SURENDRA PAL SINGH TT Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) The appellant Surendra Pal Singh TT was nominated Director and Chairman of the Rajasthan State Warehousing Corporation (hereinafter referred to as the Corporation). He was nominated as Director in place of the earlier incumbent of the office Shri Ramnath Verma, as a representative of the producers of agricultural products. In the appointment order dated 25-6-1998 (Annexure-2 to the writ petition) it was stated that the term of office would be three years from the date of appointment as per the Rules. On 31-12-1998, the State Government nominated Shri N. R. Bhasin, Principal Secretary to Government of Rajasthan, Agriculture Department, as the Director and Chairman of the Board of Director of the Corporation in place of the petitioner Surendra Pal Singh TT. Aggrieved by this order the appellant filed a writ petition in this Court challenging the order dated 31-12-1998 (Annexure-3 to the writ petition) by which Shri N. R. Bhasin was nominated Director and Chairman of the Board of Directors in his place.

(2.) It was contended in the petition that once a person is nominated as a Director for three years, he could be removed from the post only after complying with the provisions of Sec. 22(2) of the Warehousing Corporations Act, 1962 (hereinafter referred to as 'the Act') which provides that the Board of Directors may remove from office any Director if he --

(3.) It was also contended that Rule 4 of the Rajasthan State Warehousing Corporations Rules, 1975, (hereinafter referred to as the 'Rules') which provides for rescinding or modifying the nominations to the post of Director before expiry of three years, is bad being ultra vires the Act because it permits removal without following the provisions of Sec.20 of the Act and is unconstitutional as it is arbitrary and without any guidelines. It was also contended that the Rule is bad as it erodes and controls the power of nomination of the Central Warehousing Corporation under clause (a) of sub-sec.(1) of Sec.20 of the Act. It was also contended that the petitioner was nominated as Chairman of the Corporation as per provisions of Sec.20(2) of the Act and he could be removed as Chairman only after previous approval of the Central Warehousing Corporation. It was also contended that Shri N.R. Bhasin, Principal Secretary to the Government of Rajasthan, Agriculture Department was already a Director of the Corporation and he could not have been nominated as a director second time in a different representative capacity to represent the producers. It was further contended that appointment of Shri N.R. Bhasin without removing the petitioner, in the first instance, was bad in law.