The dispute centers on the seniority of Junior Engineers appointed through different channels. Directly recruited Junior Engineers were selected by the Nagaland Public Service Commission and appointed on May 1, 2003, under the Nagaland Engineering Service Rules of 1997. Conversely, the incumbents from the Sectional Officer, Grade-I cadre had their posts upgraded to Junior Engineer status in 2007, following a government communication dated October 11, 2007.

Following the release of the final seniority list, several Sectional Officers challenged its validity in the High Court. The initial ruling by a Single Judge dismissed the petitions, but an intra-court appeal to a Division Bench reversed this decision, resulting in the re-evaluation of seniority.

The Supreme Court, hearing appeals from both the directly recruited Junior Engineers and the state government, found that the High Court had erred in its assessment. The Court highlighted that the promotion of Sectional Officers to Junior Engineers came significantly after the direct recruits were appointed, which fundamentally affected the seniority structure.

Mr. P.S. Patwalia, representing the directly recruited engineers, argued that their seniority should be maintained due to their direct appointment and established performance. The appellants emphasized that the upgradation of the Sectional Officer posts did not justify retroactive seniority.

Additionally, Mr. K.N. Balgopal, representing the state, pointed out that the Division Bench based its ruling on incorrect premises regarding the historical context of the posts involved. The Court noted that the seniority issue was not about the legitimacy of the upgradation but rather about the dates when individuals became part of the Junior Engineer cadre.

Ultimately, the Supreme Court ruled in favor of maintaining the original seniority list, asserting that the Sectional Officers upgraded to Junior Engineer status could not claim seniority from a date before they were formally part of that cadre. The Court emphasized that the promotion of Sectional Officers, even if regularized, does not equate to an earlier claim over positions filled through direct recruitment. This ruling not only clarifies the seniority dispute among Junior Engineers in Nagaland but also sets a precedent for similar cases in the future. The decision reinforces the principles of fair recruitment practices and upholds the integrity of direct recruitment processes within government services.