Ruma Pal - (1.) . Leave granted. The first appellant is an Institute incorporated under a statute entitled the Post Graduate Institute of Medical Education and Research, Chandigarh Act 1966 (referred to as the 1966 Act'). The object for setting up the Institute is reflected in the name. The Institute has, broadly speaking, three Departments, namely, Education, Hospital and Engineering Departments. We are concerned with the Engineering Department. The Engineering Department deals primarily with maintenance works of the Institute and includes diverse activities from maintenance of mechanical equipment such as operation tables to collection and distribution of linen. According to the appellants, there are distinct sections dealing with the different kinds of activities, each section having its separate administrative hierarchy. The question to be decided in this appeal is whether in 1980 promotions within the Engineering Department were to be made section wise or cadre wise
(2.) . Section 31 of the 1966 Act empowers the Central Government, after consultation with the Institute, to make rules to carry out the purposes of the Act by notification in the Official Gazette. Some of the matters that the rules may provide for have been listed in Section 31. These include under clause (f) of Section (2) to Section 31: "the number of officers and employees that may be appointed by the Institute and the manner of such appointment"; . Section 32 empowers the Institute to frame Regulations with the prior approval of the Central Government providing inter-alia for: "the tenure of office, salaries and allowances and other conditions of service of the Directors and other officers and employees of the Institute including teachers appointed by the Institute". . On 29th March, 1967, the Central Government, by notification in the Official Gazette made the Post-Graduate Institute of Medical Education and Research, Chandigarh, Rules, 1967 (referred to hereafter as the Rules). Rule 7, sub-sections (1) and (5) (as it stood after an amendment in 1984) read: "7. Creation of Posts and Appointments thereto:- (1) The Institute may create posts, subject to specific provisions . the budget, on such scales of pay as are approved by the Central Government, classify them into grades and specify their designations: Provided that no post above the Associate Professor level shall be created except with the prior approval of the Central Government. (5) The method of recruitment, the age limit, the educational qualifications and other matters relating to the appointment to various posts in the Institute shall be determined in the manner provided for by regulations.
(3.) . According to the appellants under Rule 7, posts were duly designated in Schedule V to the Rules together with, inter-alia, the method of recruitment and qualifications for each post. It is not clear when this was done as the document namely 'Schedule U', relied upon in this connection itself has no date. As it stands today, the third and fourth post in the prescribed hierarchy in the Engineering Department are described as Technologist Grade I/Assistant Engineer and Technologist Grade II. The method of recruitment prescribed to the former is "50% by promotion and 50% by direct recruitment in the respective field". Promotion is to be by selection from "amongst Technologist Grade II having 8 years experience in the respective field". As far as the post of Technologist Grade II posts are concerned the only method of appointment prescribed is by direct recruitment and the eligible criteria is "three years diploma with 5 years' experience in respective field of Engineering". . On 18th April, 1967, Regulations called the Post-Graduate Institute of Medical Education and Research, Chandigarh Regulations, 1967 were brought into force. Of these regulations, regulation 32(1) and the quoted extract of regulation 34 are relevant: "32. Qualification for appointment: (1) Age, experience and other qualifications for appointment to a post shall be as specified by the Institute keeping in view the qualifications and experience prescribed by the Central Government for similar posts before applications of candidates are called for subject to the conditions that non-medical personnel shall not be appointed to the posts of Director and Medical Superintendent. 34. Seniority: Seniority of employees of the Institute in each category shall be determined by the order of merit in which they were selected for appointment to the grade in question, those selected on earlier occasion being ranked senior to those selected later: Provided that the seniority inter se of employees, other than the teaching staff of the Institute shall be determined by the length of continuous service on a post in a particular service." ;