2001 and 7 January 2002 transferring employees working in various departments to the state secretariat. Respondent Nos. 1 to 5 who were working in other departments joined the Uttarakhand Secretariat as Stenographers. On 28 September 2004, the services of these Respondents were confirmed in the cadre of Personal Assistant/Private Secretary by Government of Uttarakhand. The appellants, pursuant to an order dated 22 November 2004 issued by Uttarakhand government, made a representation for transfer of their services to the State of Uttarakhand upon a direction of the Central Government dated 15 September 2004 permitting the transfer of employees on the basis of mutual consent of the reorganized states. The consent of the State of Uttar Pradesh was received by a letter dated 22 November 2005 written by Chief Secretary of the State of U.P. for transfer of the appellants to the State of Uttarakhand.In the meantime, a challenge was made to the seniority list in the cadre of the appellants posted to the Uttarakhand secretariat by Respondents 1 to 5, in Writ Petition no 1313 of 2005 filed before the Uttarakhand High Court. The challenge by Respondent 1 to 5 was only to the seniority list but not to the letter issued by the Central Government on 15 September 2004 permitting the transfer of employees with the consent of the reorganized state. The consent of the State of Uttar Pradesh granted by its letter dated 22 November 2005 relieving the appellants for transfer to the State of Uttarakhand was not subjected to challenge in the proceedings before the High Court.The final allocation list published by the Central Government on 7 August 2009 excluded the appellants for transfer of services to the State of Uttarakhand as they were appointed after thedate. The appellants preferred a representation to the Central Government requesting allocation of their services to the State of Uttarakhand. In response to the representation, a letter dated 3 September 2009 was communicated to the appellants denying them allocation to the State of Uttarakhand as they were appointed after 9 November 2000. The letter stated that while they are not eligible for allocation under the U.P. Reorganisation Act, 2000 and neither the State Advisory Committee nor the Central Government has anything to do with the appellants, the State Governments of U.P. and Uttarakhand may take mutual action for resolving the issue.The High Court in its judgment dated 17 February 2011 observed that the appellants cannot be termed as employees of the State of Uttarakhand as they were appointed by the State of U.P. Therefore, in the view of the High Court, they shall continue to remain employees of the State of Uttar Pradesh. The review petition filed by the appellants was dismissed by the High Court on 23 March 2011 by reiterating the position earlier taken by High Court in its judgment dated 17 February 2011. The High Court has held that the appellants shall continue to remain employees of the State of U.P.Aggrieved by the decision of the High Court, the appellants approached this Court under Article 136 of the Constitution. This Court, by its order dated 25 April 2011 granted status quo with regard to the present posting of the appellants. Leave was granted on 26 September 2011.

Court's reasoning:
18. The High Court has overlooked the guidelines issued by the Central Government on 13 September 2000. Para (5)(c) of the guidelines refers to cases of selections where results were published prior to thedate but appointment letters were not issued to candidates. Para (5) (c) contemplates that recruitments would be kept in abeyance until final allocation orders were made. This was to be so even where panels were drawn but not given effectHigh Court has directed its attention to a sole consideration, namely whether there existed any statutory provision for transferring an employee from one state to another state. The appellants were declared to be employees of the State of Uttar Pradesh by the High Court without noticing that the appointment letters issued to them clearly stipulated that their services could transferred to the successor state of Uttarakhand. Such a transfer took place with the consent of both theState of U.P. gave options to existing employees appointed before 9 November 2000 for transfer of their services to the State of Uttarakhand. However, despite those efforts, a number of vacancies continued in the newly formed State of Uttarakhand. Hence, various employees who were already employed with the State of U.P. prior to the appointed day were provided with a choice of permanent transfer of service to the State ofthe meantime, in the case of persons such as the appellants where recruitments were completed but appointment letters were not issued the appointment letters indicated that their services may be allotted either to the State of Uttar Pradesh or the State of Uttarakhand after the appointed day. The services of the appellants were transferred and absorbed by the State of Uttarakhand with the mutual consent of both the states. Since then the appellants have been continuing as employees of the State of Uttarakhand.There is no infirmity in the procedure adopted by both the states in the transfer of employees, on the basis of mutual consent. This was clearly contemplated by the letter dated 15 September 2014 of the Government of India in the Ministry of Personnel, Public Grievances and Pensions. Hence, we are unable to agree with the view of High Court.