Punjab Co-operative .Subordinate Service· Rules, 1936, Rules 5, 6 and 7- Passing of depart1nental, examination basis for fixation of seniority-organi sation of Punjab State-Variation Of condition of service, if has the approval of the Central Govt. as required under sec. 115(7) of States Reorganisation Act. The appellants belonged to Pepsu Service, On 20th October, 1956 they held been prom.oted from the position of Sub-Inspectors to Inspectors. On 1 Nov., 1956 there was the reorganisation of the State of Punjab. Pepsu became merged in Punjab. The appellants became integrated with other Inspectors c working in the State of Punjab. Under the Punjab Co-operative Subordinate Service Rules, 1936, seniority is dependent on the passing of departmental examination. All the respondents who were shown senior to the appellants in the gradation list dated 11 Marcil, 1966, had passed their departmental examination before the appellants passed their examination. The respondents were all confirmed earlier than the appellants. The appellants passed the departmental examination after the respond•:nts had done so. Therefore, the appellant were treated as juniors to the respondents. [} The appellants contended that the conditions of service have been varied to their disadvantage without the previous approval of the Central Govt. as required under sec. 115(7) of the States Reorganisation Act. Rejecting the appeal, HELD : It follows from paragraphs 2. 3 and 6 of the memorandum of the Central Govt. dated 11 May, 1957 that as far as departmental examination i~ E concerned the Central Govt. told the State Governments that they might, if they so desired change the conditions of service and for this purpose th:::y might assume the previous approval of the Central Govt. as required by the proviso· to sec. 115(7) of the States Reorganisation Act. This Court has held that this memorandum of Central Govt. amounted to previous approval withln the 1n(!an· ing of sec. 115(7) of the States Reorganisation Act. (917 B-D] N. Raghavendra Rao v. Deputy Co1nn1issiorier South Kanara Mangalore, (1964)7 S.C,R, 549 and Mohammad Shujat Ali & Ors, v, Union of India & F Ors, [1975] 1 S,CR, 449 relied on, The condition of servii;e in regard to passing of departmental examination for the yurpose of promotion is. therefore, fully clothed with the previous ap· proval of the Central Govt. The appellants also appeared in the examination. They availed of the same method of promotion. They have suffered n:i prejudice because they passed the departmental examination later than the respondents, [917 Fl G CIVIL APPELLATE JuR•SDJCTION : Civil Appeal No, 1452 of 1973, Appeal by Special Leave from the judgment & Order dated the 8th September 1971 of the Punjab & Haryana High Court in L.P, A. No. 689 of I 970, V. C, Ma/wJan, M. R, Agnifwtri and Urmi!a Sirur, for the H appollants; R. K. Garg, S. C, Agarwa 'a, S, S, Bhatnagar and V, J. Francis, for respondents Nos, l, 3, 5, 6, 7 & 17.