The Supreme Court allowed several civil appeals against the Andhra Pradesh High Court’s order, which had previously directed the permanent allocation of certain APSRTC employees to their deputational posts in the State of Andhra Pradesh. The Court held that the High Court incorrectly relied on Section 77 of the Andhra Pradesh Reorganisation Act, 2014, which applies to state government employees, rather than Section 82, which governs public sector undertakings like APSRTC and TSRTC.

The Court emphasized that Class III and IV employees are recruited regionally and belong to the Corporation operating in their respective regions post-bifurcation. The Court overturned the High Court’s decision, reinforcing the guidelines of the 2017 Agenda Note, which stated that these employees must remain with their original zones under TSRTC.

1. Background of Bifurcation:

   • Andhra Pradesh was bifurcated on 02.06.2014 under the Andhra Pradesh Reorganisation Act, 2014, resulting in the formation of the State of Telangana.
   • APSRTC was bifurcated into TSRTC (Telangana) and APSRTC (Andhra Pradesh) on 02.06.2015.
   • The issue pertains to the repatriation of Class III and IV employees to their respective zones under TSRTC after deputation to APSRTC zones post-bifurcation.

2. Dispute:

   • The respondents, employees of APSRTC, were temporarily deputed to zones in the newly formed State of Andhra Pradesh.
   • The repatriation orders issued in 2017 by APSRTC sending these employees back to their parent zones in Telangana were challenged in writ petitions.
   • The single judge quashed the repatriation orders, citing that employee allocation guidelines had not been finalized.

3. High Court Ruling:

   • The division bench of the Andhra Pradesh High Court applied Section 77 of the Act and deemed the employees to be permanently allocated to their deputational posts in Andhra Pradesh.
   • The High Court directed that the respondents be treated as APSRTC employees and ruled on their seniority.

4. Supreme Court's Ruling:

   • The Supreme Court found that the High Court incorrectly applied Section 77, which is limited to state government employees, instead of Section 82, which governs public sector employees.
   • The Agenda Note of 2017, outlining the allocation of Class III and IV employees based on regional recruitment, was upheld. These employees were to remain in the region corresponding to their appointment before bifurcation, i.e., with TSRTC.
   • The Court allowed the appeals and set aside the High Court's judgment, stating that the respondents should remain in their parent zones under TSRTC.

Acts and Sections Discussed:

1. Andhra Pradesh Reorganisation Act, 2014:
   • Section 77: Governs the allocation of state government employees to successor states.
   • Section 82: Pertains to the allocation of employees from Public Sector Undertakings and corporations between Andhra Pradesh and Telangana.
2. Constitution of India:
   • Article 371D: Related to local and zonal employment in the context of Andhra Pradesh.

Ratio Decidendi:

The Supreme Court held that Class III and IV employees of APSRTC and TSRTC, recruited regionally, must remain allocated to the corporation operating in their original region post-bifurcation. The High Court erroneously applied Section 77 (state employees) instead of Section 82 (public sector employees). The Agenda Note of 2017, which provided for the repatriation of these employees, was upheld as the governing guideline for employee allocation.