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High Court of Calcutta
M.M. Dutt, A.K. Sengupta, JJ.
West Bengal Industrial Development Corporation Limited – Appellant
Versus
West Bengal Industrial Development Corporation Employees Union – Respondent
Decided On : Feb 28, 1984
EMPLOYMENT - APPOINTMENT - ABSORPTION - PUBLIC INTEREST - APPROVAL OF CHIEF MINISTER - NOTIFICATION BY GOVERNOR - STAFF REGULATIONS - DIRECT RECRUITMENT QUOTA - VALIDITY OF APPOINTMENT - WRIT PETITION - LOCUS STANDI - MAINTAINABILITY - ARBITRARINESS - TWO MASTERS - RECRUITMENT RULES - INTERIM ORDER - APPEAL.
Fact of the Case:
The West Bengal Industrial Development Corporation (WBIDC) appointed Anil Chandra Chattopadhyay, a West Bengal Civil Service (Executive) officer, to the post of Manager (Personnel and Administration). The West Bengal Industrial Development Corporation Employees' Union and its General Secretary filed a writ petition challenging the appointment, alleging that it was made without prior sanction of the Board of Directors and without due advertisement. The High Court issued an interim order restraining the WBIDC from appointing Chattopadhyay permanently to the post.
Finding of the Court:
The High Court held that the writ petition was not maintainable as the petitioners had no locus standi to challenge the appointment. The Court also held that the appointment of Chattopadhyay was not in violation of the Staff Regulations, 1975, as it was not a case of direct recruitment or promotion, but an absorption of a person to a post which had been taken out of the direct recruitment quota. The Court further held that the approval of the Chief Minister and the Notification by the Governor were valid and that there was no violation of the Recruitment Rules as the amendment to the Rules was made after the absorption of Chattopadhyay.
Issues: 1. Whether the writ petitioners had locus standi to challenge the appointment of Chattopadhyay. 2. Whether the appointment of Chattopadhyay was in violation of the Staff Regulations, 1975. 3. Whether the approval of the Chief Minister and the Notification by the Governor were valid. 4. Whether there was a violation of the Recruitment Rules.
Ratio Decidendi: 1. The Court held that the writ petitioners had no locus standi to challenge the appointment of Chattopadhyay as they were not seeking enforcement of any fundamental right under the Constitution and the post of Manager of a corporation incorporated under the Companies Act cannot be held to be a public office. 2. The Court held that the appointment of Chattopadhyay was not in violation of the Staff Regulations, 1975, as it was not a case of direct recruitment or promotion, but an absorption of a person to a post which had been taken out of the direct recruitment quota. 3. The Court held that the approval of the Chief Minister and the Notification by the Governor were valid as they were in accordance with the law. 4. The Court held that there was no violation of the Recruitment Rules as the amendment to the Rules was made after the absorption of Chattopadhyay.
Final Decision: The High Court set aside the interim order dated 2nd December, 1983 passed by B. C. Ray, J. and dismissed the writ petition.
1. IN this application, the appellants, the West Bengal Industrial Development Corporation, its Board of Directors and Chair-man-cum-Managing Director have asked for stay of operation of the ex-parte interim order dated 2nd December, 1983 passed by B. C. Ray, J. upon the writ application filed by the West Bengal industrial Development Corporation Employees' 'union and its General Secretary. By the said interim order, the appellants have been restrained from appointing and/or absorbing the respondent No. 4 in the writ application (the respondent no. 3 herein) in the post of Manager (Personnel and Administration) in the west Bengal Industrial Development Corporation without complying with the Regulations 7 (1) and 7 (2) of the west Bengal Industrial Development, corporation Limited Staff Regulations,
2. SINCE elaborate arguments have been made by the learned Advocates appearing on behalf of the parties on both sides, we have thought it fit to deliver a judgment dealing with the rival contentions although in disposing a stay application during the pendency of the appeal, ho judgment is usually pronounced. To appreciate the rival contentions, it is necessary to state briefly the facts of this case. The principal appellant before us, the West Bengal Industrial Development corporation Limited (hereinafter referred to as the Corporation) is a Government company within the meaning of the Companies Act, 1956. It is an undertaking of the Government of West Bengal under the administrative control of the Commerce and Industries Department. The Respondent No. 1, West Bengal Industrial Development Corporation employees Union, a trade union registered under the Trade Unions Act, 1926 and the Respondent No. 2, its General secretary, are the writ petitioners.
3. THE grievance of the writ petitioners centres round the appointment and/or absorption of the Respondent No. 3 herein Anil Chandra Chattopadhyay (for the sake of brevity hereinafter referred to as Chattopadhyay) in the Corporation. Chattopadhyay was a member of the west Bengal Civil Service (Executive)holding a substantive post of Deputy magistrate and Deputy Collector. He was formally the Deputy Controller, Iron and Steel, in the Department of Steel, ministry of Steel and Mining, Government of India. In pursuance of Home (P and A. R) Department Notification no. 6274-P and A. R. (WBCS) dated 18th September, 1978, the Governor was pleased to place the services of Chattopadhyay at the disposal of the Corporation for appointment to the post of Special officer, Petro-Chemicals Project with effect from 21st September, 1978 until further orders on deputation from Home (P and A. R.) Department, Government of West Bengal, The said project, commonly known as Haldia Petro-Chemicals project which, it appears, is not a Departmental Project, but a project of the Corporation. A formal order enumerating the terms and conditions of the aforesaid appointment of chattopadhyay as Special Officer (Petro-Chemicals Project) was issued by the chairman cum Managing Director of the Corporation on 13th December, 1978. In or about 17th November, 1981 the chairman cum Managing Director of the corporation issued an order directing that Chattopadhyay would also until further orders, look after the duties of chief Administrative Officer of the Head office of the Corporation in addition to his duties as a Special Officer (Petro-Chemicals. Thereafter, the Board of directors of the Corporation in its meeting held on 29th December, 1981 approved drafting of the services of Chattopadhyay on part-time basis to assist the Chairman and Managing Director for various administrative and personnel matters. It WAS ALSO APPROVED THAT Chattopadhyay be designated as the Chief Administrative Officer of the Corporation. Two years later, in or about September, 1983. the writ petitioners herein moved this Court under Article 226 of the Constitution alleging that the appointment of Chattopadhyay in the post of Chief administrative
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