Judgment

SARKARIA, J. :- These appeals by special leave are directed against two inter-linked judgments of the High Court of Andhra Pradesh. It will be convenient to dispose them of by this common judgment.

2. Respondents 1 to 9 in Civil Appeal No. 1937 of 1972 made a petition (W. P. No. 1145 of 1969) under Art. 226 of the Constitution in the High Court for the issue of a writ of Mandamus directing the present appellants (the General Manager South Central Railway and the Secretary, Railway Board to fix the inter se seniority of the writ petitioners as per original proceedings, dated October 16, 1952, of the Railway Board and to further direct them not to give effect to the subsequent proceedings dated November 2, 1957 and January 13, 1961, of the Board issued by way of "modification" and "clarification" of its earlier proceedings of 1952.

3. During the last World War there was acute shortage of foodgrains and other necessaries of life. At the suggestion of B. N. Rau Committee grain shops for the supply of foodgrains at cost price to its employees were opened by the Indian Railways on an extensive scale throughout the country. Staff for this temporary Grain-Shop Complex was drawn from three different sources :

(i) Temporary employees who on being selected through the joint Selection Commission or Staff Selection Board were initially appointed in the permanent Departments and were thereafter transferred to the Grain shop Department.

(ii) Temporary employees selected by the Selection Board or the Selection Commission for permanent Departments but posted straightway in the Grain Shop Department without being first appointed in the department for which they were originally selected, and

(iii) Temporary employees directly recruited by the Deputy General Managers to the Grain Shop Department from the open market .

4. Respondents 1 to 9 in this appeal belong to category (iii).

5. After the emergency was over, on the recommendation of a highpowered committee, it was decided to gradually wind up the Grain Shop Department and to absorb its staff in the permanent Departments of the Railway. For this purpose, the Railway Board took several policy decisions commencing from August 24, 1948. Of these the first which is relevant as furnishing the background of the decisions in question, is dated February 3, 1949 (Exh. P). whereby the temporary Grain Shop Staff was to be grouped as under :

(a) those who were recruited prior to and were in service on September 15, 1945, and

(b) those who were recruited on or after September 15, 1945.

6. With regard to group (a) it was directed :

"No age restrictions will apply in considering such employees for absorption in other departments, but the minimum educational qualification should not be relaxed.....

There is, however, no objection to the staff concerned being permitted to apply to the Railway Service Commission for employment in posts advertised by them, in which case, for the purpose of the maximum age limit they can deduct the period of their continuous temporary service in the grainshop department from their present age. No employee should be retrenched unless he refused to accept the alternative employment that is offered to him by the Railway Administration."

7. As regards (b) it was laid down :

"Although no undertaking has been given about their continued retention in service, it is the Board s desire that these staff also should be absorbed against suitable vacancies on the same lines as the staff recruited before this date, subject to the condition that neither the restrictions required nor the educational qualifications required nor the restrictions regarding the maximum age limit will be relaxed except in the latter case, to the extent of their continuous temporary service rendered by them to the Railway. Such staff, will, however, be considered for absorption only after the staff referred to an item (a) above have been offered employment."

(e) In all cases other things being equal due consideration shoul