IMPORTANT POINTS
Writ of quo warranto is not available in service matters.
While issuing a writ of quo warranto there cannot be any direction for recovery of the sum.

JUDGMENT

Dipak Misra, J.

Leave granted in both the special leave petitions.

2. Assailing the judgment and order dated 28.3.2012 passed by the High Court of Orissa, Cuttack in WP(C) No. 23268 of 2011 whereby the Division Bench has quashed the appointment of the respondent No. 5 herein and further directed the present appellant to recover the amount paid to the 5th respondent towards honorarium, in a public interest litigation preferred by the 1st respondent, the present appeals, one by the Central Electricity Supply Utility of Odisha (CESU) and the other by the affected person have been preferred, by special leave. The factual matrix and the bedrock of challenge being similar we shall state the facts which are requisite to understand the controversy.

However, the description of the parties shall be in accordance with their rank ascribed to them in the appeal preferred by CESU.

3. The appellant-CESU has been created under Section 22 of the Electricity Act, 2003 (for brevity, “the Act”) passed by the Orissa Electricity Regulatory Commission (for short “the Commission”). CESU is a deemed licensee under the Act for the distribution of electricity in the Central Zone of Odisha. It is necessary to state here that on 1.4.1996 Orissa Electricity Reforms Act, 1995 came into force providing for restructuring of the Electricity Sector in the State of Odisha. Thereafter, Orissa Electricity Reform (Transfer of Undertakings, Assets, Liabilities, Proceedings and Personnel) Scheme Rules, 1996 came into existence and on that base a newly constituted, wholly owned Company of the Government of Orissa, namely, Grid Corporation of Orissa Limited (GRIDCO) was vested with the Transmission, Distribution and Retail Supply functions of the erstwhile Orissa State Electricity Board. On 1.4.1999 by virtue of Orissa Electricity Reform (Transfer of Assets, Liabilities, Proceedings and Personnel of Grid Corporation of Orissa (GRIDCO) to Distributions Companies) Rules, 1998, the distributions and retail Supply functions of GRIDCO were vested with in four newly constituted Distribution

Companies out of which one was Central Electricity Supply Company of Orissa Limited (CESCO) which was given the responsibility of Distributions Undertakings of the Central Zone and to carry out them, granted a license for distribution of electricity by the Commission. Be it noted, 51% Shareholding and Management of CESCO vested in a private Company, namely, AES Orissa Distribution Pvt. Ltd. (AESODPL) and the balance 49% was held by GRIDCO. After coming into force of the Act on 10.06.2003 the said arrangement continued as there was nothing inconsistent with the new legislation. On 26.2.2005 as management of AESODPL abandoned the management of CESCO, the license granted in favour of CESCO was revoked by the Commission under Section 19 of the Act w.e.f. 1.04.2005. On 2.04.2005 an Administrator was appointed by the Commission for management and control of CESCO.

4. As the factual matrix would further unfurl on 8.9.2006 the Commission initiated the process for sale of utility of CESCO under Section 20 of the Act. However, as the Utility could not be sold, by order dated 8.9.2006 the Commission created a new Utility, namely, CESU and formulated Central Electricity Supply Utility of Orissa (Operation and Management) Scheme, 2006 (hereinafter referred to as “the Scheme”) for Operation and Management of CESU. On 5.5.2007, the Scheme was amended by the Commission. Clause 5 of the Scheme defined the powers and functions of the Chairman, CEO (CEO), Chief Finance Officer (CFO) and Chief Operating Officer (COO). On 31.10 2007, one S.K. Dasgupta was appointed as CEO of CESU with a financial package of Rs. 22 lakhs per annum. On 31.3.2010, respondent No. 5, who had earlier served as Chairman and Managing Director of GRIDCO as well as Member of the Commission from 2001 to 2006 and had forty-five years of experience in the electricity sector was nominated as member as well as Chairman of the Management