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1995 Supreme(SC) 107
SUPREME COURT OF INDIA
G.N.Ray : S.C.Agrawal
U.P.State Tourism Development Corporation Limited
Versus
I.B.Misra
Case No. : 818-819 of 1995
Date of Decision : 1/18/95
Advocates Appeared: Jain R.K. : Jain Shirin : Jaitley Arun : Kohli Lalita : Malhotra Indu : Swarup Manoj
ARUN JAITLEY, Indu Malhotra, LALITA KOHLI, MANOJ SVARUP, R.K.JAIN, Shirin Jain
Headnote:
Companies Act - Appointment on post of General Manager – Appeal against acquittal – Jurisdiction - High court by its judgment dated allowed said writ petition filed by Respondent 1 and issued a writ in nature of mandamus commanding respondents in said writ petition to make selection on post of General Manager in accordance with observations made in said judgment within a period of four months and it was further directed that deputation of present incumbent holding post of General Manager in Corporation would come to an end after expiry of four months. Review petition filed by appellant against said judgment was dismissed by High court by order – These appeals have been filed by appellant against said orders passed by High court – Held, High court has observed that present policy of making appointment on post of General Manager by deputation would result in impairing efficiency of person holding a post just below post of General Manager because he knows that he would never be appointed on post of General Manager and would have to stagnate on that post for ever - High court has pointed out that avenue of promotion is one of methods by means of which a person shows his skill and efficiency - These observations are in consonance with law laid down by this court - In council of Scientific and Industrial Research it has been observed - Person is recruited by an organization not just for a job but for a whole career - One must therefore be given an opportunity to advance - This is the oldest and most important feature of free enterprise system - Opportunity for advancement is a requirement for progress of any organization - It is an incentive for personnel development as well. Every management must provide realistic opportunities for promising employees to move upward - organization that fails to develop a satisfactory procedure for promotion is bound to pay a severe penalty in terms of administrative costs, misallocation of personnel, low morale, and ineffectual performance, among both non-managerial employees and their supervisors. There cannot be any modern management much less any career planning, manpower development, management development etc. which is not related to a system of promotions – Petition dismissed
Judgment
S.C. AGRAWAL, J.
(1) LEAVE granted.
(2) THESE appeals relate to appointment on the post of General Manager in the U.P. State Tourism Development Corporation (hereinafter referred to as "the Corporation") which is a Company registered under the Companies Act and is an undertaking of the government of Uttar Pradesh. The said appointment is governed by Rule 19 of the U. P. State Tourism Development Corporation Rules, 1981 (hereinafter referred to as "the Rules"). The post of General Manager is a Class 1 post in the Corporation. I.B. Misra, Respondent 1, joined the Corporation on the post of Manager Grade-2 in 1978. In March 1984 he was promoted as Manager Grade-1. He was selected for appointment on the post of Project Officer by the Corporation in 1989 but as he was not appointed on the said post he filed a Writ Petition No. 4733 of 1991 which is pending before the Lucknow bench of the Allahabad High court. While the said writ petition was pending a vacancy occurred in the post of General Manager in the Corporation and Respondent 1 filed Writ Petition No. 677 of 1992 giving rise to these appeals in the Allahabad High court, Lucknow bench, wherein he prayed that direction, order or a writ of mandamus be issued directing the respondents in the said writ petition to hold selection for the said post of General Manager in accordance with the Rules. It appears that the said post of General Manager is being filled by having on deputation Officers in the State Services of the government of Uttar Pradesh. The High court by its judgment dated 24/3/1994 allowed the said writ petition filed by Respondent 1 and issued a writ in the nature of mandamus commanding the respondents in the said writ petition to make selection on the post of General Manager in accordance with observations made in the said judgment within a period of four months and it was further directed that the deputation of the present incumbent holding the post of General Manager in the Corporation would come to an end after the expiry of four months. Review petition filed by the appellant against the said judgment was dismissed by the High court by order dated 30/5/1994. These appeals have been filed by the appellant against the said orders dated 24/3/1994 and 30/5/1994 passed by the High court.
(3) THE question arising for consideration in these appeals relates to the interpretation of Rule 19 of the Rules which reads as under :
"19. Sources of Recruitment.- Appointment to various posts under the Corporation shall be made by the appointing authority by any one of the following methods:
(A) By direct recruitment.
(B) By promotion of the Corporation employees through a departmental test or an interview or selection by any other manner prescribed by the Managing Director from time to time.
(C) By deputation from government or any other Central/State Corporation and other statutory body.
(D) By employment on contract basis.
(C) From any other source as approved by the Board.
ALL Class I posts in the Corporation shall be selection posts and will be filled by selection or by deputation. Such of those Corporation employees who are eligible in terms of qualifications, age and experience, may also compete for selection.
FIFTY per cent of the Class II posts will be filled by open market selection and 50 per cent reserved for the employees of the Corporation. If however, it is found that sufficient number of employees are not available for filling in the quota by promotion on the basis of merit, the Corporation may, fill those posts also by open market selection. There will thus be no rigidity about quota for direct recruitment or by promotion and there will not be any accumulation or carry over to subsequent years. Promotions within the various posts falling under Class III will be made fifty per cent by promotion from within the Corporation employees, provided, suitable candidates are available, and fifty per cent by
