Supreme Court Upholds Repatriation of APSRTC Employees to Parent Zones Post-Telangana Bifurcation

The case of Andhra Pradesh State Road Transport Corporation (APSRTC) & Ors. vs. V.V. Brahma Reddy & Anr. revolves around the repatriation of employees following the bifurcation of Andhra Pradesh in 2014. The Supreme Court set aside the High Court’s decision, ruling that APSRTC had the authority to repatriate employees to their parent zones in accordance with the established guidelines.

This ruling clarifies the legal framework governing employee allocation between APSRTC and the newly formed Telangana State Road Transport Corporation (TSRTC).

Background of the Case

Following the creation of Telangana on June 2, 2014, APSRTC was bifurcated into two separate entities:

APSRTC (operating in Andhra Pradesh).
TSRTC (operating in Telangana).

The employees involved in this case were Class III and Class IV staff, such as conductors, drivers, and mechanics, originally appointed in districts that later became part of Telangana. However, they were temporarily deputed to zones in Andhra Pradesh.

Key events:

June 18, 2015: The Government of India reconstituted the APSRTC Board of Directors to oversee the employee allocation process.
August 16, 2017: The Board finalized a policy for distributing employees between APSRTC and TSRTC.
June 8, 2017: APSRTC issued orders to repatriate employees back to their parent zones in Telangana.
November 10, 2017: The Andhra Pradesh High Court’s single judge set aside the repatriation orders, ruling that the allocation process was incomplete.
April 18, 2018: The High Court’s division bench temporarily suspended the single judge’s order, allowing APSRTC to repatriate employees while considering salary issues.
November 21, 2019: The High Court ruled in favor of the employees, directing their permanent allocation to APSRTC.
September 6, 2024: The Supreme Court set aside the High Court’s ruling, upholding APSRTC’s authority to repatriate employees.

Legal Arguments

Arguments by the Appellants (APSRTC & Ors.)

The 2017 repatriation orders were lawful and based on policy guidelines established by the Board.
Employees were appointed at the regional level and must serve in the zones to which they were originally assigned.
The High Court misapplied Section 77 of the Andhra Pradesh Reorganisation Act, which applies only to government employees, not to APSRTC staff.
Section 82 of the Act allows APSRTC to determine employee allocation, which it did through its Board’s Agenda Note of 2017.

Arguments by the Respondents (V.V. Brahma Reddy & Ors.)

They had served in APSRTC zones in Andhra Pradesh for over five years and had established seniority there.
Their repatriation would disrupt their careers and violate principles of natural justice.
The High Court was correct in applying Section 77 to ensure that employees remained in their deputation zones.
The guidelines used for repatriation were not legally binding.

Supreme Court’s Observations

The Supreme Court examined the applicability of the Andhra Pradesh Reorganisation Act, the APSRTC Board’s guidelines, and principles of administrative law.

1. Was Section 77 of the Act Applicable?

The Court ruled that Section 77 applies only to state government employees, not to APSRTC staff.

“Section 82 of the Act, not Section 77, governs the allocation of APSRTC employees. The High Court erred in applying the wrong provision.”

2. Did APSRTC Have the Authority to Repatriate Employees?

The Court found that the Agenda Note of 2017 established a clear policy for employee allocation:

Class III and IV employees were recruited at the regional level.
After bifurcation, they belonged to the respective state’s transport corporation.
APSRTC had the right to repatriate employees to their parent zones.

3. Were Employees’ Rights Violated?

The Court acknowledged that the respondents had served in Andhra Pradesh for years but held that this did not override their original appointment terms.

“Service in a deputation zone does not create a vested right to remain there permanently.”

Final Verdict

The Supreme Court issued the following orders:

The High Court’s November 21, 2019, judgment was set aside.
APSRTC’s 2017 repatriation orders were upheld as legally valid.
Employees must report to their parent zones in TSRTC.
No further claims for permanent absorption in Andhra Pradesh would be entertained.

This ruling reinforces the principle that regional recruitment determines service location, even after state bifurcation.

Petitioner Name: Andhra Pradesh State Road Transport Corporation & Ors..
Respondent Name: V.V. Brahma Reddy & Anr..
Judgment By: Justice Pamidighantam Sri Narasimha, Justice Pankaj Mithal.
Place Of Incident: Andhra Pradesh and Telangana.
Judgment Date: 06-09-2024.

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