An employer is entitled to reasonably restrict the number of candidates to be considered for appointment on any reasonable basis and that may in most cases be far less than the number of eligible candidates.

Headnote:
LIFE INSURANCE CORPORATION - RECRUITMENT - LIMITATION OF CANDIDATES FOR PRE-RECRUITMENT TEST - VALIDITY - LIFE INSURANCE CORPORATION ACT, 1956 - SECTION 49.
Fact of the Case:

The Life Insurance Corporation issued an advertisement calling for applications for 50 posts of Sub-Staff, including 12 for Scheduled Caste and 6 for Scheduled Tribe. In response, 3439 applications were received, including 635 from Scheduled Caste, Scheduled Tribe, and Ex-servicemen. The remaining 2804 applications were for the remaining 32 posts. The petitioners, who were among the 2804 general category candidates, challenged the Corporation's decision to restrict the number of candidates for the pre-recruitment test to 1:10 ratio.
Finding of the Court:

The court held that it is open to an employer to reasonably restrict the zone of consideration or to short-list candidates to be considered in circumstances that warrant such a procedure. The court found that the Corporation's decision to limit the number of candidates for the written test to 10 times the number of vacancies was reasonable and justified, given the large number of applications received.
Issues: 1. Whether the Life Insurance Corporation can restrict the candidates for pre-recruitment test after receiving the applications? 2. Whether the Corporation's decision to limit the number of candidates for the written test to 10 times the number of vacancies was reasonable and justified?
Ratio Decidendi: 1. The court held that it is open to an employer to reasonably restrict the zone of consideration or to short-list candidates to be considered in circumstances that warrant such a procedure. The court found that the Corporation's decision to limit the number of candidates for the written test to 10 times the number of vacancies was reasonable and justified, given the large number of applications received. 2. The court also held that the Corporation's classification of candidates into two categories, those with only IX Standard qualification and others with prescribed higher qualification, was reasonable and based on job requirements and qualifications.
Final Decision: The court dismissed the writ petitions, holding that the Corporation's decision to limit the number of candidates for the pre-recruitment test was valid and justified.

( 1 ) IN these writ petitions, the question raised is whether the respondent Life insurance Corporation of India can restrict the candidates for pre-recruitment test after receiving the applications. The Life Insurance Corporation issued advertisement calling for applications for 50 posts of Sub-Staff including 12 for scheduled Caste and 6 for Scheduled Tribe. In pursuance of the said advertisement, including those of petitioners, 3439 applications were received among which 635 belong to Scheduled Caste, Scheduled Tribe and Ex- servicemen. 2804 are applications for the remaining 32 posts. Learned counsel for the petitioners contended that when the advertisement was issued calling for applications prescribing some qualifications and the petitioners are qualified for the said posts, they are entitled to participate in the pre-recruitment test. Learned counsel for the Life Insurance Corporation Sri J. V. Suryanarayana Rao contended that even though applications are received in pursuance of the advertisement the Life-insurance Corporation of India reserved its right to restrict the applications. In pursuance of the said right, the Life Insurance corporation restricted the applications to 1:10 ratio. He further contended that this point squarely arose in the Judgment of this Court reported in 1990 (2) ALT 316, wherein the appointment to Class III Posts by direct recruitment was considered. In the above judgment, the Supreme Court Judgments reported in air 1985 SC 1055 and AIR 1988 SC 2073 were referred. Both the said judgments deal with only the appointment to the posts by promotion. However, the division Bench of this Court has adopted the same principle in the judgment though the matter relates to direct recruitment. Learned Counsel for the petitioners contended that the present rules are issued after the above advertisement, therefore, me rules have no retrospective effect and so the petitioners have to be permitted for appearing to the pre-recruitment test. As the question involved is an important one, involving participation of 2804 candidates for Class IV pre-recruitment test, I think it just and proper mat these writ petitions may be heard by a Division Bench.

( 2 ) IN these writ petitions, petitioners are candidates seeking employment in the cadre of sub-staff (Peon/sepoy) in the District Offices of the Life Insurance corporation, West Godavari, Krishna, Guntur and Prakasham. They applied pursuant to a notification issued by the Divisional Manager, Machilipatnam on 25-3-1991. All of them satisfy the educational qualifications specified in the notification, some of them being persons who have passed IX Standard or 9th class, some others have passed S. S. C. or Matric or X Standard with less man 55% marks and yet others have passed P. U. C. /inter/h. S. C /xii Standard with less than 45% marks. AH of them belong to the general category and do not belong to Scheduled Caste or Scheduled Tribe. The Notification provides that ex-Servicemen need have minimum educational qualification of a pass in VII standard only. The other eligibility criteria are (1) Knowledge of Telugu, (2) shall not be below 18 years and more than 25 years as on 1-3-1991. The notification stipulated that "there will be a written test in Regional Language (viz. , Telugu) of IX Standard level of 3 hours duration. Those who are successful in the test will be called for interview. Final selection will be based on the results of the above test and interview". The notification also specifically mentioned that "depending upon the response, the Corporation reserves the right to allow only a limited number of candidates to sit for written test under categories I (i), (ii) and (iii)". Petitioners belong to categories I (i), (ii) and (iii) and therefore the reservation of right of the Corporation to limit the number of candidates to the written test applies to all the petitioners before us. After the written test, the selected candidates have to apply by submitting the

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Judicial Analysis

1992 Supreme(AP) 30

Andhra Pradesh High CourtJudges : D.JAGANNADHA RAJU, V.SIVARAMAN NAIRBasha Mohiddin Jilani - AppellantVersusSenior Divisional Manager, Divisional Office, Life Insurance Corporation of India, Machilipatnam - RespondentDecided On : 01-31-92

An employer is entitled to reasonably restrict the number of candidates to be considered for appointment on any reasonable basis and that may in most cases be far less than the number of eligible candidates.

Judicial Analysis

Andhra Pradesh High Court
Judges : D.JAGANNADHA RAJU, V.SIVARAMAN NAIR
Basha Mohiddin Jilani - Appellant
Versus
Senior Divisional Manager, Divisional Office, Life Insurance Corporation of India, Machilipatnam - Respondent
Decided On : 01-31-92