·rhc respondent \Vas v,rorking n'i an Ex·2cutivc Engineer in the Hydrabad State. In 1955, the Public Servic, Cn111misi'Jn rccomn1enJcd that : (1) c he should ·be stoppcJ fro111 crossln the cttich::ncy bar \Vith cffct from Februorv . 1952; and (2) a sum of Rs. 23,371 should be recovered fron1 his S<:\lary on account of loss caused to the Government by his negli g-.::ncc. On Novcn1hcr 1, 1956 the Stntcs' Reorganisation Act came into tor..: a;1d the respondent \vas a11ottcd to the appcllant-St:-.tc. Even after the respondent completed the ng·e of .55 years in 1960, he \'rl.S continued in service by the appellant-Stall~. hut 1111dcr s1~~pension pending: con1pletion D of the disciplinary proedings against hi111. but in l 961, he \'as µcrmitted to retire and all the disciplinary proceedings pending against hin1 \vere dropped altogether. After his rctircrrient. he fik:d a \:rit petition for a declaration that he \Vas stopped fron1 crossing the efficiency bar onl 1 because the Goyernmcnl wanted to rcin1burse itself for the loss caused by the rc'\pondent, that consequent upon the dropp:ng of the proceedi;is against him, he should be dcen1ed not to have caus·:d any 1os" to tile Government, and so, to hav crossed the lffi.ciency bar on Fcbruny 9i 1952. E and therefore. th~ incrcn1ents \Vithhckl should be rc<;torc<l and the increased salary should· bo= taken into account in fixing his rcnsion. The High Court allo.ved the petition.