Sen, J.

(1) THIS appeal, by special leave, directed against a judgment of the Delhi High court dated 26/05/1977, in its appellate jurisdiction reversing the judgment and order of a Single Judge of that court dated 13/02/1976 mainly raises the question whether the appointment of respondent 6, Smt. Prem Lata Dewan by the Chandigarh Administration to the post of Principal, government central Crafts Institute for women, Chandigarh, by direct recruitment through the Union public service commission was invalid, as being contrary to the directions issued by the central government under S. 84 of the Punjab Re-organisation Act, 1966.

(2) THE facts giving rise to this appeal, in short, are as follows:

2A. The Union territory of Chandigarh came into existence under Sec tion 4 of the Punjab Re-organisation Act, 1966, comprising of the city of Chandigarh and the territories specified in the second schedule thereto with effect from 1/11/1966 i.e., the appointed day under S. 2(b).

(3) THE government central Crafts Institute for Women, Chandigarh (hereinafter referred to as the Institute) is run and administered by the Chandigarh Administration and is under the control of the Director of Technical Education, Chandigarh. The Institute is meant for teaching women for a period of two years different crafts such as tailoring, stenography, leather work, embroidery, toy-making, automatic machine embroidery etc.

(4) ON the appointed day i.e., on 1/11/1966, the post of Principal in the Institute in the pay scale of Rs.350-900 was held by Smt. Champa Malhotra on deputation from the erstwhile State of Punjab. She was, however, allocated to the State of. Haryana under S. 82. By virtue of S. 83, she continued to hold the same post as such i.e., on deputation.

(5) IN 1973, Smt. Champa Malhotra was reverted to her parent State i.e., the State of Haryana, on account of certain charges of financial irregularities levelled against her by the Chandigarh Administration. At the request of the Chandigarh Administration, in August 1973, the government of Haryana forwarded a panel of three names including that of the appellant, Smt. Swaran Lata Bhandari, for appointment on deputation against the post of Principal of the Institute, but placed her at No. 3 because she was junior to the other two. On 11/09/1973 the Chandigarh Administration appointed the appellant to be the Principal till further orders. This was because the government of Haryana had, in the meanwhile, appointed the appellant as Assistant Director (Women) of the Industrial Training Department, Haryana, on a pay scale of Rs. 350-900 on an ad hoc basis. The names of the other two, though they were seniors to her, could not be considered as according to the government of Indias instructions dated 16/08/1971, they -were not drawing salary in the scale of Rs. 350-900 which was the scale for the Principal of the Institute. According to these instructions, it was contemplated that an officer who comes on deputation to the Chandigarh Administration must man a post, the scale of pay of which is equivalent to the scale of pay which the deputationist is drawing in his or her parent State, as otherwise, it would amount to promotion in rank if this was not done.

(6) MEANWHILE, on 30/08/1973, the Delhi Small Industries Development Corporation addressed a letter to the government of Haryana requesting for the appellant Smt. Swaran Lata Bhandari, by name, for being sent on deputation for appointment as Assistant Manager (Training) of the Corporation, with a request that the government may intimate the date by which she could be relieved to join her new duties with the Corporation. The Chandigarh Administration received a letter from the government of Haryana signifying its assent to her being sent on deputation to the Delhi Small Industries Development Corporation. Accordingly, on 18/10/1973, the Director of Technical Education, Chandigarh forwarded this le