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[3.3] That   by   a   notification   dated   21.02.2014   the   respondents  invited   the   applications   from   eligible   candidates   for   filling   up   large  number   of   vacancies   for   Postal   Assistant   and   Sorting   Assistant.   The  method of recruitment to the post of Postal Assistant / Sorting Assistant  is governed by Rules, 2014, which was published in the official gazette  on   27.01.2014.   As   observed   hereinabove,   by  order   dated   05.04.2011,  the   competent authority  decided  to adopt a  new  system for  objective  type questions for all examination and a decision was taken to conduct  the examination centrally by the Postal Directorate. M/s. CMC Limited  was selected to undertake the recruitment process from the year 2011.  M/s.   CMC   Limited   was   required   to   handle   the   entire   process   of  conducting the examination from the stage of printing the application  HC-NIC Page 11 of 74 Created On Sat Aug 20 00:02:35 IST 2016 C/SCA/10049/2016                                                                                                                               CAV JUDGMENT form till preparation of merit lists. The Postal Department was required  to announce the results on the basis of merit lists provided by M/s. CMC  Limited   and   candidates   were   required   to   send   the   filled   in   (OMR)  application forms directly to M/s. CMC Limited

(viii) Arrangement   of   examination   venues   and   conduct   of   each  examination   on   the   same   date   and   time   throughout   the  country.
(ix) Scanning of OMR answer sheets and preparation of merit  list as per the guidelines of Department of Posts.

[3.5] That as per the  notification  dated 21.02.2014, an eligible  candidate can apply for any one of the Circles.   A total number of 564  vacancies were notified for Gujarat Circle. The eligible candidates who  have fulfilled the eligibility criteria as per the Rules, 2014, responded to  HC-NIC Page 12 of 74 Created On Sat Aug 20 00:02:35 IST 2016 C/SCA/10049/2016                                                                                                                               CAV JUDGMENT the   said   notification   dated   21.02.2014   by   submitting   their   respective  applications   seeking   selection   and   appointment   to   the   post   of   Postal  Assistant   /   Sorting   Assistant   in   Gujarat   Circle.   That   the   written  examination was conducted on 01.06.2014 by engaging the services of  M/s.   CMC   Limited.   The   examination   comprised   of   two   parts   viz.   (1)  Paper­I was Aptitude Test whereas Paper­II was computer / typing test.  The candidates who were qualified in the Aptitude Test (Paper­I) were  directed to take part in computer / typing test (Paper­II) in terms of the  instructions contained in Para 11.1 of the notification dated 21.02.2014.  The computer / typing test was also conducted by the said M/s. CMC  Limited. That so far as the Gujarat Circle is concerned, the examination  for direct recruitment was held by M/s. CMC Limited at Ahmedabad,  Rajkot and Vadodara centres. Similar examinations were also conducted  by   M/s.   CMC   Limited   for   other   circles   viz.   Chhattisgarh,   Haryana,  Rajasthan and Uttarakhand. That thereafter a provisional select list was  published by the office of the Chief Postmaster General, Gujarat Circle.  All   the   successful   applicants   were   allotted   to   various   divisions   as   per  their   respective   individual   merits.   That   in   Gujarat   Circle,   out   of   652  candidates   selected,   290   successful   candidates   were   appointed   on  probation period of two years and 362 candidates were in the select list  but were not appointed and/or were not issued the appointment orders.  Similar   exercise   was   conducted   with   respect   to   the   other   circles  including Chhatisgarh, Haryana, Rajasthan, Uttarakhand etc.  [3.6] It appears  that  after  declaration   of  the  result, there  were  complaints   that   malpractices   were   being   adopted   by   some   of   the  candidates using unfair means in the examination. That the complaint  was   received   by   the   Postal   Directorate   on   08/09.04.2015   alleging  irregularities   in   recruitment   of   P.A.   /   S.A.   Direct   Recruitment  Examination   for   the   year   2014   conducted   on   01.06.2014   at   different  HC-NIC Page 13 of 74 Created On Sat Aug 20 00:02:35 IST 2016 C/SCA/10049/2016                                                                                                                               CAV JUDGMENT centres   in   Gujarat   Circle.   That   the   said   complaint   was   inquired   by   a  Vigilance  Team  of  the  Postal  Directorate  and it  was   found  that  there  were good and sufficient reasons to suspect serious malpractice on the  part of some of the candidates and officials of M/s. CMC Limited with or  without connivance of outsiders in the conduct of the examination held  in Gujarat Circle. It appears that based on the  prima facie  suspicion on  the   agency   on   the   leakage   of   the   question   paper   /   answer   key   and  violation of many of the provisions of the Agreement / Instructions of  the   Department   by   outsourced   agency,   possibility   of   involvement   of  outsiders, with or without connivance of M/s. CMC Limited, orders were  issued   for   holding   in   abeyance   of   further   appointments   /   training   in  respect of all the 22 postal circles, where the examination was conducted  through the same outsourcing agency - M/s. CMC Limited. Vide order  dated   27.04.2015   the   Assistant   Director   General   (DE),   Ministry   of  Communication and I.T., Department of Posts addressed a letter to all  the   Chief   Postmaster   General   except   the   Chief   Postmaster   General   of  Bihar,   Delhi,   Himachal   Pradesh,   Madhya   Pradesh,   Maharashtra   and  Uttar   Pradesh   and   directed   that   the   appointments   of   successful  candidates of P.A. / S.A. Examination for the year 2014, who were not  yet issed the letter / order of appointment may immediately be held in  abeyance till further orders and no training orders be issued in respect of  the   candidates   in   whose   cases   pre­appointment   formalities   have   been  completed. That in the  meantime  out of the  selected candidates,  290  candidates   were   already   given   appointment   by   the   Gujarat   Circle,  however on a probation of two years. It appears that thereafter and after  a detailed investigation with regards to the conduct of the examination  in respect of other Postal Circles was also undertaken. Since primarily,  no   vigilance   angle   was   found   to   have   been   established   in   the   fair  conduct   of   the   P.A.   /   S.A.   Examination,   in   11   circles   viz.   Andhra  Pradesh, Assam, Jammu and Kashmir, Karnataka, Kerala, Maharashtra,  HC-NIC Page 14 of 74 Created On Sat Aug 20 00:02:35 IST 2016 C/SCA/10049/2016                                                                                                                               CAV JUDGMENT North East, Odisha, Tamil Nadu, West Bengal and Punjab, the competent  authority ordered revocation of the orders of holding in abeyance on the  further appointment and training. However, the investigation revealed  certain irregularities on mass level on the part of many candidates and  officials of M/s. CMC Limited strongly suggesting leakage of question  papers   /  answer   key  of   the   P.A. /   S.A.  Examination,   in  5  circles   viz.  Rajasthan, Gujarat, Haryana, Uttarakhand and Chhatisgarh. It appears  that with respect to other 5 circles viz. Uttar Pradesh, Himachal Pradesh,  Delhi,   Bihar   and   Madhya   Pradesh   where   earlier   examinations   were  cancelled   due   to   certain   other   administrative   reasons,   the   competent  authority did not consider to revoke the orders of holding in abeyance of  appointment   /   training   orders.   Out   of   the   said   5   circles   viz.     Uttar  Pradesh, Himachal Pradesh, Delhi, Bihar and Madhya Pradesh were held  by the same agency, whose role in fair conduct of the examination was  not   under   cloud,   the   competent   authority   did   not   consider   allowing  declaration   of   the   results   by   the   Department.   While   remaining   two  Circles, namely, Uttar Pradesh and Bihar Circles were directed to hold  the re­examination at their lever without involvement of the agency. 



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         [5.1]                     It   is   further   submitted   by   Shri   Singh,   learned   Additional 

Solicitor General of India appearing on behalf of the Department that on  one hand the learned Tribunal has given the specific finding in favour of  the Department with respect to the large scale malpractice and that M/s.  CMC Limited committed serious lapses and that it would not be possible  for certain candidates to be successful without active involvement of the  officials of M/s. CMC Limited. On the other hand the learned Tribunal  has set aside the action of the Department in canceling the entire result  and   consequent   action   of   terminating   the   services   of   the   successful  candidates on the sole ground that the same is in breach of principles of  natural justice. 

37. On  perusal  of the  report,  we  further  find  that  M/s.   CMC Ltd. committed  serious  lapses. Certain  applications   which ought to have been rejected were entertained and as   per the report, it may be due to the collusion between the   candidates and the officials of M/s. CMC Ltd. The report   states that it would not be possible for certain candidates   to   be   successful   without   the   active   involvement   of   the   officials of M/s. CMC Limited.....