# J.G. PRASADA RAO ETC. ETC v. THE SECRETARY TO GOVERNMENT AND ORS. ETC. ETC

- **Citation:** [1995] Supp. 3 S.C.R. 411
- **Court:** Supreme Court of India
- **Decided:** 1995-09-07
- **Case number:** Civil Appeal No. 4172 of 1995
- **Bench:** K. Ramaswamy, B.L. Hansaria
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/j-g-prasada-rao-etc-etc-v-the-secretary-to-government-and-ors-etc-etc-13308
- **Pages:** 8

## Headnote

B
Service Law
Andhra Pradesh Accounts Officers Service Rules, 1980/Manual of
Standing Orders (Administration) of Comptroller and Auditor General of C
India.
Rule 6/Paragraph 32(}-Divisional Accountants-Seniority CriterionDivisional Accountants/SAS Accountants/SAS passed Auditors-Absorbed
in A.P. Divisional Accountants Service-Inter se seniority-Held, date of
passing Divisional test is the criterion-Factum of drawing higher pay or D
holding higher re:iponsibilities i"elevant due to operation of Rules.
The State Government of Andhra Pradesh obtained from Account·
ant General, A.P. the services of Divisional Accountants, SAS Accountants
and SAS passed Auditors on deputation as Divisional Accountants. Later,
the Finance and Planning Department of the Government of Andhra E
Pradesh constituted the cadre of Divisional Accountants consisting of
Divisional Accountants Grade-I and Divisional Accountants Grade-II with
effect from 19.9.1980; and all the deputationists applied. for and were
absorbed in the said cadre on the respective grades with effect from
1.1.1980, G.O. Ms. No. 304 dated 20.11.1979 issued in this regard laying F
down the service conditions, provided that in the cadre of Divisional
Accountants, Divisional Accountant Grade- I would be a promotional post
from Divisional Accountant Grade- II. It also provided that inter se
seniority of the Divisional Accountants borne on the Accountant General's
cadre of Divisional test passed Divisional accountants taken over to the G
State service would be fixed in the State cadre based on their inter- se
seniority as Divisional Accountants in the Accountant General's gradation
list on the date of taking over. The State Government issued G.O. Ms. No.
290 dated 11.11.1982 constituting the Andhra Pradesh Divisional Accounts
Officers Service under the Andhra Pradesh Divisional Accounts Officers
Service Rules, 1980. Rule 6 of the Rules prescribing the special qualifica- H
411
412
SUPREME COURT REPORTS (1995] SUPP. 3 S.C.R.
A
tions, method of recruitment etc. provided that for the promotion to the
post of Divisional Accounts _Officer Grade-I, a candidate should have put
in service of not less than three years as Divisional Accounts Officer
Grade-II and must have passed the required test. The appellant in C.A.
No. 4172 of 1995 claimed that he having passed the test prior to some of
B
c
D
E
F
the respondents was senior to them. His claim was rejected.
In the appeals, filed by the appellant and some others before this
Court, the respondents contended that in view of G.O. Ms. No. 304 providing that SAS Accounts Officer/SAS passed Auditors who held the higher
scale of pay since declared to be entitled to Grade-I, they were entitled
though some of them passed the Divisional test subsequent to the appellant, to be promoted as Grade-I Divisional Accounts Officer and cannot
be made junior to the appellants.
Allowing the appeal, this Court
HELD: 1.1. The appellant had passed the Divisional test earlier to
some of the respondents. He is entitled to be treated as senior to the
respondents who passed the said test subsequent to him, in Grade-II post
of Divisional Accountants in the list sent by the Accountant General for
absorption in the Divisional Accountants Service constituted by the State
Government. The factum of drawing higher pay or holding higher responsibilities became irrelevant due to operation of the A.P. Divisional Accounts Officers Service Rules, 1980. [418-B]
1.2. Passing of Divisional test is a pre-condition for promotion as
Divisional Accounts Officer Grade-I. Paragraph 320 of the Manual of
Standing Orders (Administration) of Comptroller and Auditor General of
India expressly prescribes that the date of passing Divisional test is the
criterion for determination of inter-se seniority. Though the SAS Accounts
Officers or the clerks who passed the SAS examination had held higher
scale of pay or higher responsibility, to determine their inter-se seniority,
G date of passing Divisional test

## Text

J.G. PRASADA RAO ETC. ETC.
A
v.
THE SECRETARY TO GOVERNMENT AND ORS. ETC. ETC.
SEPTEMBER 7, 1995
[K. RAMASWAMY AND B.L. HANSARIA, JJ.]
B
Service Law
Andhra Pradesh Accounts Officers Service Rules, 1980/Manual of
Standing Orders (Administration) of Comptroller and Auditor General of C
India.
Rule 6/Paragraph 32(}-Divisional Accountants-Seniority CriterionDivisional Accountants/SAS Accountants/SAS passed Auditors-Absorbed
in A.P. Divisional Accountants Service-Inter se seniority-Held, date of
passing Divisional test is the criterion-Factum of drawing higher pay or D
holding higher re:iponsibilities i"elevant due to operation of Rules.
The State Government of Andhra Pradesh obtained from Account·
ant General, A.P. the services of Divisional Accountants, SAS Accountants
and SAS passed Auditors on deputation as Divisional Accountants. Later,
the Finance and Planning Department of the Government of Andhra E
Pradesh constituted the cadre of Divisional Accountants consisting of
Divisional Accountants Grade-I and Divisional Accountants Grade-II with
effect from 19.9.1980; and all the deputationists applied. for and were
absorbed in the said cadre on the respective grades with effect from
1.1.1980, G.O. Ms. No. 304 dated 20.11.1979 issued in this regard laying F
down the service conditions, provided that in the cadre of Divisional
Accountants, Divisional Accountant Grade- I would be a promotional post
from Divisional Accountant Grade- II. It also provided that inter se
seniority of the Divisional Accountants borne on the Accountant General's
cadre of Divisional test passed Divisional accountants taken over to the G
State service would be fixed in the State cadre based on their inter- se
seniority as Divisional Accountants in the Accountant General's gradation
list on the date of taking over. The State Government issued G.O. Ms. No.
290 dated 11.11.1982 constituting the Andhra Pradesh Divisional Accounts
Officers Service under the Andhra Pradesh Divisional Accounts Officers
Service Rules, 1980. Rule 6 of the Rules prescribing the special qualifica- H
411
412
SUPREME COURT REPORTS (1995] SUPP. 3 S.C.R.
A
tions, method of recruitment etc. provided that for the promotion to the
post of Divisional Accounts _Officer Grade-I, a candidate should have put
in service of not less than three years as Divisional Accounts Officer
Grade-II and must have passed the required test. The appellant in C.A.
No. 4172 of 1995 claimed that he having passed the test prior to some of
B
c
D
E
F
the respondents was senior to them. His claim was rejected.
In the appeals, filed by the appellant and some others before this
Court, the respondents contended that in view of G.O. Ms. No. 304 providing that SAS Accounts Officer/SAS passed Auditors who held the higher
scale of pay since declared to be entitled to Grade-I, they were entitled
though some of them passed the Divisional test subsequent to the appellant, to be promoted as Grade-I Divisional Accounts Officer and cannot
be made junior to the appellants.
Allowing the appeal, this Court
HELD: 1.1. The appellant had passed the Divisional test earlier to
some of the respondents. He is entitled to be treated as senior to the
respondents who passed the said test subsequent to him, in Grade-II post
of Divisional Accountants in the list sent by the Accountant General for
absorption in the Divisional Accountants Service constituted by the State
Government. The factum of drawing higher pay or holding higher responsibilities became irrelevant due to operation of the A.P. Divisional Accounts Officers Service Rules, 1980. [418-B]
1.2. Passing of Divisional test is a pre-condition for promotion as
Divisional Accounts Officer Grade-I. Paragraph 320 of the Manual of
Standing Orders (Administration) of Comptroller and Auditor General of
India expressly prescribes that the date of passing Divisional test is the
criterion for determination of inter-se seniority. Though the SAS Accounts
Officers or the clerks who passed the SAS examination had held higher
scale of pay or higher responsibility, to determine their inter-se seniority,
G date of passing Divisional test is a criterion. The inter-se seniority shall be
reckoned with reference to the date on which the respective candidates
passed the Divisional test. (417-H; 418-A]
1.3. The Government would reckon inter-se seniority with reference
to the date of appellant's passing the Divisional test and inter-se seniority
H should be determined in the relevant records prepared by the State accord-
J.G. PRASADA RAO v. SECY. TO GOVT.
413
ingt,y. [ 418-C]
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4172 of
1995 Etc.
From the Judgment and Order dated 23.1.95 of the Andhra Pradesh
A
Administrative Tribunal, Hyderabad in 0.A.NO. 5557 of 1993.
B
J.G. Prasada Rao-in-person for the Appellant.
A. Subba Rao, A.D.N. Rao and K. Ram Kumar for the Appellants.
D. Rama Krishna Reddy, and Mrs. D. Bharati Reddy for the C
Respondents.
The following Order of the Court was delivered :
CA. 4172/95
We have heard the appellant in person, who prepared the case
thoroughly and argued very neatly and meticulously, point by point, making
analytical presentation of the case with reference to various orders issued
by the Government and cleared the clogs crepLinJhe controversy.
D
The Government of Andhra Pradesh had obtained from Accountant E
General, A.P., the services of Divisional Accountants, SAS Accountants
and SAS passed Auditors on deputation to the State Government as
Divisional Accountants. A three member Committee appointed to advice
the Government on the desirability and feasibility to absorb them in the
State service, had recommended for absorption. On consideration thereof,
F
in G.O. Ms. 304 Finance and Planning, dated November 20, 1979, Government had decided to take them over from the administrative control of the
Accountant General, A.P. subject to the terms and conditions stated
therein.
The cadre of the Divisional Accountants was constituted with the G
Finance and Planning Department of the Government to exercise administrative control. It called for options from them which were subject to
their accepting service conditions of the State Government and the State's
scale of pay. Admittedly, all the deputationists had opted for and the
service was constituted w.e.f. January 1, 1980. In paragraph 8 thereof it was H
414
SUPREME COURT REPORTS (1995) SUPP. 3 S.C.R.
A
stated that
B
c
D
E
"The inter se seniority of Divisional Accountants, Selection Grade
Divisional Accountants and Section Officers/S.AS. Divisional Accountants borne on the Accountant General's cadre of Divisional
Test passed Divisional Accountants taken over to the State Service
will be fixed in the State cadre based on their inter se seniority as
Divisional Accountants in the Accountant-General's gradation list
on the date of taking over. Appointment to the posts of Divisional
Accountants, Grade-I shall be made based on seniority-cum-merit.
The present pay and Dearness Allowance actually drawn by the
S.A.S. Divisional accountants/Section Officers under the Accountant-General on the date of take over will be protected in the case
of those opting to State service, when fixing their pay in the State
D.A's scale of pay admissible to them according to their seniority
in the gradation list of Divisional Accountants. Their fixation of
pay in the State D.A's scale will be made on the basis of their
notional pay in the Central D.A's scale which· they would have
drawn but for their promotion as Section Officer/S.A.S. Divisional
Accountants under the Accountant-General. The difference between the pay and dearness allowance drawn by them under the
Accountant-General and the pay and dearness allowance admis·
sible to them in the State scale will be given as personal pay to be
absorbed in future increments."
G.O. Ms. No. 290 dated 11.11.1982 was issued by the Government
exercising the power under proviso to Article 309 of the Constitution,
F
constituting the AP. Divisional Accountants Service under the AP.
Divisional Accountants Officers Service Rules, 1980 which came into force
w.e.f. January 1, 1980. In terms of G.O. Ms. No. 304, the gradation was as
Divisional Accountants Grade-I and Divisiop.al Accountants, Grade-II.
The Divisional Accountant Grade-I is a promotional post from Divisional
Accountant Grade-II, and Divisional Accountant Grade II are to be filled
G up by direct recruitment from open market. In Note (1) thereof, it was
stated that "all the Divisional Accountants Officers borne on the Accountant General Office, who exercised their option to come over to the State
service, shall be deemed to have been taken over on 1.1.80 to the State
Divisional Accountants officers service against grade I or grade II, as the
H case may be." In Rule 6, the special qualifications, method of recruitment
-
•
J.G. PRASAD A RAO v. SECY. TO GOVT.
415
and qualifications have been mentioned as under :
"Category
Method of
Divisional Accounts By promotion
Officers Gr.I
Qualifications
shall have put in service of not
less than 3 years as Divisional
Accountants Officer, Grade-II
(Category-II) and must have
passed the 'Divisional Test'.
A
B
We are not concerned with Category II. However, it is relevant to mention
about that. With regard to existing S.A.S. passed Divisional Accounts
Officers, Accountants or SAS Passed Auditors under the administrative C
control of the Accountant General, A.P. Prior to the take over of the cadre
by the State Government, they were directed to reckon their total service
under the category as Divisional Accounts Officers, Grade II.
In G.O. Ms. No. 314 Planning and Finance, dated 30.11.1982
statutory orders under proviso of Article 309 were issued accepting the D
options given by the deputationists and taken over as Divisional Accounts
Officers Grade I and Grade II, as the case may be. The Notification reads
thus:
"The Senior Grade and Junior Grade Divisional Accountants, who
opted to the State Service consequent to the take-over of the cadre
of Divisional accountants by the State Government from the Accountant General, Andhra pradesh as shown in the Annexure are
deemed to have been absorbed into the State Service subject to
the terms and conditions laid down in G.O. Ms. No. 304. Finance
and Planning (Finance Wing WA.1) Department, dated
20.11.1979."
Second paragraph thereof states that Senior Grade Divisional Accountants and the Junior Grade Divisional Accountants shown in the
Annexure to the Order are deemed to have been absorbed into the State
Government Service in the posts shown against their names w.e.f. 1.1.1980,
subject to the terms laid down in G.O. Ms. No. 304. In sequel thereof,
statutory rules were issued in G.O. Ms. No.139, dated 30.4.1982, constituting AP Accounts Service, stating therein that Grade I Divisional Accountant is a feeder post for appointment by promotion to the post of Assistant
E
F
G
Pay and Accounts officer. For promotion as officers in Category 3, i.e., H
416
SUPREME COURT REPORTS (1995] SUPP. 3 S.C.R. .
A
Assistant Pay and Accounts Officer, the proviso says that the service
rendered as Senior Grade Divisional Accountant after promotion from
Grade II shall alone be taken into account by the State Government for
reckoning the qualifying service for promotion as Assistant Pay and Accounts Officer.
B
c
A reading of these statutory orders vis-a-vis the administrative
decisions taken by the Government in G.O. Ms. No. 304 would clearly
establish that the deputationists, who have been designated as Grade I and
Grade II officers and given their unconditional options for absorption into
the State Service, were absorbed in the "Divisional Accountant Service"
constituted by the Government as Gr. I and Gr. II officers. The previous
service rendered as either Grade I or Grade II officers has been reckoned
for the purpose of their respective eligibility to the promotion to the higher
cadre. But for promotion as Assistant Pay and Accounts officer in category
III of AP. Accounts Service, the qualifying period of service is as Grade
D
I Divisional Accountants in AP. Accounts Division Service. They must
have passed Divisional Accounts test and after promotion as Divisional
Accounts Grade-I must have put in the minimum qualifying service.
E
F
The question is whether the appellant is senior to some of the
contesting respondents. The contention of the appellant is that by virtue of
his passing the Divisional Accountants test earlier, though the respondents
were holding posts carrying higher pay, all of them cannot be reckoned as
seniors to him as some of them had passed this later. On the other hand,
their seniority requires to be reckoned from the date of their passing
Divisional Accountant test. Since some had passed the test later to him
they are juniors to him.
It is contended on behalf of the respondents that in G.O. Ms. No.
304, in particular para 8, it is clearly mentioned that the S.AS. Accounts
Officer/S.A.S. passed Auditors, who held the higher scale of pay since
declared to be entitled to Grade-I, they are entitled, though some of them
G passed the Divisional Accountant test later to the appellant, to be
promoted as Grade- I Divisional Accountants and some of them had been
so promoted, and so, they cannot be made juniors to the appellant. At this
juncture we may make it clear that respondent Nos. 3 to 6, 10 and 11 had
passed Divisional Accounts test earlier to the appellant. Respondent Nos.
H 7, 9, 12 and 13 had admittedly passed Divisional Accountant test sub-
-
,
'
J.G. PRASADA RAO v. SECY. TO GOVT.
417
sequent to the appellant. It is also not in dispute that the appellant was A
promoted as a Divisional Accountant Grade I on 6.7.1987 while respondent
Nos. 7, 9, 12 and 13 were promoted on July 27, 1991.
The question, therefore, is who, among them, is senior to each
another. Prior to taking over on January 1, 1980, admittedly, all of them
were governed by the Manual of the Accountant General issued by the
CAG of India. Chapter V deals with Subordinate Accounts Service which
consists of the confirmed apprentices, SAS Accountants on probation,
Accounts Clerks in their office and the Divisional Accountants under their
control. Para 320 of the Manual prescribes the method of computation of
seniority on passing the Divisional Accountants test which reads thus :
B
c
"320. Clerks recruited from sources (1) and (2) who pass the
Divisional Test Examination (paragraph 322) are placed on a
waiting list but allowed to retain their liens on their substantive
appointments till they are confirmed in the Divisional Accountants'
Cadre. Their relative seniority will be determined with reference D
to the date of their passing the Divisional Test Examination (the
Viva-Voce part of it in the case of S.A.S. Examination passed
clerks). The Divisional Accountants who pass the same Divisional
Test will be senior to all the Divisional Accountants who pass in
subsequent tests. The inter se seniority of Divisional Accountants E
who pass the same test will be decided on the basis of the marks
obtained by them in the aggregate in the Divisional Test Examination."
The rest of the para being not material for the purpose of this case is
omitted.
F
It would thus be clear that the S.A.S. Accountants on probation,
Divisional Accountants and Clerks who passed the SAS examinations are
the feeder posts for the Subordinate Accountants Service. Similarly, in the
statutory rules issued, referred to earlier, for Grade-I posts of the
Divisional Accountants, Grade II is the feeder posts. Passing of Divisional G
Accounts test is a pre-condition for promotion as Divisional Accounts
Grade-I. Paragraph 320 expressly prescribes that the date of passing
Division Accounts test is the criteria for determination of inter se seniority.
Though the SAS Accounts Officers or the clerks who passed the SAS
examinations had held higher scale of pay or higher responsibility, to H
418
SUPREME COURT REPORTS [1995) SUPP. 3 S.C.R.
A
determine their inter se seniority, date of passing Divisional Accounts test
is the criterion. The inter se seniority shall be reckoned with reference to
the date on which the respective candidate passed the Accounts test.
In view of the admitted position that the appellant had passed the
Accounts test earlier to the aforesaid respondents, he is entitled to be
B
treated as senior to these respondents in the Grade II post of Divisional
Accountant, in the list sent by the Accountant General for absorption in
the Divisional Accountants Service constituted by the State Government.
The factum of drawing higher pay or holding higher responsibilities became irrelevant due to operation of the rules. The Government, therefore,
C
is directed to reckon inter se seniority with reference to the date of his
passing Accounts test and inter se seniority should be determined in the
respective Annexures prepared by the State accordin_gly. The reliance on
G.O. Ms. No. 449 dated 16.9.1983 for upgradation into Divisional Accountants Grade I does not have any relevance as regards the service under the
Divisional Accountants Service Rules of the P.W.D.
D
E
The appeal is accordingly allowed but in the circumstances without
costs.
CA. NOS. 8417-18 & 8419/95
@ SLP {C) Nos. 7050-51/95 AND 9506/95
Leave granted.
In view of the judgment rendered above in C.A. 4172 of 1995, the
appeals are allowed. No costs.
RP.
Appeal allowed.
..