JUDGMENT

SAWANT, J.:—Leave granted.

2. The appeal is filed by the General Manager, Northern Railways against the decision dated 14th September, 1988 of the Central Administrative Tribunal, New Delhi.

3. In order to appreciate the grievance of the appellant-Railways against the impugned order, it is necessary to state the relevant facts in brief. Respondent-employees who are Traffic Apprentices belonged to Class 111 Service which has four grades, and the four grades carry different pay-scales as follow:

(i) Grade-I - Rs. 250-380/-

(ii) Grade-II - Rs. 335-425/-

(iii) Grade-III - Rs. 370-475/-

(iv) Grade-IV - Rs. 450-575

The promotion to the alternate grade in the said four grades is by selection. However, the appointments to all the four grades is by promotion. Above Class-III posts, are Class II and Class-I posts. Class-I posts are in Junior Scale grade, Senior Scale grade, Junior Administrative Grade and Senior Administrative Grade. The entire Class-II service is filled by promotion by selection from Class-III service. In Class-1 service, 60 per cent posts -are filled by direct recruitment and 40 per cent by promotion from Class-II service. The recruitment as well as promotion to Class-I is through the Union Public Service Commissin (UPS for short). All these posts are available as a promotion avenue to the incumbents of Class-III posts. Class-III service in the Traffic and Transportation Department consists not only of Traffic Apprentices but also of other categories. However, the promotion to Class-II post is not made exclusively from Class-III service of Traffic and Transportation Department. The incumbents of Class-III service in Commer stead of being first absorbed in the scale of Commercial Department are also entitled to be consider for promotion to Class-II posts. Hence, a combined seniority list of Class-III service both in the Traffic and Transportation Department as well as the Commercial Department is prepared. The promotions to further posts, viz., to Class-I posts and to the posts of Junior Administrative Grade are thereafter made from the incumbents of the Class-II posts.

4. It has further to be noted that the appointments to the posts of Traffic Apprentices is by direct recruitment to the extent of 25 per cent of the annual vacancies in the posts of Section Controllers who are in the grade of Rs. 200-300/ -(PS) and in other posts in the same cadre in the Yard and Station categories. This was according to the scheme prepared by the Railway Board for improving control organisations on the Railways. The Traffic Apprentices thus directly recruited are, on completion of the training, first absorbed as Assistant Movement Inspectors etc. in the grade of Rs. 150-225/- and are eligible for promotion to the grade of Rs. 200/300/ -(PS)/ Rs. 250-380/ -(AS) as Section Controllers, Station Masters, Assistant Station Masters, Yard Masters etc. provided they complete at least one years service in the grade of Rs. 150-225/-. Such promotions are, however, to be considered against 25 per cent of the annual vacancies. The Railway Board had further clarified the position that 25 per cent of the total annual vacancies in the grade of Rs.200-300/-(PS)/Rs.250-380/-(AS) were to be earmarked for Traffic Apprentices, and if during any particular year it was not found possible to utilise this quota fully on account of sufficient number of Traffic Apprentices being not eligible for promotion (owing to their not having completed one years service in the grade of Rs. 150-225/-), the deficit was to be carried forward to the next selection by their further letter of December 18, 1963, the Railway Board directed that with immediate effect, the Traffic Apprentices on successful in stead of being first absorbed in the scale of Rs. 155/225/-(pS)/Rs 205-270/-(AS) as prevalent then.

Thus, it would be clear that Traffic Apprentices were to be directly recruited to fill vacancies to the extent of 25 per cent of the vacancies and the posts of section Contro