Recruitment by transfer upheld where service rules and Presidential Order allow overriding State power despite local cadre objections.

The governing recruitment rules under Article 309 permitted filling Regional Transport Officer posts by transfer from specified categories, and that scheme was held to prevail over the local cadre arrangement in view of the Presidential Order's overriding effect. The earlier decision on the same controversy was not per incuriam because it had considered the relevant rules and Presidential Order, and a coordinate Bench could not disregard it without a real basis for concluding it had ceased to be correct in law. The challenge to appointments by transfer therefore failed, and the appointments were treated as valid.

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Issues: Whether the posts of Regional Transport Officer could be filled by transfer from the specified categories under the Andhra Pradesh Transport Services Rules, and whether the earlier decision upholding such transfer could be treated as per incuriam or referred to a larger Bench.

Analysis: The recruitment rules framed under Article 309 expressly permitted recruitment by transfer from the nominated categories, and the controversy had already been directly considered in the earlier decision. The plea of per incuriam was rejected because the earlier decision had dealt with the same controversy and the relevant presidential order. The request for reference to a larger Bench was also rejected, since a coordinate Bench is bound by the earlier two-Judge decision unless it is shown to have ceased to be correct in law. The objection that paragraph 5(2) of the Presidential Order only permitted simple transfer and not recruitment by transfer was also rejected, as the provision was understood to confer overriding power on the State Government to make provisions contrary to the local cadre scheme in public interest and administrative exigency.

Conclusion: The appointments by transfer were valid, and the challenge to them failed.

Ratio Decidendi: Where the governing rules and the applicable presidential order confer overriding power on the State Government, recruitment by transfer may validly be made notwithstanding the local cadre scheme, and an earlier coordinate Bench decision on the same issue cannot be ignored as per incuriam without a real legal basis.

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