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).
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.
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


