N GOPALASWAMI Vs. UNION OF INDIA

JUDGEMENT

(1.) These writ petitions challenge the appointment of respondent No. 2 as the Comptroller and Auditor-General (CAG). They also seek a writ, direction or order commanding the Union of India to frame a transparent selection procedure based on definite criteria and to constitute a broad based non-partisan selection committee, which, after calling for applications and nominations, would recommend to the President of India, the most suitable person for appointment as the CAG. Both these petitions raise common issues and questions and are, therefore, being disposed of together.

(2.) The appointment of the respondent No. 2 as the CAG has been challenged on two grounds. First of all, his appointment is said to have violated the principles of institutional integrity as contemplated in the Supreme Court decisions (i) Centre for PIL v. Union of India, 2011 4 SCC 1 (known as the =CVC case'); and (ii) State of Punjab v. Salil Sabhlok, 2013 5 SCC 1(known as =the Punjab PSC case'). It is contended on behalf of the petitioners and, in particular, the petitioner in WP(C) 4653/2013 that the respondent No. 2 was involved in defence procurements in his capacity as the Director General of Defence Acquisitions and as the audits conducted by the CAG involve a large part of defence purchases, the respondent No. 2 would have an apparent bias in respect of purchases in which the respondent No. 2 had participated in some capacity or the other. This, according to the petitioners, would violate the principle of institutional integrity. The second ground for challenging the appointment of the respondent No. 2 as the CAG is that the appointment was done in an arbitrary manner which lacked transparency. There was no specific criteria for selecting a person suitable to be appointed as the CAG and there was no short-listing committee. Reliance was, once again, placed on the CVC case and the Punjab PSC case . Reliance was also placed on the Supreme Court decision in E.P. Royappa v. State of Tamil Nadu and Another., 1974 4 SCC 3 for the proposition that the government cannot be arbitrary in any of its actions.

(3.) Chapter V of the Constitution of India deals with the Comptroller and Auditor-General of India. It comprises of four s (148-151). Article 148 stipulates that there shall be a Comptroller and Auditor-General of India, who shall be appointed by the President by warrant under his hand and seal and shall only be removed from office in like manner and on the like grounds as a Judge of the Supreme Court. Article 149 spells out the duties and powers of the CAG. Article 150 specifies the forms of accounts of the Union and of the States. Article 151, inter alia, provides that the reports of the CAG, relating to the accounts of the Union, shall be submitted to the President, who shall cause them to be laid before each House of Parliament. The said Articles 148-151 are set out herein below:-