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Issues: Whether the High Court was justified in granting an interim stay of reversion and thereby preventing implementation of the earlier binding decision fixing seniority and consequent promotional action.
Analysis: The appeal turned on the propriety of an interim order passed without any prayer for stay of reversion and without adequate consideration of the effect of the earlier Supreme Court decision interpreting the governing service rules. The operative legal position declared earlier was binding under Article 141 of the Constitution of India, and an interim order could not be made in a manner that frustrated its implementation or created conflict with the process already directed. In granting interim relief, the Court held that a court must weigh prima facie case, balance of convenience, irreparable injury, and also the wider public interest, particularly where appointments to public service cadres are involved. The impugned order was found to have serious civil consequences and to have been passed without proper consideration of comity and the existing judicial directions.
Conclusion: The interim stay of reversion was unjustified and was liable to be vacated; the appellants were entitled to be appointed to the IAS cadre in terms of the revised seniority list.
Ratio Decidendi: An interim order should not be granted so as to impede implementation of a binding prior decision or to create inconsistency with another court's lawful order, especially where public interest and the settled tests for interim relief are not properly satisfied.