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Issues: Whether the Government could restore seniority to officers who had not passed the departmental examination within the stipulated period when the examination was not held for certain years, and whether the executive circular could curtail the statutory power of relaxation under the service rules.
Analysis: The service scheme required the examination to be held every year and made passing it a condition for promotion. The rules had to be read as a coordinated scheme, and the provision forfeiting seniority on late passing could not be applied in isolation where the Government itself failed to conduct the examination in the relevant years. A candidate who had not exhausted all permissible chances could not justly be penalised for the Government's default. The circular issued in 1962 could not restrict the operation of the statutory rules framed under Article 309 of the Constitution of India, since executive instructions may supplement but cannot override statutory rules. The proviso added in 1970 also recognised promotion where the examination was not held in a year, subject to later passing at the earliest opportunity. The Government's restoration of seniority to the category of late passers was therefore consistent with the object of the rules. The Court further accepted that the power to relax in individual cases for genuine hardship remained available.
Conclusion: The Government was entitled to restore seniority to the affected officers and to relax the examination requirement in appropriate cases; the High Court's contrary view was set aside.