Important Point
The Board of Directors of the Food Corporation of India is required to discharge all its functions and be guided by the instructions on questions of policy, which may be given to it by the Central Government.

Headnote:Food Corporations Act, 1964—Sections 6, 12, 12A and 13—Food Corporation of India (Staff) Regulations, 1971—Recruitment for the posts of Joint Managers/Deputy Managers in the Food Corporation—FCI issued an advertisement for direct recruitment to the posts—Process of recruitment was completed—Select list of candidates was finalized with the approval of the Executive Committee of the Board of Management of the FCI—Complaints received by Government of India with regard to the manner in which direct recruitment of departmental candidates was being done—Allegations of relaxation of maximum age—Government of India issued a directive imposing a complete ban on the recruitment process—Recruitment process declared as null and void for flagrant violation of recruitment regulations—Freeze put on the appointment of departmental candidates challenged—Writ petitions filed challenging authority of Government of India to interfere with the internal administration of FCI—Division Bench of the High Court held that the Central Government had no power to issue the impugned directives—Whether judgment of the High Court is sustainable—(No).
Held : We may dispose of the contention based on discrimination first. In the first place, this question does not appear to have been canvassed before the High Court, irrespective of whether it was raised in the pleadings or not. Secondly, the contention is wholly misplaced. The discrimination, if any, can only arise as between the persons who are similarly, if not identically situated. It is not possible for the candidate for Deputy Managers post to claim that he had been discriminated because a Joint Manager had been appointed, for there is nothing common between these two posts. It is perfectly valid for the employer to fill up one category of posts and decline to do so the other for various business reasons. The argument of discrimination is without basis or merit. (Para 16)
In our view, the contention is without merit. In the first place, section 45 of the Act makes it clear that the power of the Food Corporation of India to frame regulations under the Act is subject to the general restriction that the regulations are not inconsistent with the Act and the Rules made thereunder. Section 6(2) is a provision of the Act itself which empowers the Central Government to issue directives and bind the Board of Directors of Food Corporation to comply with such directives. Hence, it is not possible to read any regulation framed under section 45 as inconsistent with or overriding a directives or instruction validly given by the Central Government to FCI under section 6(2) of the Act. Apart therefrom, we are not able to appreciate the argument that the power of the Board of Directors to relax the prescribed age limit can be exercised in such an unreasonable manner as to distort the regulation itself. As we have noticed, the relaxation could not have been done for the benefit of persons who were over-aged by about 15 years. (Para 21)

JUDGMENT

Srikrishna, J.—Leave granted in Special Leave Petition (Civil) Nos. 9016-9018 of 2004. These appeals are directed against the common judgment of the Division Bench of the Gauhati High Court in Writ Appeals Nos. 78/2002, 79/2002 and 102/2002.

2. The material facts relevant for deciding the present appeals lie in a narrow compass. The appellants in the appeals arising out of Special Leave Petition (C) Nos. 9016-9018 of 2004 are the Food Corporation of India (hereinafter referred to as the `FCI), its officers and the Union of India. The respondents in these appeals are the employees of the FCI, who were candidates for direct recruitment to certain posts. The petitioner in Special Leave Petition (C) No. 11475 of 2004 is one more such candidate of the FCI, and the Union of India, FCI and its officers are the respondents in the said special leave petition.

Statutory Provisions :

3. The FCI was established by the Food Corporations Act, 1964 (hereinafter referred to as `the Act), which was brought into force with effect from 17th December, 1964. As the preamble of the Act indicates, this is a Corporation established "for the purpose of trading in foodgrains and other foodstuffs and for matters connected therewith and incidental thereto". Section 13 of the Act declares that "it shall be the primary duty of the Corporation to undertake the purchase, storage, movement, transport, distribution and sale of foodgrains and other foodstuffs". For the purpose of carrying on the business assigned to it under the Act, FCI had been invested with the power of management of the Corporation and the authority to employ such officers and employees as may be required for the efficient carrying out of its statutory work. Section 6 of the Act deals with the management of the Corporation and provides as under :

"Management—(1) The general superintendence, direction and management of the affairs and business of the Corporation shall vest in a board of directors which may exercise all such powers and do all such acts and things as may be exercised or done by the Corporation under this Act.

(2) The board of directors, in discharging its functions, shall act on business principles having regard to the interests of the producer and consumer and shall be guided by such instructions on questions of policy as may be given to it by the Central Government.

(3) If any doubt arises as to whether a question is or is not a question of policy, the decision of the Central Government thereon shall be final."

Section 12 of the Act deals with the power of the Central Government to employ officers and other employees of Corporation and reads as under :

"Officers and other employees of Corporation—(1) The Central Government shall, after consultation with the Corporation, appoint a person to be the Secretary of the Corporation.

(2) Subject to such rules as may be made by the Central Government in this behalf, the Corporation may appoint such other officers and employees as it considers necessary for the efficient performance of its functions.

(3) The methods of appointment, the conditions of service and the scales of pay of the officers and other employees of the Corporation shall—

(a) as respects the Secretary, be such as may be prescribed;

(b) as respects the other officers and employees, be such as may be determined by regulations made by the Corporation under this Act."

Section 12A of the Act empowers the Central Government to transfer certain types of Government employees, serving in the Department of the Central Government dealing with food or any of its subordinate or attached offices, to the FCI. Section 45 of the Act invests power in the FCI to make regulations "not inconsistent with this Act and the rules made thereunder, to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act." Under sub section (2)(a) of Section 45 such regulation may provide for "the methods of appointment, the conditi

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2005 Supreme(SC) 352

Important PointThe Board of Directors of the Food Corporation of India is required to discharge all its functions and be guided by the instructions on questions of policy, which may be given to it by the Central Government.

Cases Referred (10)

Important Point
The Board of Directors of the Food Corporation of India is required to discharge all its functions and be guided by the instructions on questions of policy, which may be given to it by the Central Government.