JUDGMENT

Hansaria, J.-This batch of appeals requires us to decide two questions both of whom are relatable to the Railway Board s memorandum dated 15.5.1987 on the subject of recruitment of Traffic/Commercial Apprentices. The two questions are : (1) the purport of the memorandum; and (2) the validity of the same.

2. There has been a cleavage of opinion among the various Central Administrative Tribunals (CATs) of the country. Most of the Tribunals have rejected the understanding of the Union of Inida-the main appellant-relating to the meaning and scope of the memorandum. The Ernakulam Bench of the Tribunal has even regarded the memorandum as invalid.

3. The broad contents of the memorandum may be noted. It brought about some changes in the recruitment of Traffic/Commercial Apprentices-one of the changes being that on and from 15.5.1987 the recruitment of these Apprentices would be made in the pay scale of Rs.1600-2660 (this scale earlier was Rs.1400-2300) and, instead of all the posts being filled up by promotions, ratio of promotees was made 75%, and of the remaining 25%, 10% were required to come through Railway Recruitment Boards and 15% on the basis of Limited Department Competitive Examination. The pre-1987 Apprentices laid their claim for the higher scale of pay on the basis of 1987 memorandum; and it is this claim which has come to be allowed by the majority of the CATs.

4. The appellant has challenged the legality of this view. It has also been contended that the memorandum is not invalid for the reason given by the Ernakulam Bench or, for that matter, any other reason. The learned counsel appearing for the respondents have supported the view taken by the majority of the CATs insofar as the benefit of higher pay scale is concerned. According to them the memorandum is also invalid because of its discriminatory nature and introduction of arbitrary cut-off date.

5. To decide the controversy, it would be apposite to apprise ourselves as to what was the procedure of recruitment before the memorandum in question : and what was really meant by the word Apprentices . We have put this aspect at the forefront because the Tribunals, who have granted the benefit of higher pay scale, have done so, with respect, without applying their mind to the relevant provisions of the Indian Railway Establishment Manual, hereinafter the Manual, dealing with the recruitment of (1) Traffic Apprentices; and (2) Commercial Apprentices. Rule 123 of 1968 Edition of the Manual deals with recruitment of Traffic Apprentices and Rule 127 with Commercial Apprentices. It is apparent from this Manual that the posts to be held by Traffic Apprentices before the 1987 were of : (1) Assistant Station Masters; (2) Assistant Yard Masters; (3) Traffic Inspectors; and (4) Section Controller (in the scale of Rs.1400-2600). Insofar as Commercial Apprentices are concerned, these posts were of : (1) Assistant Claims Inspectors/Supervisors; (2) Assistant Commercial Inspectors; (3) Assistant Rates         Inspectors (Goods and Coaching); and (4) Other Inspectors for outdoor duties. This apart, the pre - 1987 position was that in the Traffic and Commercial Departments, posts in the pay scale of Rs.1400-2300 were being filled up to the extent of 25% by direct recruits, of which 15% were from open market and 10% from Limited Departmental Competitive Examination; and the balance 75% by promotion from lower grade. Further, the term Apprentices was being actually used to cover direct recruits , as distinct from promotees . Another thing to be noted, which again missed the Tribunals in question, is that when the pay scale of Rs.1400-2300 was being paid to Traffic/Commercial Apprentices, the higher pay scale of Rs.1600-2660 was being paid to those who were in a higher grade.

6. Though the above is disputed by Mrs. Sharda Devi, appearing for some of the respondents, we entertain no doubt on this score, because from what has been stated in para 6 of the A