JUDGMENT

JAGANNATHA SHETTY J.:— These two appeals by leave are from the judgment of the Delhi High Court dated 12 July 1985 in L.P. A. No. 8 of 1978 (reported in 1986 Lab IC 1817).

2. The first appellant in the first appeal is the Delhi Water Supply and Sewage Disposal Undertaking (the "Undertaking"). The appellants in the next appeal are some of the Executive Engineers in the Undertaking. The common case of the appellants is that the inter se seniority in the cadre of Executive Engineers after their regularisation should reflect the corresponding rankings in the feeding cadre of Assistant Engineers. But the contesting respondents who are also Executive Engineers contend to the contrary. Their case is that the continuous officiation in the post till regularisation should be the basis for determining the seniority. These rival contentions are required to be decided in the appeals.

3. The facts leading to the appeals are not in dispute and may briefly be stated thus:

The Municipal administration of the Union Territory of Delhi is governed by an Act called the Delhi Municipal Corporation Act (the "Act"). The Act came into force on 7 April 1958. S. 92 of the Act provides power -to the Undertaking to appoint certain categories of officers. But that power is not absolute. No appointment to any category of A post shall be made except after consultation with the Union Public Service Commission (the "Commission"). That is the constraint in S. 96. Such consultation, however, is not required if the appointment is for a period not exceeding one year, or to such ministerial posts as may be specified in consultation with the Commission. The consultation with the Commission is required to be made in accordance with the regulation framed under S. 97. The Regulation framed by the Commission has a long title called "The Union Public Service Commission (Consultation) by Delhi Municipal Corporation Regulation 1959. It provides procedure for pormotion as well as direct recruitment of officers in the Corporation.

4. S. 98 confers power to the Corporation to make regulations with regard to conditions of services of officers and other employees appointed by the Corporation and other incidental matters. S. 480(2) states that no Regulation made by the Corporation shall have effect until it has been approved by the Central Government and published in the Official Gazette. S. 480(l) gives interim power to the Central Government to make regulation which the Corporation could have made under S. 98. In exercise of the power under S. 480(l) the Central Government has framed what is termed as the Delhi Municipal Corporation Service Regulation 1959.

5. In 1964 four additional posts of Executive Engineers were created in the Undertaking. The Commissioner after considering the eligibility and suitability of the Assistant Engineers then available in the Undertaking recommended three names : J. P. Gupta, Mahbood Hussain and R. K. Kashyap for being appointed as Executive Engineers. He also intimated that there was nothing on record against those officers. On 17 April 1964 they were appointed as Executive Engineers for a period of one year or till the posts are filled up in consultation with the Commission. These are respondents 1 to 3 in C.A. No. 527/86. Shri S. S. Ramrakhyani (respondent-4) and P. T. Gurnani (respondent 6) were not then in the Undertaking. They were working as Assistant Engineers in the general wing of the Corporation. It appears they were selected as Executive Engineers in the Undertaking on 9 April 1965. They reported as Executive Engineers in the Undertaking on 12 April 1965, after they were relieved from the general wing of the Corporation. They were also appointed for one year in the first instance. On 5 February 1969 their lien was cancelled in the general wing. They were, however, given the benefit of their service rendered as Assistant Engineers for all purposes. The other respondents were also appointed on ad hoc basis on like terms on differe