Mathew, J. - (1.) This is an appeal, by special leave, from the judgment of the High Court of Punjab and Haryana dismissing Civil Writ No. 3321/1970 filed by the appellants praying for a direction to implement Clause 4 of the directive of the Union Government dated April 18, 1965, issued under Section 117 of the States Reorganisation Act and allowing the writ petitions filed by the third respondent and others praying for an order quashing the final integrated gradation list published on March, 11, 1966, in so far as it concerned Clerks and that issued on March 20, 1970, in so far as it concerned Assistant/Head Clerk of the Cooperative Department of the State of Punjab.
(2.) In view of the impending merger of the two States of Punjab and Pepsu with effect from November 1, 1956, it was decided on October 26, 1956, by the Joint Integration Council that the offices of the Deputy Registrars of Co-operative Societies, Pepsu area, will form a separate division on the basis of the pattern obtaining in Punjab. In the erstwhile Punjab State, the staff of the Senior and Junior Clerks in the offices of the Deputy Registrars and Assistant Registrars including Camp Clerks to Inspectors and Sub-Inspectors were placed on divisional cadre December, 1949, by an order of the Governor of Punjab and there were two such divisions in Punjab viz., Ambala and Jullundur and the rules applicable to the service were the Punjab Cooperative Subordinate Service Rules, 1936. The result was that after the appointed day i.e. November 1, 1956, the staff of Junior and Senior Clerks of each of the three divisions of the composite state of Punjab continued to be organised as a separate cadre and the officers serving in the office of the Registrar of Co-operative Societies formed a different cadre. In the light of certain observations of the Subordinate Judge, Jullundur, in the judgment dated August 2, 1957, on the basis of a suit filed by some of the Clerks of the Office of the Registrar of Co-operative Societies, the Government of Punjab decided (i) that a joint seniority list must be prepared on State-wise basis instead of divisional basis, in accordance with the Punjab Services Integration Rules, 1957; and (ii) that pending preparation of the joint seniority list, promotion to the posts of Inspectors should be provisional. On October 13, 1962, the Registrar of Co-operative Societies, Punjab, apparently with the approval of the Government, issued a directive to all gazatted officers in the Co-operation Department with regard to the procedure to be followed for promotion of Clerks to the post of Assistant/Head Clerks on the basis of State-wise joint seniority list. A joint seniority list was drawn up on March 1, 1963. The list was passed on to the Services Integration Department as it involved the integration of the services of the Co-operative Departments of the erstwhile States of Punjab and Pepsu. The Integration Department issued a provisional joint seniority list on March 9, 1964, which was circulated to all the members of the staff and representation were invited. After considering the representations received, the final gradation list was drawn up; it was approved by the Central Government and was issued by the Governor of Punjab by the notification dated February 11, 1966. The notification was published in the Punjab Gazette on March 11, 1966. In the meanwhile, the Government of India issued a directive dated April 18, 1965, to the Punjab Government under Section 117 of the States Reorganisation Act. 1956. The terms of the directive were: "1. Promotions made before 27th February, 1961, on the basis of the Provisional Gradation Lists shall not be disturbed. Provided that the claims of officers for future promotions on the basis of seniority determined in accordance with the principles set out hereafter shall not be prejudiced. "2. Promotions made after 27th February, 1961, on the basis of the Provisional Gradation Lists shall be reviewed to the extent necessary to give effect to the claims of officers who are senior in the Final Gradation Lists to the officers who have been promoted. "3. The seniority (of an officer who would have been promoted if the Final Gradation Lists had been available on 1st November, 1956) should be counted from the date on which an officer junior to him has started continuous officiation in the higher post because of his promotion under the Provisional Gradation Lists. "4. The pay of an officer whose promotion and seniority is determined in accordance with clauses (2) and (3) shall be fixed at a stage which he would have attained in the time scale of the higher post had he been promoted to that post on the date set out in Clause (3): Provided that he shall not be entitled to arrears of pay for the period prior to the date of his actual promotion. Action as aforesaid may be taken without prejudice to the principles of promotion on merit wherever applicable".
(3.) The final integrated gradation list published on March 11, 1966, showed the ranks of all personnel from Clerks to Superintendents as on 1-11-1956. Soon after, a joint seniority list of Assistants/Head Clerks as on March 1, 1966, depicting the position in the promoted rank, was issued by the Government of Punjab on May 20, 1966. The correctness of this list was challenged in C. W. No. 1821/1966 before the High Court:the prayer in the writ petition was for an order or direction to implement the directive of the Government of India dated April 18, 1965. On the basis of the concession by the Registrar of Co-operative Societies. Punjab, that the seniority will be modified in accordance with final gradation list, the writ petition was disposed of. Thereafter a tentative joint seniority list of Head Clerks and Assistants was circulated for objections. After considering the objections, the final joint seniority list was issued on March 20, 1970.;