IMPORTANT POINTS
(1) Appointment – Policy decision taken by Government in public interest would prevail over any claim to fill up vacancies.
(2) Appointment – There is no rule of universal application that vacancies must be necessarily filled on the basis of law which existed on the date when they arose – A candidate has a right to be considered in light of existed rules which implies “rule in force” as on the date consideration takes place.

JUDGMENT :

PAMIDIGHANTAM SRI NARASIMHA, J.

1.1 These appeals arise out of the decision of the High Court of Himachal Pradesh allowing the writ petition and directing the State to consider the case of the writ petitioners, Respondents no. 1 to 3 herein, for promotion under Rules that existed when the vacancies arose and not as per the subsequently amended rules. These directions were based on the decision of this Court in the case of Y.V. Rangaiah vs. J. Sreenivasa Rao, (1983) 3 SCC 284. As we noticed a number of decisions of this Court that have followed Rangaiah, and far more decisions that have distinguished it, we had to examine the issue afresh. The question is whether appointments to the public posts that fell vacant prior to the amendment of the Rules would be governed by the old Rules or the new Rules. After examining the principle in the context of the constitutional position of services under the State, and having reviewed the decisions that have followed or distinguished Rangaiah in that perspective, we have formulated the legal principles that should govern services under the State. Applying the said principles, we have held that the broad proposition formulated in Rangaiah does not reflect the correct constitutional position. We have thus allowed the appeals following the principles that we have laid down.

1.2 We will first refer to the facts leading to the present controversy.

Facts:

1.3 The Himachal Pradesh Recruitment and Promotion Rules, 1966¹ [hereinafter referred to as the ‘1966 Rules’] dated 01.03.1966 made in exercise of the powers under Article 309 of the Constitution govern the post of Labour Officer. There were 5 posts of Labour Officers and these were to filled by promotion from (i) factory Inspectors, (ii) labour inspectors and (iii) Sectt. superintendents, being the feeder category. On 20.07.2006, Secretary, Labour and Employment Department addressed a letter to the Labour Commissioner intimating sanction for creation of additional posts in the department which inter-alia included 7 more posts for Labour Officers. As a consequence of the said decision, the total posts for Labour Officers increased from 5 to 12. At this point in time Respondents No. 1 to 3 were working as Labour Inspectors in the service of the State.

1.4 Within four months from the sanction of the additional posts, the 1966 Rules came to be amended on 25.11.2006. Under the New Rules called the H.P. Labour and Employment Department, Labour Officers, Class-II (Gazetted) Ministerial Services R&P Rules, 2006² [hereinafter referred to as ‘the New Rules’] recruitment to the post of Labour Officer is to be made by promotion as well as direct recruitment in the ratio of 75 per cent and 25 per cent respectively. The effect of the New Rules coupled with the 7 new posts for Labour Officers is that, from out of the total number of 12 posts of Labour Officers, the promotional posts increased from 5 to 9 (being 75 per cent) and direct recruitment posts came to 3 (being 25 per cent). Immediately thereafter, the Government issued a notification creating 12 Labour zones in the State.

1.5 It is in the above-referred background, that Respondents No. 1 to 3 approached the Administrative Tribunal challenging the proposed action of the State Government in filling up 25 per cent of the posts of Labour Officers by direct recruitment. They contended that the vacancies arose in July 2006, which is before the promulgation of the New Rules and therefore all the vacancies must be filled only by promotion. By its order dated 24.01.2007, the Tribunal directed the State Government to consider the grievance raised in the Original Application as if it is a representation to it. The representation was considered and rejected by the Government on 27.06.2007. Challenging the rejection, the second Original Application was filed by the Respondents before the State Administrative Tribunal.

1.6 While the matter was pending before the Tribunal, the State Government proceeded further