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ORIGINAL JURISDICTION :

The judgment of A. N. RAY, C. J. D. G. PALEKAR and Y. V. CHANDRACHUD J.J. was delivered by Chandrachud, J. KRISHNA IYER, J. delivered a separate concerning Opinion on behalf of Bhagwati. J. and himself.
CHANDRACHUD, J. If persons drawn from different sources are integrated into one class, can they' be classified for purposes of promotion on the basis of their educational qualifications? That is the issue for consideration before us.
Respondents, who are Diploma Holders in Engineering, filed in the High Court of Jammu and Kashmir a petition under article 226 of the Constitution to challenge the validity of certain Service Rules framed by the Government of Jammu and Kashmir. A Learned single Judge dismissed the petition but in appeal a Division Bench of the High Court took the view that the impugned rules were violative of articles 14 and 16 of the Constitution. The correctness of that view is
-challenged by the State of Jammu and Kashmir in this appeal by special leave.
Respondents, who are serving in different branches Of the Engineering Service of the appellants, were appointed as Assistant Engineers between 1960 and 1966 by promotion from the Subordinate Engineering 77 5 Service. Their conditions of service were then governed by the rules published under Order No. 1328-C of 1939. Those rules, to the extent material, read thus:
The following rules prescribing the procedure relating to recruitment to the gazetted services are sanctioned:-

In 1962, the appellants undertook a general revision of pay scales and framed "Jammu and Kashmir Civil Services (Revised Pay) Rules", which were gazetted on August 6, 1962. Rule 12 divided the Assistant Engineers into two categories, datewise. Those appointed prior to August 1, 1960 were placed in Grade I while those, appointed subsequently were placed in Grade 11, regardless -of whether appointments to the posts of Assistant Engineers_were made directly or by promotion and whether the incumbents held a degree or a diploma. Those in Grade I were put in the pay scale of Rs. 300-700 while those in Grade II were put in the scale of Rs. 250-600. Officers in Grade II were entitled to go into Grade I after completing two years' service, subject to the availability- of vacancies.

A further revision of pay scales was effected under the "Jammu .and Kashmir Civil Services (Revised Pay) Rules, 1968" which were gazetted on February 27, 1968. Under Rule 10 (IIB) (i), Assistant Engineers were granted a new pay scale of Rs. 300-30-540-EB-35610-QB-35-750, but it was provided that the "QB at Rs. 610/- will not be crossed by Assistant Engineers with Diploma Course". This rule was challenged- by the respondents in so far as it denied to them an opportunity to cross the qualification bar. Then came the "Jammu and Kashmir Engineering (Gazetted) Service Recruitment Rules, 1970", gazetted on October 12, 1970. These rules provide for appointments to the gazetted posts in various branches of the Engineering Service of the appellants and supersede the old rules on the subject. By rule 3(f) 'promotion' is defined to mean promotion from one class, category or grade to another class, category or grade on the basis of merit and efficiency, seniority being considered only when merit was equal. Under the Schedule annexed to these Rules, recruitment to the cadre of Executive Engineers and above was to be made only by promotion. But as regards promotion to the posts of Executive Engineers, and to those only, it was provided that only those Assistant Engineers would be eligible for promotion who possessed a bachelor's degree in engineering or held the qualification of A-M-I.E., Section A, & B and who had put in at least 7 years service in the J. K. Engineering (Gazetted) Service. This is the second of the two Rules impugned in this appeal.