JUDGMENT

KANIA, J.:— The question raised in the Special Leave Petition is of some importance and hence we grant Special Leave, as prayed for.

2. We have heard Counsel for both the parties and we propose to dispose of the appeal at this stage.

3. The appellants before us are the Union of India, Chief of Air Staff and the Secretary to the Government of India, Ministry of Defence, respectively. Respondent No. 1 was commissioned in the Indian Air Force on July 17, 1954 and had an unblemished service record. In course of time he was promoted to the post of Air Vice-Marshal. He belonged to the Navigation Stream of the Indian Air Force. When he was due to be considered for promotion to the post of an Air Marshal, the policy for promotion to the posts of Air Marshals in the Indian Air Force was changed by the Ministry of Defence Government of India, by its Memo dated October 9, 1987. As per this revised policy which we shall consider in some detail a little later, the prospects of an officer in the Navigation Stream of the Air Force earning a promotion to the post of an Air Marshal were substantially reduced. At the relevant time respondent No. 1 was the seniormost Air Vice-Marshal in the N