JUDGMENT

FATHIMA BEEVI, J.— Special leave granted.

2. These civil appeals arise from the common judgment dated August 8, 1990 of the High Court of Punjab and Haryana dismissing Letters Patent Appeals against the judgment dated February 12, 1986 of the Single Judge allowing writ petitions filed under Articles 226 and 227 of the Constitution of India. Civil appeals arising out of S.L.P. (C) Nos. 14471-73 of 1990 are filed by the State of Punjab and civil appeals arising out of S.L.P. (C) Nos. 14236-38 of 1990 are filed by Ram Saran and O.P. Singhla, the respondents in the writ petitions. We shall hereinafter refer the contesting respondents Ram Saran and O.P. Singhla as the appellants and writ petitioners as the petitioners for the sake of convenience.

3. In the Punjab Excise and Taxation Department, there were two separate and distinct cadres known as Assistant Excise and Taxation Officers governed under the Punjab Excise and Taxation Department (State Service Class III-A) Rules, 1956 (hereinafter referred to as Class III-A Rules) and the Excise and Taxation Officers governed by the Punjab Excise and Taxation Department (State Service Class II) Rules. Under the Class II Rules, appointment to the cadre of Excise and Taxation Officers was made (a) by direct recruitment to the extent of 50 per cent and (b) by promotion from amongst Assistant Excise and Taxation Officers to the extent of 50 per cent. Under Class III-A Rules, subordinate staff was eligible for promotion to the extent of 50 per cent of the vacancies of Assistant Excise and Taxation Officers and their shares were as under:

(i)

Taxation Inspector

25 per cent

(ii)

Excise Inspector

12 1/2 per cent

(iii)

Ministerial Staff Head Office

6 1/4 per cent

(iv)

Ministerial Staff Sub-Office

6 1/4 per cent.

4. The appellants as well as the writ petitioners joined the ministerial cadre of the Excise and Taxation Department as Clerks and were confirmed as such. The writ petitioners were promoted to the higher post and later appointed as Excise/Taxation Inspectors in 1971-72 by transfers under Rule 7(a)(ii) of the Punjab Excise Subordinate Service Rules, 1943. On such transfer as Excise/Taxation Inspectors, the lien of the writ petitioners was suspended in accordance with the provisions of Rule 3.14(b) of the Punjab Civil Services Rules (Volume I Part I). The appellants continued in the ministerial cadre, Ram Saran as Assistant and O.P. Singhla as Superintendent.

5. The Excise and Taxation Department was reorganised on May 18, 1977. The cadre of Assistant Excise and Taxation Officers was abolished on May 18, 1977 and the Assistant Excise and Taxation Officers were redesignated as Excise and Taxation Officers. Thereafter Class III-A Rules became redundant and inoperative and under Class II Rules, there was no provision for promotion from subordinate staff direct as Excise and Taxation Officers.

6. The government in order to provide avenues of promotion to the subordinate staff decided to make suitable amendment to the Class II Rules on the following terms:

"5. The members of the service shall be recruited in the following manner, namely: (a)

(b) In the case of an Excise and Taxation Officer;

(i) by promotion from amongst the Taxation Inspectors and Excise Inspectors who have an experience of working as such for a minimum period of five years; or

(ii) by promotion from amongst the Superintendents, Assistant, Accountants and Senior Scale Stenographers working in the Excise and Taxation Commissioners Head Office and in the Divisional and District Offices of the Department of Excise and Taxation, Punjab."

7. It was further provided that there will be certain quota for each of the above categories for promotion to the rank of Excise and Taxation Officers. The State Government decided to adopt and apply the draft provision of Rule 5 in the matter of filling up of the vacancies in the cadre of Excise/Taxation Officers before rules could be formally promulgated. Thus on August 22, 1983, Ram Saran and O.P. Sin