( 1 ) WE have heard the appellant in person, who prepared the case thoroughly and argued very neatly and meticulously, point by point, making analytical presentation of the case with reference to various orders issued by the government and cleared the clogs which had crept in the controversy.

( 2 ) THE government of A. P. had obtained from Accountant General, A. P. , the services of Divisional Accountants, SAS Accountants and SAS passed Auditors on deputation to the State government as Divisional Accountants. A three-member committee appointed to advise the government on the desirability and feasibility to absorb them in the State Service, had recommended for absorption. On consideration thereof, in GOM No. 304 Finance and Planning, dated 20/11/1979, the government had decided to lake them over from the administrative control of the Accountant General, A. P. subject to the terms and conditions stated therein.

( 3 ) THE cadre of the Divisional Accountants was constituted with the Finance and Planning Department of the government to exercise administrative control. It called for options from them which were subject to their accepting service conditions of the State government and the States scale of pay. Admittedly, all the deputationists had opted for and the service was constituted w. e. f. 1/1/1980. In paragraph 8 thereof it was stated that:

"the inter se seniority of Divisional Accountants, Selection Grade Divisional Accountants and Section Officers/sas Divisional Accountants borne on the Accountant Generals cadre of Divisional Test passed Divisional Accountants taken over to the State Service will be fixed in the State cadre based on their inter se seniority as Divisional Accountants in the Accountant Generals gradation list on the date of taking over. Appointment to the posts of Divisional Accountants. Grade I shall be made based on seniority-cum-merit. The present pay and Dearness Allowance actually drawn by the SAS Divisional Accountants/section Officers under the Accountant General on the date of take-over will be protected in the case of those opting to State Service, when fixing their pay in the State DAs scale of pay admissible to them according to their seniority in the gradation list of Divisional Accountants. Their fixation of pay in the State DAs scale will be made on the basis of their notional pay in the central DAs scale which they would have drawn but for their promotion as Section Officers/sas Divisional Accountants under the Accountant General. The difference between the pay and dearness allowance drawn by them under the Accountant General and the pay and dearness allowance admissible to them in the State scale will be given as personal pay to be absorbed in future increments. "

( 4 ) GOMS No. 290 dated 11/11/1982 was issued by the government exercising the power under proviso to Article 309 of the Constitution, constituting the A. P. Divisional Accountants Service under the A. P. Divisional Accountants Officers Service Rules, 1980 which came into force w. e. f. 1/1/1980. In terms of GOMs No. 304, the gradation was as Divisional Accountants Grade I and Divisional Accountants Grade II. The Divisional Accountant Grade I is a promotional post from Divisional Accountant Grade II,and Divisional Accountant Grade II are to be filled up by direct recruitment from open market. In Note (1 thereof, it was stated that "all the Divisional Accountants Officers borne on the Accountant General Office, who exercised their option to come over to the State Service, shall be deemed to have been taken over on 1/1/1980 to the State Divisional Accountants Officers Service against Grade I or Grade II, as the case may be". In Rule 6, the special qualifications, method of recruitment and qualifications have been mentioned as under:we are not concerned with Category II. However, it is relevant to mention about that. With regard to existing SAS passed Divisional Accounts Officers, Accountants or SAS passed Auditors under the administrat