FEDERATION OF CENTRAL GOVERNMENT Vs. KOCHI REFINERIES LIMITED

JUDGEMENT

(1.) Recruitment of Management Trainees through the process of campus recruitment from reputed institutions, if resorted to by the public sector undertakings, would violate Articles 14 and 16(1) of the Constitution, is the interesting question that has come up for consideration in this case.

(2.) Government of India issued Office Memorandum dated 29.5.2000 permitting public sector enterprises in the country to recruit personnel through campus recruitment from reputed institutions like IITs, IIMs, RECs, etc. Considering the fact that the nature of functions and operations of public sector enterprises are different, Government of India noticed that manpower requirement is also dissimilar and largely of a heterogeneous nature and it may not be necessary to restrict selection process to a particular method. Public sector enterprises, it was pointed out, should have detailed recruitment rules for recruitment of Management Trainees by open competition and Government of India ordered, if found necessary, they may lay down provisions for campus recruitment in the exigencies of dynamic corporate management, from reputed institutions like IITs, IIMs, RECs etc. or through walk-in interview route in rare and exceptional circumstances where there are compelling reasons and with the prior approval of the Board of Directors.

(3.) Public sector undertakings of Government of India such as Bharat Petroleum Corporation Limited, Oil and Natural Gas Commission, Indian Oil Corporation, Hindustan Petroleum Corporation Limited, Bharat Electronics Limited, Hindustan Latex Limited, Cochin Shipyard Limited, apart from Indian Navy, Indian Satellite Research Organisation and Defence Research and Development Organisation have already resorted to campus recruitment. Respondent - Kochi Refineries Limited is a subsidiary company of Bharat Petroleum Corporation Limited which has established a refinery at Ambalamughal and for the efficient running of it, it has appointed necessary employees in the managerial and non managerial cadre. Factory is engaged in refining petroleum products. Deputy Manager (Personnel) of the Kochi Refineries Limited sought approval from the Board of Directors as envisaged in the Office Memorandum of the Government of India dated 29.5.2000 for making campus recruitment as one of the selection methodologies for selection of management trainees. List of institutions from which Management Trainees could be selected was also placed before the Board of Directors. Board of Directors of Kochi Refineries Limited met on 27.10.2003 had approved the procedure followed for recruitment of Management Trainees through campus interview. Procedure adopted for recruitment of Management Trainees is provided in Ext.R1 (d) which requires no further reiteration. Reputed institutions from where campus recruitment is to be resorted to have also been approved by the Board of Directors.