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IN THE HIGH COURT OF DELHI
V. Kameswar Rao, J.
Samir Kumar Das - Appellant
Versus
Union of India - Respondent
W.P.(C) 2209 of 2017, CM No. 9667 of 2017
Decided On : 23-06-2021




Vigilance clearance is mandatory for extending the tenure of public sector executives, as per administrative guidelines; failure to comply results in lawful termination.

Headnote:(A) Relevant laws and sections - Constitution of India - Articles 14 and 20(2) - Principles of natural justice and administrative law concerning the appointment of public sector executives.

(B) Key legal principles - The requirement of compliance with administrative guidelines and the necessity of vigilance clearance for extension of tenure.

(C)

Facts of the case:
The petitioner challenged his removal as CMD of a public sector enterprise based on allegations of irregularity, and claimed entitlement for extension until superannuation.

(D)

Findings of Court:
The petitioner's tenure was not extended due to unresolved vigilance issues, constituting grounds for his removal. (E)

Issues: Whether the impugned order relieving the petitioner was justified and whether proper procedures were followed in terms of extension and vigilance clearance. (F)

Ratio Decidendi: The court found that the petitioner was not free from vigilance angle due to ongoing complaints and that legislative provisions did not guarantee extension without appropriate vigilance clearance. (G)

Result: Petition dismissed.

Table of Content
1. writ petition filed for reinstatement. (Para 1 , 2)
2. appointment and tenure details presented. (Para 3 , 4 , 5 , 6)
3. allegations and controversies regarding tenure. (Para 7 , 8 , 9)
4. procedural violations by respondents alleged. (Para 10 , 11 , 12 , 13 , 14)
5. complaint handling procedures detailed. (Para 15 , 16 , 17 , 18 , 19 , 20)
6. argument against mala fide actions mentioned. (Para 21 , 22 , 23 , 24)
7. counterarguments from respondents introduced. (Para 25 , 26 , 27 , 28 , 29)
8. procedural timelines and complaint substantiation discussed. (Para 30 , 31 , 32)
9. guidelines relating to complaint processes reiterated. (Para 33 , 34 , 35)
10. respective responsibilities and claims of respondents examined. (Para 36 , 37 , 38)
11. legal implications of tenure extension emphasized. (Para 39 , 40 , 41)
12. rejoinder by petitioner regarding evidence and findings. (Para 42 , 43 , 44 , 45)
13. legality of initial relieving order challenged. (Para 46 , 47 , 48)
14. court's observations and decisions on procedural aspects. (Para 49 , 50 , 51 , 52 , 53)
15. concluding observations on the petition. (Para 54 , 55 , 56)
16. final dismissal of the petition validated. (Para 73)

JUDGMENT

V. Kameswar Rao, J. The present petition has been filed by the petitioners with the following prayers:

    "It is, most respectfully prayed that this Hon'ble Court may graciously be pleased to take this present Writ Petition into the consideration and issue the appropriate writ or order or directions:

    a) Issue writ in nature of certiorari quashing the order dated 01.12.2016 and extract note dated 25.11.2016 as arbitrary, illegal and unconstitutional; and/or

    b) Issue writ in nature of mandamus/certiorari quashing the office memorandum dated 15.12.2016 issued Respondent No. 1 & 2 as illegal and unconstitutional; and/or

    c) Issue writ in nature of mandamus directing the Respondent No. 1 & 2 to reinstate the petitioner as the Chairman & Managing Director of FCI Aravali Gypsum & Mineral India Limited in terms of circulars dated 31.03.2011, 13.05.2011, 28.06.2011 & 30.10.2014 with effect from 01.12.2016 with full back wages and benefits and/or

    d) Issue writ in nature of mandamus to the Respondent No. 1 & 2 to pay full pay and allowances along with interest considering the petitioner as on duty from the date of illegal removal till the date when one would have superannuated/retired in normal course i.e. on attaining age of 60 years. The present petitioner would be attaining age of 60 yrs on 27.10.2019; and/or

    e) Pass any other further orders as is deemed to be fit and proper in the discharge of justice in favour of the petitioner."

2. In effect, the Writ Petition has been filed by the petitioner to set aside the office order dated December 01, 2016, whereby on the completion of tenure of the petitioner as the Chairman and Managing Director (`CMD', for short), of F.C.I. Aravali Gypsum and Minerals India Limited (`FAGMIL', for short), he was relieved of his duties and for a direction that the respondent Nos. 1 and 2 reinstate the petitioner as CMD, FAGMIL, the respondent No. 4 in this petition.

3. The facts as noted from the petition and submitted by the petitioner are that while he was working at Project and Development India Limited (`PDIL', for short), the Public Enterprises Selection Board (`PESB', for short), under the administrative control of the Department of Fertilizers advertised the post of CMD, FAGMIL. He forwarded his bio-data to PESB along with vigilance clearance from PDIL. He was selected and consequent thereto, PESB and the Ministry of Chemicals and Fertilizers, after taking clearance from the Central Vigilance Commission ("CVC", for short), through a presidential directive vide letter No. 90/2/2010-HR-I dated March 03, 2011, appointed the petitioner as the CMD of respondent No. 4. He was allowed to retain his lien in PDIL for a period of five years with effect from March 07, 2011, vide the PDIL office memorandum dated March 07, 2011 in c

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