The President is further pleased to decide that Shri D.K. Jain will be paid three months pay and allowances, as admissible under the rules of the companyporations in lieu of the period of numberice prescribed in para 1 1 of this Ministrys letter No.10 18 /84 Com.,
Provident Fund E.L. will be settled as per rule of the Corporation.
When the appellant Corporation refused to take back the respondent to the post of Director Fiance on the ground that after the said respondent had been relieved from the said post as desired by him, there was numberquestion of his companytinuing on the said post, the respondent filed a writ petition before the High Court.
Shri Jain is advised to hand over the charge to Shri S. Padmanabhan, Dy.
General Manager Finance Padmanabhan, Dy General Manager Finance .
There are numberpapers which need to be handed over as all the related files are in the respective sections and departments.
shall be appointed by the President of Directors shall be appointed by the President of India in companysultation with the Chairman of the Board of Directors and shall be paid such salary and or allowance as the President of India in companysultation with the Chairman of the Board of Directors and shall be paid such salary and or allowance as the President may from time to time determine.
The respondent joined the Indian Audit and Accounts Service in the year 1958 and was holding a substantive post in junior administrative grade of Rs.
By order and in the name of the President.
Ministry of Petroleum, Chemicals and Fertilizers the respondent was appointed as Director Finance of the said Corporation.
By an order dated 8.6.1982 issued by the Government of India.
He is advised to hand over the charge of his office to Shri S. Padmanabhan, Dy.
The President shall have the power to remove any Director including the Chairman, the Managing Director, Executive Director s and Functional Director s from office at any time and in his absolute discretion.
The aforesaid order said ORDER WHEREAS the President is of the opinion that it is in the public interest to do so NOW, THEREFORE, in exercise of the powers companyferred by Article 95 d of the Articles of Association of Cement Corporation of India Limited, New Delhi, the President is pleased to terminate forthwith the services of Shri D.K. Jain as Director Finance in the Cement Corporation of India Limited and also remove him forthwith from the Board of Directors of the said Corporation.
Unfortunately by an order dated 20.1.1986 issued by the Government of India, Ministry of Industry Department of Public Enterprises the respondent was removed from the post of Director Finance in the Cement companyporation of India.
15.7.1982.
24.11.1984 the respondent had addressed a letter on 15.11.1984 to Shri Iyer, Director, Government of India, Ministry of Industry Department of Industrial Development saying that he had been appointed in June 1982 as Director Finance in the appellant Corporation and his tenure had been fixed at five years, as such his appointment for two years in the Cement Corporation of India shall be a distinct disadvantage to him, and a request was made In View of above, I would request that my term of appointment in the Cement Corporation of India Limited be kept at five years so that I may number be denied the benefit which was companyferred earlier by the Government at the time of appointment in the Fertilizer Corporation of India Limited more so when I am number gaining any monetary advantage in joining the Cement Corporation of India Limited On 3.12.1984 yet another order was issued in respect of respondent by the appellant Corporation saying Further to Memo of even number dated 23rd November, 1984 and as requested by Shri D.K. Jain, Director Finance he will stand relieved from the services of the Corporation as Director Finance with effect from the afternoon of 5th December, 1984.
The relevant part of the order is as follows ORDER.
On 12.11.1984 another order was issued by the Government of India, Ministry of Industry Department of Industrial Development in respect of the said respondent saying that the President had been pleased to appoint the said respondent who was then Director Finance of the Corporation as Director Finance of the Cement Corporation of India Ltd. for a period of two years.
The Chairman and Managing Director of the appellant Corporation issued an order on 22.11.1984 saying On his appointment as Director Finance in the Cement Corporation of India Ltd., numberified vide Ministry of Industrys Order No.10 16/84 Com.
Pursuant to the aforesaid order, the respondent joined the Corporation on 17.7.1982.
The Managing Director, Executive Director s and Functional Director s shall retire on his their ceasing to hold the office of the Managing Director, Executive Director s and Functional Director s. A retiring Director shall be eligible for re appointment.
L. KUKREJA Chairman Managing Director On 5.12.1984 the respondent relinquished the charge of the post of Director Finance of the appellant Corporation saying I hereby relinquish the charge of the post of Director Finance FCI with effect from the afternoon of 5th December, 1984 to take up my assignment as Director Finance , Cement Corporation of India.
1 The Directors representing the Govt.
dated the 4th February, 1985.
The respondent after having been appointed as Director on the Board of the Corporation was also appointed in terms of Article 69 of the Articles of Association of the Corporation as Director Finance of the said Corporation for a period of five years or till the age of his superannuation, whichever was earlier.
20.4.1986.
In pursuance of Article 95 a and b of the Articles of Association of the Cement Corporation of India Limited, the President is pleased to appoint Shri D.K. Jain, at present Director Finance , Fertilizer Corporation of India Limited as Director Finance , Cement Corporation of India Limited for a period of two years with effect from the date he assumes charge of the post of Director Finance in the Cement Corporation of India Limited.
All the Directors except the Managing Director, Executive Director s and Functional Director s shall retire at the end of their term, number exceeding three years from the date of their appointment.
dated 12th November, 1984 and subsequent request from the same Ministry for his early release as per their letter dated 17th November, 1984 and the clearance given by the Ministry of Chemicals and Fertilizers, it has been decided to release Shri D.K. Jain, Director Finance with effect from 24th November, 1984 Forenoon .
That writ petition as already mentioned above was allowed by the High Court and a direction was given to the appellant to take back the said respondent in service as Director Finance w.e.f.
While the respondent was working as Joint Adviser Finance , Bureau of Public Enterprises Selection Board for the post of Director Finance for the Corporation.
Article 66 of the Articles of Association of the Corporation which provides for the appointment of Director says 66.
of India The respondent addressed a companymunication dated 17.4.1986 to the Secretary, Department of Fertilizers, Ministry of Agriculture saying that he had received a reply from the appellant Corporation vide their letter dated 14.4.1986 that his employment with that Corporation had ceased immediately on respondent being relieved on the afternoon of 5.12.1984 companysequent to his appointment as Director Finance in the Cement Corporation of India.
In that companynection, respondent said It may please be recalled that my permanent absorption in Fertilizer Corporation of India was a material companydition precedent to my appointment with the companyporation and retirement from Indian Audit Accounts Service.
The President shall have the right to fill any vacancy in the office of a Director caused by retirement, removal, resignation, death or otherwise.
It may be mentioned that before the aforesaid order dated 22.11.1984 was issued by the appellant Corporation releasing the respondent w.e.f.
Sd E.V.L. Prasada Rao Under Secretary to the Govt.
The respondent made a grievance in the said letter that the appellant Corporation had number created a Permanent post for his permanent absorption.
Sd/ D.K. Jain Director Finance He assumed the charge of the post of Director Finance in Cement Corporation of India on 6.12.1984.
20.4.1986.
1500 100 3000 w.e.f.
General Manager Finance , who would look after the work of Finance Division, in the Corporate Office, until further orders.
P. SINGH.J. This appeal has been filed on behalf of the Fertilizer Corporation of India Ltd. hereinafter referred to as the Corporation for setting aside the judgment dated 24.9.1990 of the High Court by which the writ petition filed on behalf of respondent No.
4, Shri D.K. Jain, hereinafter referred to as the respondent has been allowed and a direction has been given to the appellant Corporation to take back the said respondent in service as Director Finance w.e.f.
This was stipulated both by me and my cadre authority, i.e. the Comptroller Auditor General of India through various letters on the subject both before and after my joining the Corporation in July, 1982.
