Ahmad, J. -- 1. The Bank Note Press, Dewas (for short, 'the Press'), which is a departmental undertaking of the Government of India and is engaged in the sovereign function of the printing of the Bank Notes, was established in 1972. The job of printing and processing of Bank Notes is said to be unique job which requires intensive and highly technical training with impeccable integrity. According to the counter affidavit filed before us, the production of Bank Notes is completed in two parts, namely, (i) printing of Bank Note Sheets and (ii) processing of Bank Note right from cutting of sheets into the sizes of Notes to the final delivery to Reserve Bank of India at their cash chests. The processing wing is known as Control Wing.

2. Since at the time of its establishment, the Press did not have its own cadres of various posts. including the post of Inspector (Control). nor were any Recruitment Rules made for these posts, it approached the Government of India for certain post in the Control Wing being sanctioned and on its request the Government of India sanctioned 20 posts in the grade of Inspector (Control). Since it was felt that it would not be safe or possible to entrust the responsibilities of processing and final supply of Bank Notes to the Reserve Bank f India, to raw hands, namely the new recruits, the press, in consultation with the Ministry of Finance decided to fill up 50% post of Inspector (Control) from qualified and trained persons working in the sister organisations, namely the India Security Press, Nasik Road, as also the Security Paper Mill, Hoshangabad, and the remaining 50% by direct recruitment. Consequently, the Press issued a requisition letter dated 1.6.1972 to the sister organisations, including the India Security Press, Nasik Road, for sponsoring the names of the candidates willing to take up the appointment as Inspector (Control), for which the eligibility criteria was five years' experience as Asst. Inspector (Control).

3. The appellants. who were appointed as Asst. Inspector (Control) at the India Security Press Nasik Road, on the following dates, applied for appointment as Inspector (Control) in the Press and were appointed on those posts on deputation on the dates mentioned below:

S.N. Name (S/Shri) Date of appointment as Date of initial Asstt.

Inspector appointment in Bank (Control) in India Note Press on Security Press, Nasik deputation Road,

1. S.K. Mathur 9.2.1961 9.2.1973

2. M. Laxminarayan 28.7.1961 9.2.1973

3. H.R Sharma 16.1.1962 3.10.1973

4. V.P. Bhalla 22.7.1965 3.10.1973

5. S.B. Deshmukh 7.1.1966 3.10.1973

6. S.B. Khadilkar 7.6.1962 10.1.1974

4. In the meantime, all the appellants were promoted, though notionally, on the posts of Inspector (Control) in their parent department during the period 1974-1975 and confirmed on those posts.

5. The Central Government, by its notification dated 20.11.1974, promulgated the Bank Note Press (Class III posts) Recruitment Rules, 1974, for the posts of Inspector (Control), made by the President under Article 309 of the Constitution. The mode of recruitment indicated in these Rules was that the posts of Inspector (Control) shall be filled up to the extent of 50% by direct recruitment and remaining 50% by promotion. These Rules were amended by notification dated 1st December, 1975. The method of recruitment was altered. It was provided that 25% of the posts would be filled up by direct recruits while the remaining 75% by promotin, failing which, by transfer; failing both by transfer on deputation and failing all, by direct recruitment.

6. The promotion quota was indicated as under:

Promotion

(i) 50% from Head Checkers with 8 years regular service in the grade of Rs. 380-560.

(ii) 25% from Head Clerk, Confidential Secretary, Senior Stenographer and Hindi Translator to the grade of Rs. 425-700 and Dy. Accountant in the grade of Rs. 425-640 with at least 3 years regular service in the respective grades.

7. The posts from which appoi