JUDGMENT

K. RAMASWAMY, J. :- Leave granted.

2. These appeals arise from the order of the Andhra Pradesh Administrative Tribunal dated November 5, 1993 made in O.A. Nos. 36875 of 1990 and batch. The appellants were temporarily appointed between March 6, to August 19, 1980 under R. 10(a)(i)(1) of the Andhra Pradesh State and Subordinate Services Rules (for short the Rules) by the Chief Engineer to the Andhra Pradesh Panchayat Raj Engineering Service as Assistant Executive Engineer (Jr. Engineer, as the nomenclature then stood). The A. P. Public Service Commission, (for short the PSC) issued notification in 1981 inviting applications for direct recruitment to the posts of Assistant Executive Engineers. Candidates including those appointed with appellants (for short temporary appointees) had applied for and had taken the written tests and had become eligible for interview, were interviewed between February 18, 1982 and March 9, 1982. In the meanwhile, some supervening events occurred, namely, the candidates who had applied for direct recruitment notified in the year 1978 had approached this Court and assailed the direction given by the Administrative Tribunal to the State Government to regularise the services of the temporary appointees appointed during the years 1973 to 1978, otherwise than in accordance with the process of direct recruitment. This Court granted stay on February 8, 1982 which was vacated on August 2, 1982 and the judgment was rendered on October 21, 1982 in I. J. Diwakar v. Govt. of A. P., (1982) 3 SCC 341. Therein this Court upheld the power of the Government exercised under proviso to clause (3) of Art. 320 dispensing consultation with the PSC for the appointment by direct recruitment and the relaxation given thereof. Consequently the Government was directed to regularise the services of the temporary appointees under Rule 10(a)(i)(1) appointed during the period of the ban on recruitment and to appoint direct recruits of 1978 batch and until then further recruitment was stayed.

3. The PSC had prepared the select list of 1981 recruits and communicated to the Government for appointment. Pending verification of their antecedents, the selected direct recruits and the contesting respondents (for short PSC candidates) were appointed on May 24, 1984 and were put on probation under R. 5 of the Andhra Pradesh Panchayat Raj Engineering Service Rules (for short the Special Rules). At this juncture, it may be relevant to mention that there was no prohibition for the temporary appointees to apply for and seek selection by direct recruitment. As a matter of fact, some of the temporary appointees had applied for and were selected.

4. In the meanwhile, the service association and other persons made innumerable representations to the Government to exercise their power under Art. 320(3) (proviso) to relax the recruitment rules and to regularise their services. The Government in G.O.Ms. 122, G.A.D. dated March 5, 1982 considered the representations and directed them to appear for special qualifying test to be conducted by the PSC in accordance with the Special Rules made applicable to the respective services. But on further representations by G.O.Ms. No. 411 dated August 29, 1983 the Government withdrew the orders that were made in G.O.Ms. No. 122 dated March 5, 1982 and in G.O.Ms. No. 412 G.A.D. dated August 29, 1983. Because of dispensation of consultation with PSC, under proviso to clause (3) of Art. 320 of the Constitution, it was not necessary for the PSC to be consulted in temporary appointments made between August 10, 1979 and March 5, 1992 and such temporary appointees continued as such. In that situation, Government by G.O.Ms. No. 413 G.A.D. dated August 29, 1983 directed regularisation of services of temporary appointees subject to certain conditions of which condition (iii) is relevant for the purpose of this case. It reads as under :-

"(iii) the services of the temporary employees covered under (i) and (ii) though appoint