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Issues Involved:
1. Integration of Provincialised Teachers with State Cadre Teachers 2. Validity of Separate Cadres for Provincialised and State Teachers 3. Discrimination in Promotion Opportunities 4. Validity of Rules under Article 309 of the Constitution 5. Application of Article 14 and Article 16 of the Constitution Detailed Analysis: 1. Integration of Provincialised Teachers with State Cadre Teachers The primary contention was whether the government order dated September 27, 1957, which came into effect from October 1, 1957, integrated the "provincialised" teachers with the teachers governed by the Punjab (Educational Service) Class III School Cadre Rules, 1955. The court held that the order did not effectuate a complete integration. The teachers in the erstwhile Board schools became employees of the government and were given the same scales and grades of pay as their counterparts in the State cadre, but there was no provision indicating a complete integration. The court noted that the pension rules for the two groups were different, and the inter se seniority was not determined uniformly. 2. Validity of Separate Cadres for Provincialised and State Teachers The court examined whether the government had the authority to maintain separate cadres for provincialised and State teachers. The impugned rules, which came into force on October 1, 1957, treated the "provincialised" teachers as a separate cadre distinct from the State cadre. The court found that the government had considered various alternatives and decided to keep the two cadres separate to reconcile the conflicting interests of both groups. The court held that the existence of two separate services with different qualifications and recruitment methods did not amount to discrimination under Article 14. 3. Discrimination in Promotion Opportunities The High Court had held that the rules created inequality of opportunity for promotion between the two cadres. The Supreme Court disagreed, noting that the disparity in promotion chances was due to the provincialised cadre being a diminishing cadre intended to be extinguished over time, whereas the State cadre was expanding. The court found that the rules did not create two classes out of a single class but maintained the distinctiveness of two already separate services. Hence, the rules did not violate Articles 14 and 16(1) of the Constitution. 4. Validity of Rules under Article 309 of the Constitution The rules in question were framed under Article 309 of the Constitution and were challenged on the grounds that they did not have statutory force. The court noted that the government had the power to frame such rules and that the rules conformed to the formal requirements of Article 309. The court held that the rules were valid and legally binding. 5. Application of Article 14 and Article 16 of the Constitution The court examined whether the impugned rules violated the constitutional guarantees of equality under Articles 14 and 16. It held that the mere existence of two separate services with different conditions of service did not amount to discrimination. The court emphasized that the government had the discretion to create different services to meet administrative needs and that such differentiation did not violate the principles of equality enshrined in the Constitution. Conclusion: The Supreme Court allowed the appeal, setting aside the order of the High Court that had struck down Rule 2(d) and (e) and Rule 3 concerning promotions. The court held that the impugned rules did not violate the constitutional guarantees of equality and were valid under Article 309 of the Constitution. There was no order as to costs in this appeal.
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