( 1 ) CONFLICT of interest between direct recruits and deputntionists from the Government working in the Gujarat State Civil Supplies Corporation Ltd. ( Corporation for short) respondent No. 1 herein has led to the filing of these petitions. The main questions which are raised on behalf of the direct recruits are: (1) all deputationists should be repatriated to their parent departments (2) seniority and promotion should only be given to the direct recruits and in the alternatives (3) the deputationists should be given seniority only from the date of their absorption in the Corporation. Deputationists from the Government on the other hand have prayed for direction against the Corporation to pass appropriate orders for their absorption in the Corporation. Since common questions arise for my determination in these petitions they are disposed of by this common judgment.

( 2 ) FACTS giving rise to these petitions briefly stated are as under: food and Civil Supplies Department of the Government of Gujarat Directorate of Civil Supplies Directorate of Civil Supplies (Accounts) and Directorate of Food were entrusted with the task of regulating and controlling the supply of food-grains and other essential commodities through the public distribution system. There were ills and disadvantages of bureaucratic administration and therefore it was decided to set up the Corporation to do away such ills and disadvantages. The Corporation a wholly owned Government Company incorporated under the Companies Act 1956 came to be constituted pursuant to Government Resolution dated 25/09/1980 passed by the Government of Gujarat (Government for short) in Food and Civil Supplies Department. The Corporation was mainly established for the purpose of undertaking supply of food-grains and other essential commodities through public distribution system in the State of Gujarat. On the establishment of the Corporation certain activities which wore hitherto carried on by the Department of the Government were transferred to the Corporation. The Corporation required staff to run its administration and to carry out the functions entrusted to it. The entire staff of the Corporation in the beginning was supplied by the Government by giving services of employees on loan to the Corporation. Since the activities of the Government were transferred to the Corporation certain employees of the Government were transferred along with the activities and posts 1o the Corporation. Such transfers of Government employees were made from the aforesaid three Directorates and the Food and Civil Supplies Department of the Government. The godowns in the State which were previously under the control of Food and Civil Supplies Department were also transferred to the Corporation. Services of large number of Government employees working in the said godowns were also transferred on deputation to the Corporation. It would thus appear that many Government employees came to be transferred alongwith the activities to the Corporation. This was found necessary because the Corporation had to be manned by experienced staff so that it could discharge its functions efficiently and effectively. The terms and conditions on which the Government employees were transferred on deputation to the Corporation were contained in Resolution dated 20/09/1980 of the Government in Food and Civil Supplies Department which is at Annexure A in Special Civil Application No. 1166 of 1986. Under the said Resolution at the end of one year Government employee on deputation to the Corporation if found suitable by the Corporation was to be given option for absorption in the Corporation on such conditions as the Corporation may decide. The Corporation issued a Circular dated 4/04/1981 inviting options from Government Employees on Deputation (Deputationists for short ). In response to the Circular many deputationists exercised option to be absorbed in the service of the Corporation. The Corporation however; did no