Supreme Court Allows Appellant in Seniority Dispute over Absorption of Divisional Accountants; Seniority Fixed by Date of Passing Divisional Accounts Test Under Manual Paragraph 320 and State Service Rules. The Court Held That Higher Pay or Responsibility Does Not Confer Seniority, and Directed the State Government to Reckon Inter Se Seniority Based on the Date of Passing the Accounts Test.

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Case Note & Summary

The Supreme Court of India adjudicated a dispute concerning the inter se seniority of Divisional Accountants who were absorbed into the Andhra Pradesh State service from the Accountant General's office. The appellant, J.G. Prasada Rao, challenged the seniority assigned to certain respondents in the Grade II post of Divisional Accountant. The Government of Andhra Pradesh had taken over the cadre of Divisional Accountants from the Accountant General pursuant to G.O.Ms. No. 304 dated November 20, 1979, and constituted the Andhra Pradesh Divisional Accountants Service under statutory rules framed under Article 309 of the Constitution. Under the Manual of the Accountant General, Paragraph 320, the relative seniority of Divisional Accountants was to be determined by the date of passing the Divisional Test Examination, with inter se seniority among candidates passing the same test based on aggregate marks. The appellant had passed the Divisional Accounts Test earlier than some of the contesting respondents, even though those respondents held higher pay scales or were promoted to Grade I before him. The appellant contended that seniority should be reckoned from the date of passing the test, while the respondents relied on paragraph 8 of G.O.Ms. No. 304, claiming that their higher scale and promotion entitled them to seniority. The Court examined the relevant government orders, statutory rules, and the Manual. It held that the date of passing the Divisional Accounts Test was the sole criterion for inter se seniority in the feeder cadre of Grade II, and that higher pay or responsibility was irrelevant. The Court directed the Government to reckon inter se seniority accordingly and allowed the appeal without costs. Connected appeals were also allowed in view of the judgment in the main appeal.

Headnote

A) Service Law - Seniority Determination - Inter se seniority of absorbed Divisional Accountants - Constitution of India, Article 309; Andhra Pradesh Divisional Accountants Officers Service Rules, 1980, Rule 6 - The dispute pertained to seniority among officers absorbed from the Accountant General's office into the State service, where some officers held higher pay scales or Grade I status but passed the Divisional Accounts Test after the appellant. The Court held that inter se seniority in Grade II must be determined by the date of passing the Divisional Accounts Test, as prescribed by Paragraph 320 of the Manual of the Accountant General, and not by higher pay or responsibility (Paras 8-13).

B) Service Law - Absorption and Conditions of Service - Effect of Government Orders on Seniority - Andhra Pradesh Divisional Accountants Officers Service Rules, 1980, Note (1) - The absorption terms under G.O.Ms. No. 304 did not alter the seniority principle; officers who passed the test earlier remained senior even if some were later promoted to Grade I based on higher scales. The Court rejected the respondents' reliance on paragraph 8 of G.O.Ms. No. 304 to claim seniority by virtue of higher grade (Paras 7-12).

C) Service Law - Interpretation of Administrative Instructions - Binding nature of Manual - Manual of the Accountant General, Paragraph 320 - Paragraph 320 prescribes that relative seniority of Divisional Accountants be determined with reference to the date of passing the Divisional Test Examination, with inter se among same batch by marks. The Court directed the State Government to apply this criterion for reckoning seniority in the absorption list (Paras 10-14).

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Issue of Consideration

Whether the inter se seniority of Divisional Accountants absorbed from the Accountant General's office into the Andhra Pradesh State service should be determined by the date of passing the Divisional Accounts Test as per Paragraph 320 of the Manual of the Accountant General, or by the higher pay scale/grade held by some officers, notwithstanding their later passing of the test.

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Final Decision

Appeal allowed; Government directed to reckon inter se seniority with reference to date of passing Accounts test; connected appeals allowed in view of same judgment; no costs.

Law Points

  • Inter se seniority of absorbed Divisional Accountants determined by date of passing Divisional Accounts Test
  • higher pay or responsibility irrelevant
  • Manual paragraph 320 governs seniority
  • statutory rules under Article 309 recognise feeder post and promotion criteria
  • date of passing test is sole criterion for inter se seniority
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Case Details

1995 LawText (SC) (09) 90

C.A. No. 4172 of 1995 with C.A. Nos. 8417-18 and 8419 of 1995 (Arising out of SLP (C) Nos.7050-7051/95 and 9506/95)

1995-09-07

K. Ramaswamy, B.L. Hansaria

1996 SCC (7) 51, JT 1995 (7) 34, 1995 SCALE (5) 459

J.G. Prasada Rao etc. etc.

The Secretary to Government and Ors. etc. etc.

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Nature of Litigation

Civil appeal challenging seniority determination among Divisional Accountants absorbed from Accountant General's office into State service of Andhra Pradesh.

Remedy Sought

Appellant sought declaration that his seniority should be reckoned from date of passing Divisional Accounts Test, making him senior to certain respondents who passed later, and consequential direction for inter se seniority.

Filing Reason

Dispute arose over inter se seniority in Grade II post of Divisional Accountant after absorption into State service, where some officers had higher pay/grade but passed Divisional Accounts Test after appellant.

Issues

Whether seniority of absorbed Divisional Accountants should be determined by date of passing Divisional Accounts Test as per Manual paragraph 320, notwithstanding higher pay or promotion as Grade I officers, or by date of absorption/grade status.

Submissions/Arguments

Appellant argued that passing Divisional Accounts Test earlier makes him senior even if respondents held higher posts/pay; seniority should be from date of passing test. Respondents argued that under G.O.Ms.No.304 para 8, S.A.S. Accounts Officers/S.A.S. passed Auditors entitled to Grade-I due to higher scale, even if passed test later, so not juniors.

Ratio Decidendi

Inter se seniority of Divisional Accountants taken over from Accountant General to State service is to be determined by date of passing Divisional Accounts Test as per Paragraph 320 of the Manual, not by higher pay or responsibilities; absorption terms in G.O.Ms.No.304 para 8 do not alter this for Grade II seniority.

Judgment Excerpts

The inter se seniority shall be reckoned with reference to the date on which the respective candidate passed the Accounts test. The Government, therefore, is directed to reckon inter se seniority with reference to the date of his passing Accounts test and inter se seniority should be determined in the respective Annexures prepared by the State accordingly.

Procedural History

Civil Appeal No.4172 of 1995 was filed before the Supreme Court; Special Leave Petitions Nos.7050-7051/95 and 9506/95 were also filed and leave granted; all appeals were heard together and disposed of by common order.

Acts & Sections

  • Constitution of India: Article 309
  • Andhra Pradesh Divisional Accountants Officers Service Rules, 1980: Rule 6, Note (1)
  • Manual of the Accountant General: Paragraph 320
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