Cadre merger under service rules upheld where posts were comparable; reduced promotional chances alone did not invalidate the reorganisation.

The proviso to Article 309 permits creation of a unified service by merging existing cadres where the posts are comparable in pay, qualifications and functional field; the merger of the Central Labour Service was therefore valid and did not violate Articles 14 or 16. Seniority based on length of regular continuous service, with protection of inter se seniority within the original cadres, was a permissible arrangement, and any reduction in promotional prospects was not, by itself, a ground to invalidate the rules. The challenge to the Central Labour Service Rules, 1987 failed.

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Issues: (i) Whether the creation of the Central Labour Service by merging the three existing cadres under the Central Labour Service Rules, 1987 was invalid as being contrary to Article 309 of the Constitution of India and violative of Articles 14 and 16 of the Constitution of India; (ii) Whether the seniority and promotional consequences flowing from the merger furnished a ground to set aside the rules.

Issue (i): Whether the creation of the Central Labour Service by merging the three existing cadres under the Central Labour Service Rules, 1987 was invalid as being contrary to Article 309 of the Constitution of India and violative of Articles 14 and 16 of the Constitution of India.

Analysis: The power under the proviso to Article 309 of the Constitution of India is broad enough to regulate recruitment and conditions of service, including the constitution of a new cadre by merging existing cadres. Where cadres are merged, the accepted principles for equation of posts require consideration of the nature and duties of the posts, powers exercised, territorial or other responsibility, qualifications and salary. The materials showed that the merged cadres were operating in the same field of labour relations and labour welfare, had comparable pay scales, and broadly similar qualifications. The merger was preceded by a cadre review exercise and was treated as a policy decision taken in public interest.

Conclusion: The merger and constitution of the unified service were valid and did not infringe Articles 14 and 16 of the Constitution of India.

Issue (ii): Whether the seniority and promotional consequences flowing from the merger furnished a ground to set aside the rules.

Analysis: Rule 9 of the Central Labour Service Rules, 1987 regulated initial seniority by reference to length of regular continuous service while preserving inter se seniority within the original cadres, and the proviso made special arrangements for earlier periods when pay structures differed. A reduction in the chance of promotion, by itself, was not treated as a change in service conditions warranting judicial interference. The Court treated the grievance about diminished promotional prospects as insufficient to invalidate a merger that was otherwise a policy decision founded on comparable cadres and similar pay structures.

Conclusion: The seniority arrangement and any incidental effect on promotional chances did not justify striking down the rules.

Final Conclusion: The challenge to the Central Labour Service Rules, 1987 failed, and the appeal was dismissed without costs.

Ratio Decidendi: A merger of cadres made under the proviso to Article 309 of the Constitution of India will not be struck down when the merged posts are comparable in pay, qualifications and broad functional field, and a mere diminution in promotional chance is not by itself a legally enforceable ground to invalidate the service reorganization.

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