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2017 Supreme(Del) 2102
IN THE HIGH COURT OF DELHI AT NEW DELHI
VIBHU BAKHRU, J.
MAJOR GENERAL VN PRASAD (RETD.) - Petitioner
Versus
UNION OF INDIA & ANR. - Respondents
W.P.(C) 2369 of 2017
Decided On : 10-07-2017
For the Petitioner:Mr. Major K. Ramesh with Ms. Archana Ramesh, Advocates.
For the Respondents: Mr. Abhay Prakash Sahay, CGSC.
The guidelines aim to provide employment opportunities to ex-servicemen, and the restrictions are meant to ensure that only ex-servicemen without other employment opportunities benefit from the resettlement scheme.
Headnote:
Guidelines - Formation and Running of Companies Promoted by Ex-Servicemen for Transportation of Coal - Army Act, 1950 - Guidelines - Article 19(1)(g) of the Constitution of India - Para 2, sub-paras (a)(iii) and (iv); para 20, sub-para (c); para 21, sub-para (a); para 22, sub-paras (a), (b) and (g)
Fact of the Case:
The petitioner challenges the guidelines on formation and running of companies promoted by ex-servicemen for transportation of coal as being contrary to Article 19 of the Constitution of India. The petitioner's grievance relates to the condition that proscribes ex-servicemen, who have availed sponsorship under the resettlement scheme, from pursuing any other vocation.
Finding of the Court:
The court finds that the petitioner's contentions are without merit. The guidelines aim to provide employment opportunities to ex-servicemen, and the restrictions are meant to ensure that only ex-servicemen without other employment opportunities benefit from the resettlement scheme. The court dismisses the petition.
Issues: Challenge to the guidelines on formation and running of companies promoted by ex-servicemen for transportation of coal as being contrary to Article 19 of the Constitution of India.
Ratio Decidendi: The guidelines provide a framework for providing employment opportunities to ex-servicemen. The restrictions are meant to exclude ex-servicemen with other employment opportunities from availing the benefits of the resettlement scheme. The court finds that the petitioner's contentions are without merit.
Final Decision: The petition is dismissed.
VIBHU BAKHRU, J.
1. The petitioner has filed the present petition, inter alia, challenging the guidelines (hereafter ‘the Guidelines’) on formation and running of companies promoted by ex-servicemen (hereafter ‘ESM Companies’) for transportation of coal as being contrary to and ultra vires Article 19 of the Constitution of India.
2. The petitioner’s grievance essentially relates to the condition that proscribes ex-servicemen, who have availed sponsorship under the resettlement scheme, from pursuing any other vocation.
3. Briefly stated, the relevant facts necessary to address the controversy involved in this petition are as follows :-
3.1 The petitioner was commissioned in the Indian Army on 10.06.1978 and retired on 31.03.2014. The petitioner was desirous of being gainfully employed after his retirement and thus registered himself with the Director General Resettlement, Ministry of Defence (hereafter 'DGR').
3.2 In order to provide employment to ex-servicemen, DGR has floated various schemes including the scheme for sponsoring of ex-servicemen for work of loading/unloading and transportation of coal for Coal India Limited (CIL) and its subsidiaries. The said scheme for sponsoring ex-servicemen for coal transportation companies was formulated by the Ministry of Defence and the erstwhile Ministry of Energy. In terms of the said scheme, the work of coal loading and transportation is provided to ESM Companies formed with the said object. Five ex-servicemen are grouped together to promote and act as directors of an ESM Company, which is thereafter sponsored to take up the work of coal transportation. By virtue of the Memorandum of Understanding (MoU) with CIL, such work is awarded by them to the sponsored ESM Companies. The said scheme has been chalked out for resettlement of ex-servicemen, post their retirement from the Indian Armed Forces.
3.3 On 13.10.2015, the DGR issued a letter informing various ex-servicemen including the petitioner that they are likely to be sponsored as directors of ESM Companies and called upon the said persons for forwarding their willingness to be a director of an ESM Company formed with the object of carrying on the business of coal transportation. The petitioner indicated his willingness for being a director of an ESM Company and submitted the necessary documents as required by the DGR. The petitioner also forwarded an affidavit dated 30.10.2015.
3.4 The documents submitted by the petitioner were scrutinized and the petitioner was found eligible. Thereafter, the petitioner and four other ex-officers of the Indian Armed Forces formed an ESM Company, namely, Trispace Logistics Private Limited (hereafter ‘Trispace’), which was duly registered under the Companies Act, 2013.
3.5 The relevant documents pertaining to incorporation of Trispace including Certificate of Incorporation, Memorandum of Association and Articles of Association were forwarded by the promoters of Trispace to DGR on 15.03.2016. Thereafter, the petitioner and the other promoters of Trispace furnished an undertaking dated 06.04.2016 reiterating their commitment to abide by the Guidelines issued by DGR and also the Memorandum of Understanding (MoU) signed between DGR and CIL.
3.6 By letter dated 11.04.2016, the DGR sponsored Trispace to undertake coal loading, unloading and transportation work of Mahanadi Coalfields Limited (hereafter ‘MCL’) at Hingula Area for a period of five years. On the same date, the DGR also attached certain other ex-servicemen with Trispace.
3.7 In terms of the Guidelines – and also the affidavits submitted -the petitioner and other promoters of Trispace were required to submit Form 26AS (statement of tax deducted at source) to the office of the DGR. The said form would confirm whether the petitioner and the other promoters of Trispace (ex-servicemen) had any other source of income or were pursuing any other employment contrary to their given undertaking and the Guidelines.
3.8 The petitioner failed to provide the For
