JUDGMENT

FATHIMA BEEVI, J.:- Special Leave granted.

2. These appeals raise identical question involving the interpretation of the Andhra Pradesh Panchayat Samithis and Zilla Parishads Ministerial Service Rules 1965 in relation to seniority and promotion. The Rules under the Andhra Pradesh Panchayat Samithis and Zilla Parishads Act 1959 were issued under G.O. Ms. No. 303 P.R. dated 15-3-1965. The service consists of categories of posts as under:-

Category I:- Managers etc. Zilia Parishads.

Category II:- Superintendents in Zilla Parishads and Panchayat Samithis.

Category Ill:- Secretarial Assistants, Revenue Officers, Endowment Officers, Upper Division Clerks and Senior Accountants in Zilla Parishads and Panchayat Samithis.

Categor IV:- Loans Inspectors, Lower

Division Clerks and Junior Accountants-cum-Store Keepers etc.

3. Rule 3 so far as material reads thus:-

"3. Appointment:- Appointment for the categories specified in column (1) below shall be made by the method specified in the corresponding entry in column (2) thereof.

Category Method of Appointment

(1) (2)

I. (i) & (ii) Managers in Zilla Parishads and Panchayat Samithis By promotion from Category II Note : (i) Assistants working in Andhra Pradesh Secretariat shall also be eligible to hold the posts on deputation for a specified period to be prescribed by the Government.

II. Superintendents, Zilla Parishads and Panchayat Samithis By promotion from classes (i) to (iv) in Category III.

III. Classes (i) to (iv) By Promotion from classes (i) to (iv) in Category V."

4. Rule 4 prescribes the qualifications for appointment to the various categories. Under this rule, Account Test for the employees of local bodies or an equivalent test in addition to the general educational qualification specified is prescribed against categories 1, 2 and 3. As the Account Test became a new test from 15-3-1965 to the employees of Panchayat Samithis and Zilla Parishads working in Telangana area, the Government granted two years time from 7-8-1967 to 7-8-1969 to enable them to pass the Account Test. The period was extended by two more years in 1969 and for a further period of two years in 1971. Finally, the rule itself was amended extending the time up to November 1974."

5. Proviso to Rule 4 as amended reads thus:-

"Provided further that the services in the category of Upper Division Clerks of such or the Lower Division Clerks working in Panchayat Samithis and Zilla Parishads who were temporarily promoted as Upper Division Clerks and Senior Accountants prior to 15th March, 1965, but passed the prescribed Account Test before 30th November, 1974 i.e. within the time granted to them by executive orders issued from time to time by the Government to pass the said Account Test shall be regularised from the date of their first temporary promotion or from a subsequent date:

Provided also that the regularisation of service under the foregoing proviso shall not affect the seniority and promotions to higher posts ordered in accordance with rules in favour of those who passed the said Account Test before the 7th August, 1967."

6. Appellants in Civil Appeals Nos. 4085 & 4086 of 1984 were appointed as Lower Division Clerks in Zilla Parishad, Medak during the period of 1959 to 196 1. They were promoted to the regular vacancies of Upper Division Clerks during the period of 1960 . 1963. The respondents were also appointed as Upper Division Clerks before 1965.

7. The appellants who were promoted as Upper Division Clerks before 15-3-1965 passed the Account Test within the extended period after 7-8-1967. The respondents, however, acquired the qualification by passing the test before 7-8-1967. The appellants were in due course promoted as Superintendent and Manager.

8. Seniority list of Upper Division Clerks was prepared by proceedings dated 5-6-1975. In the seniority list, the appellants were placed above the respondents. In February 1976, the appellant No. 1 was promoted as Superintendent along with two others aria subsequently th