Supreme Court Dismisses Appeals by Andhra State Officers and Upholds High Court Quashing of Central Government Order Dated 22/24 December 1966 for Denial of Natural Justice. The Central Government's modification of integration order without hearing Telengana officers violated Section 115 of the States Reorganisation Act, 1956, which requires fair opportunity before changing service conditions.

Writ petitions challenging the Central Government's order dated 22/24 December 1966 on equation of posts and integration of services of Public Works Department officers in Andhra Pradesh following state reorganisation.

The appellants (Andhra State officers) sought to set aside the High Court judgment quashing the 1966 Central Government order and the High Court's finding that their temporary promotions were stop-gap and fortuitous; the respondents (Telengana officers) sought to uphold the quashing of the 1966 order for violation of natural justice.

The Central Government modified its earlier decision on integration after representations from Andhra officers without affording Telengana officers an opportunity to be heard, leading to writ petitions by both groups.

The Andhra Pradesh High Court initially dismissed Telengana engineers' writ petitions in July 1964; this Court directed the Central Government to finalise the integration; the Central Government issued decisions in December 1965 and December 1966; the High Court by common judgment dated 23 February 1968 quashed the 1966 order for denial of natural justice and held that Andhra officers' temporary promotions were stop-gap and fortuitous.

Whether the Central Government order dated 22/24 December 1966 was invalid for denial of natural justice because Telengana officers were not given an opportunity to make representations. Whether the retrospective regularization and relaxation of rules by the State Government amounted to a change in conditions of service requiring prior Central Government approval under the proviso to Section 115(7) of the States Reorganisation Act, 1956. Whether the High Court's observations that Andhra officers' temporary promotions were stop-gap and fortuitous arrangements were correct and necessary.

The appellants (Andhra officers) contended that their temporary promotions and retrospective regularization were valid and that the Central Government's modification order of 1966 correctly accepted such regularization. The respondents (Telengana officers) contended that the Central Government's 1966 order was passed without hearing them, in violation of natural justice, and that the retrospective regularization altered service conditions to their detriment without prior Central Government approval. The Union of India supported its decision but the High Court found that natural justice was not complied with.

The proviso to Section 115(7) of the States Reorganisation Act, 1956 imposes a limitation on the State Government not to vary the conditions of service applicable immediately before 1 November 1956 to the disadvantage of affected persons without prior approval of the Central Government. The Central Government has exclusive power to determine whether retrospective regularization and relaxation of rules amounts to such a change in conditions of service or denial of fair and equitable treatment. Any modification of an integration order by the Central Government must comply with principles of natural justice, requiring an opportunity for affected officers to make representations before a final decision is taken.

The High Court correctly held that the order of the Central Government dated 22/24 December 1966 was made without giving the Telengana area Officers any opportunity of making representation against the course of action which the Central Government adopted by that decision. The order was liable to be quashed. It will be within the province of the decision of the Central Government under s. 115 of the Act in regard to the integration of services and ensuring fair and equitable treatment to all persons to determine the retrospective regularisation and relaxation of rules will amount to any change in the conditions of service or will result in denial of fair and equitable treatment to any of the persons affected thereby. The observations of the High Court on the temporary service of the Andhra Officers to be stop-gap or fortuitous arrangements must therefore be set aside.

The State of Andhra Pradesh was formed on 1 November 1956 under the States Reorganisation Act, 1956 from the former Andhra State and the Telengana area of the former Hyderabad State. In April and May 1956, a Conference of Chief Secretaries laid down principles for equation of posts and seniority. The Central Government directed the State Government in September 1956 to prepare a provisional common gradation list. Advisory Committees were constituted. In November 1961, the State Government prepared a provisional common gradation list of gazetted officers. Telengana engineers challenged the list in the Andhra Pradesh High Court; the High Court dismissed the writ petitions in July 1964. On further proceedings, the Central Government was asked to finalise integration. The Central Government issued a final decision on 24 December 1965, holding that retrospective regularization by the State was invalid without prior approval. After representations from the Andhra Pradesh Government, the Central Government modified the decision by order dated 22/24 December 1966. Both Telengana and Andhra officers filed writ petitions. The High Court by common judgment dated 23 February 1968 quashed the 1966 order for denial of natural justice and held that Andhra officers' temporary promotions were stop-gap and fortuitous. The Andhra officers appealed to the Supreme Court by certificate, leading to this judgment on 23 August 1972.

• The States Reorganisation Act, 1956: Section 115, Section 115(5), Proviso to Section 115(7)
• Constitution of India: Article 309