The Supreme Court observed that the principle of preferential candidates would apply when there is a tie between the preferential candidate and a general candidate and the person who is to be treated as a preferential can be given a mark over a general candidate.
Rule 55 of Tamil Nadu State and Subordinate Service Rules read thus: Notwithstanding anything contained in these rules or in the Special Rules for the various State and Subordinate Service, other things being equal, preference shall be given to the Outstanding scouts for appointment to any post by direct recruitment.
In this case, the Madras High Court had directed TANGEDCO to consider the claim of a candidate for appointment to the post of Assistant Engineer in the priority category in the post earmarked for Scheduled Caste. The court had relied on Rule 55 of the Service Rules. In appeal filed against this judgment, the Apex Court noted that the said Rules provided for "preference only " and not priority.