D.V. Sehgal, J. - (1.) The Department dealing with electricity functioned as the Department of the Punjab Government till the Punjab State Electricity Board was constituted in terms of section 55 of the Electricity (Supply) Act, 1948, in the year 1959 as a body corporate. The terms and conditions of service of the clerical staff of the Electricity Department were governed by the Punjab P.W.D. (Electricity Branch) Provincial Service Class III (Subordinate Posts) Rules, 1952, hereinafter referred to as the Rules. To these rules, rule 3-A was added in the year 1955 which, in substance, provided that there were would be two cadres for clerical posts in the Electricity Department,namely, Secretariat Cadre and the Combined Circle Cadre; that the promotional post in each cadre shall be filled up from the staff of that particular Cadre, to which post the Circle Superintendent of the Combined Circle Cadre shall be eligible to be considered for promotion along-with the Head Assistant in the Secretariat Cadre if they enjoyed identical scale of pay of Rs.225-10-350. In other words, the two Cadres were to have separate seniority list of its staff excepting that of the clerical Superintendent of the Combined Circle Cadre and Head Assistant of the Secretariat Cadre regarding whom there was to be a common seniority list for the purpose of promotion to the post of Superintendent in the Secretariat Cadre, if the other condition regarding pay-scale was satisfied.
(2.) In the year 1956, Chief Engineer (South), Chandigarh, issued a circular letter, annexure P.l/A, to the respective officers and sections/branches working under him that with effect from 30-4-1956 the Head Office of the Electricity Branch had been upgraded from class 1B' to class 'A' and all subordinate offices of the Chief Engineer Electricity Branch had been classified as class 'C'; that in consequence of the change in the status of the Head Office and that of the subordinate offices, it had become necessary to segregate the staff into' two cadres; that after the segregation the Secretariat Cadre and the Combined Circle Cadre would be entirely two separate Cadres; that the staff of one Cadre would normally alone be entitled to promotion to the higher post in that Cadre including that of circle Superintendent in the Combined Circle Cadre and the Superintendent in the Head Office/Secretariat Cadre; and that all members of the staff serving in the Head Office (which had been turned into Secretariat Cadre) and those working in the subordinate offices of the Electricity Branch (that in Combined Circle Cadre) were required to give their option as to whether they would like to be brought or retained on the Secretariat cadre or, as an alternative, on the Combined Circle Cadre.
(3.) On 1-11-1962, the Secretary, Punjab State Electricity Board, issued a letter to the one of the members of clerical staff, a sample whereof is annexed as annexure P.2, subject whereof was 'Offer for permanent Service in the Board, because till then the staff was on deputation with the Board, though the Board had been constituted in the year 1959. To this letter, copy of the Regulation applicable to the erstwhile permanent Government servants of the Electricity Department was attached. In para 2 of the said letter, annexure P.2, the addressee was assured that he would continue to be governed by the said Regulation which would not, at any stage, be altered by the Board to his disadvantage and with this assurance the members of the staff were invited to apply (for being absorbed in the service of the Board) to the Secretary to Government, Punjab, Irrigation and Power Department, with a copy to the Secretary, Punjab State Electricity Board, by 31-1--1963. Para 1 of the attached Regulation, inter-alia, mentioned that 'their other terms and conditions of service will remain the same, as laid down in their respective Service Rules, as they stood on the date of their transfer to the Board and no change will be made in them in future to their disadvantage'.;