SUDHIR MOHAN TANDON Vs. STATE OF U P

JUDGEMENT

(1.) THE petitioner challenges the promotion of respondent No. 3 to the post of Administrative Officer. Uttar Pradesh Panchayatiraj Vitta Evam Vikas Nigam Limited on the ground that the same is illegal, arbitrary, unconstitutional, mala fide and discriminatory, hence liable to be quashed. Petitioner further impugns the order of promotion while claiming seniority by several years over the opposite party No. 3. It has further been alleged by the petitioner that the Chairman of the aforesaid Nigam by promoting opposite party No. 3 has acted without jurisdiction because he is not the competent authority to pass the order for promotion in question.

(2.) THE facts in brief for the purpose of deciding the controversy raised in the writ petition are as follows : Uttar Pradesh Panchayatlraj Vitta Evam Vikas Nigam Limited (hereinafter referred to as the Nigam) is a Government company as defined under Section 617 of the Companies Act, 1956. It is an apex financial institution constituted by the State of Uttar Pradesh to provide assistance to Panchayatiraj institutions. THE objects of the company are contained in the Memorandum and Articles of Association which also provide for constitution of Board of Directors and its powers, appointment of Chairman and Directors and other functionaries including the staff in the Nigam. However, there exist no separate rules or regulations for making appointment, recruitment, promotion, etc., of the employees working in this Nigam. Under Article 125 of the Articles of Association, control of the company has been vested in the Board of Directors which is empowered to exercise all the powers which the company is authorised to exercise under the Companies Act Besides these general powers, the Board of Directors is also authorised under Article 126 fix) of these Articles to exercise special powers with regard to the appointment of officers, clerks and servants from time to time and to determine their powers and duties, fix their salaries as also to remove and suspend them. We shall, however, refer to the said special powers of the Board of Directors, Chairman and Managing Director, etc., at an appropriate stage.

(3.) IT has been averred in the writ petition that petitioner is a Graduate in Commerce (B. Com.) and joined the Nigam as Clerk on 8.11.1966 in the pay scale of Rs. 200-320 and was subsequently promoted in the year 1981 in the pay scale of Rs. 230-380 (unrevised). He was further promoted on the post of Office Superintendent with effect from 29.4.1985 in the pay scale of Rs. 490-760 (revised pay scale of Rs. 1,350-2,200). Petitioner also claims to have worked as Administrative Officer on ad hoc basis for 1 1/2 years with effect from 8.9.1986 till December, 1987 and he further continued to look after the work of Administrative Officer since December, 1993 when the post fall vacant due to the resignation of the last incumbent. According to the petitioner, though respondent No. 3 is also a Graduate but was appointed much later in the Nigam. He was initially appointed as an Assistant Clerk and worked as such from 3.4.1986 to 31.7.1986 in the pay scale of Rs. 360-550. Later on, he was appointed as Stenographer vide orders dated 16.4.1987 in the pay scale of Rs. 515-865 (revised to Rs. 1,400-2,300) and was confirmed on this post vide orders dated 24.2.1989. Thus, the petitioner; claims seniority over respondent No. 3 and contends that he cannot be placed over and above him by being promoted arbitrarily and illegally to higher post of Administrative Officer bye-passing him. Petitioner alleges mala fides against opposite party No. 4 Chairman of the Nigam because according to him, at the relevant time, since the respondent No. 3 was attached as a Stenographer to the Chairman and the Chairman in order to bestow favour on him, passed the impugned order of promotion arbitrarily and illegally as also without Jurisdiction as the Chairman is not the competent authority to pass the order of promotion to the post of Administrative Officer. According to the petitioner, it is the Managing Director who is the competent authority to make appointments and promotions in the Nigam.