IFCI LTD Vs. CHAIRMAN & ANOTHER

JUDGEMENT

(1.) Challenging a decision taken by the Governing Body of the Center for Entrepreneurship Development Madhya Pradesh (hereinafter referred to as a Center ) and granting renewal of appointment/ extension of service to Respondent No.2 on the post of Executive Director of the said Center upto 31 st of May, 2012, this writ petition is filed by the petitioner.

(2.) Petitioner IFCI Limited claims to be the oldest Public Financial Institution of the Country. It is a company incorporated under the provisions of Companies Act, 1956 and has its registered office in IFCI Tower, 61, Nehru Place, New Delhi. Initially, the petitioner's establishment was a statutory undertaking under the Industrial Finance Corporation Act, 1948. Subsequently, in the year 1993 by virtue of the Industrial Finance Corporation Act (Transfer of Undertaking and Repeal) Act, 1993, it was converted into a company and registered under the provisions of Companies Act, 1956. Respondent Center is a duly promoted establishment, it is an autonomous body registered under the provisions of M.P. Society Registration Act, 1973 and is an undertaking, promoted and sponsored by the Government of Madhya Pradesh, certain Central Financial Institutions and lead banks. Dispute in question pertains to a resolution passed on 2.11.2011 by the governing body of the Center in question. By the aforesaid resolution, the tenure appointment of Respondent No.2 Shri Jitendra Tiwari on the post of Executive Director, which was to expire on 6 th of December, 2011 has been extended upto 31 st of May, 2012. Petitioner Company, which is a member of the Governing body of the Center and is one of the Central Financial Institution, which has established and promoted the Center in question, is aggrieved by the manner in which the tenure of Respondent No.2 is renewed/ extended.

(3.) Apart from making various averments with regard to the establishment and the working of the petitioner's organization and the respondent Center, which may not be relevant for the present, the main contention advanced on behalf of the petitioner/ Company is to the effect that as per the rules of Association of the respondent Center Annexure P2, the Central Financial Institutes like the petitioner or the sponsorers of the Center in question and the respondent Center has to discharge its functions in accordance with the conditions stipulated in the Rules of Association Annexure R/2 2 through the Governing body. It is stated that for the purpose of appointment of an Executive Director, the rules for functioning of the Center is incorporated and as per these rules available at Page 85, appointment of an Executive Director is to be undertaken as per the provisions of Rule 9.