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High Court Of Delhi
BASANT LAL WADEHRA - Appellant
Versus
UNION OF INDIA - Respondent
Decided On : 02/02/1996
The petitioner, a Chairman-cum-Managing Director of Central Coalfields Limited (respondent No. 3), a subsidiary of Coal India Limited (respondent No. 6), challenged the impugned communications dated 8th February, 1983 and 19th February, 1983, issued by the Government of India, Ministry of Energy, Department of Coal, conveying the termination of his services. The petitioner contended that the impugned communications were arbitrary, illegal, and based on malafides and extraneous considerations, and that he was entitled to continue in service until the age of superannuation.
Fact of the Case:
The petitioner was appointed as Chairman-cum-Managing Director of respondent No. 3 on 27th January, 1979, and his tenure was extended for a further period of two years with effect from 9th July, 1981. The petitioner alleged that his services were terminated due to malafides and extraneous considerations, including his refusal to accommodate the recommendations of respondent No. 4 (Minister of Energy) for the appointment of 25 persons from his constituency in Coal India Limited, and his introduction of a new scheme known as "Off-the-Shelf Sale Scheme," which aimed to root out corruption and malpractices in the distribution and sale of coal.
Finding of the Court:
The Court found that the impugned communications were not "simplicitor termination," but were motivated by malafides and extraneous considerations. The Court held that the petitioner was entitled to continue in service until the age of superannuation, and that the impugned communications were unsustainable in the eyes of law.
Issues: 1. Whether the impugned communications dated 8th February, 1983 and 19th February, 1983, issued by the Government of India, Ministry of Energy, Department of Coal, were orders of termination of services simplicitor or the same were illegal arbitrary and arc based on malafides as alleged by the petitioner? 2. Whether the petitioner, while functioning as Chairman-cum-Managing Director of the Central Coalfields Limited (respondent No. 3) held a civil post within the meaning of Article 310 and 311 of the Constitution of India?. 3. Whether the impugned communications dated the 8th February, 1983 and 19th February, 1983, continued to have his lien" on the post of Director Administration) of Central Coalfields Limited (respondent No. 3). as claimed by him?
Ratio Decidendi: The Court held that the impugned communications were not "simplicitor termination," but were motivated by malafides and extraneous considerations. The Court held that the petitioner was entitled to continue in service until the age of superannuation, and that the impugned communications were unsustainable in the eyes of law. The Court relied on various precedents, including Central Inland Water Transport Corporation Limited and anr. Vs. Brojo Nath Ganguli and Anr. reported as AIR 1986 SC 1571, to hold that the impugned communications were void and that the petitioner was entitled to all consequential benefits of pay and perks from 8th February, 1983 till 8th July, 1983, as Chairman-cum-Managing Director of respondent No. 3, and thereafter from 9th July, 1983 upto the age of superannuation, as Director of respondent No. 3.
Final Decision: The Court allowed the petition, quashed the impugned communications, and directed that the petitioner be paid all consequential benefits of pay and perks from 8th February, 1983 till 8th July, 1983, as Chairman-cum-Managing Director of respondent No. 3, and thereafter from 9th July, 1983 upto the age of superannuation, as Director of respondent No. 3. The Court also directed that the payments be made within eight weeks from the date of the order, with interest at 18% per annum in case of delay.
( 1 ) THE petitioner has filed the present writ petition under Article 226 of the Constitution of India assailing letter dated the 8th February, 1983 and 19th February, 1983, both issued by Government of India. Ministry of Energy, Department of Coal. cornveying the termination of the services of the petitioner as Chairman-cum-Managing Director, Central Coalfields Limited with immediate effect
( 2 ) THE facts relevant for the disposal of the above mentioned writ petition briefly stated are that the petitioner joined the National Coal Development Corporation Limited, Ranchi (hereinafter REFERRED TO to as the NCDC ) in 1963 and worked as its Chief Personnel Officer until 1965. He, thereafter, from 1965 to 4th December, 1970 worked as Industrial Relation Adviser in the Fertiliser Corporation of India From 4,12 1970 to 1973, the petitioner worked as Director (Administration) in the NCDC While working in the above capacity with the NCDC, the petitioner had a lien on the post of Industrial Relation Adviser in the Fertiliser Corporation of India till 17. 3. 1972. on which date he was permanently absorbed in the NC DC. On 9. 7. 1973, the petitioners as appointed as Director (Personnel and Industrial Relations) in Coal Mines Authority Limited. On 11. 2. 1974, the petitioner was appointed as Director of NCDC and on 4. 11. 1974 he was appointed as Managing Director of NCDC. In the year 1975, the Coal Mines Authority Limited was re-named as Coal India Limited and the NCDC was re-named as Central Coal fields Limited and the petitioner was appointed as the Director of Central Coalfields Limited on 4. 111975 vide letter dated 13. 11. 1975.
2. 2 On 10. 11. 1977, the petitioner was transferred as Chairman-cum-Managing Director of Bharat Cooking Coal Limited, a subsidiary of Coal India Limited and his tenure was extended for three years w. e. f. 9. 7. 1978 vide letter dated 10. 8. 1978. In January, 1978, for about three weeks, the petitioner was working as Consultant Coal India Limited at New Delhi. On 27. 1 79, the petitioner was transferred back as Chairman-cum-Managing Director of the Central Coalfields Limited. On 8. 4. 82. the petitioner, as per the averments contained in the petition, was given the additional charge as Chairman-cum-Managing Director of Coal India Limited vide letter dated 17. 4. 82 until 22. 11. 82, the date on which Sh. S. R. Jain was appointed as Chairman-cum-Managing Director of Coal India Limited.
2. 3 On the expiry of the tenure of the petitioner in July, 1981 as Chairman-cum-Managing Director. Central Coalfields Limited, the petitioner was given a further tenure of two years which was to expire in July, 1983. However, vide impugned orders, it is alleged that the services of the petitioner were illegally terminated on 8. 2. 83 with malafide motives and on irrcle ant and extraneous considerations.
2. 4 It is alleged that all along the service record of the petitioner had been outstanding. His work had been appreciated by the Union Minister for Energy and Union Minister for Finance During the period, the petitioner was the C. M. D. of Central Coalfields Limited. The performance of the above said concern had improved phenomenally, the production of Coal increased and the profits of the above said concern also increased considerably. It is alleged that the petitioner was even recommended for the award of padma Vibhushan by respondent No. 4.
2. 5 It is further alleged that respondent No. 4 on 6. 11 80 had even sent a telex to the petitioner commending the good work done by him. The work of the petitioner, as per his averments, was commended even by the then Prime Minister, who wrote a letter dated 18. 2. 82 to Sh. Anand Gopal Mukerjee, a Member of Parliament stating that the petitioner was one of the best officers and had done excellent service to the Coal Sector.
2. 6 The petitioner, it is alleged, had taken drastic steps to root out corruption and with the above object in view evolved a new Scheme known
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