IMPORTANT POINT
No anology could be drawn between contract employees appointed under Rule 3(1) of Karnataka Education Department Services (Recruitment to Secondary School Assistants Grade-II Cadre and Physical Education Teachers Grade-II (Special Recruitment) Rules, 1983 and Local Candidates under Rule 41A of Karnataka Civil Service Rules to uphold the contention that contract employees be treated as local candidates for the purpose of recruitment.

JUDGMENT

Rajendra Babu, J.-Leave granted in SLP (C) Nos. 6456-6606/2000.

2. The State of Karnataka appointed stipendiary graduates or local candidates by making special provisions in exercise of the powers conferred by the proviso to Article 309 of the Constitution (vide notification No. DPAR 50 SDE 81(A) dated June 25, 1982). Similarly, in different departments recruitments were made because a large number of vacancies stood unfilled. In supersession or addition to other Rules, the Karnataka Education Department Services (Recruitment to Secondary School Assistants Grade-II Cadre and Physical Education Teachers Grade-I) (Special Recruitment) Rules, 1983 were framed, which were notified on September 28, 1983.

3. The respondents were recruited under these rules and Rule 3(1) of the said Rules provided that the appointment shall be on contract basis for a period not exceeding one year or until the candidates selected by the recruitment committees report to duty whichever is earlier and that their appointment shall stand terminated on the expiry of the said period. The terms of contract were spelt out by a separate order (No. ED 296 DPI 83 dated December 1, 1983) issued by the State Government. The selection was to be made by a committee on the basis of the marks obtained in the qualifying examination. The appointment of the candidates on contract basis shall be on the consolidated salary equal to Rs. 10 less than the minimum of the pay scale attached to the post.

4. Subsequently, regular recruitment took place in which the respondents were also participants and they were regularly recruited into the Government service and have been appointed in the category of posts of Primary School Teachers, Secondary School Teachers, Government Junior College Lecturers, First Grade College Lecturers, Lecturers in Polytechnics, Lecturers in Government Engineering Colleges. Thereafter, the State Government framed certain rules known as the Karnataka Civil Services (Absorption of Persons Appointed on Contract Basis in the category of posts of Primary School Teachers, Secondary School Teachers, Government Junior College Lecturers, First Grade College Lecturers, Lecturers in Polytechnics, Lecturers in Government Engineering Colleges, into State Civil Services) (Special) Rules, 1990 (hereinafter referred to as the Absorption Rules ). It was provided therein that irrespective of the general recruitment rules and other rules in that regard a contract teacher will be absorbed in the category of post to which he was initially appointed on contract basis other than the posts of Lecturers in Government Junior Colleges. It was also provided therein that the initial basic pay of a contract teacher absorbed under these rules shall be fixed in the scale of pay of the category of the post to which he is appointed at a stage equal to the basic pay that he would have been eligible to draw had he been appointed to such post as a regular candidate in accordance with the rules of recruitment with effect from the date of his appointment as a contract teacher. It was however made clear that he would not be entitled to any arrears of salary for the period of service rendered by him prior to the date of absorption under these rules.

5. Application had been filed before the Karnataka Administrative Tribunal (hereinafter referred to as the Tribunal ) seeking for direction to the authorities making the selection so that the petitioners therein were to be treated as "local candidates" for the purpose of recruitment, as was done by the Tribunal in certain other similar cases. The Tribunal in Parameshwarappa s case further elucidated that such persons who had been appointed after selection by the DLRC on a regular basis will be entitled to have their pay fixed by taking note of the service rendered by them on contract basis and necessary benefit of increment be given by stepping up the salary. When this order was challenged before this Court, the same was dismissed on the grou