Judgment:

Leave granted. Heard learned counsel.

2. One Rakesh Chand Sood (of whom respondents 1 to 3 are the legal representatives) and Sukh Dev (fourth respondent) were in Naval service from 14.10.1966 to 31.10.1981 and 20.3.1969 to 31.9.1981 respectively. After their discharge/release, they joined the service of State Public Works Department (Electrical Wing) as Junior Engineers with effect from 1.1.1983 and 15.1.1983. Their selection and appointment was under general category.

3. The State made rules providing for reservation for demobilized armed force personnel in Himachal State Non-Technical Services with effect from 28.3.1972 under Demobilised Armed Forces Personnel (Reservation of Vacancies in the Himachal State Non-Technical Services) Rules, 1972 (`1972 Rules for short). Rule 3 provided for reservation of vacancies for released Armed Forces Personnel in non-technical posts, to the extent of 25% for class-I posts, 30% for class-II posts, and 20% for class-III and class-IV posts. The percentage of reservation was subsequently modified. Rule 5 thereof provided that service rendered in the armed forces shall count in full towards seniority and fixation of pay under the state government in the post to which he is first appointed against the vacancy under Rule 3. By a subsequent circular dated 23.5.1975, it was reiterated that various concessions extended by the 1972 Rules were admissible only in the case of released armed forces personnel who were selected against reserved vacancies. It clarified that the concessions cannot be extended to persons appointed to unreserved vacancies. It however provided that where a released army personnel had qualified against a non-reserved vacancy and had been appointed against a general un-reserved vacancy in the first instance, he should be given an option (only at the time of first appointment) to accept a reserved vacancy even if it occurs subsequent to his appointment so as to extend to them the benefit of concessions-seniority and fixation of pay. The said 1972 Rules were amended from time to time.

4. By circular dated 3.5.1983, the state government notified its decision to henceforth reserve 15% vacancies in all posts/services for ex-servicemen, not only in non-technical services, but also in technical services (that is Medical and Engineering Services). Thus, the reservation which was available only against non-technical posts under the 1972 Rules, was available in regard to technical posts also, with effect from 3.5.1983, by an executive order. The said executive order (circular) was subsequently replaced by regular rules made under Article 309, known as the Ex-Servicemen (Reservation of Vacancies in the Himachal Pradesh Technical Services) Rules 1985 vide notification dated 19.9.1986. The 1985 Rules were initially brought into effect from the date of the notification (19.9.1986) but subsequently, amended and given effect from 3.5.1983. Rule 3 thereof provided for 15% of the vacancies to be filled by direct recruitment in Himachal Pradesh Services to be reserved for being filled by recruitment of ex-servicemen. Rule 5 provided that the period of approved military service shall be counted in the case of candidates appointed against reserved vacancies under the rules, for fixation of pay and seniority in that service at the time of first civil appointment against reserved vacancy.

5. By circular dated 11.12.1987, the state government applied the instructions contained in the circular dated 23.5.1975 (referred to in para 3 above) to the ex-servicemen appointed against unreserved posts in technical services with effect from the date the 1985 Rules came into force. Thus the ex-servicemen appointed to general unreserved technical service vacancies, after the 1985 Rules came into effect (3.5.1983), were given the option to accept any reservation vacancy occurring subsequent to his appointment.

6. Rakesh Chand Sood and Sukh Dev, as noticed above, were appointed against general vacancies in