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[Cites 3, Cited by 1]

Calcutta High Court (Appellete Side)

Subrata Chakravarty vs Union Of India & Ors on 25 November, 2016

Author: Biswanath Somadder

Bench: Biswanath Somadder

           IN THE HIGH COURT AT CALCUTTA
CONSTITUTIONAL WRIT JURISDICTION
APPELLATE SIDE

Present :
THE HONB'LE MR. JUSTICE BISWANATH SOMADDER


                         W.P. 23462 (W) of 2015

                           Subrata Chakravarty
                                 -Versus-
                           Union of India & Ors.

For the petitioner                   :   Mr.   Samaraditya Pal, Senior Advocate
                                         Mr.   Lakshmi Kumar Gupta, Senior Advocate
                                         Mr.   Pratik Dhar, Senior Advocate
                                         Mr.   Deepak Sarkar
                                         Mr.   Partha Ghosh
                                         Mr.   Samir Halder
                                         Mr.   Shamik Chakraborty

For the Union of India               :   Mr. Kaushik Chanda, Ld. A.S.G
                                         Mr. Sajal Kanti Bhattacharyya
                                         Mr. Bhudeb Chatterjee

For the applicants/respondent nos.   :   Mr.   Anindya Mitra, Senior Advocate
6 to 8                                   Mr.   Alok Kumar Banerjee
                                         Mr.   Soumya Majumder
                                         Mr.   Pradyot Kumar Das
                                         Mr.   Arunabha Sarkar
                                         Mr.   Debabrata Das

Heard on                             :   16.09.2015, 13.10.2015, 04.12.2015,
                                         11.12.2015, 08.01.2016, 16.09.2016

Judgment on                          :   25.11.2016




BISWANATH SOMADDER, J.: The petitioner has filed the instant

writ application, essentially being aggrieved by the decision taken

 by the concerned authority of the Ministry of Coal, Government

of India, (hereinafter referred to as the "concerned Ministry") to
 recommend scrapping of the panel prepared by the Public

Enterprises Selection Board (hereinafter referred to as the

"PESB") for the post of Chairman cum Managing Director,

Eastern Coalfields Limited (hereinafter referred to as the "ECL")

and the subsequent scrapping of the panel on 3rd August, 2015

by the Appointments Committee of Cabinet (hereinafter referred

to as the "ACC"). The panel included the name of the writ

petitioner for the post-in-question.

     Before going into the factual details, it may be worthwhile to

state certain relevant particulars regarding the writ petitioner.

The writ petitioner joined service on 13th October, 1979 as a

Junior Executive Trainee and since then he has been working in

different subsidiaries under Coal      India   Limited.   The   writ

petitioner is a mining engineering graduate having graduated

from the Indian School of Mines in the year 1979. He had

obtained a first class mine manager's certificate from the Director

General of Mines Safety (DGMS) in the year 1984. Thereafter, he

obtained a Master of Computer Applications degree from the Birla

Institute of Technology, Mesra, Ranchi in 1997. On joining

Central Coalfields Limited, his posting initially was at an

underground mine in the State of Jharkhand. Thereafter, he
 worked as an Undermanager, Assistant Manager and Colliery

Manager at different mines of Central Coalfields Limited. He then

joined the Planning and Project Monitoring Division of the

Central Coalfields Limited and worked as Superintendent of

Mines and Deputy Chief Mining Engineer. He joined Bharat

Coking Coal Limited in the year 2001 and worked there as a

Project Officer and General Manager till 2006. He held other

posts like Technical Secretary to the Chairman, Coal India

Limited, Chief General Manager, Amlohri Project, in the year

2008, before joining as Director (Technical), ECL, Sanctoria, West

Bengal, with effect from 24th March, 2009 and completed his five

years tenure on 23rd March, 2014. The extension of his tenure as

Director (Technical) of ECL could not be processed as per

procedure since clearance of the Central Vigilance Commission

(hereinafter referred to as "CVC") was not available. In the

meanwhile, he was recommended by the PESB in October, 2014,

for appointment as the Chairman cum Managing Director of ECL.

However, his case for appointment as the Chairman cum

Managing Director of ECL could not be processed for want of

vigilance clearance which ultimately led to scrapping of the panel
 containing his name by the ACC based on the recommendation

made by the concerned Ministry.

     A detailed narration of facts, which are relevant for

adjudication of the present case, is stated below:

          On 24th March, 2009, the petitioner joined as Director

        (Technical), ECL. His tenure ended on 23rd March, 2014.

        However, before his tenure as Director (Technical) ended,

        he had applied for extension.

          On 15th January 2014, the vigilance division of the

        concerned Ministry sent all relevant documents in

        relation to the enquiry against the writ petitioner to the

        CVC, seeking its advice on his antecedents in order to

        take a decision with respect to extension of his tenure.

          On 6th May 2014, the vigilance division of the

        concerned Ministry addressed a letter to the CVC with

        reference to the above letter, stating that the advice of

        the CVC has not yet been received and pending CVC

        clearance, tenure of the writ petitioner as Director

        (Technical) be extended for three months on an ad-hoc

        basis.
   On 29th May, 2014, an advertisement for selection to

the post of Chairman cum Managing Director, ECL was

issued by the PESB.

  On 11th June 2014, a compilation of all earlier

guidelines    for     processing    of    proposals     for

appointment/extension/termination of appointment, etc.

to a Board level post in any PSU for approval of ACC

(which was already available on DoPT's website since

November     2013)   was   issued   by   the   ACC.   These

guidelines, inter alia, included the guideline dated 27th

May, 2008, relating to the Central Public Sector

Enterprises (hereinafter referred to as "CPSEs") issued

by the PESB. As per its terms, the validity of the panel of

names recommended by PESB is ONE (1) year. These

guidelines were already in force at the time of issuance of

the aforesaid advertisement. After that, on 19th August,

2014, the concerned Ministry addressed a letter to the

CVC with reference to the letters dated 15th January,

2014 and 6th May, 2014, stating that the advice of the

CVC has not yet been received and pending CVC
 clearance, tenure of the writ petitioner as Director

(Technical) cannot be extended.

 On 10th October, 2014, ECL submitted a report to CVC

in respect of a complaint against the writ petitioner by

one   Mr.   M.K.Singh.   The   complaint   was   regarding

discrepancy in award of a tender to Bucyrus India Pvt.

Ltd. The allegation was examined by ECL but it was not

substantiated. There was also a complaint by the same

Mr. M.K.Singh against the writ petitioner regarding

certain irregularities in accepting claim of outsourcing

contractors.

 On 22nd October, 2014, the Secretariat of the ACC

issued further guidelines for processing proposals for

appointment to Board Level post in CPSEs, since it was

observed that the timelines already prescribed for

processing the proposals for appointments to Board level

posts were not being adhered to.

 On 28th October, 2014, the writ petitioner was selected

and his name was recommended for appointment as

Chairman cum Managing Director, ECL [Between 29th
 May, 2014 and 28th October, 2014, the concerned

Ministry and CVC were exchanging correspondences

regarding vigilance clearance for extension of the writ

petitioner's tenure as Director (Technical),ECL].

  On 30th October, 2014, the Secretariat of the ACC

issued certain policy guidelines for extension of tenure of

Board level incumbents where vigilance clearance is not

available.

  On 18th November, 2014, the concerned Ministry again

addressed a letter to the CVC with reference to three

letters dated 15th January, 2014, 6th May, 2014 and 19th

August, 2014, stating that the advice of the CVC has not

yet been received and pending CVC clearance, the writ

petitioner's tenure as Director (Technical) cannot be

extended and his appointment to the post of Chairman

cum Managing Director, ECL, cannot be made.

  On 2nd December, 2014, there was a request from the

vigilance division of the concerned Ministry to the CVC

for expediting vigilance clearance in respect of the writ

petitioner with reference to letters dated 15th January,
 2014, 6th May, 2014, 19th August, 2014 and 18th

November, 2014.

 An Office Memorandum was issued by the CVC on 18th

December,    2014,   asking   the     Central   Bureau   of

Investigation (hereinafter referred to as the "CBI") to

register a Preliminary Enquiry (hereinafter referred to as

"PE") in the matter relating to procurement of 240 and

190 MT dumpers and 20 cubic metre electric rope

shovels.

 On 2nd January, 2015, a letter was written by the

vigilance division of the concerned Ministry to CVC

regarding the vigilance status and other particulars in

respect of the writ petitioner. In that letter, the

concerned    Ministry,    referring    to   CVC's    office

memorandum dated 18th December, 2014, stated that

the CVC had directed the CBI to register a PE in the

matter of procurement of 240 and 190 MT dumpers and

20 cubic metre electric rope shovels by Coal India

Limited. Thereafter, on 4th February, 2015, a letter was

sent from the Officer on Special Duty, CVC, to the

Additional Secretary & Chief Vigilance Officer of the
 concerned Ministry regarding vigilance clearance in

respect of the writ petitioner for confirmation of tenure.

The letter advised the concerned Ministry to place the

facts and status of the complaints / cases against the

writ petitioner before the competent authority while it

takes a decision on the suitability for extension of his

tenure as Director (Technical), ECL / appointment as

Chairman cum Managing Director, ECL.

  On 29th May, 2015, the Joint Secretary of the

concerned Ministry issued a letter addressed to the

Establishment    Officer   and    Additional    Secretary,

Department of Personnel and         Training (hereinafter

referred to as the "DoPT"), New Delhi, requesting the

DoPT to scrap the panel recommended by the PESB for

the post of Chairman cum Managing Director (ECL). It

may be worthwhile to set out the said letter in its

entirety.

       " I am writing this, in connection with scrapping of

       the panel recommended by the PESB for the post

       of Chairman cum Managing Director, ECL. The

       post would fall vacant on 01.06.2015 due to
 superannuation of Shri Rakesh Sinha, Chairman

cum Managing Director, ECL present incumbent on

31.05.2015. Shri S.Chakravarty, Director (Tech),

ECL was recommended by PESB vide their U.O.

dated 28.10.2014 for the said post. CVC however,

vide their letter dated 04.02.2015 has informed

that the Commission has asked CBI to register a

PE in the matter of irregularities in procurement of

240 & 190 MT Dumpers and 20 Cubic Mtr Shovels

and submit a report after thorough investigation.

CBI   report   in   the   matter   is   awaited.   The

Commission, therefore, advised this Ministry to

place the facts of the case and status thereof,

before the competent authority while it considers

his suitability for the appointment.

2.    In pursuance with the advice of the CVC,

Vigilance division had placed the matter before the

competent authority and it has been decided that

since the CBI was directed by CVC to register a

PE, the file should be submitted after conclusion of

PE. As no timelines have been indicated by the
        CVC     or    CBI,    this    is    likely   to   be   delayed

       indefinitely. Therefore, this Ministry is of the view

       that it is not worthwhile to pursue the proposal for

       his appointment any further. As such, it has been

       decided to recommend scrapping of the panel so

       that PESB can be requested to initiate fresh

       selection at the earliest.

       3.     Accordingly, DOPT is requested to obtain and

       communicate the approval of ACC for scraping

       (scrapping) of the panel recommended by PESB

       immediately so that necessary action to fill up the

       vacancy could be initiated afresh by the Ministry.

       4.     This issues with the approval of Minister of

       State (Independent Charge) for Coal."

 Even after issuance of the letter dated 29th May, 2015,

the concerned Ministry issued an Office Memorandum

dated 15th July, 2015, addressed to the DoPT seeking

further ad hoc extension of tenure of the appointment of

the writ petitioner as Director (Technical), ECL, for

reasons     stated   in     the     said   memorandum,         which

includes, inter alia, absence of any chargesheet or even
 showcause     notice   issued   against   him.   DoPT      was

requested to obtain and communicate the approval of the

ACC for the purpose of extension of tenure of the writ

petitioner beyond 23rd December, 2014.

  The incumbent Chairman-cum-Managing Director of

ECL retired on 31st May, 2015. The ACC approved the

proposal / recommendation for scrapping of the panel in

question which was received by the concerned Ministry

on 3rd August, 2015.

  On 15th June, 2015, the Central Public Information

Officer of the concerned Ministry received an application

regarding the vigilance status of the writ petitioner.

  On 23rd June, 2015, the Central Public Information

Officer of the concerned Ministry, furnished the vigilance

status in respect of the internal candidates of Coal India

Limited sent to the PESB, before the interview was held

on 28th October, 2014. The said report and the enclosure

to the said letter showed that no penalty was imposed

during the last 10 years nor any disciplinary action was

initiated / being initiated against the writ petitioner.
   On 3rd August, 2015, the Under Secretary, Secretariat

of ACC, wrote a letter to the concerned Ministry with

reference to its communication dated 29th May, 2015.

The letter stated that the ACC has approved the proposal

of the concerned Ministry dated 29th May, 2015 for

scrapping   of   the   PESB   recommended       panel.    The

approval of the ACC to the concerned Ministry's proposal

to scrap the panel was given 2 months and 25 days

before expiry of the validity period of the said panel.

  On 4th /5th August, 2015 by an Office Memorandum

no. 010/COI/056, the 240 and 190 MT dumpers and 20

cubic metres electric rope shovel issues were put to rest

by the CVC - about 2 months and 24 days before expiry

of the validity period of the panel recommended by

PESB. The CVC stated that the case relating to

irregularities in procurement of 240 and 190 MT

dumpers and 20 cubic metre electric rope shovels by

Coal India Limited had been examined and after its

assessment it had decided to allow the matter to rest.

Therefore, the pending case against the writ petitioner

stood closed.
             On 16th September, 2015, the CVC addressed a letter

        to the concerned Ministry stating that there is nothing

        adverse on its records in respect of the writ petitioner.

        This was the final clearance of the writ petitioner for

        being considered for appointment as the Chairman-cum-

        Managing Director of ECL. This clearance was received 1

        month and 12 days before expiry of the validity period of

        the panel of the PESB recommending the writ petitioner

        as the selected candidate.

     It was contended by the learned senior counsel representing

the writ petitioner that the provisions relating to scrapping of a

panel regarding Board Level appointments in Central Public

Sector Undertakings proposed by PESB has been clearly laid

down in the compilation of guidelines issued by the Government

of India, Secretariat of the Appointment Committee of the

Cabinet, Ministry of Personnel Public Grievances, Department of

Personnel and Training, issued on 11th June, 2014.            This

compilation of guidelines will clearly reflect that the powers to

scrap   a     panel   approved       by   Directorate   of   Public

Enterprises/Public Enterprises Selection Board vests in the ACC.

The recommendation of scrapping of the panel comprising of the
 selected candidates (in this case, the writ petitioner) on 29th May,

2015, was illegal and unconstitutional because the concerned

Ministry did not follow the compilation of guidelines nor the

procedure laid down in the Office Memorandum dated 22nd

October, 2014 issued by the ACC regarding the post selection

appointment process.        No reasons have been advanced for

departing from the procedure as laid down.                  Since the

recommendation to scrap the panel in question was illegal,

unconstitutional and void, the ACC approval dated 3rd August,

2015 could not fasten on such void recommendation and would

be wholly ineffective.

     It was further contended that scrapping of the panel in

question without even referring to the Office Memorandum dated

22nd October, 2014, disclosed not only a total non-application of

mind, but also amounts to an arbitrary departure from the

standards set out in the memorandum and no valid reasons have

been disclosed for the same in the pleadings filed on behalf of the

respondents and as such is violative of Article 14 of the

Constitution of India.     There is no adverse allegation regarding

the integrity or competence of the writ petitioner.          He had a

legitimate   expectation    of   getting   a   fair   consideration   of
 appointment as the Chairman-cum-Managing Director of ECL,

which, in the facts and circumstances of the case has been

denied to him. The concerned respondents could have suo moto

reversed the scrapping of the panel after the final CVC clearance

came on 16th September, 2015 and failure to do so demonstrates

mala fide intention on their part. That apart and in any event, in

the facts of the instant case, the decision to scrap the panel in

question was unreasonable, unfair and without any justification.

It was finally contended that in a proper case (such as this one),

in order to prevent injustice, the Court may by itself pass an

order or give a direction which the Government or the Public

Authority should have passed or given, had it properly and

lawfully exercised its discretion. It was specifically submitted that

the present case may be treated in such category.

     Learned senior counsel appearing on behalf of the writ

petitioner referred to various decisions of the Hon'ble Supreme

Court in order to buttress his submission which are enumerated

as follows :-

     1.    Amarjit Singh Ahluwalia (Dr.) v State of Punjab and
           Others reported in (1975) 3 SCC 503.
     2.    A.P Aggarwal v Govt. of NCT of Delhi and Another
           reported in (2000) 1 SCC 600.
     3.    AK Kraipak and Others v Union of India and Others
           reported in (1969) 2 SCC 262.
      4.    Food Corporation of India v M/s Kamdhenu Cattle
           Feed Industries reported in (1993) 1 SCC 71.
     5.    D.Ganesh Rao Patnaik and Others v State of
           Jharkhand and Others reported      in (2005) 8
           SCC 454.
     6.    Associate Provincial Picture Houses, LTD. v
           Wednesburry Corporation reported in (1947) 2 All
           ER 680.
     7.    Comptroller and Auditor General of India, Gian
           Prakash, New Delhi and Another v K.S
           Jagannathan and Another reported in (1986) 2
           SCC 679.
     8.    Director, SCTI for Medical Science & Technology
           and Another v M. Pushkaran reported in (2008) 1
           SCC 448.
     9.    Chimajirao Kanhojirao Shirkhe and Another v
           Oriental Fire and General Insurance Co. Ltd.
           reported in (2000) 6 SCC 622.


     On the other hand, the learned Additional Solicitor General

of India appearing on behalf of the respondent nos. 1,2,3 and 4

relied on the affidavit affirmed by Sri Sanjib Bhattacharya on 15th

January, 2016, wherein it has, inter alia, been stated, to the

effect, as follows :-

           1)    Based on the advice of the CVC the matter was

           placed before the disciplinary authority who directed

           that the writ petitioner's case be considered only after

           conclusion of the PE by CBI as advised by the CVC.

           2)    The concerned Ministry was not in a position to

           anticipate by when the PE would be concluded by the
 CBI and the then incumbent Chairman cum Managing

Director was to retire on May 31, 2015.

3)   The matter was placed before the competent

authority who advised that since the CBI was directed

by the CVC to register a PE, the file should be

submitted after conclusion of the PE. Hence, it was

submitted that necessary steps were immediately

initiated for the selection of the writ petitioner and the

allegation that even after compliance of all the

necessary formalities for selection of the writ petitioner

by the PESB the concerned Ministry did not take any

steps, is false.

4)   The letter by the CVC to the CBI did not mention

any timeline regarding the submission of vigilance

clearance in respect of the writ petitioner including

completion of enquiry by CBI and the incumbent

Chairman     cum   Managing     Director   of   ECL   was

superannuating on May 31, 2015. ECL was declared a

sick company and was referred to BIFR a few years

back and came out of purview of BIFR by the end of

financial year 2014-15 only. In order to carry on the
 affairs of the company and to prevent its performance

from going down again, it was essential to have a

Chairman cum Managing Director at the earliest.

Finding no other alternative, a proposal was moved to

obtain approval of the ACC through DoPT to scrap the

existing panel recommended by PESB and initiate a

fresh    selection   process.   The   said   proposal   was

approved by the ACC as intimated by DoPT vide their

letter dated August 3, 2015.

5)      CVC clearance with respect to the writ petitioner

was awaited since January 15, 2014 when the initial

letter to grant clearance with respect to extension of

tenure as Director (Technical) of ECL was sent to CVC

by the vigilance section of Union of India.

6)      Union of India, through its vigilance section, was

regularly trying to communicate with CVC seeking

their clearance with respect to the writ petitioner,

initially for extension of the post of Director (Technical)

and post recommendation of his name for Chairman

cum Managing Director, ECL clearance was sought for

with respect to both.
 7)    By a letter dated November 18, 2014, after receipt

of the recommendation of the name of the petitioner for

the post of Chairman cum Managing Director, the CVC

was requested to provide its clearance as required for

extension of the post of Director (Technical) as well as

for processing the case for appointment to the post of

Chairman cum Managing Director, ECL.

8)    At the time of seeking clearance for the post of

Chairman cum Managing Director, the clearance from

CVC was already awaited for more than 10 months.

9)    By two letters dated December 2, 2014 and

January 1, 2015, Union of India, through its vigilance

section, requested the CVC to expedite the matter and

to convey its decision about vigilance clearance with

respect to the writ petitioner.

10)   It was put forth by the writ petitioner that more

than two months have passed since his case was

referred to CBI/CVC and the same attracts provisions

of deemed clearance as contained in the memorandum

dated October 22nd, 2014. There is no such deemed

clearance as contained in the memorandum. The said
 memorandum dated October 22nd, 2014 lays down

guidelines issued by ACC for processing proposals for

appointment to Board Level posts in CPSEs. It was

further submitted that a guideline issued by a different

authority which is ACC in the instant case, cannot

substitute a clearance required from another authority

viz. CVC. In fact, no person can claim any clearance

from a statutory authority as a matter of right. It has

been stipulated in the said guideline in clause 4 (b)(i)

that in case vigilance clearance is not denied by CVC

within 2 months period stipulated above (which would

include consultation with CBI/CBI clearance, reference

to the CVO of the Ministry for any report, clarification

etc.), the Ministries shall proceed with the appointment

process without waiting any further. The use of the

word 'process' after appointment itself clarifies that the

administrative authority (i.e the ministry concerned)

has to submit its opinion/recommendation vis-à-vis

the appointment to ACC, which is the ultimate

authority to take decision in this regard.
          11)   ECL was declared a sick company and referred to

         the Board for Industrial and Financial Reconstruction

         (hereinafter referred to as ''BIFR'') a few years back. It

         came out of the purview of BIFR by the end of the

         financial year 2014-15. In order to carry on the affairs

         of the company and to prevent its performance from

         going down again, it was essential to have a regular

         Chairman cum Managing Director at the earliest.

         Therefore, it was proposed that instead of waiting

         indefinitely to know the outcome of the PE by the CBI,

         it would be appropriate to scrap the panel and initiate

         a fresh selection process. A proposal was accordingly

         forwarded to DoPT to obtain the approval of the ACC.

         ACC approved the proposal and PESB was requested

         to initiate a selection process.

    The learned Additional Solicitor General, while relying on

and referring to the said affidavit further submitted that the

memorandum/circular of ACC dated 22nd October, 2014 does not

apply since it was not there when the selection process was

initiated and therefore was not followed by the concerned

Ministry and that, in any case, the said memorandum /circular
 was not applicable. Once the panel is scrapped by the ACC, the

writ petitioner can no longer be considered again unless this

Court so directs and the ACC cannot effect reversal of scrapping

of   the    panel   by   itself.   He    further    submitted      that   an

administrative regulation has no statutory force and does not

confer any legal right and cannot be enforced in a court of law.

He   also    submitted     that    no   vested     right   is   created   by

empanelment. The panel can be scrapped for any valid reason.


      The learned Additional Solicitor General relied on the

following judgments of the Supreme Court in support of his

contentions:-

      1.     Syndicate Bank Vs. Ramachandran Pillai & Ors.
             reported in (2011) 15 SCC 398.
      2.     Chief Commercial Manager, South Central Railway,
             Secunderabad and Others v G. Ratnam reported in
             (2007) 8 SCC 212.
      3.     Mukut Bihari & Anr. Vs. State of Rajasthan reported
             in (2012) 11 SCC 642.
      4.     Vijoy Kumar Pandey Vs. Arvind Kumar Rai & Ors.
             reported in (2013) 11 SCC 611,
      5.     State of Orissa & Anr. Vs. Rajkishore Nanda & Ors.
             reported in AIR 2010 SC 2100 = (2010) 6 SCC 777
      6.     Rakhi Ray & Ors. Vs. High Court of Delhi & Ors.
             reported in (2010) 2 SCC 637,
      7.     Union of India & Ors. Vs. NP Dhamania & Ors.
             reported in 1995 Supp (1) SCC 1
      8.     Dr H Mukherjee Vs. Union of India & Ors. reported
             in 1994 Supp (1) SCC 251
      The learned senior counsel appearing on behalf of Coal

India Limited adopted the submissions advanced by the learned

Additional Solicitor General of India. He also submitted that the

post-in-question is lying vacant since 1st June, 2015 due to

superannuation of the last incumbent in office on 31st May, 2015.

As such, there is an imperative necessity for the post to be filled

up without any further delay.

     After considering the respective contentions of the parties, it

appears that the moot question which falls for consideration in

the facts and circumstances of the instant case is whether the

recommendation of scrapping of the panel in question comprising

of the name of the selected candidate, i.e., the writ petitioner, by

the concerned Ministry on 29th May, 2015, can be construed to

be illegal and unconstitutional because the concerned Ministry

did not follow the laid down procedure as contained in the

compilation of guidelines dated 11th June, 2014, read with the

Office Memorandum of the ACC dated 22nd October, 2014.

     In order to find an answer to this issue it may not be out of

context to refer to the compilation of guidelines dated 11th June,

2014, as well as the Office Memorandum dated 22nd October,

2014. However, even before that, two relevant dates have to be
 kept in mind. The first date is when the panel in question was

recommended by the PESB, i.e., 28th October, 2014. The other

date is 3rd August, 2015, when the panel was scrapped on the

recommendation made by the concerned Ministry, as contained

in its letter dated 29th May, 2015.

      From the above two dates it will be clearly apparent that

when PESB recommended the panel on 28th October, 2014, the

compilation of guidelines dated 11th June, 2014 and the Office

Memorandum dated 22nd October, 2014 for processing proposals

for   appointment   to   Board   Level   posts   in   Public   Sector

Enterprises, issued by the Secretariat of the ACC, were already in

force.

      The compilation of existing guidelines was issued on 11th

June, 2014 by the Secretariat of the Appointment Committee of

the Cabinet, Ministry of Personnel, Public Grievances and

Pensions (Department of Personnel & Training) Government of

India, which included a D.O.No. 29(3) EO/2008(ACC) dated 27th

May 2008 issued by the Cabinet Secretary wherein it has been

clearly stated that the panel of names recommended by PESB is

valid for a period of one year and needs to be revalidated before

submission to ACC. Although the selection process was initiated
 on the basis of an advertisement dated 29th May, 2014 for the

post   of   Chairman-cum-Managing           Director   of   ECL,   the

recommendation for appointment of the writ petitioner to the post

in question was made on 28th October, 2014. As such, the panel

was supposed to be valid at least till 27th October, 2015.         The

panel was scrapped on 3rd August 2015 by the ACC on the

recommendation made by the concerned Ministry, as contained

in its letter dated 29th May, 2015. The said letter dated 29th May

2015, which has been set out hereinbefore, clearly reveals that

the reason for making the recommendation for scrapping of the

panel containing the name of the writ petitioner was that because

there were no timelines indicated either by the CVC or by the CBI

with regard to enquiry being made by the said two authorities in

the matter of irregularities in procurement of 240 & 190 MT

dumpers and 20 cubic metre shovels. As such, the concerned

Ministry was of the view that it was not worthwhile to pursue the

proposal of the writ petitioner's appointment any further. On this

ground alone it was decided by the concerned Ministry to

recommend scrapping of the panel so that the PESB could

initiate fresh selection at the earliest.
      It is necessary at this stage to carefully consider the

guidelines prescribed by the ACC which are clearly applicable in

the instant case.         A bare perusal of Office Memorandum

containing the guidelines issued on 22nd October, 2014 by the

Secretariat of the ACC, brings into light the fact that it was

observed that the timelines prescribed for processing the

proposals for appointments to Board level posts in CPSEs were

not being adhered to. The resultant delay in filing up the Board

level vacancies had been a matter of serious concern for the

Government.      In order to address this issue effectively, a rigid

timeline was set out not only for information but also for

strict compliance (emphasis supplied).            The timelines as

contained in the guidelines issued on 22nd October, 2014 are

setout hereinbelow :-

   PESB will initiate the                  PESB    Initiate selection
   process for filling up of                       process 1 year
   Board level vacancies                           prior to date of
   at least one year prior                         vacancy; send
   to the date on which        6 months            recommendation
   the vacancy arises.         prior to            s to Ministry 6
   (The             Ministry   schedule            months before
   concerned     shall    be   d expiry            date of vacancy
   responsible to intimate     of tenure
   all          anticipated
   vacancies to the PESB
   well in time for this
   process to commence.)
 PESB will complete the
selection process and
send                  its
recommendations        to
the Ministry at least 6
months prior to the
date of vacancy.
Ministry concerned will                MINISTRY
forward    the     PESB      10 days              Forward
recommendation with                               vigilance profile
vigilance profile of the                          to CVC
selected individual to
CVC within 10 days
from the receipt of
PESB recommendation.

CVC will complete the                    CVC
vigilance       clearance
process     within    two    60 days              Vigilance
months from the date                              clearance     or
of    receipt    of    the                        denial including
vigilance profile of the                          consultation
selected       candidate                          with CBI
from the Ministry and
send it to the Ministry.
The period of two
months will include
consultation          with
CBI/CBI        clearance,
reference to the CVO of
the Ministry for any
report,    clarifications,
etc.
    The Ministry concerned                      MINISTRY
   will, with the approval
   of the Minister, forward          10 days               will    forward
   the proposal to ACC                                     with Minister's
   Secretariat         (E.O.)                              approval
   within the next 10
   days.

   The ACC will thereafter
   take a decision on the
   proposal within six                            ACC
   weeks of the receipt by           6 Weeks               Decision
   the ACC Secretariat




     The timelines, as reproduced hereinbefore, reveal that the

concerned      Ministry         is     required   to    forward   the   PESB

recommendation with the vigilance profile of the selected

individual to CVC within ten days from the receipt of the

recommendation.         CVC is required to complete the vigilance

clearance process within two months from the date of receipt of

the vigilance profile of the selected candidate from the Ministry

concerned and send it back to the said Ministry. This period of

two months will include consultation with CBI/CBI clearance,

reference to the CVO of the Ministry for any report, clarifications,

etc. The Ministry concerned, thereafter, is supposed to forward

the proposal to the ACC Secretariat (E.O.) within the next ten

days upon obtaining approval from the Minister.                   The ACC is
 thereafter required to take a decision on the proposal within six

weeks of its receipt by its Secretariat.     The respondent No.2,

being the Establishment Officer, ACC, is required to monitor

compliance of the above timelines and bring any abnormal or

unexpected delay to the notice of the Cabinet Secretariat.

       Nothing is stated in the affidavit affirmed, inter alia, on

behalf of the respondent No. 2, being the Establishment Officer,

ACC, wherefrom it will appear that the said Establishment

Officer, ACC, either monitored compliance of the prescribed

timelines or brought any abnormal or unexpected delay in

processing of the matter to the notice of the Cabinet Secretariat

at any stage. From the said affidavit it also does not appear that

the concerned Ministry - in order to facilitate monitoring of the

proposal at every stage - uploaded or updated the data filled in

AVMS on real time basis so that effective monitoring could be

done. The most significant aspect in the instant case is complete

non-adherence to clause 4 of the guidelines dated 22nd October,

2014. Clause 4 (a) is quite clear and specific. It states, inter alia,

that instructions contained in DoPT's Office Memorandum dated

18th       October,     2013,       regarding       handling        of

pseudonymous/anonymous          complaints      should   be    strictly
 adhered to at all levels. Further, as per CVC's instructions issued

vide office order dated 31st August, 2004, no cognizance should

be taken of any complaint received within six months prior to the

initiation of the selection process. For this purpose, the date of

interview held by the PESB would be the crucial date; six months

prior to which no cognizance would be taken of complaints

received against the selected candidates.               Such complaints

should however be dealt separately and necessary action be

taken in the event of any adverse conclusion even after the

appointment is made (emphasis supplied). Clause 4 (b) which is

squarely applicable in the present case clearly states that in case

vigilance clearance is not denied by CVC within the two months

period     stipulated   in   clause     4(a)   (which      would     include

consultation with CBI/CBI clearance, reference to the CVO of the

Ministry    for   any   report,    clarifications,    etc.),   the   Ministry

concerned shall proceed with the appointment process, without

waiting any further (emphasis supplied).              In the instant case,

the   concerned     Ministry      has   simply       ignored   the   specific

instructions/guidelines and has not even adverted to the

applicable guidelines while issuing the letter dated 29th May,

2015.
         The submission advanced by the learned Additional Solicitor

General that the guidelines were not in force when the selection

process was initiated, cannot hold much water since it has been

very specifically stated by the respondent nos. 1, 2, 3 and 4 in

paragraphs 9 & 10 of their affidavit-in-opposition, inter alia, to

the effect that the memorandum containing the guidelines dated

22nd October, 2014 was followed in its true spirit. As such, the

submission made by the learned Additional Solicitor General is

contrary to his clients' pleadings. In this context, one may take

notice of the judgment of the Hon'ble Supreme Court rendered in

Chimajirao's case (supra), wherein it has been held, inter alia, to

the effect that the approach of the High Court was not proper.

The High Court (in the facts of that case) had committed an error

in setting aside the finding given by the trial Court specially in

view of the specific plea taken in the written statement. The

Supreme Court went on to observe that the High Court felt that

since     it   was   a   legal   matter,   it   could   be   adjudicated

notwithstanding a different stand in its pleading, which approach

was not proper. Once a stand in fact is taken, that fact could not

be controverted by any legal proposition. That parties cannot take

a stand different from their pleadings - which form the
 foundation of their case - is quite well settled and will also be

evident from the observations made by the Supreme Court in the

case of Vinod Kumar Arora vs. Surjit Kaur reported in (1987) 3

SCC 711 (paragraph 11). It has been further observed, inter alia,

that it is not open to the parties to give up their case set out in

the pleadings and propound a new and different case.

     In the facts of the instant case, the recommendation of

scrapping of the panel made by the concerned Ministry on 29th

May, 2015 - without following the prescribed guidelines as

contained in the Office Memorandum of the Secretariat of the

ACC dated 22nd October, 2014 - therefore, was unconstitutional,

being wholly illegal and arbitrary. Even if the guidelines

contained in the Office Memorandum dated 22nd October, 2014

was not based on any statutory provision and was merely an

administrative instruction issued by the Secretariat of the ACC in

exercise of its executive power, such guidelines or administrative

instructions will continue to have the force of statute in the

absence of any statutory rules regulating the recruitment process

in question. In this context one may take notice of the judgment

rendered by the Supreme Court in the case of Dr. Amarjit Singh

Ahluwalia (supra) (paragraph 8). It was the bounden duty of the
 concerned Ministry to follow the prescribed guidelines as issued

by the ACC from time to time unless those guidelines were

contrary to any specific statutory rules in force. Having not

adhered to the prescribed guidelines while issuing the letter

dated 29th May, 2015, the action of the concerned Ministry falls

susceptible to the vice of arbitrariness which is the crux of Article

14 of the Constitution of India and basic to the rule of law, the

system which governs us (see Kumari Shrilekha Vidyarthi v State

of UP reported in (1991) 1 SCC 212), which has been referred to

and relied upon by the Supreme Court in its latter decision

rendered in the case of A.P.Aggarwal (supra) (paragraph 12).

Since the recommendation for scrapping of the panel is

unconstitutional, being illegal and arbitrary, the consequential

action of the ACC granting approval to such recommendation for

scrapping     of     the   panel   cannot   have     any    effect,   the

recommendation by itself being void ab initio. In this context, one

may take notice of the observations made by the Supreme Court

in paragraph 21 of A.K.Kraipak's case (supra).

     Undoubtedly, the petitioner had a legitimate expectation of

getting   a   fair   consideration   in   the   selection   process   for

appointment as Chairman-cum-Managing Director, ECL. The
 recommendation for scrapping of the panel made by the

concerned Ministry on 29th May, 2015, has resulted in denial of

such legitimate expectation. In the case of Food Corporation of

India vs M/s Kamdhenu Cattle Feed Industries (supra), it has

been held, inter alia, as follows:

                 "     The mere reasonable or legitimate expectation
                 of a citizen, in such a situation, may not by itself
                 be a distinct enforceable right, but failure to
                 consider and give due weight to it may render the
                 decision arbitrary, and this is how the requirement
                 of due consideration of a legitimate expectation
                 forms part of the principle of non-arbitrariness, a
                 necessary concomitant of the rule of law. Every
                 legitimate expectation is a relevant factor requiring
                 due   consideration    in    a   fair   decision-making
                 process. Whether the expectation of the claimant is
                 reasonable or legitimate in the context is a
                 question of fact in each case. Whenever the
                 question arises,     it is    to be determined not
                 according to the claimant's perception but in larger
                 public interest wherein other more important
                 considerations      may      outweigh    what    would
                 otherwise have been the legitimate expectation of
                 the claimant. A bona fide decision of the public
                 authority reached in this manner would satisfy the
                 requirement of non-arbitrariness and withstand
                    judicial   scrutiny.   The   doctrine   of   legitimate
                   expectation gets assimilated in the rule of law and
                   operates in our legal system in this manner and to
                   this extent. "


     The facts of the case, as narrated earlier, palpably

demonstrate that the decision of the concerned Ministry to scrap

the panel was so unreasonable that no reasonable authority

could have come to such conclusion. The Court, in such

circumstances, has power to interfere. In this context, one may

take notice of the well-known principles of law laid down in

Wednesbury Corporation's case (supra). Even if it is held that

the concerned Ministry had discretion to recommend scrapping of

the panel, such discretion was exercised palpably wrongly based

on    irrelevant      considerations       upon     ignoring     relevant

considerations and materials. This is one such case which is a

classic example of where the High Court ought to exercise its

extraordinary discretionary jurisdiction under Article 226 of the

Constitution of India and issue an appropriate writ of mandamus

or a writ in the nature of mandamus in order to do justice. The

observations made by the Supreme Court in Comptroller and
 Auditor General's case (supra) which are of significance in the

facts of the instant case are set out hereinbelow:

                "     There is no doubt that the High Courts of
                India exercising their jurisdiction under Article 226
                have the power to issue a writ of mandamus or a
                writ in the nature of mandamus or to pass orders
                and    give   necessary    directions    where    the
                Government or a public authority has failed to
                exercise or has wrongly exercised the discretion
                conferred upon it by a statute or a rule or a policy
                decision of the Government or has exercised such
                discretion mala fide or on irrelevant considerations
                or by ignoring the relevant considerations and
                materials or in such a manner as to frustrate the
                object of conferring such discretion of the policy for
                implementing which such discretion has been
                conferred. In all such cases and in any other fit
                and proper case a High Court can, in the exercise
                of its jurisdiction under Article 226, issue a writ of
                mandamus or a writ in the nature of mandamus or
                pass orders and give directions to compel the
                performance in a proper and lawful manner of the
                discretion conferred    upon the Government or a
                public authority, and in a proper case, in order to
                prevent injustice resulting to the concerned parties,
                the Court may itself pass an order to give
                directions which the Government or the public
                 authority should have passed or given had it
                properly and lawfully exercised its discretion."


     By recommending scrapping of the panel on 29th May, 2015,

(i.e., much before its validity expired), the concerned Ministry

denuded the right of the writ petitioner from even being

considered for appointment by the ACC. Even if he did not finally

secure his appointment as the Chairman-cum-Managing Director

of ECL, at least he would have got a fair consideration by the

ACC which was denied due to the illegal and arbitrary action of

the concerned Ministry. In the facts of the instant case, therefore,

the ratio of the judgment of the Supreme Court in the case of

Director, SCTI for Medical Science & Technology (supra),

while upholding the decision of the High Court and dismissing

the appeal, is clearly applicable.

     The arbitrariness demonstrated by the concerned Ministry

becomes even more palpable and evident if one takes note of two

dates, both of which are well before the expiry of the one year

validity period of the recommended panel. The first date is 4th/5th

August, 2015, when the 240 and 190 MT dumpers and 20 cubic

metre electric rope shovels issues were put to rest by the CVC -

about 2 months and 24 days before expiry of the validity period of
 the panel recommended by the PESB. The other date is 16th

September, 2015, when the CVC addressed a letter to the

concerned Ministry stating that there was nothing adverse in its

record in respect of the writ petitioner. This was the final

clearance   of   the   writ   petitioner   for   being   considered   for

appointment as the Chairman cum Managing Director, ECL. This

clearance was received one month 12 days before expiry of the

panel of the PESB recommending the writ petitioner as the

selected candidate.

     What is of even more significance to note at this stage is

that the competent authority of the concerned Ministry -

although alive to the fact that the post of Chairman cum

Managing Director of ECL was to fall vacant on 1st June, 2015,

due to superannuation of Shri Rakesh Sinha, Chairman cum

Managing Director of ECL on 31st May 2015, even when

recommendation for the writ petitioner's appointment for the post

in question was made by the PESB as far back on 28th October,

2014 - the concerned Ministry chose to wait till 29th May, 2015

(i.e. 48 hours before the incumbent in office of the Chairman cum

Managing Director of ECL was scheduled to superannuate) for

the purpose of making a recommendation for scrapping of the
 panel and that too, by stating to the effect that since no timelines

have been indicated by the CVC or CBI, the process of

submission of the file after conclusion of the PE by the CBI was

likely to be delayed indefinitely. As such, the concerned Ministry

was of the view that it was "not worthwhile" to pursue the

proposal of the writ petitioner's appointment any further, even

after waiting for seven months since the date of making

recommendation, i.e., 28th October, 2014. Further, it is noticed

that although it took seven months from the date when

recommendation was made by the PESB, i.e., 28th October, 2014

till 29th May, 2015 in order to finally come to a conclusion that it

was "not worthwhile" to wait further and decided to go ahead by

recommending scrapping of the panel, the concerned Ministry did

not mention - even for once - in its letter dated 29th May, 2015,

how it would be beneficial to the interest of ECL to start the

process afresh, especially when the incumbent in office of the

Chairman-cum-Managing director of ECL was scheduled to retire

within forty eight hours - other than merely stating that it would

be "not worthwhile". Significantly, in its letter dated 29th May,

2015, the concerned Ministry has referred to the CVC's letter

dated 4th February, 2015 informing the concerned Ministry of
 the decision taken by the Commission to ask the CBI to register a

Preliminary     Enquiry   in   the   matter     of     irregularities   in

procurement of 240 & 190 MT dumpers and 20 cubic metres

shovels   and    for   submission    of   a   report    after   thorough

investigation. If the competent authority of the concerned

Ministry had full knowledge of the CVC's letter dated 4th

February, 2015, why did the concerned Ministry wait from that

date till exactly forty eight hours before the incumbent in office

was scheduled to retire (a period of almost four months), in order

to suddenly come to a conclusion that it was "not worthwhile" to

wait further - does not surface from the letter dated 29th May,

2015.

     There can be no better demonstration of sheer arbitrariness

and an action which is not bona fide, to say the least. The

concerned Ministry not only ignored the prescribed timelines as

clearly stated in the applicable guidelines, its very action of

making recommendation for scrapping of the panel only 48 hours

before the superannuation of the incumbent in office - an

inescapable fact, which was to the knowledge of the concerned

Ministry even when the writ petitioner was selected and his name

was recommended for appointment as far back on 28th October,
 2014 - is a clear pointer to the manner in which the concerned

Ministry has acted in the facts of the instant case. The facts are

so glaring and palpable that they do not require any further

elucidation. The concerned Ministry's action cannot withstand

scrutiny in judicial review and fails all known tests laid down by

the Courts till now. Such type of administrative action is wholly

perverse and contrary to the established principles of law which

would allow it to pass scrutiny in judicial review.

     Now, to deal with the judgments referred to and relied upon

by the learned Additional Solicitor General. In Syndicate Bank's

case (supra), the Supreme Court held in paragraph 6 as follows:-

                "     If any executive instructions are to have the
                force of statutory rules, it must be shown that they
                were issued either under the authority conferred
                on the Central Government or a State Government
                or   other   authority   by   some    statute   or   the
                Constitution. Guidelines or executive instructions
                which are not statutory in character, are not
                "laws", and compliance        therewith cannot be
                enforced through courts. Even if there has been
                any violation or breach of such non-statutory
                guidelines, it will not confer any right on any
                member of the public, to seek a direction in a court
                of law, for compliance with such guidelines. An
                  order validly made in accordance with a statute
                 (as in this case the Public Premises Act), cannot be
                 interfered with, even if there has been any
                 transgression of any guidelines, except where it is
                 arbitrary or mala fide or in violation of any
                 statutory    provision.   These        are   well-settled
                 principles (see Union of India v. S.L. Abbas [(1993)
                 4 SCC 357 : 1994 SCC (L&S) 230 : (1993) 25 ATC
                 844] , South Central Railway v. G. Ratnam [(2007)
                 8 SCC 212 : (2007) 2 SCC (L&S) 851] and State of
                 U.P. v. Gobardhan Lal [(2004) 11 SCC 402 : 2005
                 SCC (L&S) 55] )."
       There cannot be any dispute to the proposition of law laid

down by the Supreme Court. It is clear from the plain language

used by the Supreme Court that if there is any arbitrariness or

mala fide action which results in transgression of any guidelines,

the Court can interfere. In the instant case it is clearly evident

that   the   Office   Memorandum      dated      22nd   October,    2014,

containing the applicable guidelines, has not been adhered to by

the concerned Ministry most arbitrarily, without assigning any

reason, which will be clear from a plain reading of the letter dated

29th May, 2015. The question in the facts of the instant case is

not whether a mandatory direction can be issued against the

concerned     respondent     authorities   for   enforcement       of   the
 guidelines as applicable, since in the affidavit-in-opposition it has

been clearly admitted that the guidelines have been followed. The

question is, whether the respondent authorities can make out a

case contrary to its own pleadings while referring to this

judgment. The answer is surely in the negative.

     In Chief Commercial Manager, South Central Railway's

case (supra), the same principle of law as stated in Syndicate

Bank's case (supra) with regard to enforceability of administrative

/ executive instructions through issuance of writ against the

Government under Article 226 of the Constitution of India, has

been stated in a fact situation which is distinct - relating to a

departmental proceeding -     that is not at all applicable in the

instant case where the selection or appointment process has

been dealt with by the concerned Ministry in an arbitrary manner

without even referring to or following the applicable guidelines. In

Mukut Bihari's case (supra) the same principle of law, as laid

down by the Supreme Court in Chief Commercial Manager,

South Central Railway's case (supra), has been restated.

     On the other hand, as discussed hereinbefore, the writ

petitioner has referred to Dr. Amarjit Singh Ahluwalia's case

(supra) which has been rendered by a three Judge Bench. It has
 been, inter alia, held therein to the effect that even an

administrative instruction, not having the force of law, cannot be

departed from, by the State at its sweet will, without rational

justification and such departure would be clearly violative of

Articles 14 and 16 of the Constitution of India. The sweep of

Articles 14 and 16 is wide and pervasive. These two Articles

embody the principle of rationality and they are intended to strike

against arbitrary and discriminatory action taken by the State.

Where the State departs from a principle which finds its place in

administrative instructions and such departure is without reason

or arbitrary, it would directly infringe guarantee of equality under

Articles 14 and 16 of the Constitution of India. As stated

hereinbefore, the facts of the instant case clearly demonstrate

such arbitrariness on the part of the concerned Ministry which

has departed from the timelines, as prescribed in the applicable

guidelines, without giving even an iota of reason. In this context,

it may be worthwhile to quote paragraphs 35 and 36 of Kumari

Shrilekha Vidyarthi's case (supra) which has been referred to

and relied upon in A.P.Aggarwal's case (supra).

                "35. It is now too well settled that every State

                action, in order to survive, must not be susceptible
 to the vice of arbitrariness which is the crux of

Article 14 of the Constitution and basic to the rule

of law, the system which governs us. Arbitrariness

is the very negation of the rule of law. Satisfaction

of this basic test in every State action is sine qua

non to its validity and in this respect, the State

cannot claim comparison with a private individual

even in the field of contract. This distinction

between the State and a private individual in the

field of contract has to be borne in the mind.

36.   The meaning and true import of arbitrariness

is more easily visualized than precisely stated or

defined. The question, whether an impugned act is

arbitrary or not, is ultimately to be answered on

the facts and in the circumstances of a given case.

An obvious test to apply is to see whether there is

any   discernible   principle   emerging   from   the

impugned act and if so, does it satisfy the test of

reasonableness. Where a mode is prescribed for

doing an act and there is no impediment in

following that procedure, performance of the act
                 otherwise and in a manner which does not

                disclose   any   discernible    principle      which   is

                reasonable,   may     itself   attract   the    vice   of

                arbitrariness. Every State action must be informed

                by reason and it follows that an act uninformed by

                reason, is arbitrary. Rule of law contemplates

                governance by laws and not by humour, whims or

                caprices of the men to whom the governance is

                entrusted for the time being. It is trite that 'be you

                ever so high, the laws are above you'. This is what

                men in power must remember, always."

     Further, in A.P.Aggarwal's case (supra), it has been held to

the effect that even if an office memorandum is not mandatory

and is discretionary in nature, such discretion is coupled with

the duty to shun the arbitrariness in its exercise.

     There is no dispute to the proposition of law laid down by

the Supreme Court in the three judgments referred to by the

learned Additional Solicitor General, namely, Vijoy Kumar

Pandey (supra), State of Orissa and Another (supra) and Rakhi

Ray and Others (supra) wherein it has been held that no vested

right is created by inclusion of the name of a candidate in any
 panel which can, for good and valid reasons, be scrapped by the

competent authority. A person whose name appears in the select

list does not acquire any indefeasible right of appointment. The

facts of the instant case, however, reveal an action by the

concerned Ministry which is palpably unconstitutional, being

illegal and arbitrary for reasons stated earlier. As such, the ratio

of the three judgments is not at all applicable in the facts of the

instant case.

     The other two judgments referred to by the learned

Additional Solicitor General are Union of India and Others vs

N.P.Dhamania (supra) and Dr. H. Mukherjee vs. Union of India

and Others (supra). In Union of India and Others vs.

N.P.Dhamania (supra), the Supreme Court has held, inter alia,

that recommendations of the Departmental Promotion Committee

(DPC) are advisory in nature and not binding on the appointing

authority. It is open to the appointing authority to differ from the

recommendation in public interest. However, in the event the

ACC differs from the recommendations of the DPC, it must give

reasons for so differing, in order to ward off any attack of

arbitrariness. Therefore, the Supreme Court makes it clear that

in a case where ACC differs with the recommendation of a like
 nature without giving reasons, such act could be challenged

under Article 226 of the Constitution of India. In Dr. H.

Mukherjee (supra), the Supreme Court was considering a

decision rendered by the Principal Bench of the Central

Administrative Tribunal, whereby the Tribunal directed the ACC

to reconsider the suitability of the respondent for appointment to

the post of Chief Controller of Explosives, without taking into

consideration the adverse remarks made against him and the

outcome of the CBI's inquiry in which he was exonerated and in

the light of the observations contained in its judgment. In such a

factual backdrop, the Supreme Court held to the effect that it

was well settled that the function of the Public Service

Commission being advisory, the Government may for valid

reasons to be recorded on the file, disapprove of the advice or

recommendation tendered by the Commission, which decision

can, if at all, be tested on the limited ground of it being

thoroughly arbitrary, mala fide or capricious. The judgment

cannot be of any assistance to the learned Additional Solicitor

General not only because it has been rendered in a completely

different fact situation, it has been clearly stated therein that a

decision by the Government, on the advice or recommendation
 tendered by the Public Service Commission, can be tested on the

ground of it being thoroughly arbitrary, mala fide or capricious.

As such, the principles of law laid down is more applicable in the

writ petitioner's case.

     Having held that since the recommendation for scrapping of

the panel is unconstitutional, being illegal and arbitrary, the

consequential action of the ACC granting approval to such

recommendation cannot have any effect - the recommendation by

itself being void ab initio - this Court directs the Secretary,

Ministry of Coal, to treat the panel valid as of date and take

necessary steps to ensure that the proposal for appointment of

the writ petitioner as the Chairman-cum-Managing Director of

ECL, reaches the Secretariat of the ACC alongwith a copy of this

judgment and order, within a period of a fortnight from date of

communication of a photostat certified copy of this judgment and

order. Once the proposal reaches the Secretariat of the ACC, the

respondent no.2, being the Establishment Officer of the ACC,

shall ensure that the said proposal alongwith a copy of this

judgment and order is placed before the ACC for its consideration

not later than a fortnight therefrom to enable the ACC to take a

final decision within the shortest possible time based on the
 observations made in this judgment and order. Considering the

singular feature of this case, in the event the writ petitioner is

denied appointment by the ACC, cogent reasons have to be

supplied to the writ petitioner within a fortnight from the date of

such denial. The timelines, as directed above, shall be strictly

adhered to by the concerned respondents without any deviation

therefrom under any circumstances.

     The writ petition is accordingly disposed of.

     Urgent photostat certified copy of this judgment and order,

if applied for, be supplied to the parties on priority basis.




                                           Biswanath Somadder, J.