JUDGMENT

NATARAJAN, J.:— These appeals by the State of Andhra Pradesh are directed against the judgments of the Andhra Pradesh Administrative Tribunal, Hyderabad, in R. P. Nos. 1595 and 788 of 1984. Originally, the Government of Andhra Pradesh in purported exercise of its powers under clause 5 of Article 371-D of the Constitution passed an order G.O. Ms. No. 215 dt. 14-7-1986 to annul the two judgments of the Tribunal. On 20-12- 1986. this Court negatived the powers of annulment assumed by the State Government by striking down Cl. 5 of Art. 371-D and the proviso thereto as being opposed to the basic structure of the Constitution. Thereafter, the State has preferred these appeals by special leave against the judgments of the Administrative Tribunal.

2. What falls for consideration in these appeals is whether amended Rule 3 of the Andhra Pradesh Treasury and Accounts Subordinate Service Rules, 1963 (hereinafter referred to as the Rules) is violative of the \ Andhra Pradesh Public Employment (Organisation of Local Cadres and Regulation of Direct Recruitment) Order, 1975 (hereinafter referred to as the Presidential Order) issued on 18-10-1975 by the President of India under clauses I and 2 of Art. 371-D of the Constitution.

3. The Validity of the amended Rule was questioned in the context of certain Assistant Section Officers in the Finance Department of the Government of Andhra Pradesh (hereinafter referred to as the Secretariat Officers) borne on Zone VII being appointed to the post of Sub-Treasury Officers borne on the subordinate offices under the Directorate of Treasuries and Accounts (hereinafter referred to as the Local Cadre) borne on Zones I to IV. For a proper appreciation of the matter, it is necessary that Rule 3 before and after amendment and the Presidential Order are set out.

4. Under R. 3 of the Rule, the posts of Head Accountants and Sub-Treasury Officers could be filled up by any of the following methods : -

(i) By direct recruitment;

(ii) By promotion from category 3, 4 or 5 of Branch 11 or from category 3 of Branch I, III. IV, VI or category 2 of Branch VII; and

(iii) By transfer from among the U. D. Clerks (now called Assistant Section Officers) in the Finance Department of the Secretariat.

5. Rule 3 thus made provision for the posts of Head Accountants and Sub Treasury Officers being filled inter alia by :-

Promotion of Upper Division Clerks of the Directorate of Treasuries and Accounts & Transfer from among the Assistant Section Officers in the Finance Department of the Secretariat,

However as per other Rules, only 4 Assistant Section Officers, at any given time were eligible for being recruited as Sub Treasury Officers.

6. On 18-10-1975, the Presidential Order came to be passed. Para 3 of the Order which enjoins the State Government to organise the posts under the State into different local cadres reads as follows :-

"3. Organisation of Local Cadres (1) The State Government shall, within a period of twelve months from the commencement of this Order, organise classes of posts in the civil services of, and classes of civil posts under the State into different local cadres for different parts of the State to the Extent, and in the manner, hereinafter provided."

Para 5 which deals with local cadres and transfers of persons consists of 2 sub-paras. The para reads as follows -

"5. Local Cadres and transfers of persons -

(1) Each part of the State for which a local cadre has been organised in respect of any category of posts, shall be a separate unit for purposes of recruitment, appointment, discharge, seniority, promotion and transfer, and such other matters as may be specified by the State Government, in respect of that category of post.

(2) Nothing in this Order shall prevent the State,, Government from making provision for -

(a) the transfer of a person from any local cadre to any Office or Establishment to which this Order does not apply, or vice-versa;

(b) the transfer of a person from a local cadre comprising posts in any