The central legal point established in the judgment is the importance of appointing persons with impeccable integrity to high-level positions in PSUs, and the validity of the CVC's decision to withhold vigilance clearance based on pending major penalty proceedings and charges against the petitioner.

( 1 ) PETITIONER is working as General Manager (Coordination) in Nathpa jhakri Power Corporation Limited/respondent No. 3 (hereinafter referred to as NJPC, for short ). He is aspiring to become Director (Civil ). The post of Director (Civil) is a Board level appointment and Public Enterprises Selection Board (hereinafter referred to as PESB, for short) considers the candidates for such appointment. As per the procedure prescribed for making Board level appointments, when such post is advertised/notified the candidates who fulfil eligibility conditions attached to such post and apply for the same are interviewed/considered by PESB. PESB after interviewing the candidates prepare a panel of selected candidates. Thereafter vigilance clearance from Central Vigilance Commission (hereinafter referred to as CVC, for short) is sought and once the names which are cleared by CVC, are sent to ACC and ACC may select one of the persons named in the panel after giving due consideration to various aspects. Such person selected by ACC is then appointed to the post. In the instant case post of Director (Civil) having fallen vacant. Ministry of power, Government of India (hereinafter referred to as MOP, for short) circulated the vacancy of Director (Civil) in NJPC sometime in June, 1997. Petitioner applied for the post through proper channel. His name was forwarded by Chief Managing Director, NJPC vide letter dated 7/07/1997. He was interviewed by PESB alongwith other candidates and as per the panel of selected candidates prepared by PESB name of petitioner appears at serial No. 1. However, respondent No. 1 is not forwarding his name to ACC. On the other hand, respondent No. 1 is contemplating to make appointment of respondent No. 5, who is Chief Manager, in National Hydro Power Corporation (hereinafter referred to as NHPC, for short), to this post. Petitioner has filed this writ petition challenging the action of CVC respondent no. 4 in not giving him vigilance clearance to him and prays that he should be appointed to the post of Director (Civil) in NJPC as per rules and in accordance with the merit list prepared by PESB for the said post.

( 2 ) PETITIONER claims himself to be a meritorious employee with unblemished record. He is Civil Engineer who had started his career with M/s. Hindustan Steel Construction company, a Government of India undertaking where he remained for seven years. In June 1975 he was posted at Hardware with Bharat Heavy Electricals Limited (hereinafter referred to as BHEL, for short ). After working for three years in BHEL petitioner joined national Thermal Power Corporation (hereinafter referred to as NTPC, for short) as Senior engineer (Constructions) in July 1978 and claims his outstanding performance while working on various positions in NTPC. However, some of his actions/decisions were questioned by the Vigilance Department, and subsequently, by C. T. E. of CVC in respect of certain Civil Works under execution in the above project. The petitioner was issued three charge-sheets for minor penalty in 1986 for certain works executed during 1983-85. Petitioner claims that he clarified all the points raised in the said charge-sheets and finally the competent authority of NTPC came to the conclusion that there was no fault of the petitioner. Infact, according to him, thereafter in the year 1988 he was given responsibility to head the construction department of the project as Chief Construction Manager and due to his superlative performance he was promoted as Deputy General Manager (Construction) in 1991 and was posted at National Capital Power Project (hereinafter referred to as project, for short) in NTPC near Delhi as Head of the Construction Department and he successfully handled the said Project also. Thereafter he was selected as Additional general Manager in NJPC against an open advertisement and he joined NJPC in January, 1996 and was given independent charge as Head of the Project of Nathpa Jhakri Hydro el