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(2) Subject to such rules as may be made by the Central Government in this behalf, the Corporation may appoint such other officers and employees as it considers necessary for the efficient performance of its functions."

5. In the year 1968, however, Section 12A was inserted in the Act so as to enable the Central Government to make an order directing its employees to be transferred to the services of the Food Corporation of India. Those employees who had been working as deputationists from the Central Government were absorbed. They admittedly were given one extra increment purported to be on the basis of a circular letter issued in this behalf. In the year 1984, an option was given to the respondents herein for being absorbed in the Food Corporation of India upon tendering resignation in their parent cadre; pursuant to or in furtherance whereof the respondents herein opted to join the Food Corporation of India. They were so absorbed but were posted as Assistant Grade III. They filed a writ petition questioning their absorption in the said grade contending that they were entitled to be posted as Assistant Grade II. The said question came up before this Court in Food Corporation of India & Ors. v. F.C.I. Deputationists Assocn. & Ors. [SLP (C) No. 16416 of 1996] and by a judgment and order dated 29.08.1996, it was opined that the respondents were entitled to the post of Assistant Grade II.

26. Submission of the learned Additional Solicitor General that the employees transferred from the Central Government and those deputationists who have been absorbed fall in different classes cannot be accepted. The learned Additional Solicitor General pointed out the following purported differences between the two groups of employees:

"a. The services of the food transferees from Central Government were transferred to FCI on compulsory/permanent basis after Central Government Gazette Notification, in accordance with Section 12A of the Food Corporations Act, 1964. Whereas the West Bengal Deputationists were sent on deputation to FCI as per agreement with the Government of West Bengal and FCI.
Whereas the deputationists emplopyees had to resign from the Department of Food & Supplies of West Bengal before their absorption in FCI.
e. The Food transferees from Central Government enjoyed continuity of their services. They were the food "Transferees". Whereas by virtue of the option exercised with FCI by the Deputationists Employees, their status is of a direct recruit w.e.f. 01.07.1984.
f. On joining FCI, the Food transferees from Central Government did not get any gratuity from their parent department in respect of their services rendered with the Government of India. Whereas the Deputationists Employees had received their gratuity and pro-rata pension from their parent department for the services they rendered with the Government of West Bengal.
d. For the aforementioned reasons, in our opinion, it is wholly immaterial as to whether cessation of relationship of employer and employee took place by reason of resignation or by transfer.
e. In view of the terms and conditions of transfer so far as the Central Government employees are concerned and the option exercised by the deputationists as well the effect of Regulation 81, there is no force in the aforementioned contention.
f. As in the case of the employees of the Central Government, the continuity of service had been maintained only because the deputationists had received their gratuity and pro-rata pension from their parent department, in our opinion would not make any difference as the sole question was as to whether the proviso appended to Rule 81 was applicable in their case or not.