IMPORTANT POINT
An administrative order cannot be quashed if there is nothing wrong in the decision making process.

JUDGMENT

Uday Umesh Lalit

1. Leave granted.

2. This appeal is directed against the judgment and order dated 07.12.2011 passed by the High Court of Delhi dismissing Writ Petition (Civil) No.7577 of 2011, which had questioned and sought quashing of orders granting extension of tenure to Respondent No.4 Ms. Anju Banerjee as Chairman-cum-Managing Director, Educational Consultants India Limited, for a period of 5 years i.e., upto 28.11.2015.

3. Educational Consultants India Limited (Ed.CIL, for short) was conceived and incorporated as a Public Sector Enterprise by the Government of India in 1981 under the Ministry of Education and Culture (reconstituted as the Ministry of Human Resource Development since then). The Ed.CIL offers consultancy and technical services in different areas of Education and Human Resource Development not only within the Country but also on global basis. The Ed.CIL is category ‘C’ Central Public Sector Undertaking. The procedure with regard to appointments to posts in categories ‘C’ and ‘D’ of Public Sector Enterprises has been prescribed by Office Memorandum dated 03.04.2001, whereby the Appointments Committee of Cabinet has delegated its power in relation to appointments, to Administrative Ministries/Departments Public Sector Undertakings. According to the procedure prescribed, Public Enterprises Selection Board (hereinafter referred to as PESB) a high powered body constituted by the Government of India to advise the Government on appointments to top managerial posts, is involved in the selection process. The policy of the Government of India is to appoint outstanding professional Managers to levels 1 and 2 posts and such other posts as the Government may decide from time to time, through a fair and objective selection procedure.

4. Respondent No.4, who was then holding the post of Group General Manager, HRD, Indian Railway Catering and Tourism Corporation, New Delhi was appointed as Chairman-cum-Managing Director (‘CMD’ for short) of Ed.CIL vide order dated 04.10.2005 for five years w.e.f. 30.11.2005 after following due procedure. The tenure of five years of Respondent No.4 as CMD of Ed.CIL was to expire on 29.11.2010 and the Ministry of Human Resource and Development (‘HRD’ for short) took up the matter with PESB on the proposal of extension to be granted to Respondent No.4. The proposal was considered by PESB in its meeting held on 26.10.2010 and the recommendations were then forwarded to the Ministry of HRD vide letter dated 27.10.2010 as under:-

       “PUBLIC ENTERPRISES SELECTION BOARD
(Ministry of Personnel Public Grievances & Pensions
)

       Sub: Extension of tenure or otherwise of Ms. Anju Banerjee, CMD, Educational Consultants India Ltd. beyond 29.11.2010.

1. The Board considered the proposal of the Ministry of Human Resource Development regarding extension of tenure or otherwise Ms. Anju Banerjee, CMD, Educational Consultants India Ltd. beyond 29.11.2010 as contained in letter No.F.20-19/2010/TS-VIII(Pt.) dated 14.9.2010, 24.09.2010 & 20.10.2010.

2. As per the procedure laid down by the PESB vide their O.M. No. 5/16/96-PESB dated 21.11.1996, the case of extension/non-extension of tenure of Board level appointees are required to be considered by the Board in the light of his performance as reflected in the documents like the data based performance report, the special performance report and the ACRs along with the inputs given by the Secretary of the Administrative Ministry etc.

3. Against this background, the proposal of the Ministry of Human Resource Development regarding extension of tenure or otherwise of Ms. Anju Banerjee, CMD, Educational Consultants India Ltd. beyond 29.11.2010, was considered by the Board in its meeting held on 6.10.2010 when Secretary, HRD apprised the Board that no ACRs of the officer were available. The Board decided to await for the ACRs before taking a decision. As per the standard practice Ms. Anju Banerjee was also called to meet the Board.

4. The Board noted that on