Quota-based seniority in service law turns on substantive appointment, not mere officiating promotion, for promotee officers.

Under a quota-based service scheme, a promotee Executive Engineer does not become a member of the service merely on initial officiating promotion or continuous officiation; membership arises only on substantive appointment to a cadre post. Seniority between promotees and direct recruits is governed by the quota rule and the year of allotment, so a promotee's officiating period outside quota cannot be counted against direct recruits. Direct recruits' seniority remains linked to their allotted year, while promotee seniority depends on availability of cadre posts within quota, completion of probation, and substantive appointment.

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Issues: (i) whether promotee Executive Engineers became members of the service from the date of initial officiating promotion or only on substantive appointment to a cadre post; (ii) whether seniority of promotees and direct recruits had to be determined by applying the quota rule and year of allotment under the service rules.

Issue (i): whether promotee Executive Engineers became members of the service from the date of initial officiating promotion or only on substantive appointment to a cadre post

Analysis: The service rules drew a distinction between direct recruits and promotees. A member of the service was one appointed substantively to a cadre post, while the inclusive definition protected direct recruits appointed on probation, including those initially appointed to an ex-cadre post and awaiting appointment to a cadre post. The scheme of the rules, read as a whole, did not extend that fiction to promotees from Class II service. A promotee who was only officiating, whether in a temporary or ex-cadre post, did not become a member of the service until appointed substantively to a cadre post. Continuous officiation by itself did not convert the officiating arrangement into substantive membership.

Conclusion: Promotees did not become members of the service merely on initial promotion or continuous officiation. They became members only when substantively appointed to a cadre post, and the issue was answered against the appellants.

Issue (ii): whether seniority of promotees and direct recruits had to be determined by applying the quota rule and year of allotment under the service rules

Analysis: The rules fixed a 50% quota for promotees from Class II service and preserved the remaining field for direct recruits. The proviso permitting promotees to fill posts in excess of quota was only an enabling and temporary arrangement to meet administrative needs. It did not confer a right to seniority from the date of such officiating promotion. Seniority of a direct recruit was linked to the year of allotment as an Assistant Executive Engineer. In contrast, a promotee's seniority as Executive Engineer depended on availability of a cadre post within quota, satisfactory completion of probation, and substantive appointment. Any officiating period spent outside quota was fortuitous and could not be counted for seniority against direct recruits.

Conclusion: Seniority had to be fixed by applying the quota rule and year of allotment, with promotee seniority reckoned only from substantive appointment within quota and not from the date of initial officiating promotion. This issue was also decided against the appellants.

Final Conclusion: The Court declared the governing principles for inter se seniority under the rules and directed the State to determine cadre strength, make substantive appointments within quota, and then fix seniority accordingly.

Ratio Decidendi: Under a quota-based service scheme, an officiating promotee outside quota does not acquire seniority from the date of initial promotion; seniority follows only from substantive appointment to a cadre post within quota, while a direct recruit's membership and seniority are governed by the rules applicable to direct appointment and allotment.

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