Judgment

BHARUCHA, J.- Special leave granted.

2. Heard.

3. This appeal requires a true and correct interpretation to be placed upon Regulation 3 of the Gujarat Housing Board Services Classifications of and Recruitment Regulations, 1981. The appeal arises thus: The first appellant is an association of the Engineers of the Gujarat Housing Board (the second respondent). The second and third appellants are employees of the Housing Board. They filed a writ petition in the Gujarat High Court challenging the direction given to the Housing Board by the State of Gujarat (the first respondent) to appoint to the post of Assistant Housing Commissioner (Technical) an officer on deputation from the Building and Communication Department of the State Government. The writ petition was dismissed. The High Court relied upon the fact that the decision to appoint to the said post an officer of the rank of Superintending Engineer from the Building and Communication Department of the State Government had been taken by the State Government for reasons stated in its affidavit in reply and the said decision could not be said to be unjust or arbitrary or based on irrelevant or extraneous considerations.

4. The Gujarat Housing Board Services Classifications of and Recruitment Regulations, 1981 are made under the provisions of Section 74(c) of the Gujarat Housing Board Act, 1961 (now called "the said Act") with the previous sanction of the State Government. Regulation 3 in Part V thereof prescribes the qualifications, age, experience and procedure relating to recruitment to the post of Assistant Housing Commissioner (Technical), now called Superintendent Engineer. The relevant portion thereof reads thus:

"The post may be filled in either:

(l)(a) by promotion of employees working as Executive Engineer in Boards Higher Services on the basis of seniority cum merits,

OR

(b) by calling Executive Engineer on deputation from State Building and Communication Department.

OR

(c) by direct selection from amongst the candidates called for interview;

(2) To be eligible for promotion, Executive Engineers (i) should have rendered at least 4 years continuous service as Executive Engineer;

On promotion, the officer will be on trial for one year on expiry of which he may be finally promoted or his trial may be extended or he may be reverted to the post from which he was promoted as the case may be looking to his performance during the trial period. On the expiry of the extended trial period, his case will be again reviewed and dealt in same manner.

(3) If a suitable candidate is not available for appointment by promotion from the Executive Engineers of the Board, a panel of names of Executive Engineers having at least 4 years standing experience from the State B & C Department may be called for, with a proviso that no departmental inquiry should be pending against them. One of the names will be selected by the Board and the selected candidate will be appointed by the Board.

(4) To be eligible for appointment by direct selection a candidate

(i) should be not more than 45 years of age;

(ii) should possess a Bachelors Degree in Engineering of a recognised University or an equivalent qualification recognised by Board, and

(iii) should have at least 10 years, practical experience of planning and building construction work in State or Central Government or a local authority or a Corporation owned or controlled by such Government or in renowned private firms of Engineers and Contractors in a responsible post.

Officers in Boards Higher Service who are eligible for direct selection as above, can also apply along with others.

* * *"

5. The contention on behalf of the appellants is that no appointment on deputation can be made to the said post of an officer serving in the State Governments Building and Communication Department until and unless it has been found that no suitable eligible candidate is available for appointment to the said post by promotion from among the eligible Executive Engineers of th