Judgment

K. Venkataswami, J.-This appeal by special leave is directed against the judgment of the Calcutta High Court dated 9.12.92 in FMAT No. 2296/91.

2. The appellants were the writ petitioners in Civil Order No. 7028 (W) of 1988. The circumstances, which made them to approach the High Court, are briefly given below:-

3. Damodar Valley Corporation (for short “DVC”) during its initial stage recruited holders of I.Sc/School Final/Matric Certificate for entry level operatives, i.e., Assistant Operator. For the next level of operatives, i.e., Operators, the Assistant Operators were given promo­tion as Operators based on seniority, experience and result of depart­mental examination. Due to acute shortage of operatives for newly commissioned Power Plants, the Operators were recruited directly in electrical and mechanical discipline to meet the urgent requirements. Later on, the minimum qualification for the post of Assistant Operator (Electrical/Mechanical) was fixed as B.Sc. and during the period 1969-77, the diploma holders in Electrical/Mechanical Engineering were also recruited along with the B.Sc. candidates for the post of Assistant Operator.

4. It was brought to the knowledge of the DVC Management that in civil discipline the diploma holder engineers were being recruited at the level of Assistant Controller equivalent to the Junior Engineer and on that basis the diploma holders, who were recruited as Assistant Opera­tors, were pressing their case to upgrade them directly to the rank of Assistant Controller or equivalent in line with Civil Engineering Cadres. The next stage of promotion for the Operators was to that of Assistant Controller. The Corporation Management, after going through the representations of the Diploma Holder Engineers, accepted their demand in principle and the Director of Personnel, DVC, by his letter dated 21.8.79 conveyed the decision of the DVC Management to the General Secretary, DVC Diploma Holders Engineers’ Association. The decision so conveyed was to the effect that the diploma holders in engineering would be directly recruited at the level of Assistant Controller or equivalent thereto; that the Corporation would upgrade all the existing diploma holders in engineering serving as Assistant Operators/Operators to the level of Assistant Controller within three months and that no recruitment of fresh diploma holders will be made till all the existing diploma holders are so upgraded.

5. Though the DVC took such a policy decision, it could not implement the same for administrative reasons. As there was delay on the part of DVC to implement the policy decision taken in favour of diploma hold­ers, they moved the High Court for implementation of the same. The Calcutta High Court by an order dated 11.2.82 directed the DVC to give effect to their policy decision without further loss of time. When the Writ Petition was pending before the Calcutta High Court, the appel­lants herein, who belonged to the category of degree holders, did not take the trouble of impleading themselves in the said Writ Petition filed by the diploma holders as they were not made parties. On account of non-implementation of the High Court directions, the diploma hold­ers again moved the High Court on the contempt side. The High Court again gave a direction on 13.1.83 to the DVC to give the diploma holder engineers the designation of Assistant Controller or equivalent thereto on or before 31.12.83 with consequential benefits from 11.2.82. Pursuant thereto, the DVC upgraded the diploma holders on operative side in various ex-cadre posts. Subsequently, a Sub-ordinate Engineering Service Cadre of Diploma Engineers in the Engineering Service of the Corporation was created w.e.f. 1.4.83.

6. The appellants, aggrieved by the creation of Sub-ordinate Engineer­ing Service in the Cadre of Diploma Engineers, filed C.O. No. 7028 (W) of 1988 challenging the creation of that cadre.

7. The grounds of attack in the said Writ Petition were that the degree