JUDGMENT

G. N. RAY, J.:— Leave granted.

2. The special leave petition is directed against the judgment dated June 13, 1990 in Writ Appeal No. 2927 of 1986 passed by the Division Bench of Karnataka High Court reversing the judgment dated August 8, 1986 passed by the learned single Bench of the said High Court in Writ Petition No. 6645 of 1982. The parties to the special leave application have filed their respective counter-affidavit and affidavit of rejoinder and have also made their respective submissions at the hearing of the matter. For the purpose of appreciating the respective contentions of the parties to the special leave petition, relevant facts may be indicated as hereunder :-

3. The respondent V. Sreekanta was appointed as an Inspector of Excise (Junior) on January 17,1968 vide O.M. No. ADM EST 1 1312/67 dated 11-1-1968 along with 37 other persons. It has been indicated in the said letter 01 appointment that the candidates sponsored by different employment exchanges to the State were appointed as Excise Inspector and posted to the places noted against each of them subject to the conditions noted in the said letter of appointment. It was specifically stated in the said appointment letter that the appointments were made on purely temporary basis and the services were liable to be terminated at any time without notice. All the candidates including the said Sri Sreekanta were required to give a declaration before joining the service to the effect : "I understand that my employment (Excise Inspector) is purely temporary and my services may be dispensed with at any time without any reason being assigned therefor and I accept the employment on this basis." The services of the said respondent Sri Sreekanta and similarly appointed other persons were regularised vide Order No. ADM EST 1 215/21-72 dated October 26, 1971 under the Mysore State Civil Services (Direct Recruitment to Class III Posts) (Special) Rules, 1970. It was specifically mentioned in the said order of regularisation/appointment of the employees including the said Sri Sreekanta that the services of the said employees being local candidates were regularised in the cadre of Inspectors of Excise. The sepcific term of regularisation/appointment is to the following effect :

"The following local candidates who were appointed as Inspectors of Excise are found eligible or appointment to the posts (i.e. Inspectors of Excise) under Rule 3 of the Mysore State Civil Services (Direct Recruitment to Class III Posts) (Special) Rules 1970). They are hereby appointed temporarily as Inspectors of Excise in the pay scales of Rs. 160-350 with effect from the date of this order and are placed on probation for a period of 2 years from the said date."

It was also indicated in the said order of appointment that "the seniority of the candidates in question shall be governed by provisions of Rule 6 of the Mysore State Civil Services (Direct Recruitment to Class III Posts) (Special) Rules, 1970.

4. In the Karnataka State Civil Services (Direct Recruit to Class III Posts) (Special) Rules, 1970 framed under Art. 309 of the Constitution local candidate has been defined as follows :-

"Local candidate" means any person appointed to any of the categories of Class III posts by an appointing authority by direct recruitment otherwise than in accordance with Rule 4 of the Karnataka State Civil Services (General Recruitment) Rules, 1957, or the special rules of recruitment applicable to such category of Class III Posts, but does not include any person :-

(i) Selected by the Karnataka Public Service Commission and appointed to an assumed charge of such post in pursuance of such selection; or

(ii) appointed temporarily for a fixed period or for any item of work; or

(iii) whose services have been terminated due to resignation or an enquiry under the Karnataka Civil Services (Classification, Control and Appeal) Rules, 1957.

Rule 3 of the said Rules deals with Recruitment. It has been provided for in Rule 3 that d