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2023 Supreme(Del) 381

IN THE HIGH COURT OF DELHI AT NEW DELHI
SATISH CHANDRA SHARMA, SUBRAMONIUM PRASAD, JJ.
Dr. Samir Kumar Das – Appellant
Versus
Union Of India & Ors. - Respondents
LPA No.204 Of 2021 and C.M. Nos. 10073 Of 2022 & 30672 Of 2022
Decided On : 03-03-2023

Advocates Appeared:
For the Appellant : Mr. Abhinav Ramkrishna.
For the Respondents: Mr. Anurag Ahluwalia, CGSC along with Mr. Danish Faraz Khan.

Headnote:

EXTENSION OF TENURE - CMD, FAGMIL - CONTRACTUAL APPOINTMENT - EXTENSION OF TENURE NOT A MATTER OF RIGHT - EXTENSION OF TENURE AT THE DISCRETION OF THE DEPARTMENT - APPELLANT NOT FREE FROM VIGILANCE ANGLE - COMPLAINTS PENDING AGAINST APPELLANT - EXTENSION OF TENURE NOT CONSIDERED - APPELLANT RELIEVED FROM DUTIES UPON COMPLETION OF TENURE - NO VESTED RIGHT FOR EXTENSION OF TENURE - APPEAL DISMISSED.

Fact of the Case:

Appellant was appointed as CMD, FAGMIL for a period of 5 years. Appellant continued to work up till 01.12.2016 and had thereafter superannuated. Appellant was discharged of his duty as CMD, FAGMIL vide an Order dated 01.12.2016 passed by the Ministry of Chemicals & Fertilizers, Department of Fertilizers ("relieving order"). Vide communication dated 13.07.2017 ("approval order of ACC"), the approval of the ACC to regularize the service of the Appellant till 01.12.2016 was received. The communication also gave its approval to the relieving order issued by the Ministry of Chemicals & Fertilizers, Department of Fertilizers, on 01.12.2016, to the Appellant. Appellant was aggrieved by the non-extension of his tenure as CMD, FAGMIL by the Respondents.

Finding of the Court:

1. Appellant's appointment was contractual in nature and there was no vested right for extension of the tenure of the Appellant as CMD, FAGMIL. 2. Appellant was not entitled for an extension as a matter of right. 3. Appellant was not free from the vigilance angle as there were complaints pending against him during the period his extension on the post of CMD, FAGMIL was under consideration. 4. Extension/non-renewal of the Appellant's term as CMD, FAGMIL was at the discretion of the Respondent. 5. The relieving order issued to the Appellant was not stigmatic in nature and was an Order simpliciter whereby the Appellant was relieved upon conclusion of his tenure of 5 years.

Issues: 1. Whether the Appellant was entitled for an extension of his tenure as CMD, FAGMIL beyond the initial period of 5 years? 2. Whether the Appellant was free from the vigilance angle at the time of his extension being considered? 3. Whether the relieving order issued to the Appellant was stigmatic in nature?

Ratio Decidendi: 1. Extension of tenure is not a matter of right and is at the discretion of the appointing authority. 2. Appellant was not free from the vigilance angle as there were complaints pending against him during the period his extension on the post of CMD, FAGMIL was under consideration. 3. The relieving order issued to the Appellant was not stigmatic in nature and was an Order simpliciter whereby the Appellant was relieved upon conclusion of his tenure of 5 years.

Final Decision: Appeal dismissed.

JUDGMENT :

[Satish Chandra Sharma, J.]

1. The instant Letters Patent Appeal has been preferred by the Appellant against the Judgment and Order of the Ld. Single Judge dated 23.06.2021 in W.P. (C) 2209/2017 (“Impugned Order”). Vide the Impugned Order, the Ld. Single Judge has dismissed the Writ Petition.

2. The dispute in the present case revolves around the tenure of service of the Appellant who has since passed away on 23.04.2022. He is survived by his Legal Representatives (“LRs”) and vide Order dated 13.09.2022, the Appellant’s LRs were brought on record to bring these proceedings to a logical conclusion.

3. The brief facts relevant for adjudication of this instant dispute are that while the Appellant was working on the post of General Manager (CP) & Company Secretary at Project Development India Limited (“PDIL”), the Public Enterprises Selection Board (“PESB”) under the administrative control of the Department of Fertilizers advertised the post of Chairman and Managing Director (“CMD”) of F.C.I. Aravali Gypsum and Minerals India Limited (“FAGMIL”).

4. Against the said advertisement, the Appellant applied for the post of CMD, FAGMIL and he was selected for the same. His appointment was confirmed for a period of 5 years through a presidential directive dated 03.03.2011, bearing letter No. 90/2/2010-HR-1. The Appellant, while working on the post of CMD, FAGMIL, was also permitted to retain lien on the post of General Manager (CP) & Company Secretary, PDIL for a period of 5 years starting on 07.03.2011, vide an Office Memorandum issued by PDIL on the same date, in consonance with the Department of Public Enterprises ("DPE”) O.M. No. 23/19/98/GL-014/DPE dated 13.01.1999.

5. The undisputed facts of the case reveal that the Appellant was appointed as CMD, FAGMIL for a period spanning from 08.03.2011 – 07.03.2016. The Appellant, however, continued to work up till 01.12.2016 and had thereafter superannuated.

6. The Appellant was discharged of his duty as CMD, FAGMIL vide an Order dated 01.12.2016 passed by the Ministry of Chemicals & Fertilizers, Department of Fertilizers (“relieving order”). Vide communication dated 13.07.2017 (“approval order of ACC”), the approval of the ACC to regularize the service of the Appellant till 01.12.2016 was received. The communication also gave its approval to the relieving order issued by the Ministry of Chemicals & Fertilizers, Department of Fertilizers, on 01.12.2016, to the Appellant.

7. The Appellant herein is mainly aggrieved by the non-extension of his tenure as CMD, FAGMIL by the Respondents. Prior to filing the instant Writ Petition i.e., W.P. (C) 2209/2017, from which the appeal arises, the Appellant had preferred W.P. (C) 11400/2016 seeking relief in the form of extension of his tenure. The same was subsequently withdrawn by the Appellant on his own volition on 03.02.2021.

8. The Ld. Single Judge vide the Impugned Order has dismissed W.P. (C) 2209/2017 preferred by the Appellant as the learned Single Judge did not find any merit in the same. The operative paragraphs of the order passed by learned Single Judge read as under:

    “52. Having noted the submissions made by the petitioner, I may at the outset state that the appointment letter of the petitioner as CMD FAGMIL dated March 03, 2011 clearly stipulated that the appointment is for a period of five years or till the date of superannuation or until further orders, which ever event occurs earlier. The said stipulation contemplates that the tenure of the petitioner may not necessarily be continued till superannuation, as sought to be contended. It can be either for five years or even for a lesser period.

53. Having said that, I may also state, the submissions made by the petitioner as noted above are primarily on the premise that there was only one complaint filed against him by M/s Raj Gypsum Udyog which having been closed, and no other complaint being pending which can be an impediment for the petitioner to continue on the post of CMD FAGM

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