Case Law
Subject : Service Law - Promotions & Seniority
Amaravati, Andhra Pradesh - In a significant ruling affecting thousands of employees of the erstwhile Andhra Pradesh State Road Transport Corporation (APSRTC), the High Court of Andhra Pradesh has quashed the promotion of 24 Grade-II Conductors to Grade-I. The court, presided over by Justice Gannamaneni Ramakrishna Prasad, held that the promotions were unsustainable in law as they failed to follow the mandatory statutory procedures applicable to government employees following the absorption of APSRTC into the state's Public Transport Department.
The writ petition was filed by 22 senior conductors who challenged a promotion order dated May 15, 2023. They contended that their juniors were promoted ahead of them in a process that was arbitrary and violated established service laws.
The core of the dispute stemmed from the enactment of the Andhra Pradesh State Road Transport Corporation (Absorption of Employees into Government Service) Act, 2019 (Act 36 of 2019). This legislation, effective from January 1, 2020, merged the APSRTC with the newly created Public Transport Department, thereby granting government employee status to all its staff. The petitioners argued that consequently, all service matters, including promotions, must be governed by the A.P State and Subordinate Service Rules, 1996.
The petitioners, represented by Advocate T.S. Venkata Ramana, argued that the APSRTC officials completely disregarded the statutory framework. Their key contentions were:
The APSRTC, represented by Standing Counsel Vinod Kumar Tarlada, defended its actions by citing old circulars from 1997. They argued that promotions were carried out based on a pre-merger system of "Divisional Seniority," treating the Kakinada and Rajahmundry divisions as separate units. They claimed the petitioners were junior to those promoted within their respective Kakinada division.
The corporation also pointed to a recent amendment (Act 41 of 2023) passed in October 2023, which retrospectively stated that old APSRTC service regulations would continue to apply until new rules were framed.
Justice Ramakrishna Prasad rejected the corporation's defence, emphasizing that once employees are absorbed into government service, old internal circulars and informal arrangements become obsolete and cannot override statutory rules.
The court noted in its judgment:
"When once the merger takes place and the Government has issued Proceedings making the Andhra Pradesh State and Subordinate Rules, 1996 applicable... the Official Respondents are not permitted to revert back to any such understandings or arrangements... as the said arrangements have become obsolete and redundant after bringing in into force the Act 36 of 2019."
The court found that the entire promotion exercise was vitiated due to the complete disregard for mandatory statutory procedures. The judgment highlighted that "the impugned Proceeding would indicate that the mandatory statutory procedures have been given a complete go-by by the Official Respondents."
The High Court quashed the impugned promotion order dated May 15, 2023, and issued a series of directives for future promotions:
This judgment serves as a crucial reminder to public sector undertakings undergoing mergers that they must transition fully to the legal framework governing government services, ensuring fairness, transparency, and adherence to the rule of law in all administrative actions.
#APSRTC #ServiceLaw #SeniorityDispute
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