courts cannot order recovery after annulling the appointment.pdf

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  • 8/14/2019 Courts cannot order recovery after annulling the appointment.pdf

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    Reportable

    IN THE SUPREME COURT OF INDIA

    CIVIL APPELLATE JURISDICTION

    CIVIL APPEAL NO. 98! OF !"1#

    $Ar%&%'( o)t o* Spe+%al Lea,e Pet%t%o' $C- No. 111! o* !"1!-

    Ce'tral Ele+tr%+%t/ S)ppl/

    Ut%l%t/ o* O0%&a ......Appella't

    Ver&)&

    Dobe% Saoo 2 Or&. .....Re&po'0e't&

    3ITH

    CIVIL APPEAL NO. 981 OF !"1#

    $Ar%&%'( o)t o* Spe+%al Lea,e Pet%t%o' $C- No. 148" o* !"1!-

    5%6a/a Ca'0ra Je'a 7Appella't

    Ver&)&

    Dobe% Saoo a'0 oter& 7

    Re&po'0e't&

    J U D G M E N T

    Dipak Misra, J.

    Lea,e (ra'te0 %' bot te &pe+%al lea,e pet%t%o'&.

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    !

    !. A&&a%l%'( te 6)0(e't a'0 or0er 0ate0 !8.#.!"1!

    pa&&e0 b/ te H%( Co)rt o* Or%&&a C)tta+: %'

    3P$C- No. !#!8 o* !"11 ;ereb/ te D%,%&%o'

    5e'+ a&

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    #

    Re()lator/ Co%&&%o' $*or &ort ?te

    Co%&&%o'@-. CESU %& a 0eee0 l%+e'&ee )'0er

    te A+t *or te 0%&tr%b)t%o' o* ele+tr%+%t/ %' te

    Ce'tral o'e o* O0%&a. It %& 'e+e&&ar/ to &tate

    ere tat o' 1.B.199 Or%&&a Ele+tr%+%t/ Re*or&

    A+t 1994 +ae %'to *or+e pro,%0%'( *or

    re&tr)+t)r%'( o* te Ele+tr%+%t/ Se+tor %' te State

    o* O0%&a. Terea*ter Or%&&a Ele+tr%+%t/ Re*or

    $Tra'&*er o* U'0erta:%'(& A&&et& L%ab%l%t%e&

    Pro+ee0%'(& a'0 Per&o''el- S+ee R)le& 199

    +ae %'to e=%&te'+e a'0 o' tat ba&e a 'e;l/

    +o'&t%t)te0 ;oll/ o;'e0 Copa'/ o* te

    o,er'e't o* Or%&&a 'ael/ r%0 Corporat%o' o*

    Or%&&a L%%te0 $RIDCO- ;a& ,e&te0 ;%t te

    Tra'&%&&%o' D%&tr%b)t%o' a'0 Reta%l S)ppl/

    *)'+t%o'& o* te er&t;%le Or%&&a State Ele+tr%+%t/

    5oar0. O' 1.B.1999 b/ ,%rt)e o* Or%&&a Ele+tr%+%t/

    Re*or $Tra'&*er o* A&&et& L%ab%l%t%e& Pro+ee0%'(&

    a'0 Per&o''el o* r%0 Corporat%o' o* Or%&&a

    $RIDCO- to D%&tr%b)t%o'& Copa'%e&- R)le& 1998

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    B

    te 0%&tr%b)t%o'& a'0 reta%l S)ppl/ *)'+t%o'& o*

    RIDCO ;ere ,e&te0 ;%t %' *o)r 'e;l/

    +o'&t%t)te0 D%&tr%b)t%o' Copa'%e& o)t o* ;%+

    o'e ;a& Ce'tral Ele+tr%+%t/ S)ppl/ Copa'/ o*

    Or%&&a L%%te0 $CESCO- ;%+ ;a& (%,e' te

    re&po'&%b%l%t/ o* D%&tr%b)t%o'& U'0erta:%'(& o* te

    Ce'tral o'e a'0 to +arr/ o)t te (ra'te0 a

    l%+e'&e *or 0%&tr%b)t%o' o* ele+tr%+%t/ b/ te

    Co%&&%o'. 5e %t 'ote0 41 Sareol0%'( a'0

    Ma'a(ee't o* CESCO ,e&te0 %' a pr%,ate

    Copa'/ 'ael/ AES Or%&&a D%&tr%b)t%o' P,t.

    Lt0. $AESODPL- a'0 te bala'+e B9 ;a& el0 b/

    RIDCO. A*ter +o%'( %'to *or+e o* te A+t o'

    1".".!""# te &a%0 arra'(ee't +o't%')e0 a&

    tere ;a& 'ot%'( %'+o'&%&te't ;%t te 'e;

    le(%&lat%o'. O' !.!.!""4 a& a'a(ee't o*

    AESODPL aba'0o'e0 te a'a(ee't o* CESCO

    te l%+e'&e (ra'te0 %' *a,o)r o* CESCO ;a&

    re,o:e0 b/ te Co%&&%o' )'0er Se+t%o' 19 o*

    te A+t ;.e.*. 1."B.!""4. O' !."B.!""4 a'

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    A0%'%&trator ;a& appo%'te0 b/ te Co%&&%o'

    *or a'a(ee't a'0 +o'trol o* CESCO.

    B. A& te *a+t)al atr%= ;o)l0 *)rter )'*)rl o'

    8.9.!"" te Co%&&%o' %'%t%ate0 te pro+e&& *or

    &ale o* )t%l%t/ o* CESCO )'0er Se+t%o' !" o* te

    A+t. Ho;e,er a& te Ut%l%t/ +o)l0 'ot be &ol0 b/

    or0er 0ate0 8.9.!"" te Co%&&%o' +reate0 a

    'e; Ut%l%t/ 'ael/ CESU a'0 *or)late0 Ce'tral

    Ele+tr%+%t/ S)ppl/ Ut%l%t/ o* Or%&&a $Operat%o' a'0

    Ma'a(ee't- S+ee !"" $ere%'a*ter re*erre0

    to a& ?te S+ee@- *or Operat%o' a'0

    Ma'a(ee't o* CESU. O' 4.4.!"" te S+ee

    ;a& ae'0e0 b/ te Co%&&%o'. Cla)&e 4 o* te

    S+ee 0e*%'e0 te po;er& a'0 *)'+t%o'& o* te

    Ca%ra' CEO $CEO- C%e* F%'a'+e O**%+er $CFO-

    a'0 C%e* Operat%'( O**%+er $COO-. O' #1.1"

    !"" o'e S.. Da&()pta ;a& appo%'te0 a& CEO o*

    CESU ;%t a *%'a'+%al pa+:a(e o* R&. !! la:& per

    a''). O' #1.#.!"1" re&po'0e't No. 4 ;o a0

    earl%er &er,e0 a& Ca%ra' a'0 Ma'a(%'( D%re+tor

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    o* RIDCO a& ;ell a& Meber o* te Co%&&%o'

    *ro !""1 to !"" a'0 a0 *ort/>*%,e /ear& o*

    e=per%e'+e %' te ele+tr%+%t/ &e+tor ;a& 'o%'ate0

    a& eber a& ;ell a& Ca%ra' o* te

    Ma'a(ee't 5oar0 a'0 o* CESU ;%to)t a'/

    re)'erat%o'. Te Ca%ra' ;a& o'l/ e't%tle0 to

    &%tt%'( *ee o* R&. !"""> per eet%'(.

    4. A& te +ro'olo(/ o* e,e't& ;o)l0 0ep%+t Mr. S. .

    Da&()pta re&%('e0 *ro te po&t o* CEO o'

    8.8.!"1" a'0 o' 1".8.!"1" e ;a& rel%e,e0.

    eep%'( %' ,%e; te &oot *)'+t%o'%'( o* CESU

    te Co%&&%o' 0e+%0e0 to e'tr)&t te *)'+t%o'

    0)t%e& a'0 re&po'&%b%l%t%e& o* CEO to te 4t

    re&po'0e't ;%t %e0%ate e**e+t )'t%l *)rter

    or0er& or )'t%l alter'at%,e arra'(ee't& ;ere

    a0e b/ te Co%&&%o'. It ;a& e't%o'e0 %' te

    or0er 0ate0 1".8.!"1" tat te 4t re&po'0e't

    ;o)l0 e'6o/ all te per

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    Co%&&%o' ;o)l0 ta:e a ,%e; later o' re(ar0%'(

    te 0e&%rab%l%t/ o* (%,%'( a' o'orar%) to te

    Ca%ra'. O' 1!.11.!"1" te S+ee ;a& a(a%'

    ae'0e0 a'0 a 'e; Cla)&e ;a& %'&erte0 a&

    Cla)&e B $%=- a'0 %t ;a& t Ae'0e't to te

    S+ee. O' tat 0a/ %t&el* te Co%&&%o' *%=e0

    +o'&ol%0ate0 o'orar%) o* R&. """"> per o't

    *or te 4tre&po'0e't.

    . A*ter te&e 0e,elope't& te re&po'0e't No. 1

    a'0 a'oter *%le0 a p)bl%+ %'tere&t l%t%(at%o' 3P

    $C- No. !#!8 o* !"11 o' !.8.!"11 pra/%'( *or

    %&&)e o* ;r%t o* ?

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    +o'0%t%o'& o* o,er'e't &er,a't& a'0 RIDCO

    ,%0e %t& O**%+e Or0er 0ate0 !4.B.199 a0 a0opte0

    te re()lat%o'& relat%'( to &er,%+e a'0 all%e0

    atter& *or te eplo/ee& o* te 5oar0

    tra'&*erre0 to RIDCOG tat a&:%'( te Ca%ra'

    o* te 5oar0 o* Ma'a(ee't o* CESU to rea%' %'>

    +ar(e a& CEO ;a& +o'trar/ to te S+ee a&

    ae'0e0 )pto !"1" ,%0e 'ot%*%+at%o' 0ate0

    1!.11.!"1"G tat te appo%'te't o* te 4t

    re&po'0e't ;a& +o'trar/ to Re()lat%o' 1#$1-$!-$#-

    o* RIDCO O**%+er& Ser,%+e Re()lat%o'& ;%+

    pro,%0e *or appo%'te't to (ra0e& abo,e E>9 &all

    be o' a +o'tra+t ba&%& %'%t%all/ *or a per%o0 o* tree

    /ear& a'0 re'e;able terea*ter *or &)+ per%o0$&-

    a& te 5oar0 *or te Co%ttee o* te 5oar0 a/

    pre&+r%be )'t%l te O**%+er atta%'& te a(e o*

    &)pera'')at%o' a& pro,%0e0 %' te&e Re()lat%o'&G

    a'0 tat te t%r0 re&po'0e't ;a& appo%'te0

    +o'trar/ to la; a'0 tere*ore %& appo%'te't

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    &o)l0 be

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    1"

    Co%&&%o' a0 (%,e' te 4t re&po'0e't a

    +o'&ol%0ate0 o'orar%) o* R&.""""> per o't

    ;erea& %& pre0e+e&&or CEO ;a& (ett%'( a total

    &alar/ o* R&.1!8B>G a'0 tat te Co%&&%o'

    a&:%'( te 4t re&po'0e't to rea%' %'>+ar(e a&

    CEO ;a& 'ot ,%olat%,e o* a'/ r)le& or re()lat%o'&.

    8. A +o)'ter a**%0a,%t ;a& *%le0 b/ te CESU a'0 te

    4t re&po'0e't +o'te'0%'( tat a P)bl%+ I'tere&t

    L%t%(at%o' o* te pre&e't 'at)re ;a& 'ot

    a%'ta%'able a'0 %' a'/ +a&e te Co%&&%o'&

    a'0%'( o,er te +ar(e o* a& CEO to te 4t

    re&po'0e't ;o)l0 'ot be *o)'0 *a)lt ;%t.

    9. Te H%( Co)rt re*erre0 to te a%'ta%'ab%l%t/ o*

    te ;r%t pet%t%o' a'0 +ae to ol0 tat a& te po&t

    o* te CEO CESU a0 'ot bee' *%lle0 %'

    a++or0a'+e ;%t te Ser,%+e Re()lat%o'& o*

    RIDCO te +alle'(e to te e**e+t tat te

    Ca%ra' be%'( %(er %' ra': ta' te CEO +o)l0

    'ot a,e bee' a&:e0 to 0%&+ar(e te *)'+t%o' o*

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    CEO a'0 (ra't%'( o'orar%) o* R&.""""> %'

    a00%t%o' to %& )&)al per per o't a& a +o'&ol%0ate0

    o'orar%) %' a00%t%o' to te )&)al per

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    re+o,er/ o* te ao)'t *ro te 4tre&po'0e't. It

    %& al&o apt to 'ote ere tat te H%( Co)rt

    0%re+te0 tat te Co%&&%o' &all %e0%atel/

    ta:e &tep& to *%ll )p te po&t o* CEO ;%t%' a per%o0

    o* t;o o't& *ro te 0ate o* re+e%pt o* te +op/

    o* te 6)0(e't a'0 te Ca%ra' &all 'ot be

    allo;e0 to *)'+t%o' t%ll *%ll%'( )p o* te po&t o* CEO

    a'0 &oe oter re&po'&%ble o**%+er o* CESU &all

    a+t a& %'>+ar(e CEO.

    1". At t%& &ta(e ;e t%': %t appo&%te to &)ar%&e

    te pr%'+%pal rea&o'& ;%+ a,e bee' a&+r%be0 b/

    te H%( Co)rt ;%le &ett%'( a&%0e te or0er

    ;ereb/ te 4tre&po'0e't ;a& a&:e0 to *)'+t%o'

    a& CEO a'0 (%,e' te +o'&ol%0ate0 o'orar%)

    (i) Te Co%&&%o' a& a+te0 %lle(all/ a'0 arb%trar%l/

    %' appo%'t%'( te Ca%ra' a& te CEO ;o %& al&o

    o'e o* te Meber& o* te 5oar0 Ma'a(ee't o*

    CESU.

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    1#

    (ii) O' rea0%'( o* all te rele,a't +la)&e& %t %& ,er/

    +lear tat te Ca%ra' o* te CESU %& re

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    (iv) It %& 'ot le(all/ +orre+t o' te part o* te

    Co%&&%o' to appo%'t te Ca%ra' a& te CEO

    ;%+ %& +o'trar/ to te &er,%+e re()lat%o'& a'0

    te 4t re&po'0e't &o)l0 'ot a,e bee' allo;e0

    to *)'+t%o' a& te CEO a,%'( re(ar0 to te 'at)re

    o* po;er& a'0 *)'+t%o'& re

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    )&)rper to te p)bl%+ o**%+e a'0 e'+e %&

    appo%'te't 0e&er,e0 to be

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    ;e' te po&t *all& ,a+a't pe'0%'( &ele+t%o'

    a'0 appo%'te't o* a'oter el%(%ble a'0

    &)%table +a'0%0ate to te po&t a'0 %' &%%lar

    a'alo(/ (%,%'( a00%t%o'al +ar(e o* te po&t to a

    &)per%or o**%+er %& 'ot +o'trar/ to te p)bl%+

    pol%+/ or a(a%'&t te %'tere&t o* te %'&t%t)t%o'.

    $0- Te H%( Co)rt a& *)'0ae'tall/

    %&+o'&tr)e0 te pro,%&%o'& )'0er te A+t

    Re()lat%o'& a'0 te S+ee a'0 a&

    erro'eo)&l/ op%'e0 tat te Ca%ra' ;o ;a&

    ol0%'( te a00%t%o'al +ar(e a0 )&)rpe0 te

    po&%t%o' 0e&p%te be%'( el%(%ble

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    0e+%&%o' a'0 te a0,ert%&ee't 0o 'ot +)rta%l

    te po;era)tor%t/ o* te Co%&&%o' to a:e

    a'/ appropr%ate teporar/ arra'(ee't ore

    &o ;e' %t %& &o per%&&%ble )'0er te S+ee.

    1#. Mr. Raa+a'0ra' lear'e0 +o)'&el ;%le

    re%terat%'( te &)b%&&%o'& a0e b/ Mr. P.P. Rao

    *)rter &)b%tte0 tat ;e' te Ca%ra' a0

    per*ore0 te 0)t%e& o* te CEO tere ;a& 'o

    6)&t%*%+at%o' to 0%re+t *or re+o,er/ o* te &) *or %t

    %& )':'o;' to &er,%+e 6)r%&pr)0e'+e a'0 %' +erta%'

    +%r+)&ta'+e& ao)'t& to be((ar/ ;%+ %&

    e'&r%'e0 )'0er Art%+le !# o* te Co'&t%t)t%o' o*

    I'0%a. Te lear'e0 +o)'&el ;o)l0 +o'te'0 tat Mr.

    Je'a ;o a& ear'e0 %& rep)tat%o' %' %& o;'

    *%el0 0e&p%te te &a%0 or0er a0 %'t%ate0 CESU

    tat e ;o)l0 'ot *)'+t%o' a'0 e %& 'ot

    *)'+t%o'%'( %' prae&e't%.

    1B. Mr. Saoo apper%'( %' per&o' a'0 Mr. Apara6%t

    N%'a;e lear'e0 +o)'&el ;o a&&%&te0 %

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    &)b%tte0 tat te ,er0%+t o* te H%( Co)rt %&

    ab&ol)tel/ *la;le&& a'0 rel/%'( o' te a00%t%o'al

    a**%0a,%t %t a& bee' p)t *ort tat te po&t o* CEO

    %' CESU %& a &ele+t%o' po&t ;%+ &o)l0 a,e

    bee' *%lle0 )p tro)( a p)bl%+ a0,ert%&ee't a&

    per te pro+e0)re o* &ele+t%o' a'0 tere*ore Mr.

    Je'a +o)l0 'ot a,e bee' allo;e0 to ol0 t;o

    po&t& 'ael/ te Ca%ra' o* CESU a& ;ell a&

    te CEO. It %& *)rter +o'te'0e0 tat tere %& a

    pol%+/ 0e+%&%o' *or *%ll%'( )p o* po&t& *or &e'%or

    po&%t%o'& %' CESU a'0 tat be%'( te po&%t%o'

    appo%'te't o* Mr. Je'a %& ,%t%ate0. Te &a%0 pol%+/

    0e+%&%o' a& bee' epat%+all/ pla+e0 rel%a'+e

    )po' to %(l%(t te *a+t) o* a(e ;%+ ;a& 44

    /ear& %' !"". It %& al&o a&&erte0 %' te a**%0a,%t

    tat te a(e l%%t a& bee' e'a'+e0 to " /ear&

    %' te /ear !"1! b)t b/ te t%e Mr. Je'a ;a&

    a&:e0 to ta:e o,er te +ar(e e ;a& ore ta'

    9 /ear& a'0 e'+e e ;a& %'el%(%ble to ol0 te

    po&t.

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    !"

    14. 5e*ore ;e a0,ert to te a*ore&a%0 &)b%&&%o'&

    a'0 te le(al &)b&ta't%al%t/ o* te or0er pa&&e0 b/

    te H%( Co)rt ;e a/ re*er to +erta%' a)tor%t%e&

    tat tro; l%(t o' te 0)t/ o* te Co)rt ;%le

    0eal%'( ;%t a ;r%t o*

    ?5roa0l/ &tate0 te

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    !1

    to prote+t te p)bl%+ *ro )&)rper& o* p)bl%+ o**%+eG%' &oe +a&e& per&o'& 'ot e't%tle0 to p)bl%+ o**%+ea/ be allo;e0 to o++)p/ te a'0 to +o't%')e tool0 te a& a re&)lt o* te +o''%,a'+e o* te

    e=e+)t%,e or ;%t %t& a+t%,e elp a'0 %' &)++a&e& %* te 6)r%&0%+t%o' o* te +o)rt& to %&&)e ;r%to*

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    !!

    or a ;r%te o* J)0(e 5e'+ a*ter

    re*err%'( to te 0e+%&%o' %' R.K. "ain$&)pra- a&

    r)le0 t)& >

    ?B. E,e' %' R.. Ja%' +a&e t%& Co)rt ob&er,e0,%0e para # tat 6)0%+%al re,%e; %& +o'+er'e0 ;%t;eter te %'+)be't po&&e&&e0

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    !#

    *or te appo%'te't a'0 t!e manner in "!ic! t!eappointment came to #e made or ;eter tepro+e0)re a0opte0 ;a& *a%r 6)&t a'0 rea&o'able.3e re%terate tat te o,er'e't %& 'ot

    a++o)'table to te +o)rt& *or te +o%+e a0e b)tte o,er'e't %& a++o)'table to te +o)rt& %'re&pe+t o* te la;*)l'e&&le(al%t/ o* %t& 0e+%&%o';e' %p)('e0 )'0er te 6)0%+%al re,%e;

    6)r%&0%+t%o'.@

    18. Fro te a*ore&a%0 e=po&%t%o' o* la; %t %& +lear a&

    'oo' 0a/ tat te 6)r%&0%+t%o' o* te H%( Co)rt

    ;%le %&&)%'( a ;r%t o*

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    !B

    'ot el0 b/ )&)rper ;%to)t a'/ le(al a)tor%t/.

    3%le 0eal%'( ;%t te ;r%t o*

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    !4

    te lear'e0 J)0(e& re*erre0 to te pr%'+%ple& la%0

    0o;' %' Duryodhan %ahu &Dr.' v. "itendra

    Ku(ar Mishra

    !sho) Ku(ar Pandey v. %tate

    of *.#.8 #. %ingh &Dr.' v. Union of India9+

    Dattaraj ,athuji Tha-are v. %tate of

    Maharashtra1" a'0 Gura$ %ingh v. %tate of

    Punja/11a'0 e=pre&&e0 te ,%e; t)& >

    ?Te abo,e pr%'+%ple& a:e %t +lear tat e=+ept *ora ;r%t o*

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    !

    R)le& te +o'+ept o* te S+ee )'0er te A+t

    a'0 oter *a+et& b)t ;e a,e to)(t %t %perat%,e

    to re,%&%t +erta%' a)tor%t%e& perta%'%'( to p)bl%+

    %'tere&t l%t%(at%o' %t& ab)&e& a'0 te ;a/

    &oet%e& te +o)rt& per+e%,e te e't%re

    &pe+tr). It %& a' %'(e'%o)& a'0 a0ro%t %''o,at%o'

    o* te 6)0(e>a0e la; ;%t%' te +o'&t%t)t%o'al

    paraeter& a'0 &er,e& a& a ;eapo' *or +erta%'

    p)rpo&e&. It %& re(ar0e0 a& a ;eapo' to %t%(ate

    (r%e,a'+e& o* te poor a'0 te ar(%'al%e0

    &e+t%o'& o* te &o+%et/ a'0 to +e+: te ab)&e o*

    po;er at te a'0& o* te E=e+)t%,e a'0 *)rter to

    &ee tat te 'e+e&&%to)& la; a'0 or0er &%t)at%o'

    ;%+ %& te 0)t/ o* te State %& properl/

    &)&ta%'e0 te people %' %pe+)'%o&%t/ 0o 'ot 0%e

    o* )'(er 'at%o'al e+o'o/ %& 'ot 6eopar0%e0G

    r)le o* la; %& 'ot %per%le0G )a' r%(t& are 'ot

    e'0a'(ere0 a'0 prob%t/ tra'&pare'+/ a'0

    %'te(r%t/ %' te (o,er'a'+e rea%' %' a +o'&ta't

    &tate o* &tab%l%t/. Te )&e o* te &a%0 ;eapo' a&

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    !

    to be 0o'e ;%t +are +a)t%o' a'0 +%r+)&pe+t%o'.

    3e a,e a rea&o' to &a/ &o a& %' te +a&e at a'0

    tere a& bee' a *alla+%o)& per+ept%o' 'ot o'l/ a&

    re(ar0& te er%t& o* te +a&e b)t al&o tere %& a'

    erro'eo)& approa+ %' %&&)a'+e o* 0%re+t%o'

    perta%'%'( to re+o,er/ o* te &) *ro te ol0er

    o* te po&t. 3e &all 0;ell )po' te &ae at a

    later &ta(e.

    !1. A& a0,%&e0 at pre&e't ;e a/ re*er to +erta%'

    a)tor%t%e& %' te *%el0 %' t%& re(ar0. I' #andhua

    Mu)ti Morcha v. Union of India and others1!

    5a(;at% J. $a& %& Lor0&%p te' ;a&- a0

    ob&er,e0 t)& >

    ?3e' te Co)rt e'terta%'& p)bl%+ %'tere&tl%t%(at%o' %t 0oe& 'ot 0o &o %' a +a,%l%'( &p%r%t or %'a +o'*ro'tat%o'al oo0 or ;%t a ,%e; to t%lt%'( ate=e+)t%,e a)tor%t/ or &ee:%'( to )&)rp %t b)t %t&attept %& o'l/ to e'&)re ob&er,a'+e o* &o+%al a'0

    e+o'o%+ re&+)e pro(rae le(%&lat%,e a& ;ell a&e=e+)t%,e *rae0 *or te be'e*%t o* te a,e>'ot&a'0 te a'0%+appe0 a'0 to prote+t te a(a%'&t

    1!

    AIR 198B SC 8"!

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    !8

    ,%olat%o' o* te%r ba&%+ )a' r%(t& ;%+ %& al&ote +o'&t%t)t%o'al obl%(at%o' o* te e=e+)t%,e. TeCo)rt %& t)& erel/ a&&%&t%'( %' te real%at%o' o*te +o'&t%t)t%o'al ob6e+t%,e&.@

    !!. I' Dr. D.C. *adh-a and others v. %tate of

    #ihar and others1# te Co'&t%t)t%o' 5e'+ ;%le

    e'terta%'%'( a pet%t%o' )'0er Art%+le #! o* te

    Co'&t%t)t%o' o' beal* o* te pet%t%o'er tere%'

    ob&er,e0 tat %t %& te r%(t o* e,er/ +%t%e' to

    %'&%&t tat e &o)l0 be (o,er'e0 b/ la;& a0e %'

    a++or0a'+e ;%t te Co'&t%t)t%o' a'0 'ot la;&

    a0e b/ te e=e+)t%,e %' ,%olat%o' o* te

    +o'&t%t)t%o'al pro,%&%o'&. It a& al&o bee' &tate0

    tere%' tat te r)le o* la; +o'&t%t)te& te +ore o*

    o)r Co'&t%t)t%o' a'0 %t %& te e&&e'+e o* r)le o*

    la; tat te e=er+%&e o* te po;er b/ te State

    ;eter %t be te le(%&lat)re or te e=e+)t%,e or

    a'/ oter a)tor%t/ &o)l0 be ;%t%' te

    +o'&t%t)t%o'al l%%tat%o' a'0 %* a'/ pra+t%+e %&

    a0opte0 b/ te e=e+)t%,e ;%+ %& %' *la(ra't

    1#

    AIR 198 SC 49

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    !9

    ,%olat%o' o* te +o'&t%t)t%o'al l%%tat%o'& a

    eber o* te p)bl%+ ;o)l0 a,e &)**%+%e't

    %'tere&t to +alle'(e &)+ pra+t%+e a'0 %t ;o)l0 be

    te +o'&t%t)t%o'al 0)t/ o* te Co)rt to e'terta%'

    te ;r%t pet%t%o'.

    !#. I' ,eetu v. %tate of Punja/ and others1B te

    Co)rt a& op%'e0 tat %t %& &o+:%'( to 'ote tat

    Co)rt& are *loo0e0 ;%t lar(e ')ber o* &o +alle0

    p)bl%+ %'tere&t l%t%(at%o'& ;ere e,e' a %')&+)le

    per+e'ta(e +a' le(%t%atel/ be +alle0 a& p)bl%+

    %'tere&t l%t%(at%o'. Coe't%'( o' e'terta%'%'(

    p)bl%+ %'tere&t l%t%(at%o'& ;%to)t be%'( +are*)l o*

    te paraeter& b/ te H%( Co)rt& te lear'e0

    J)0(e& ob&er,e0 a& *ollo;& >

    ?To)( te paraeter& o* p)bl%+ %'tere&tl%t%(at%o' a,e bee' %'0%+ate0 b/ t%& Co)rt %'lar(e ')ber o* +a&e& /et )'%'0*)l o* te real

    %'te't%o'& a'0 ob6e+t%,e&. H%( Co)rt& aree'terta%'%'( &)+ pet%t%o'& a'0 ;a&t%'( ,al)able

    1B

    AIR !"" SC 48

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    #"

    6)0%+%al t%e ;%+ a& 'ote0 abo,e +o)l0 beoter;%&e )t%l%e0 *or 0%&po&al o* (e')%'e +a&e&.@

    Terea*ter (%,%'( a 'ote o' +a)t%o' te Co)rt &tate0 >

    ?P)bl%+ %'tere&t l%t%(at%o' %& a ;eapo' ;%+ a& tobe )&e0 ;%t (reat +are a'0 +%r+)&pe+t%o' a'0te 6)0%+%ar/ a& to be e=treel/ +are*)l to &eetat be%'0 te bea)t%*)l ,e%l o* p)bl%+ %'tere&t a')(l/ pr%,ate al%+e ,e&te0 %'tere&t a'0orp)bl%+%t/ &ee:%'( %& 'ot l)r:%'(. It %& to be )&e0 a&a' e**e+t%,e ;eapo' %' te aro)r/ o* la; *or0el%,er%'( &o+%al 6)&t%+e to te +%t%e'&.@

    !B. I' %tate of Uttarancha$ v. #a$-ant %ingh

    Chaufa$ and others14 t%& Co)rt a0,erte0 to te

    (ro;t o* p)bl%+ %'tere&t l%t%(at%o'& %' t%& +o)'tr/

    a'0 te ,%e; e=pre&&e0 %' ,ar%o)& PIL& a'0 te

    +r%t%+%& a0,a'+e0 a'0 e,e't)all/ +o'+ept)al%e0

    te 0e,elope't ;%+ %& e=tra+te0 belo; >

    ?3e 0ee %t appropr%ate to broa0l/ 0%,%0e tep)bl%+ %'tere&t l%t%(at%o' %' tree pa&e&

    $!ase I. It 0eal& ;%t +a&e& o*t%& Co)rt ;ere 0%re+t%o'& a'0or0er& ;ere pa&&e0 pr%ar%l/ to

    prote+t *)'0ae'tal r%(t& )'0erArt%+le !1 o* te ar(%'al%e0(ro)p& a'0 &e+t%o'& o* te

    14

    $!"1"- # SCC B"!

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    #1

    &o+%et/ ;o be+a)&e o* e=treepo,ert/ %ll%tera+/ a'0 %('ora'+e+a''ot approa+ t%& Co)rt orte H%( Co)rt&.

    $!ase II. % It 0eal& ;%t te +a&e&relat%'( to prote+t%o'pre&er,at%o' or e+olo(/e',%ro'e't *ore&t& ar%'el%*e ;%l0l%*e o)'ta%'& r%,er&%&tor%+al o')e't& et+. et+.

    $!ase III. It 0eal& ;%t te0%re+t%o'& %&&)e0 b/ te Co)rt&

    %' a%'ta%'%'( te prob%t/tra'&pare'+/ a'0 %'te(r%t/ %'(o,er'a'+e.@

    !4. I' #ho$anath Mu)herjee and others v.

    Ra(a)rishna Mission 0ive)ananda

    Centenary Co$$ege and others1 %t a& bee'

    la%0 0o;' tat p)bl%+ %'tere&t l%t%(at%o' ;o)l0 'ot

    be a%'ta%'able %' &er,%+e la; +a&e&.

    !. I' Duryodhan %ahu $&)pra- a tree>J)0(e

    5e'+ po&e0 a

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    ##

    o,er'e't *ro appo%'t%'( a'/ +a'0%0ate a&

    Le+t)rer te pra/er ;o)l0 'ot +oe %' te &pere

    o* 'ot& a'0 te a'0%+appe0 *or

    prote+t%o' o* te%r ba&%+ )a' r%(t& a'0 to &ee

    tat te a)tor%t%e& +arr/ o)t te%r +o'&t%t)t%o'al

    obl%(at%o'& to;ar0& te ar(%'al%e0 &e+t%o'& o*

    people ;o +a''ot &ta'0 )p o' te%r o;' a'0

    +oe to +o)rt to p)t *ort te%r (r%e,a'+e&.

    Terea*ter tere a& bee' ,ar%o)& pa&e& a& a&

    bee' &tate0 %' #a$-ant %ingh Chaufa$ $&)pra-.

    It %& al&o per+ept%ble tat +o)rt a& ta:e' 'ote o*

    te *a+t o; te p)bl%+ %'tere&t l%t%(at%o'& a,e

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    #B

    bee' %&)t%l%e0 to ,%'0%+ate ,e&te0 %'tere&t& *or

    te propa(ate0 p)bl%+ %'tere&t. I' *a+t a& a&

    bee' &ee' e,e' te people ;o are %' &er,%+e *or

    te%r &e'%or%t/ a'0 proot%o' a,e pre*erre0

    p)bl%+ %'tere&t l%t%(at%o'&. It a& al&o +oe to te

    'ot%+e o* t%& Co)rt tat &oe per&o'& ;o

    0e&+r%be te&el,e& a& pro #ono p#lico' a,e

    approa+e0 te +o)rt +alle'(%'( (ra't o*

    proot%o' *%=at%o' o* &e'%or%t/ et+. %' re&pe+t o*

    t%r0 part%e&.

    !8. Re(ar0 be%'( a0 to te a*ore&a%0 e')'+%at%o' o*

    la; relat%'( to t;o &pere& 'ael/ %&&)e o* a

    ;r%t o*

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    #4

    te pro,%&%o'& o* Se+t%o' !! o* te A+t. A& &tate0

    earl%er CESU ;a& +o'&t%t)te0 b/ a' or0er 0ate0

    8.9.!"" pa&&e0 b/ te Co%&&%o'. Te S+ee

    ;a& ae'0e0 *ro t%e to t%e ,%0e 'ot%*%+at%o'&

    0ate0 1#.1".!"" 4.4.!"" #1.1".!""

    .9.!""8 !.8.!"1" 1!.11.!"1" 4.9.!"11

    #1.#.!"1! a'0 1.9.!"1!. A& per te S+ee a

    CEO %& to be appo%'te0 o' te ba&%& o* a re()lar

    a0,ert%&ee't p)bl%&e0 %' te 'e;&paper a'0

    te a0,ert%&ee't pre&+r%be& te

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    #

    *)'+t%o'%'( a& te Ca%ra' o* CESU. S)b>+la)&e

    $%,- o* +la)&e B o* te ae'0e0 S+ee 0ate0

    #1.1".!"" a/ be repro0)+e0 ;%t pro*%t >

    ?Te CEO CFO COO a'0 CCO &o)l0 'ot ol0 a'/oter po&t&o**%+e 0)r%'( te%r te')re %' te CESU.

    Te ter& o* o**%+e eol)e't& a'0 +o'0%t%o'& o*&er,%+e o* CEO CFO COO a'0 CCO &all be &)+a& to be 0e+%0e0 b/ te Co%&&%o' b/ or0er%&&)e0 )'0er t%& S+ee. Te Co%&&%o' a/e=te'0 te%r te')re *or a *)rter per%o0 a& %t t%':&

    *%t.@

    !9. Cla)&e 4$%%- o* !"" S+ee e')erate0 te

    po;er& a'0 *)'+t%o'& o* te CEO. Cla)&e 4 ;a&

    ae'0e0 a'0 terea*ter o' 1!.11.!"1" *)rter

    ae'0e't ;a& bro)(t %'. Te ae'0e't %'ter

    al%a &)b&t%t)te0 +la)&e B$%,-. Te *ollo;%'( ;a&

    a00e0 to te e=%&t%'( +la)&e B a& +la)&e B$%=- >

    ?3e'e,er 'ee0e0 te po;er *)'+t%o'& a'0re&po'&%b%l%t%e& o* Ca%ra' a'0 CEO +a' be0%&+ar(e0 b/ o'e per&o' 0e&%('ate0 a&Ca%ra'>+)>CEO.@

    #". At t%& &ta(e %t a/ be 'ote0 ;%t pro*%t tat

    te Co%&&%o' ,%0e letter 0ate0 !9.1!.!"" a0

    +o)'%+ate0 to te CESU abo)t te ter& a'0

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    #

    +o'0%t%o'& *or appo%'te't o* CEO. It rea0& a&

    *ollo;& >

    ?1. C%e* E=e+)t%,e O**%+er

    Te S+ale o* Pa/ o* te C%e* E=e+)t%,eO**%+er& %& *%=e0 at R&.18B"">4"">!!B"">. Te5a&%+ Pa/ o* Sr% Da&()pta 6o%'%'( %' te po&t o*C%e* E=e+)t%,e O**%+er %& *%=e0 at R&.!!B""> pero't. 5e&%0e& abo,e e %& e't%tle0 to Dear'e&&Pa/ a'0 DA at te +)rre't rate allo;e0 b/ teState o,er'e't. Te +o&t to te Copa'/ per

    o't %'+l)0e& te Ho)&e Re't Allo;a'+e&Me0%+al Allo;a'+e& 5oo:& Per%o0%+al a'0

    Telepo'e Allo;a'+e& Atte'0a't& Allo;a'+e& LTCa'0 per&o'al Pa/. 5e&%0e& abo,e a& C%e*E=e+)t%,e O**%+er ;o)l0 be e't%tle0 to Lea,e Salar/Co'tr%b)t%o' Co'tr%b)tor/ Pro,%0e't F)'0 Ser,%+erat)%t/ a& appl%+able to te po&t ;%+ are%'+l)0e0 %' te +o&t to Copa'/.

    Te C%e* E=e+)t%,e O**%+er %& e't%tle0 toCo',e/a'+e Allo;a'+e o* R&.!""""> per o't*or ,e%+le %re0o;'e0 b/ % alo'( ;%t te0r%,er& pa/ re%b)r&ee't o* te +o&t o* *)el*or o**%+%al 0)t/ be/o'0 te lo+al 0)t/

    Or

    He %& e't%tle0 to a ,e%+le pro,%0e0 b/ teCESU alo'( ;%t *%,e l%ter& o* *)el per 0a/ *or

    per&o'al )&e. Te opt%o' %& to be e=er+%&e0 b/ te%'+)be't.

    Te per&o'al Pa/ %'+l)0e& te Ma'a(ee'tAllo;a'+e& allo;e0 to te po&t o* C%e* E=e+)t%,eO**%+er ;%+ %& te o'tl/ pa/ o)t o* Me0%>+la%I'&)ra'+e Pre%) a'0 te L%*e I'&)ra'+e

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    #8

    Pre%). A& &)+ all Me0%+al E=pe'&e& &all bebor'e b/ %. Te Per&o'al Pa/ &all be l%':e0 tote per*ora'+e o* te C%e* E=e+)t%,e O**%+er.

    A& 'e(ot%ate0 at te t%e o* %'ter,%e; te

    appo%'te't o* Sr% S;apa' Da&()pta a& CEO %'CESU %& %'%t%all/ *or a per%o0 o* *o)r /ear& o'Co'tra+t 5a&%& ;%+ +a' be e=te'0e0 *or o'e/ear 0epe'0%'( o' te 'e+e&&%t/ o* teor(a'%at%o' per*ora'+e a'0 )&e*)l'e&& o* teo**%+er a'0 te +o&t to +opa'/ &all be l%%te0 to1" o,er a'0 abo,e %& pre&e't e't%tle0 %' CESCol:ata.

    Te Co'tra+t +a' be ter%'ate0 o' e%ter &%0eb/ tree o't& 'ot%+e or b/ pa/e't0epo&%t o*tree o't& eol)e't& %' l%e) o* 'ot%+e.@

    #1. 3e' Mr. S;apa' Da&()pta ;a& appo%'te0 a&

    CEO te +o'0%t%o'& o* appo%'te't ;ere a'')al

    pa+:a(e o* R&.!! la:& ;%t +erta%' per

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    #9

    FIFTH Ae'0e't to te Ce'tral Ele+tr%+%t/ S)ppl/Ut%l%t/ o* Or%&&a $Operat%o' a'0 Ma'a(ee't-S+ee !"" 'ot%*%e0 b/ te Co%&&%o' ,%0eNot%*%+at%o' No. CESU$O2M-B49" 0t0. "#.8.!"1".

    It a& bee' &t%p)late0 tat te Ca%ra' &all()%0e a0,%&e a'0 a,e o,erall &)per%'te'0e'+ea'0 +o'trol o,er te CEO CFO COO CCO CPIOSr. .M. $HR- a'0 CVO *or &oot a'0 e**%+%e't*)'+t%o'%'( o* te CESU. S%'+e %t ;%ll ta:e

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    B1

    ?Te C%e* E=e+)t%,e O**%+er &all be a per&o' ;%t%'%t%at%,e a 0r%,e. He ;%ll be %' o,erall +ar(e o*e'(%'eer%'( *%'a'+e +oer+e +orporatere()lator/ a**a%r& a'0 (e'eral a'a(ee't o* te

    )t%l%t/. T%& %& a 5oar0 le,el po&%t%o' a'0 e &o)l0at lea&t po&&e&& a pro*e&&%o'al 0e(ree %'E'(%'eer%'( or Ma'a(ee't or A++o)'ta'+/ orLa; *ro a rep)te0 U'%,er&%t/. He &o)l0 a,e atlea&t 1" /ear& e=per%e'+e %' &e'%or le,ela'a(er%al po&%t%o' %' a lar(e or(a'%at%o'.@

    #B. It al&o &t%p)late& tat te te')re o* appo%'te't

    ;o)l0 be *or a per%o0 o* t;o /ear& a'0 e=te'0able

    terea*ter 0epe'0%'( )po' te per*ora'+e o* te

    +a'0%0ate a'0 te re

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    B!

    &at%&*/ te +o)rt tat te o**%+e %'

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    B#

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    BB

    ?22.Provisions where no purchase takespace. $1- I* te )t%l%t/ %& 'ot &ol0 %' te a''erpro,%0e0 )'0er &e+t%o' !" or &e+t%o' !B teAppropr%ate Co%&&%o' a/ to prote+t te

    %'tere&t o* te +o'&)er& or %' te p)bl%+ %'tere&t%&&)e &)+ 0%re+t%o'& or *or)late &)+ S+ee a&%t a/ 0ee 'e+e&&ar/ *or operat%o' o* te )t%l%t/.

    $!- 3ere 'o 0%re+t%o'& are %&&)e0 or S+ee%& *or)late0 b/ te Appropr%ate Co%&&%o')'0er &)b>&e+t%o' $1- te l%+e'&ee re*erre0 to %'&e+t%o' !" or &e+t%o' !B a/ 0%&po&e o* te )t%l%t/%' &)+ a''er a& %t a/ 0ee *%t.

    Pro,%0e0 tat %* te l%+e'&ee 0oe& 'ot 0%&po&eo* te )t%l%t/ ;%t%' a per%o0 o* &%= o't& *rote 0ate o* re,o+at%o' )'0er &e+t%o' !" or &e+t%o'!B te Appropr%ate Co%&&%o' a/ +a)&e te;or:& o* te l%+e'&ee %' )'0er o,er alo'( ora+ro&& a'/ &treet or p)bl%+ la'0 to be reo,e0 a'0e,er/ &)+ &treet or p)bl%+ la'0 to be re%'&tate0a'0 re+o,er te +o&t o* &)+ reo,al a'0re%'&tatee't *ro te l%+e'&ee.@

    Fro te a*ore&a%0 pro,%&%o' %t %& l%p%0 tat te

    Co%&&%o' a& bee' +o'*erre0 po;er to *or)late a

    S+ee or %&&)e 0%re+t%o'& %' te p)bl%+ %'tere&t &o tat

    operat%o' o* te )t%l%t/ &er,%+e %& 'ot p)t to aar0.

    #. I' te +a&e at a'0 a& a& bee' &tate0 earl%er

    te )t%l%t/ &er,%+e +ae %'to e=%&te'+e a*ter

    *or)lat%o' o* a S+ee. Te S+ee a& bee'

    ae'0e0 *ro t%e to t%e. Te H%( Co)rt a&

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    B4

    re*erre0 to +la)&e B$%,- a'0 +la)&e 4 o* te S+ee.

    3e t%': %t appropr%ate to repro0)+e +la)&e B$%,- a'0

    +la)&e 4 o* te S+ee a& repro0)+e0 b/ te H%(

    Co)rt >

    ?$%,- Te CEO CFO a'0 COO &o)l0 'ot ol0 a'/oter po&t&o**%+e 0)r%'( te%r te')re %' te CESU.

    Te ter& o* o**%+e eol)e't& a'0 +o'0%t%o'& o*&er,%+e o* CEO CFO a'0 COO &all be &)+ a& tobe 0e+%0e0 b/ te Co%&&%o' b/ or0er %&&)e0

    )'0er t%& S+ee. Te Co%&&%o' a/ e=te'0te%r te')re *or a *)rter per%o0 a& %t t%':& *%t.@

    === === ===

    Cla)&e 4

    ?$%- Ca%ra'

    $a- He &all pre&%0e o,er all 5oar0 Meet%'(&.

    $b- He &all ()%0e a0,%&e a'0 a,e o,erall&)per%'te'0e'+e a'0 +o'trol o,er te CEOCFO a'0 COO *or &oot a'0 e**%+%e't*)'+t%o'%'( o* te CESU.

    $+- He &all 0e+%0e all te atter& re*erre0 to% b/ te 5oar0.

    $0- He &all 0%&+ar(e all oter 0)t%e&

    a&&%('e0 b/ te Co%&&%o' )'0er teS+ee.

    $%%- C%e* E=e+)t%,e O**%+er $CEO-

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    B

    S)b6e+t to o,erall &)per,%&%o' +o'trol a'00ele(at%o' o* po;er b/ te Ma'a(ee't5oar0 a'0 0%re+t%o'& o* te Co%&&%o'

    $a- He &all a+t a& C%e* E=e+)t%,e a'0 C%e*

    Spo:e&a' o* te CESU.

    $b- He &all a'a(e te 0a/>to>0a/ a**a%r&a'0 a'a(ee't o* CESU a'0 &all repre&e'tte CESU be*ore te Co%&&%o' a'0 oterA)tor%t%e&.

    $+- He &all +arr/ o)t a'0 %plee't teor0er& a'0 0%re+t%o'& %&&)e0 b/ teCo%&&%o' to te CESU.

    $0- He &all +arr/ o)t a'0 %plee't tere&ol)t%o'&0e+%&%o'& ta:e' b/ teMa'a(ee't 5oar0.

    $e- I' +o'&)ltat%o' ;%t te Ma'a(ee't5oar0 e &all 0e&%(' a'0 %plee't teor(a'%at%o'al &tr)+t)re a'0 a'a(ee't o*te CESU.

    $*- I' te 'ae a'0 o' beal* o* te CESU e&all e'ter %'to +o'tra+t ;%t all e=ter'ala(e'+%e& a'0 ta:e loa'& *ro*)'0%'(*%'a'+%al %'&t%t)t%o'&.

    $(- O' beal* o* te CESU e &all 0%&+ar(eall %t& &tat)tor/re()lator/ re

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    B

    #. A*ter repro0)+%'( te &ae te H%( Co)rt a&

    op%'e0 t)& >

    ?O' rea0%'( o* all te a*ore&a%0 rele,a't +la)&e& %t%& ,er/ +lear tat te Ca%ra' o* te CESU %&re

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    B8

    re&po'&%b%l%t%e& )'t%l *)rter or0er& a'0 ;a&

    e=te'0e0 te be'e*%t o* +o'&ol%0ate0 o'orar%) o*

    R&.""""> per o't %' a00%t%o' to te )&)al

    per

    ?!B. Te +o'te't%o' )r(e0 o' beal* o* opp. part/'o. !>Se+retar/ OERC %& tat o'l/ teporar/arra'(ee't a& bee' a0e *%=%'( a o'tl/

    o'orar%) o* R&.""""> ;%+ %& pa/able to teC%e* E=e+)t%,e O**%+er. It %& )':'o;' to te&er,%+e 6)r%&pr)0e'+e tat a' eplo/eeo**%+er ;o%& p)t %' +ar(e o* a'oter o**%+e or po&t %' a00%t%o'to %& o;' 0)t/ %& to be (ra'te0 o'orar%). Te&ae %& totall/ %per%&&%ble %' la;. O' rea0%'(A''e=)re&># 2 4 ;e are o* te ,%e; tat %t %& 'otle(all/ +orre+t o' te part o* te Co%&&%o' toappo%'t te Ca%ra' a& te C%e* E=e+)t%,e

    O**%+er ;%+ %& +o'trar/ to te &er,%+ere()lat%o'&. opp. part/ 'o. # &o)l0 'ot a,e bee'pla+e0 o' teporar/ arra'(ee't a& te C%e*E=e+)t%,e O**%+er a,%'( re(ar0 to te 'at)re o*po;er& a'0 *)'+t%o'& re

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    B9

    letter 0ate0 1!.11.!"1" )'0er A''e=)re>4 ;%+%& a +lear +a&e o* ab)&e o* po;er o* teCo%&&%o' a'0 te &a%0 appo%'te't or0er %&;%to)t a)tor%t/ o* la; a'0 opp. part/ 'o.# &o)l0

    'ot a,e bee' e'tr)&te0 ;%t te 0)t%e& *)'+t%o'&a'0 re&po'&%b%l%t%e& o* te CEO ;%le *)'+t%o'%'( a&Ca%ra' o* CESU. Tere*ore ;e are o* te ,%e;tat bot A''e=)re&># 2 4 are l%able to be

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    4"

    a'a(ee't. Tat apart te po;er %& ,e&te0 ;%t

    te Co%&&%o' to 0o &o )'0er te S+ee. Te

    H%( Co)rt a& al&o re*erre0 to +erta%' pro,%&%o'&

    abo)t te re()lat%o'&. Nee0le&& to epa&%&e te

    &a%0 re()lat%o'& operate %' a 0%**ere't *%el0

    alto(eter a'0 a,e 'ot%'( to 0o ;%t a'/

    appo%'te't& )'0er te S+ee. Te o'l/ t%'(

    ;%+ a& bee' %(l%(te0 b/ te 1&tre&po'0e't %&

    tat %t ;a& a++epte0 b/ te H%( Co)rt tat e ;a& a

    ret%re0 o**%+er a'0 ;a& appo%'te0 a& Ca%ra' a'0

    *)rter ;a& a&:e0 to rea%' %' +ar(e o* CEO a'0

    ;a& (%,e' &oe o'orar%) ;%+ %& %per%&&%ble.

    I' *a+t ;at %& &)b%tte0 %& tat e be+oe& a'

    appo%'tee %' re&pe+t o* t;o po&t& ;%+ te la; 0oe&

    'ot +o)'te'a'+e. Te &a%0 &)b%&&%o' &)**er& *ro

    a *)'0ae'tal *alla+/. Te Ca%ra' o* CESU %& a

    o'orar/ po&t. He ;a& (ett%'( &%tt%'( *ee& *or

    atte'0%'( te eet%'(&. He ;a& 'ot e,e' (%,e' a

    *%=e0 o'orar%). Tere*ore to +o'+l)0e tat e

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    41

    ;a& ol0%'( t;o po&t& a'0 0ra;%'( &alar/ *or bot

    te po&t& %& *a+t)all/ %'+orre+t.

    B". Te ;ole t%'( a& to be &+r)t%'%e0 *ro te

    po%'t o* ,%e; o* po;er. S)%tab%l%t/ or el%(%b%l%t/ o* a

    +a'0%0ate *or appo%'te't to a po&t %& ;%t%' te

    0oa%' o* te appo%'t%'( a)tor%t/. Te o'l/ t%'(

    tat +a' be &+r)t%'%e0 b/ te Co)rt %& ;eter te

    appo%'te't %& +o'trar/ to te &tat)tor/

    pro,%&%o'&r)le&. I' Hari #ansh a$ $&)pra- te

    Co)rt too: 'ote o* te &ta'0 o* te La; O**%+er o*

    Jar:a'0 State Ele+tr%+%t/ 5oar0 a'0 +oe'te0 o'

    te &oer&a)lt %' te &ta'0 a0e b/ te State a'0

    terea*ter pro+ee0e0 to 'ote tat te appella't Har%

    5a'& Lal a0 ret%re0 %' 1984 a'0 tere %& 'o

    pre&+r%pt%o' *or )pper a(e l%%t *or appo%'te't a&

    Meber or Ca%ra' o* te 5oar0. Te Co)rt too:

    'ote o* te e'+o%)& b/ te Ele+tr%+%t/ 5oar0 a'0

    te State o,er'e't be*ore te H%( Co)rt.

    E,e't)all/ te lear'e0 J)0(e& op%'e0 t)& >

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    4!

    ?!3.To)( %' te PIL te ;r%t pet%t%o'er a&e't%o'e0 te a(e o* Mr. Lal a& 9" %t %& *a+t)all/%'+orre+t a'0 Mr Lal %&el* &;ore a' a**%0a,%t a'0a&&erte0 a'0 %t %& 'ot 0%&p)te0 b/ te State tat e

    %& 8B a& o' 0ate a'0 a++or0%'( to % e %& alea'0 ealt/. 3e a,e alrea0/ repro0)+e0 te&ta'0 o* te State o,er'e't be*ore te H%(Co)rt abo)t %&

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    4#

    appl%+at%o' /et te ter +a' be e=te'0e0. It a/

    be appo&%te to 'ote ere tat e,e' %* te a=%)

    a(e l%%t %& pro,%0e0 *or &)b%&&%o' o* appl%+at%o'

    a'0 te per%o0 o* appo%'te't %& tree /ear& %t %&

    e=te'0able 0epe'0%'( )po' te per*ora'+e.

    Ha,%'( re(ar0 to te 'at)re o* la'()a(e )&e0 %t %& to

    be +o'&tr)e0 tat %t %& a +o'tra+t appo%'te't to

    +oo&e a %(l/

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    4B

    appre+%ate0 b/ te Co%&&%o'. It %& a ;ell :'o;'

    pr%'+%ple tat te eplo/er +a' a&: a' o**%+er to

    rea%' %' +ar(e o* a'oter o**%+e t%ll te &a%0 po&t %&

    *%lle0 )p. It %& ;%t%' te per%&&%ble a)tor%t/ o* te

    eplo/er. U'0er te S+ee te Ca%ra' ;a& 'ot

    (ett%'( a'/ re)'erat%o'. He ;a& o'l/ (ett%'(

    &%tt%'( *ee&. Loo:%'( at %& ab%l%t/ a'0 e**%+%e'+/ te

    Co%&&%o' to)(t %t appropr%ate tat e &o)l0 be

    (%,e' te +ar(e o* CEO a'0 a++or0%'(l/ a'

    o'orar%) ;a& *%=e0. Ho'orar%) ;a& 'ot

    e

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    44

    ;ereb/ %t a& op%'e0 tat te Ca%ra' +o)l0 'ot

    a,e bee' allo;e0 to rea%' %'>+ar(e o* CEO a& a

    lo(%+al +orollar/ te 0%re+t%o' *or re+o,er/ (et&

    a'')lle0. 5)t ;e t%': %t appropr%ate to a00

    &oet%'(. E,e' %' a ;r%t o*

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    to (et &alar/ *or %t %& %& le(al r%(t a'0 %t %& te 0)t/

    o* te eplo/er to pa/ %t a& per te ter& a'0

    +o'0%t%o'& o* te appo%'te't. Te atter a/ be

    0%**ere't ;e' &oeo'e +o't%')e& a*ter ret%ree't

    b/ a *al&e 0e+larat%o' or %&repre&e'tat%o'.

    Re+o,er/ o* &alar/ ;o)l0 ao)'t to 0epr%,at%o' o*

    pa/e't ;%le te %'+)be't ;a& ol0%'( te po&t

    a'0 a0 ;or:e0. A&:%'( &oeo'e to ;or: a'0 ;e'

    %& appo%'te't %& ')ll%*%e0 b/ %&&)e o* a ;r%t o*

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    ?... %* a per&o' a& +o'tra+te0 ;%t a'oter toper*or &er,%+e a'0 tere %& +o'&%0erat%o' *or &)+&er,%+e %' te &ape o* l%)p. It %& to be bor'e %' %'0 tat

    la;& are +oe'0e0 to e&tabl%& a &o+%et/ a&

    18

    #!! US B 88 L E0 1"94

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    re+ar(e o* te po&t o* te CEO ;a& +alle0 %'

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