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REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.5099 OF 2006

M. SURENDER REDDY        … APPELLANT

VERSUS

GOVT. OF ANDHRA PRADESH AND ORS.        … RESPONDENTS

With  C.A. No.5100 of 2006 and C.A. No.5101 of 2006

J U D G M E N T  

SUDHANSU JYOTI MUKHOPADHAYA, J.

These  appeals  have  been  preferred  by  the  appellants  against common judgment dated 27th December, 2004 passed by  the Division Bench of the High Court of Judicature, Andhra  Pradesh at Hyderabad in Writ Petition Nos. 20106, 20350, 20539  and 21554 of 2004 and common order dated 28th December, 2004  passed  by  the  same  High  Court  in  Writ  Petition  Nos.20215,  20305,  21558  and  23173  of  2004.   By  the  impugned  common  judgment, the High Court dismissed the writ petitions, upheld  the  finding  of  the  Andhra  Pradesh  Administrative  Tribunal  (hereinafter  referred  to  as  the  “Tribunal”)  and  held  as  follows:

“26. In view of our foregoing discussions,

   we record the following conclusions:

(a) The finding of the Tribunal that the  selection  process  has  to  be  in

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accordance with the G.O.Ms. No.124,  dated 8.8.2002 cannot be said to be  erroneous or contrary to law.

(b) But, however, the direction that the  entire select list has to be reviewed  clubbing  the  appointments  under  1st  round  selection  is  not  sustainable  and  accordingly  the  procedure  as  contemplated under G.O.Ms. No.124 has  to be followed only in respect of the  candidates excluding the appointments  already made in 2001 and 2002 namely  Asstt. Municipal Commissioners Grade- III, Asstt. Commercial Tax Officers,  Asstt.  Labour  Officers  and  Asstt.  Section  Officers  in  non-executive  cadre  in  view  of  the  peculiar  and  circumstances of this case.

(c) The inter se seniority between the 1st  round appointees and later inducted  persons under second round selection  in  the  same  cadre  if  any  shall  be  decided by the appropriate authority  in accordance with rules, depending  on  the  merit  ranking  obtained  by  them.

(d) The  Reservation  to  PHC  category  wherever it is not provided under the  Special Rules cannot be claimed and  hence the findings of the Tribunal do  not call for any interference.

27. We do hope that the process of selection  would  be  completed  expeditiously  without  further  hurdles.  Subject  to  the  above  conclusions,  the  Writ  Petitions  stand  dismissed.”

By the impugned common order, the High Court disposed of  the said writ petitions in terms of the common judgment dated  27th December, 2004 in Writ Petition No.20106 of 2004.

2. The brief facts of the case are as follows:

The President of India in exercise of powers conferred  by Clause (1) and (2) of Article 371-D of Constitution of

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India made the Andhra Pradesh Public Employment (Organization  of Local Cadres and Regulation of Direct Recruitment) Order,  1975  dated 20th October, 1975  (hereinafter referred  to as  “Presidential Order”). Sub-Paragraph(1) of Paragraph 3 of the  said order gives power to the State Government to organize  classes of posts in the civil services of and classes of  civil posts under the State into different local cadres for  different  parts  of  the  State  within  27  months  from  the  commencement  of  the  said  order.  Paragraph  8  relates  to  reservation in the matter of direct recruitment. Relevant  portion of which reads as follows:

“8.  Reservation  in  the  matter  of  Direct  Recruitment:–  (1)  80%  of  the  posts  to  be  filled by direct recruitment any time-

(a)  in  any  local  cadre  under  the  State  Government comprising posts belonging to the  category of lower division clerk or a Category  equivalent  to  or  lower  than  that  lower  division clerk; and

(b)  in  any  cadre  under  a  local  authority  comprising post carrying a scale of pay the  minimum of which, or a fixed pay which does  not exceed the minimum of the scale of pay or  a lower division clerk, shall be reserved in  favour of local candidates in relation to the  local area in respect of such cadre.

(2) 70% of the posts to be filled by direct  recruitment at any time-

(a)  in  any  local  cadre  under  the  State  Government comprising posts belonging to non- gazetted categories other than those referred  to in item (a) of sub-paragraph (1); and

(b)  in  any  cadre  under  a  local  authority  comprising posts carrying a scale of pay, the  minimum of which, or a fixed pay which exceeds  the minimum of the scale of pay of a lower  division clerk, but does not exceed Rs. 480/-  per mensum on any amount corresponding to it

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as  may  be  specified  in  this  regard  in  the  successive revisions of pay scales granted by  the State Government from time to time shall  be reserved in favour of local candidates in  relation to the local area in respect of such  cadre."  

3. In exercise of the powers under sub-para(1) Paragraph 3  of the ‘Presidential Order, 1975’ the Andhra Pradesh State  Government  issued  G.O.P.  No.729  dated  1st Novemer,1975,  whereby 70% of non-gazetted category posts other than Lower  Division Clerk or equivalent posts were reserved in favour of  local candidates. By G.O.P. No.763 dated 15th November, 1975  the  State  Government  prescribed  certain  procedures  to  be  followed in conducting recruitment to the posts. Annexure III  to the said G.O.P. deals with the procedure to be followed  for selection of candidates for recruitment to the categories  of posts for which multiple cadre recruitment is made. As per  paragraph 5 of the annexure a combined merit list a local and  non-local  candidates   shall  be  drawn  up  to  fill  up  the  vacancies.

4. Later,  the  Andhra  Pradesh  State  Government  issued  G.O.Ms. No.124 dated 7th March, 2002, whereby G.O.P. No.763  dated 15th November, 1975 was amended by bifurcating combined  merit  list  into  two  parts  i.e.  one  reserved  for  local  candidates  and  another  for  both  local  and  non-local  candidates.  

5. On  28th December,  1999,  the  Andhra  Pradesh  Public  Service Commission (hereinafter referred to as the ”APPSC”)

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issued  Advertisement  NO.10  of  1999  to  fill  up  certain  Executive and  Non-Executive Posts of 27 categories under  Group-II  services  of  State  Government.  As  per  the  said  Advertisement selection was to be made on the basis of marks  obtained in written test plus oral test for executive posts  and only on the basis of marks obtained in the interview, the  written  test  for  non-executive  posts.  Later  the  State  Government  withdrew  that  part  of  the  advertisement  which  called  for  applications  to  141  vacant  posts  of  Assistant  Section Officers. Accordingly, more than 3 lacs candidates  appeared  in  the  written  examination  and  among  them  269  persons  were  called  for  interview  for  appointment  to  the  executive posts on the basis of marks obtained in the written  examination. After concluding interviews, 104 candidates were  selected for executive posts in December 2000. Subsequently,  in view of an order passed by the Tribunal in O.a.No.7443 of  2000,  filed  against  the  non-exclusion  of  141  posts  of  Assistant  Section  Officers  113  candidates  including  the  appellants  were  recommended  for  non-executive  posts  i.e.  Asstt. Sections Officers in February, 2002 based on marks  obtained in written test.  

Subsequently, as per the directions of the High Court,  973 Executive posts were included in Advertisement No.10 of  1999 and more than 2000 candidates along with the appellants  were called for interview on the basis of the marks obtained  in the written examination. Thereafter, the APPSC selected

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973 candidates for executive posts on the basis of written  plus oral test and prepared common merit list by including  104 candidates who were already appointed against executive  posts.

6. Some  of  the  candidates  filed  applications  before  Tribunal to implement G.O.Ms. No.124 dated 7th March, 2002  which was allowed by the Tribunal with a direction to the  APPSC to re-caste the merit list by implementing the G.O.Ms.  No.124.  Being  aggrieved  by  the  said  direction,  when  the  appellants  filed  Writ  Petitions,  the  High  Court  while  dismissed  the  same  directing  to  exclude  the  present  appellants  and  other  A.S.Os  from  consideration  to  the  executive posts.  

As the above said direction of the High Court created an  anomaly  restricting  the  meritorious  candidates,  already  appointed Asstt. Sections Officers who were appointed to the  to lower non-executive posts and less meritorious candidates  were to get higher posts in executive cadres, the appellants  have challenged the same.  

7. Learned  counsel  for  the  appellants  submitted  that  G.O.Ms.  No.124  dated  7th March,  2002  cannot  be  applied  retrospectively  to  the  selection  already  in  process  or  selection  already  made,  particularly  when  the  State  Government’s  order  is  a  part  of  substantive  law  and  not  procedural law. It is further contended that G.O.Ms.124 dated

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7th March, 2002 is null and void having issued after lapse of  period of limitation prescribed in sub-para(1) of Paragraph 3  of the Presidential Order, 1975. Further, according to the  counsel for the appellants, G.O.Ms.124 dated 7th March, 2002  is ultra vires of Presidential Order, 1975 and G.O.P. No.729  dated  1st November,  1975  and  G.O.P.  No.763  dated  15th  

November, 1975 issued in pursuance of Paragraph 3(1) of the  Presidential Order, 1975.

8. We have heard learned counsel for the parties, perused  the  records  and  relevant  notifications  relating  to  reservation of posts issued from time to time.  

The questions that arise for determination in this case  are:  (a)whether  G.O.Ms.124  dated  7th March,  2002  is  retrospective in nature in order to make it applicable to the  posts  for  which  selection  process  has  already  started  pursuant to 1999 advertisement, and (b) If the said G.O.Ms.  is retrospective, whether it is required to review the entire  select list disturbing the appointments already made during  the period between the 2001 and 7th March, 2002.

9. The Presidential Order, 1975 by virtue of sub-paragraph  (1) of Paragraph 3 empowers the State Government to organize  classes  of  posts  in  civil  services  under  the  State  into  different local cadres in different parts of State within 27  months from the commencement of the said order. Paragraph 3

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of the order empowers the State to organize Local Cadres,  which is as follows:

“3.  Organization  of  local  cadres  :–  (1)  The  State  Government  shall  within  a  period  of  *  twenty–seven  months  [Vide  G.O.  Ms.  No.  728,  G.A.  (SPF.A)  Dept,  dt.  27-10-1977]from  the  commencement of this Order, organize classes of  posts in the civil services of and classes of  civil  posts  under  the  State  into  different  local cadres for different parts of the State  to the extent and in the manner, hereinafter  provided.

Provided  that,  notwithstanding  the  expiration of the said period, the President  may  by  order,  require  the  State  Government,  whenever he considers it expedient so to do, to  organize  any  classes  of  posts  in  the  civil  services of and classes of civil posts under  the  State  into  different  local  cadres  or  different parts of the State.(Vide G.O. Ms. No.  34, G.A. (SPF.A) Dept, date 24-1-81) (2)  The  posts  belonging  to  the  category  of  lower  division  clerk  and  each  of  the  other  categories equivalent to, or lower than that of  a lower division clerk, in each department in  each district shall be organized into separate  cadre. Explanation:—  For  the  purposes  of  this  sub- paragraph, sub-paragraph(1) of paragraph 6, and  sub-paragraph  (1)  of  paragraph  8  a  category  shall be deemed to be equivalent to or lower  than  that  of  a  lower  division  clerk  if  the  minimum of the scale of pay of a post belonging  to that category or where the post carries a  fixed pay, such fixed pay is equal to or lower  than the minimum of the scale of pay of a lower  division clerk. (3) The posts belonging to each non gazetted  category, other than those referred to in sub- paragraph (2), in each department in each zone  shall be organized into a separate cadre. (4)  The  posts  belonging  to  each  specified  gazetted category in each department in each  zone shall be organized into a separate cadre. (5) Notwithstanding anything contained in sub- paragraph (3) and (4), the State Government may  where it considers it expedient so to do and  with the approval of the Central Government,

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organized  the  posts  belonging  to  any  of  the  categories  referred  to  therein,  in  any  department,  or  any  establishment  thereof,  in  two  or  more  contiguous  zones  into  a  single  cadre. (6) Notwithstanding anything contained in sub  Paragraphs (2), (3), (4) and (5), the Central  Government; may notify the departments in which and  the  categories  of  posts  for  which  a  separate cadre has to be organized for the City  of  Hyderabad  and  on  such  notification,  the  posts belonging to each such category in each  such department in the said City (other than  those  concerned  with  the  administration  of  areas falling outside, the said City) shall be  organize into a separate cadre and the posts so  organized  in  pursuance  of  this  paragraph  or  Constituted  otherwise  and  comprising  posts  belonging to the category in that department. (7) In organising a separate cadre in respect  of any category of posts in any department for  any part of the State, nothing in this Order  shall be deemed to prevent the State Government  from  organising  or  continuing  more  than  one  cadre  in  respect  of  such  category  is  such  department for such part of the State. (8) Where the Central Government is satisfied  that  it  is  not  practicable  or  expedient  to  organize local cadres under this paragraph in  respect of any non gazetted category of posts  in  any  department,  it  may,  by  notification,  make a declaration to that effect and on such  declaration  the  provisions  of  this  paragraph  shall not apply to such category of posts.”

Each  district  is  regarded  as  a  ‘Local  area’  as  per  paragraph 6, which is as follows:

“6. Local areas:— (1) Each district shall be  regarded as a local area-

(i)  for  direct  recruitment  to  posts  in  any  local  cadre  under  the  State  Government  comprising  all  or  any  of  the  posts  in  any  department in that district belonging to the  category of a lower division clerk or to any  other category equivalent to or lower than that  of a lower division clerk.

(ii) for direct recruitment to posts in any  cadre under any local authority within under  that  district  carrying  a  scale  of  pay,  the

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minimum of which does not exceed the minimum of  the scale of pay of a lower division clerk or a  fixed pay not exceeding that amount.

(2)  Each  Zone  shall  be  regarded  as  a  local  area-                                        (1)  for  direct  recruitment  to  posts  in  any  local  cadre  under  the  State  Government  comprising  all  or  any  of  the  posts  in  any  department in that zone belonging to any non- gazetted category other than those referred to in sub paragraph (1);

(ii) for direct recruitment to posts in any  local cadre comprising all or any of the post  in any department in that zone belonging to the  categories  of  Tehsildars,   Asst.  Executive  Engineers,  Assistant  Agricultural  Officers,  Inspectors  of  Police  and  Motor  Vehicle  Inspectors (Vide G.O. Ms. No. 498,dt. 16-7-1977  G.O.Ms. No. 34, dt. 24-1-1981 and G. O. Ms. No.  635, G.A.(SPF. A) Dept. dated 30-11-1993)

(iii) For direct recruitment to posts in any  cadre  under  any  local  authority  within  that  zone, carrying a scale of pay, the minimum of  which exceeds the minimum of the scale of pay  of a lower division clerk but does not exceed  Rs.  480/-  per  mensum  or  a  fixed  pay  which  exceeds the minimum of the scale of pay of a  lower division clerk but does not exceed Rs.  480/- per mensum or any amount corresponding to  it as may be specified in this regard in the  successive revisions or pay scales granted by  the  State  Government  from  time  of  time.  (G.O.Ms. 635, G.A. (SPF.A) Dept. dated 30-11- 93.17)

Provided that where a single cadre has been  organized  for  two  or  more  zones  under  sub- paragraph (5) of paragraph 3 of posts belonging  to any of the categories referred to in clause  (i) or clause (ii) each of such zones shall be  regarded as separate local area in respect of  such cadre.

(3) Notwithstanding anything contained in sub- paragraphs (1) and (2),-

(i) the City of Hyderabad shall be regarded as  a local area for direct recruitment to posts in  any  local  cadre  under  the  State  Government  comprising all or any of the posts in the said  City in the departments and belonging to the  categories notified under Sub-paragraph (6) of  paragraph 3 and the said City shall be excluded

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from  the  local  area  relatable  to  any  other  local cadre comprising posts in the departments  and belonging to the categories so notified;  and

(ii) the City of Hyderabad shall be regarded as  a local area for direct recruitment to posts in  any cadre under a local authority within the  said City comprising posts carrying a scale of  pay the minimum of which does not exceed Rs.  480/- per mensum or any amount corresponding to  it as may be specified in this regarded in the  successive revisions of pay scales granted by  the State Government from time to time, or a  fixed pay not exceeding that amount, and the  said City shall be excluded from the local area  relatable  to  any  cadre  under  any  local  authority  not  within  the  said  City.  (G.O.  Ms.No. 635, G. A. (SPF. A) Dept. dated 30-11- 93)

(4)  Notwithstanding  anything  contained  sub- paragraphs (1), (2) and (3). (1) the districts of Medak, Ranga Reddy and  Hyderabad shall be regarded as a local area for  direct recruitment to posts in any cadre under  the  Hyderabad  Urban  Development  Authority  comprising posts, carrying a scale of pay, the  minimum of which does not exceed the minimum of the scale of pay of lower division clerk or a  fixed pay not exceeding that amount.

(ii) Zone VI shall be regarded as a local area  for direct recruitment to posts in any cadre  under the Hyderabad Urban Development Authority comprising posts, carrying a scale of pay, the  minimum of which exceeds the scale of pay of a  lower division clerk but does not exceed Rs.  480/- per mensum, or a fixed pay which exceeds  the minimum of the scale of the pay of a lower  division clerk but does not exceed Rs. 480/-  per  mensum  J-698/318  or  any  amount  corresponding to it as may be specified in this  regard  in  the  successive  revisions  of  pay  scales  granted  by  the  State  Government  from  time to time.(Vide G.O.Ms. No. 498, G. A. (SPF.  A) Dept. dt. 16-7-77 and G.O. Ms.No. 34, G. A.  (SPF. A.) Dept, dt. 24-1-1981.)”

“Local candidates” for direct recruitment to any post in  relation  to the  local area  is defined  in paragraph  7 as  follows:

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“7.  Local  Candidate:—  (1)  A  candidate  for  direct  recruitment  to  any  post  shall  be  regarded as a local candidate in relation to a  local area.-

(a)  in  cases  where  a  minimum  educational  qualification  has  been  prescribed  for  recruitment to the posts-

(i)  If  he  has  studied  in  an  educational  institution or educational institutions in such  local area for a period of not less than four  consecutive  academic  years  ending  with  the  academic year in which he appeared or, as the  case may be, first appeared for the relevant  qualifying examination; or

(ii) where during the whole or any part of the  four consecutive academic years ending with the  academic year in which he appeared or as the  case may be, first appeared for the relevant  qualifying examination he has not studied in  any educational institution, if he has resided  in that local area for a period of not less  than four years immediately preceding the date  of commencement of the qualifying examination  in which he appeared or as the case may be,  first appeared.

(b)  In  cases  where  no  minimum  educational  qualification  has  been  prescribed  for  recruitment to the post, if he has resided in  that local area for a period of not less than  four years immediately preceding the date on  which the post is notified for recruitment.

Explanations:—  For  the  purpose  of  this  paragraph.-

(i)  ‘educational  institution’  means  a  University  or  any  educational  institution  recognised  by  the  State  Government,  a  University or other competent authority;

(ii)  ‘relevant  qualifying  examination’  in  relation to a post means;

(A) the examination, a pass in which is the  minimum  educational  qualification  prescribed  for the post;

(B)  the  Matriculation  examination  or  an  examination declared by the State Government to  be equivalent to the Matriculation examination; which is lower ; and

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(iii)  in  reckoning  the  consecutive  academic  years during which a candidate has studied, any  period of interruption of his study be reason  of his failure to pass any examination shall be  disregarded.

(iv) the question, whether any candidate for  direct recruitment to any post has resided in  any  local  area  shall  be  determined  with  reference  to  the  places  where  the  candidate  actually resided and not with reference to the  residence  of  his  parents  or  other  guardian  (Vide  G.O.Ms.  No.  168,  G.A.  (SPF.A)  Dept.  dt.10-3-77).

(2) A candidate for direct recruitment to any  post who is not regarded as a local candidate  under  sub-paragraph  (1)  in  relation  to  any  local area shall.- (a)  in  cases  where  a  minimum  educational  qualification  has  been  prescribed  for  recruitment to the post.

(i)  If  he  has  studies  in  educational  institutions in that State for a period of not  less  than  seven  consecutive  academic  years  ending with academic year in which he appeared  or as the case may be, first appeared for the  relevant qualifying examination be regarded as  a local candidate in relation to

(1) Such local area where he has studied for  the maximum period out of the said period of  seven years; or

(2) where the period of his study in two or  more local areas are equal, such local areas  where  he  has  studied  last  in  such  equal  periods;

(ii) If during the whole or any part of the  seven  consecutive  academic  years  ending  with  the academic years in which he appeared or as  the case may be first appeared for the relevant  qualifying examination, he has not studied in  the  educational  institutions  in  any  local  areas, but has resided in the State during the  whole of the said period of seven years, be  regarded as a local candidate in relation to

(1) such local area where he has resided for a  maximum period out of the said period of seven  years  :  or  (2)  where  the  periods  of  his  residence in two or more local areas are equal,  such local area where he has resided last in  such equal periods ;

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(b)  in  cases  where  no  minimum  educational  qualification  has  been  prescribed  for  recruitment to the post, if he has resided in  the State for period of not less than seven  years immediately preceding the date on which  the  post  is  notified  for  recruitment,  be  regarded as a local candidate in relation to  

(i) such local area where he has resided for  the maximum period out of the said period of  seven years ; or (ii) where the periods of his  residence is two or more local areas are equal  such local area where he has resided last in  such equal periods.(G.O.Ms. No. 168, dated 10- 3-1977)”

Paragraph 8 mandates reservation in the matter of direct  recruitment relevant of which is quoted below:

“8.  Reservation  in  the  matter  of  Direct  Recruitment:–  (1)  80%  of  the  posts  to  be  filled by direct recruitment any time- (a)  in  any  local  cadre  under  the  State  Government comprising posts belonging to the  category of lower division clerk or a Category  equivalent  to  or  lower  than  that  lower  division clerk; and (b)  in  any  cadre  under  a  local  authority  comprising post carrying a scale of pay the  minimum of which, or a fixed pay which does  not exceed the minimum of the scale of pay or  a lower division clerk, shall be reserved in  favour of local candidates in relation to the  local area in respect of such cadre. (2) 70% of the posts to be filled by direct  recruitment at any time-

(a)  in  any  local  cadre  under  the  State  Government comprising posts belonging to non- gazetted categories other than those referred  to in item (a) of sub-paragraph (1); and

(b)  in  any  cadre  under  a  local  authority  comprising posts carrying a scale of pay, the  minimum of which, or a fixed pay which exceeds  the minimum of the scale of pay of a lower  division clerk, but does not exceed Rs. 480/-  per mensum on any amount corresponding to it  as  may  be  specified  in  this  regard  in  the  successive revisions of pay scales granted by  the State Government from time to time shall  be reserved in favour of local candidates in  relation to the local area in respect of such  cadre. (G.O.Ms. No. 635, G. A. (SPF.A) Dept,  dated 30-11-93).

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(3) 60 % of the posts to be filled by direct  recruitment at any time in any local cadre  under  the  State  Government  comprising  posts  belonging  to  the  categories  of  Tehsildars,  Assistant  Executive  Engineers,  Assistant  Agricultural Officers, Inspector of Police and  Motor Vehicle Inspectors shall be reserved in  favour of local candidates in relation to the  local area in respect of such cadre.(G.O.Ms.  No. 498, G.A. (SPF. A) Dept, Dt. 16-7-1977) (G.O.Ms. No. 34, G.A. (SPF. A) Dept, Dt. 24-1- 1981)(G.O.Ms. No. 635, G.A. (SPF. A) Dept, Dt.  30-11-1993).

(4) Notwithstanding anything contained in sub- paragraph  (2)  or  sub-paragraph(3)  where,  in  respect of any of the categories referred to  in the said paragraph a single cadre has been  organized for two or more zones under sub- paragraph (5) of paragraph 3, 70% or as the  case may be, 60 % of the posts to be filled by  direct recruitment at anytime in such cadre  shall be reserved in favour of and allocated  amongst the local candidates in relation to  each of the local areas in respect of such  cadre in the ratio specified in the Second  Schedule against the zone comprising each such  local area.

(5)  60%  of  the  posts  under  the  State  Government belonging to the category of Civil  Assistant  Surgeons  to  be  filled  by  direct  recruitment at any time shall be reserved in  favour  of  and  allocated  amongst  the  local  candidates  in  relation  to  the  local  area  specified in column (1) the Table below in the  respective  ratios  specified  in  the  corresponding entry is column (2) thereof.”

Paragraph 9 deals with carry forward of reserved posts,  if no candidate is available, which is as follows:

“(9) Carry forward of reserved posts:— If a  qualified local candidate in respect of a local  area is not available to  fill a post reserved  or allocated in favour of a local candidate in  respect of that local area, such post shall be  carried  forward  for  recruitment  of  a  local  candidate in respect of that local area for  period not exceeding three years;

Provided  that  pending  recruitment  of  a  local candidate, such post may be filled in

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temporarily  by  borrowing  the  service  of  a  person holding a post of the same category in  any other local cadre or under any other local  authority as the case may be (Vide G.O. Ms. No.  34,dt. 24-1-1981).”

Paragraph  11  stipulates  that  the  order  to  have  overriding effect over Statute, Ordinance, Rule, Regulation  or other order made before or after the commencement of the  said Order in respect of direct recruitment to posts under  the State Government or any local authority.

10. After publication of the Presidential Order 1975 the  Government  of  Andhra  Pradesh  by  G.O.P.  No.729  dated  1st  

November,  1975,  intimated  the  Scheme  of  the  Order  and  directed the authorities to furnish District-wise list in  case of categories of Lower Divisional Clerk and equivalent  or lower categories and Zone-wise list in the case of higher  categories.

11. Referring to the Presidential Order, 1975, Government of  Andhra Pradesh issued G.O.P No.763 dated 15th November, 1975  communicating the Scheme and the procedure to be followed in  such appointments relevant portion of which reads as follows:

“2. Recruitment of candidates is basically  of  two  types  size,  single  unit  i.e.  single  cadre  recruitment  and  multiple  unit  i.e.,  multiple cadre recruitment. Where recruitment  is made to fill vacancies in a single cadre  i.e.,  single  unit  of  appointment  comprising  posts  in  a  given  category  for  a  particular  department,  it  can  be  categorized  as  single  cadre recruitment. Where recruitment is made to  fill vacancies in more than one cadre (i.e.,  for than one unit of appointment in the same or  different parts of the State) comprising posts  in a given category or different categories in

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one or more department, such recruitment will  be  multiple  units  or  multiple  cadre  recruitment.  For  example  when  recruitment  is  made to fill vacancies of Lower Division Clerk  in a district in one department, it becomes  single  cadre  recruitment.  Where,  however,  a  combined recruitment is made to fill up the  posts of Lower Division Clerks in a district in  more than one department of where a combined  recruitment   to   fill  vacancies  in  similar  categories like Lower Division Clerks, Typists,  Stenographers etc., in one district in one or  more departments is made, it becomes multiple  cadre recruitment.

3. Recruitment  to  a  single  multi-zonal  cadre contemplated under the Presidential Order  and to the category of Civil Assistant Surgeons  will also come under the category of single  cadre recruitment but with the difference that  preference in the matter of direct recruitment  in  such  cases  is  to  be  given  to  local  candidates  not  one  local  area  but  of  the  different local areas covered by such cadre in  the ratio prescribed in the Presidential Order.

4. Multiple  cadre  recruitment  may  take  different  forms  especially  in  the  implementation  of  the  proposed  Presidential  Order on the organization of local cadres. It  may take the form of:

(a) Recruitment to fill up the vacancies  in a single category for different local cadres  or different parts of the State (local areas)  in one department, e.g. recruitment of Clerks  in the Judicial Department for Courts in the  districts  undertaken  by  the  Andhra  Pradesh  Public Service Commission.

(b) Recruitment to fill up the vacancies  in  identical  or  different  categories  in  different local cadres in different departments  in one part of the State (local area) e.g.,  recruitment of Group-IV services undertaken by  the Collectors now.

(c) Recruitment to fill up the vacancies  in  different  categories  in  different  local  cadres  in  different  departments  of  different  parts of the Ste (local areas) e.g. recruitment  of Group-II Services undertaken by the Andhra  Pradesh Public Service Commission.

5. The State Government have considered  the manner in which the scheme of reservation  in favour of local candidates provided in the  Andhra Pradesh Public Employment (Organization

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of  Local  Cadres  and  Regulation  of  Direct  Recruitment) Order, 1975 should be implemented  taking  into  account  the  provisions  made  in  regard to appointments in favour of Backward  Classes, the Scheduled Castes and the Scheduled  Tribes and have decided that the procedure set  out  in  the  Annexure  to  this  order  may  be  followed in this regard.

6. The procedure set out in Annexure-I to  this order is to be followed for selection of  candidates for recruitment of the categories of  posts  of  which  single  cadre  recruitment  is  made. The procedure set out in Annexure-II will  apply to selection of candidates of recruitment  of every category of posts for which a Multi- zonal cadre is set up and also in the matter of  recruitment of the category of Civil Assistant  Surgeons where the posts reserved in favour of  local candidates are required to be appointed  in the prescribed ratio among local candidates  of different local areas covered by such cadre.  The procedure set out in Annexure-III to this  order  is  to  be  followed  for  selection  of  candidates for recruitment to the categories of  posts for which multiple cadre recruitment is  made.

7. All  the  recruiting  authorities  and  appointing authorities are requested to follow  the  instructions  annexed  to  the  said  G.O.P.  No.763 dated 15th November, 1975 while making  recruitment  either  temporary  or  regular,  to  posts coming within the ambit of paragraph 8 of  the  Andhra  Pradesh  Public  Employment  (Organization of Local Cadres and Regulation of  Direct Recruitment) Order, 1975.”

12. On  13th December,  2001,  the  President  of  India  in  exercise of the powers conferred by clauses (1) and (2) of  Article  371-D  of  the  constitution  of  India,  amending  the  Andhra  Pradesh  Public  Employment  (Organization  of  Local  Cadres  and  Regulation  of  Direct  Recruitment)  Order,  1975  namely – the Andhra Pradesh Public Employment (Organization  of  Local  Cadres  and  Regulation  of  Direct  Recruitment)Amendment)  Order,  2001  published  by  the

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Government of India, Ministry of Home Affairs S.O. 1219(E).  The said Amendment Order reads as follows:

“2. In  the  Andhra  Pradesh  Public  Employment  (Organization  of  Local  Cadres  and Regulation of Direct Recruitment) Order  1975:-

(1) In paragraph 2 in Sub-Paragraph (1),  to clause (a) the following shall be added  namely:-

“The  territorial  Jurisdiction  in  respect  of  the  posts  belonging  to  the  Department of School Education shall be the  Revenue District of Hyderabad.”

(2) In  paragraph  8,  in  Sub-paragraph(1)  after item (b), the following item shall be  deemed to have been added with effect from  the 1st June 2001, namely;-

“C (i) in any local cadre under the  State Government comprising posts belonging  to the categories of Teachers in the Andhra  Pradesh  School  Education  Subordinate  Service  and  other  similar  or  equivalent  categories of posts of teachers under any  Department of the State Government; and

(ii) in any cadre under a local authority  or under any such other management, as may  be notified by the State Government from  time to time carrying a scale of pay equal  to  that  of  posts  in  the  Andhra  Pradesh  School Education Subordinate Service shall  be reserved in favour of local candidates  in relation to the local area in respect of  such cadre.”

(3) In paragraph 8, in Sub-paragraph (2)  in item (a) for the words and figure “in  item (a) of Sub-paragraph (1)”, the words  and figure “in item (a) or in item (c) of  sub-paragraph (1)”, shall be substituted.”

13. The Government of Andhra Pradesh by G.O.Ms. No.8 dated  8th January,  2002  referring  to  paragraph  8  of  the  Presidential  Order,  1975  made  amendment  in  the  procedure

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prescribed in paragraph 3 and 4 of Annexure-I to G.O.P.No.763  dated 15th November, 1975. The said GOMs. Reads as follows:

“GOVERNMENT OF ANDHRA PRADESH

GENERAL ADMINISTRATION (SPF-A) DEPARTMENT

G.O.Ms.No.8 Dated:08.01.2002

    Read the following

1. G.O.Ms.No.674,  GA(SPF-A)  Department,  dated  20.10.1975

2. G.O.P.No.729,  GA(SPF-A)  Department,  dated  01.11.1975.

3. G.O.P.No.763,  (SPF-A)  Department,  dated  15.11.1975

4. U.O.  Note  NO.237/SPF-A/85-2,  GA(SPF-A)  Department, dated 20.05.1985

5. G.O.Ms.No.2,  G.A.(SPF-A)  Department,  dated  03.01.2002.

O R D E R

In terms of para-8 of the Andhra Pradesh  Public employment (Organization of Local Cadres  and  Regulation  of  Direct  Recruitment)  Order,  1975, i.e, Presidential Order, referred to in  the reference first read above, in the case of  District Cadres, 80% of the posts under Direct  Recruitment are reserved for local candidates,  as defined in para-7 of the Presidential Order.  The remaining 20% of the posts are open posts  for  which  local  and  non-locals  have  to  be  considered on the basis of combined merit. This  aspect has already been clarified in the U.O.  Note  fourth  read  above.  The  Government  have  also issued instructions in the G.O. third read  above in the manner in which the posts have to  be filled up.

2. Government have re-examined the matter of  filling up of the posts as prescribed in the  G.O.  third  read  above.  Accordingly  it  is  decided  that  while  filling  up  of  the  posts  under  Direct  Recruitment,  the  first  20%  of  posts should be filled following combined merit  list of locals and non-locals and, thereafter,  the remaining 80% of the posts shall be filled  up by locals only. However, while filling up of  the posts the special representation under Rule

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22 of the A.P. State and Subordinate Service  Rules shall be followed suitably.  

3. Accordingly  the  following  amendment  is  issued to the procedure prescribed in paras 3  and 4 of the Annexure I to the G.O.(P) No.763,  General  Administrative  (SPF.A)  Department,  dated 15th November, 1975.

4.  In respect of the Annexure-II & III to the  G.O.  3rd read  above  orders  will  be  issued  separately.

AMENDMENT

5. In the said orders, in the Annexure-I,  

(i) for paragraphs 3 and 4 the following  shall be substituted namely,

“Para 3: The provisional list shall be divided  into two parts. The first part will  comprise first 20% of the list. The  second part will comprise the balance  80%. In case the provisional list does  not contain any non-local candidate in  the  second  part  the  list  shall  be  approved.

Para 4: If, however, on the scrutiny referred  to in para 3 it is found that there  are non-local candidates in the second  part  of  the  list,  then  these  candidates  shall  be  removed  and  replaced by local candidates ensuring  that  the  rule  of  reservation  is  followed.

(ii) the illustrations thereunder shall be  omitted.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF  ANDHRA PRADESH)”

14. It was followed by G.O.Ms.No.124 dated 7th March, 2002,  whereby  the  Government  of  Andhra  Pradesh  amended  the  procedure prescribed in Annexure II and III of G.O.Ms.No.763  dated 15th November, 1975 which reads as follows:

“GOVERNMENT OF ANDHRA PRADESH O R D E R

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In  the  G.O.  6th read  above,  orders  were  issued  that  while  filling  up  of  the  posts  under  Direct  Recruitment,  the  first  20%  of  posts  should  be  filled  following  combined  merit list of locals and non-locals (i.e. Open  Category) and, thereafter, the remaining 80%  of  the  posts  shall  be  filled  up  by  locals  only.  While  filling  up  of  the  posts  the  special representation under Rule 22 of the  A.P. State and Subordinate Service Rules shall  be  followed  strictly.  It  was  also  ordered  therein that the amendments to the Annexures  II and III to the G.O. third read above be  issued separately.  

2. Accordingly,  the  following  amendments  are  issued  to  the  procedure  prescribed  in  the  Annexures  II  and  III  to  the  G.O.Ms.No.763,  G.A.(SPF-A)  Department,  dated  15th November,  1975.

A M E N D M E N T S

In the said Government orders,

(1) In the Annexure – II,

(i) for paragraphs 3 and 4, the following  shall be substituted, namely,

“3: The  Provisional  list  shall  be  divided into two parts. The first part  shall  comprise  30%  of  the  posts  consisting of combined merit lists of  locals as well as non-locals and the  remaining second part shall comprise  the  balance  70%  of  the  posts  consisting  of  locals  only  and  the  posts shall be filled duly following  the rule of reservation.”

(2) in the Annexure – III, for paragraph  3, the following shall be substituted,  namely,

“3: The  provisional  list  shall  be  divided into two parts. The first part  shall  comprise  40%  of  the  posts  consisting of combined merit lists of  locals as well as non-locals and the  remaining second part shall comprises  the  balance  60%  of  the  posts  consisting  of  locals  only  and  the  posts shall be filled duly following  the rule of reservation.”

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15. The applicability of the aforesaid G.O.Ms.No.124 dated  7th March, 2002 is in dispute in the present case.

16. In Shah Bhojraj Kuverji Oil Mills and Ginning Factory v.  Subhash  Chandra  Yograj  Sinha,  AIR  1961  SC  1596, the  Constitution  Bench  of  this  Court  while  considering  the  question  as  to  whether  an  Act  is  to  be  made  operative  prospectively or retrospectively held:

“12………… a  section  may  be  prospective  in  some  parts  and  retrospective  in  other  parts. While it is the ordinary rule that  substantive rights should not be held to be  taken away except by express provision or  clear  implication,  many  Acts,  though  prospective  in  form,  have  been  given  retrospective  operation,  if  the  intention  of the legislature is apparent.”

17. In   Mst.  Rafiquennessa  vs.  Lal  Bahadur  Chetri  and  others, AIR 1964 SC 1511, another five-Judge Bench of this  Court  while  dealing  with  the  question  of  effect  of  retrospective legislation on vested rights observed:

“It is not disputed by him that the  legislature  is  competent  to  take  away  vested  rights  by  means  of  retrospective  legislation. Similarly, the legislature is  undoubtedly  competent  to  make  laws  which  override and materially affect the terms of  contracts  between  the  parties;  but  the  argument  is  that  unless  a  clear  and  unambiguous intention is indicated by the  legislature  by  adopting  suitable  express  words  in  that  behalf,  no  provision  of  a  statute  should  be  given  retrospective  operation  if  by  such  operation  vested  rights  are  likely  to  be  affected.  These  principles  are  unexceptionable  and  as  a  matter of law, no objection can be taken to  them.”

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18. In  absence  of  any  express  or  necessarily  implied  provision in the statute, normally statute affects the rights  prospectively.

A statutory provision is held to be retrospective either  when it is so declared by express terms, or the intention to  make retrospective clearly follows from the relevant words  and the context in which they occur.  

19. The Presidential Order, 1975 was issued in exercise of  powers under clauses (1) and (2) of Article 371-D of the  Constitution  empowering  the  State  Government  under  sub- paragraph (1) of paragraph 3 of the said order to organize  any class of posts in the civil services under the State into  different local cadres in different parts of the State within  27 months from the commencement of the said order. Under  proviso  to  sub-paragraph  (1)  it  is  stated  that  notwithstanding  the  expiration  of  the  said  period,  the  President may by order, require the State Government whenever  he considers it expedient to do so to organize any class of  posts in civil services of and any class of civil posts under  the State into different local cadres or different parts of  the State. By Presidential order, 1975 the State Government  has not been empowered to pass any order under sub-paragraph  (1) of paragraph 3 or paragraph 8 with retrospective effect.  Apart  from  the  fact  that  the  State  Government  was  not  empowered by the Presidential Order, 1975 to pass any orders  with  retrospective  date,  in  absence  of  any  terms  or  the

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intention to make it retrospective date, the G.O.Ms. No.124  dated  7th March,  2002  cannot  be  given  effect  from  a  retrospective date.

20. In any case, the State Government cannot pass any order  amending a procedural law regarding reservation in the matter  of selection to posts, with retrospective effect, once the  procedure of selection starts.

21. For  the  reasons  aforesaid,  we  hold  that  the  G.O.Ms.No.124 dated 7th March, 2002 is prospective and is not  applicable to the process of selection started pursuant to  Advertisement No.10 of 1999 including the 973 executive posts  which were ordered to be filled up by the High Court pursuant  to the advertisement. The Tribunal erred in directing the  APPSC to re-caste the merit list pursuant to G.O.Ms.No.124  dated 7th March, 2002. The High Court by the impugned judgment  dated 27th December, 2004 rightly held that the order passed  by the Court will not affect the appointments already made to  the executive post between 2001-2002 but erred in holding  that  the  selection  is  to  be  made  in  accordance  with  G.O.Ms.No.124 dated 7th March, 2002  

22. For  the  reasons  aforesaid,  we  set  aside  the  orders  passed by the Andhra Pradesh Administrative Tribunal and the  impugned common judgment dated 27th December, 2004 and the  impugned  common  order  dated  28th December,  2004  passed  by  the Division Bench of the High Court of Judicature, Andhra

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Pradesh at Hyderabad in Writ Petition Nos. 20106 of 2004,  21558 of 2004, etc.

In  view  of  the  foregoing  discussions,  we  direct  the  respondents to fill up the rest of the posts including the  posts of Municipal Commissioners Grade-III, Asstt. Commercial  Tax Officers, Asstt. Labour Officers in executive cadre and  Asstt. Section Officers in non executive cadre, which are  vacant,  as  per  President  Order,  1975  and  the  Government  orders in consonance with the Presidential Order which were  prevailing  in  the  year  1999  when  the  Advertisement  was  issued. The inter se seniority between the persons appointed  in the 1st round and the persons appointed afterwards in the  same  cadre,  if  any,  shall  be  decided  by  the  appropriate  authority  in  accordance  with  the  rules,  depending  on  the  merit ranking obtained by them.  

23. We  direct  the  authority  to  complete  the  process  of  selection expeditiously preferably within three months. The  appeals  are  allowed  with  aforesaid  observations  and  directions.

………………………………………….J.                (SUDHANSU JYOTI MUKHOPADHAYA)

………………………………………….J. NEW DELHI;                (V. GOPALA GOWDA) FEBRUARY 18, 2015.