K. Madhava Reddy v. Government of Andhra Pradesh
Background
Andhra Pradesh rules allowed employees in head offices and other cadres to move into higher labour-service posts outside their usual local cadre. Those rules were invalidated for conflicting with the Presidential Order governing local public employment. The dispute concerned whether employees promoted while the legal position was unsettled should lose positions they had held for years.
Decision Breakdown
The Supreme Court allowed the appeals and set aside the High Court's orders to the extent they exposed those earlier appointments to reversal. It upheld the invalidity of the challenged government orders but protected promotions and appointments made under them before 7 November 2001. The State had itself made the promotions under rules then treated as valid, and reverting the employees after many years would be unfair and disrupt other employees' positions. The Court applied prospective protection in these circumstances, left parties to bear their costs and closed the contempt proceedings.
Lesson Learnt
Invalidating a public-employment rule does not always require undoing every appointment previously made under it. Courts may protect settled positions when employees relied on the earlier legal framework and reversal would cause substantial unfairness.