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1980 DIGILAW 32 (KER)

T. K. Mathew Vaidyan v. Kerala Minerals Metals Ltd

1980-01-24

K.SUKUMARAN, V.S.MALIMATH

body1980
JUDGMENT K. Sukumaran, J. 1. The two writ petitions raise one vital point: The validity of an apex appointment to a prestigeous State undertaking Kerala Minerals and Metals Limited, Quilon (hereinafter referred to as the 'Company'). (That the Company is a 'State' and is therefore amenable to writ jurisdiction of this Court and under an obligation to conform to the constitutional safeguards contained in Articles 14 and 16 of the Constitution is not disputed.) The Court has to scout along areas hitherto not well traversed to answer the issue involved. 2. The Company has its situs at Chavara in the periphery of the Quilon town. The mineral sands there have a history in Chemistry. Formerly, the sands used to be exported to advanced industrial countries; that was at a time India was still in the dark as regards their use, utility and potentiality. Companies engaged in mining and exporting of these sands included F. X. Pereira and Sons (Travancore) Pvt. Limited and the like. In accordance with a policy decision taken in that behalf, the mineral separation plant of that concern , was taken over by the Government of Kerala. A feeling that a corporate undertaking would be functionally more effective and efficient, apparently induced the Government to form a company to take over the activities of the mineral separation plant. Later, fresh areas of industrial activity were sought to be annexed to the activities of the company. Titanium Dioxide Pigment Plant was conceived of in that context. It could effectively utilise the mineral sands of Chavara coast in a sophisticated industrial product. Soon after the formation of the Company the 1st respondent became its Managing Director in July, 1977. The industrial project commenced its activities under high auspices. The foundation stone was laid by the President of India on 23rd April 1978. It is unnecessary for the purpose of this case to detail all the activities of the Company and chronicle all the developments that have taken place therein. Some facts relating to the developmental activities are, however, relevant even for the limited purpose of appreciating the contentions raised in the case and the resolution of the controversy. 3. Two sections formed the prominent section of the Company: (i) the beneficiation of ilmenite; and (ii) the manufacture of titanium dioxide pigment using the beneficiated ilminite as raw material. Some facts relating to the developmental activities are, however, relevant even for the limited purpose of appreciating the contentions raised in the case and the resolution of the controversy. 3. Two sections formed the prominent section of the Company: (i) the beneficiation of ilmenite; and (ii) the manufacture of titanium dioxide pigment using the beneficiated ilminite as raw material. The Company had foreign collaboration of Benilite Corporation and Kerr Mc Gee Chemical Corporation of the United States. Having regard to the huge financial outlay of nearly 100 crores of rupees, the Company had availed of financial facilities from banks including the Industrial Development Bank of India. The bank: had its representation in the Board of the Company; he who pays the piper can have the tune too. 4. The early stage of the work was, understandably, the commissioning of the plant as distinguished from the production of the chemical product. The preliminary engineering work preparation of designs and other civil work commenced sometime in 1979. 5. The petitioners in the two cases entered service of the Company at about that time. T.K. Mathew Vaidyan petitioner in O.P. No. 9179 of 1985 entered service of the Company on 5th April 1979 as a Project Manager. He is an Electrical Engineer and had earlier service in the Bhilai Steel Plant and National Mineral Development Corporation of India. For a short while, he worked as Electrical and Instrument Engineer in Shampur Chemical Company Ltd., Abadan, Iran. Harindran, the petitioner in O.P. No. 9183 of 1985, is a graduate in Mechanical Engineering (with a first class) with experience as a lecturer in the Engineering Colleges, and in the Fertilisers and Chemicals Travancore Limited, and the National Petrochemical Company of Iran. He too had overseas training and experience. The designation of Project Managers was subsequently changed to Deputy Managers. There are altogether three of them under the Company including the two- writ petitioners. 6. The General Manager of the Company was Sri K. P. A. Nair, who was appointed as such in 1977. He is a Chemical Engineer. He had applied for the post on the basis of an advertisement issued in 1977. He was functioning as the General Manager till November, 1984. 7 When the Company entered the production phase after completing its erection works, problems of different dimensions arose. The unit was indubitably a Chemical Industrial Unit. He is a Chemical Engineer. He had applied for the post on the basis of an advertisement issued in 1977. He was functioning as the General Manager till November, 1984. 7 When the Company entered the production phase after completing its erection works, problems of different dimensions arose. The unit was indubitably a Chemical Industrial Unit. It was felt, particularly by the financiers, that competent experts with specialisation in chemical industry should be involved in the activities of the Company. The Company and those connected with its destiny had been appraised of this necessity by the Industrial Development Bank of India from time to time, when the Company was stepping in to the production phase. The reiterated recommendation was to have a technical Director and a senior Project Manager with expertise in Chemical Engineering. The Board of Directors of the Company had necessarily to advert to the suggestions of the I.D.B.I, as such suggestions have their own element of forceful persuasion. Ultimately that question was considered by the Board at its meeting held on 14th July 1984. The Board considered all aspects based on a comprehensive note submitted by the Managing Director and it took a decision to find out the suitable persons to fill the posts. A subcommittee was constituted for that purpose. It consisted of persons whose competence and experience could not be doubted at all Sri P. G. Muraleedharan, I.A.S., Commissioner of Expenditure, a top ranking official of Indian Administrative Service; Mr. K. T. Chandy who had held high positions in industrial concerns, Central and State, and had discharged responsible duties; Paul Pothen who had spent many decades in a high management position of the FACT and later of other concerns. In undertaking that onerous task, the sub-committee was given some guidelines. It was equipped with a directory of chemical engineers, a useful tool in spotting out persons from whom an intelligent and effective choice could be made for the post the Company had in view. There was also an indication to seek guidance from one of the very reputed industrial Scientists of India, Dr. Varada Rajan. 8. Even before the sub-committee plunged into the work connected with that mission, some other events intervened. Sri K. P. A. Nair, General Manager expressed his intention to leave the services of the Company. The Company was notified about that intention by his letter, dated 21st August 1984. Varada Rajan. 8. Even before the sub-committee plunged into the work connected with that mission, some other events intervened. Sri K. P. A. Nair, General Manager expressed his intention to leave the services of the Company. The Company was notified about that intention by his letter, dated 21st August 1984. That high post obviously could not remain vacant for an undue length of time. Swift action to fill up the post was therefore to be taken. The Company considered about it and at its meeting held on 21st September 1984 it resolved that the selfsame sub-committee which lad been already entrusted with the selection of the Technical Director and the Senior Project Manager, could be given this added assignment. That committee, after various exercises spanning over a period of about six months, ultimately and unanimously pitched upon Sri K. K. Indran, he then Deputy General Manager of the Cochin Refineries limited, (the 3rd respondent in the case) as the proper man to be the General Manager of the Company. After an understandable delay, the Government also ultimately gave the green signal for his appointment. On 2nd September 1985 the Company issued the appointment order. It is this order that is in challenge before this Court in the two writ petitions. 9. Due to the interim stay granted by this Court, the 3rd respondent is in an uneasy position, having left (tendering his resignation effective from 22nd November 1984) the Cochin Refineries Limited and not yet able to step into the choice of the General Manager of the Kerala Minerals and Metals Limited. 10. Though various contentions had been raised in the Original Petitions, the important contentions which were urged were the following: (i) The appointment was effected in an arbitrary manner: there was no advertisement or other publicity for the post. The past practice of advertisement was abandoned unjustifiably; (ii) No objective and seasonable selection method was adopted in effecting the appointment. The qualification and method of appointment had not been properly laid down beforehand. The method of appointment employed a scouting exercise by a sub-committee is violative of Articles 14 and 16 of the constitution; (iii) The petitioners were fully qualified persons to hold the post. The qualification and method of appointment had not been properly laid down beforehand. The method of appointment employed a scouting exercise by a sub-committee is violative of Articles 14 and 16 of the constitution; (iii) The petitioners were fully qualified persons to hold the post. Their case had not been considered at all before resorting to an external recruitment; and (v) External recruitment itself was objectionable inasmuch as the Company itself had promulgated rules wherein the method of appointment to the post of General Manager is prescribed as selection; selection envisages consideration of personnel only in the cadre of the in-service officers. 11. In support of the first contention, the past 'practice' of having advertised for the post of General Manager was referred to. The qualifications for the post of General Manager had been indicated therein. According to the petitioners, this notification in a sense constitutes the procedure in the Company as regards qualification and method of appointment to the post. There was no policy decision to effect any change in the qualifications for the post nor was there any decision to depart from the policy of advertising for the post such was the elaboration of the arguments. As substantial reliance had been placed on this notification of advertisement in 1977 when the then General Manager was proposed to be appointed, it is desirable to extract the relevant portions thereof: THE KERALA MINERALS AND METALS LTD. (A Government of Kerala Undertaking) P.O. Box No. 30, Quilon, Kerala, S. India REQUIRES A CHIEF PROJECT MANAGER FOR THEIR TITANIUM DIOXIDE PIGMENT PROJECT Qualifications and Experience. Degree in Engineering, preferably a first class degree in Chemical/Mechanical Engineering from a recognised University/Institute. At least 14 years experience at executive level, out of which a minimum of 3 years should be in a senior managerial on unity in construction and erections, contract execution and storage and handling and maintenance of an industrial project. Preference will be given to candidates with Senior Managerial experience in the construction, erection and commissioning of a large Chemical Plant." 12. The contention that advertisement for the posts as a practice and that it could not be departed from by the Company has no force. Preference will be given to candidates with Senior Managerial experience in the construction, erection and commissioning of a large Chemical Plant." 12. The contention that advertisement for the posts as a practice and that it could not be departed from by the Company has no force. The mere fact that on one occasion, and that too at the erection stage of the factory, an advertisement appeared for the post of General Manager would not be sufficient to constitute it as a practice; a single swallow does not make summer. Even if it is treated as a policy at that time, that policy could certainly be changed, after having regard to the circumstances obtaining at a later stage, and in the light of the experience the Company derives in course of time. Nor is there any force in the argument based on the resolution, dated 30th August 1974 of the Government of India (published in the Gazette of India, Extraordinary, dated 30th August 1974) only laid down broad guidelines for the public sector undertakings under the Government of India. The resolution does not support the extreme contention of the petitioners. The resolution naturally enough emphasises the importance of top managerial posts. The resolution itself impliedly recognises scouting as a method of appointment to the top level appointments. This is particularly evident from paragraph 5, which reads: "The Board is empowered collectively or individually to proceed abroad to interview candidates if found necessary to contact suitable individuals on a personal basis." Paragraph 7 projects the necessity of consideration of the claims of candidates from other enterprises. The term 'other enterprises' in that context would only mean other comparable enterprises, which employ persons who are eligible for the particular post having regard to the industrial activity which the concern is engaged in. On the materials before us, it cannot be said that the claims of persons from other enterprises have not been considered. 13. The contention based on Ext. P-6 (guidelines for promotion of employees) that the management had no other alternative than to select the General Manager from their own existing cadre is not sustainable. The guidelines regarding the selection policy was published on 6th September 1985 long after the decision of the Company to appoint the 3rd respondent as General Manager. Those guidelines cannot have any application to the appointment in question. The guidelines regarding the selection policy was published on 6th September 1985 long after the decision of the Company to appoint the 3rd respondent as General Manager. Those guidelines cannot have any application to the appointment in question. Even if there be guidelines, departure therefrom in unexpected exigencies or situations would be justified for valid and justifiable reasons. The contentions for invalidating the appointment on the above ground has also to fail. 14. The Company has pointed out the necessity to appoint a Chemical Engineer to the post having regard to the stage at which the Company was poised at that time. Neither of the petitioners was a Chemical Engineer. They could not therefore fill the bill, having regard to the requirements and dynamic role to be played by the General Manager in the changed set up. This contention met with retaliation from the petitioners on diverse grounds: The previous notification did not exclude engineers of other specialities; even electrical or civil engineers could have applied for the post at that time. There was no policy decision taken by the Company departing from such a pattern of qualifications. According to the petitioners, the excuse is invented to prevent a possible story, taking advantage of the fact that the person ultimately selected is a Chemical Engineer. 15. Before we deal with the larger legal and constitutional aspects it is better to clarify the factual situation. We are of the opinion that there was full justification for the sub-committee to restrict its choice of General Manager from among available Chemical Engineers. It is not disputed that the former General Manager himself is a Chemical Engineer. No doubt, the advertisement permitted even engineer's in branches like electrical, civil and mechanical to apply for the post of General Manager at that time. It must, however, be remembered that the Company was in the erection or construction stage at that time. This difference in the essential activity of the company at that time makes substantial impact on the qualification of the person who was thereafter to function as General Manager. As noted earlier, there could not be any doubt whatever that the Company is one essentially, if not exclusively engaged in the production of a chemical product. The production activities which are concededly the major activities of the Company are in a field where chemical engineering expertise could make the future of the Company. As noted earlier, there could not be any doubt whatever that the Company is one essentially, if not exclusively engaged in the production of a chemical product. The production activities which are concededly the major activities of the Company are in a field where chemical engineering expertise could make the future of the Company. The financing Banks also had been repeatedly insisting upon personnel qualified in chemical engineering to function as a Technical Director and a Senior Processing Manager. This recommendation no doubt does not specifically refer to General Manager. But it furnishes a background of the requirements of the Company at about that time. Experts in chemical engineering were a felt necessity for the future functioning and programming of the Company. If a post immediately above (Technical Director) and one immediately below that of General Manager (Senior Personnel Manager) were thought of as posts requiring a specialisation of Chemical Engineering, it stands to reason that for the intermediate post of General Manager, specialisation in chemical engineering would be the desirable and appropriate qualification. 16. Some attempt was made to emphasise that the sub-committee had interviewed other engineers also and that such interviewing of persons other than chemical engineers falsified the version of the management about the sub-committee confining its choice from among chemical engineers. The specific case of Arunachalam was put forward to demonstrate the point. The accusation of the petitioner's in this behalf is not correct. The management has clarified that the interview of Mr. Arunachalam was only for the purpose of considering him for a different post, namely that of Project Manager in the Mineral Separation Unit. The minutes of the proceedings of the Directors, dated 26th November 1984 and 30th April 1985 in this regard were made available to us at the time of hearing. These documents fully corroborate the version of the management. We therefore hold that the selection committee did not interview Engineers other than Chemical Engineers for the purpose of selecting the General Manager. The argument that the management put forward the contention about the choice being restricted to Chemical Engineers without bona fides and only as a result of an after thought to somehow justify the impugned action, cannot therefore be accepted. 17. The argument that the management put forward the contention about the choice being restricted to Chemical Engineers without bona fides and only as a result of an after thought to somehow justify the impugned action, cannot therefore be accepted. 17. The more serious contention is about the infraction of the Equality Clause of the Constitution in shunning publicity in relation to the appointment, by altogether dispensing with any advertisement in that behalf. It is particularly stressed that even in 1971, applications had been invited for the post of General Manager by a notified advertisement. According to council, no ground exists for a deviation from that well known and well accepted step conceived of to ensure fairness in the recruitment to a public post. 18. The Corporation has pleaded some specific circumstance in justification of the action and omission. It is pointed out that having regard to the peculiar features of the post of General Manager, advertisement would not serve to have a meaningful publicity to attract the deserving and qualified candidates to offer themselves for consideration. The experience of the Company itself in the immediate past has been to that effect. It is stated: "¦the response to earlier advertisements for senior technical positions in the Company has been extremely discouraging. When the Company advertised earlier for the post of Deputy Project Manager (Process) the response it got was very poor. The only person found suitable did not join. So also the first respondent's advertisement for the position of Deputy General Manager (Utility) was also very poor. The one person who turned up for interview was found not suitable for the post. It is because of this experience that the subcommittee of the Board went round many public sector chemical process industries scouting for a suitable person to be appointed as the General Manager." 19. The question for consideration is whether in that situation, advertisement was an indispensable requirement for ensuring fairness in the appointment procedure. 20 The recruitment policy particularly in relation to top posts, has undergone revolutionary changes in the recent past. Technological progress takes place at a pace inconceivable at an earlier period. The time when an industrial concern was virtually a one man show of an enterprising entrepreneur have become antique in the industrial history. 20 The recruitment policy particularly in relation to top posts, has undergone revolutionary changes in the recent past. Technological progress takes place at a pace inconceivable at an earlier period. The time when an industrial concern was virtually a one man show of an enterprising entrepreneur have become antique in the industrial history. As observed by Edith Sands, "the growth of the economy since the 1920's has brought vast changes which swept away these colourful characters and replaced them with impersonal corporations, more suitable for raising large sums of money than those operated by owner families. Management is no longer the responsibility of one man, as it used to be". (See "How to Select Executive Personnel" by Edith Sands, Page 3). Consistent with this changing pattern of organised industrial activity, much thought has been bestowed many experiment had been undertaken in relation to recruitment policy to top executives, 21. Of course, every appointment in an establishment could not be termed as one to an executive post. The American Institute of Management noted that "semantic vagueness", characterising that concept. However, it is generally accepted that the executive refers to only Heads of Departments and higher. An executive is compared to "an orchestra leader who achieves his results only by coordinating the efforts of others. The recruiting policy in respect of such executives has also been given much thought in recent studies. 22. Finding out the suitable executive has become, as noted by a reputed publication, "greatest manhunt in the history of business". Not without reason. Selection of the Executives is "a crucial and pivotal function" in business. (That was the opinion of Wilson Randle, former dean of the School of business, Western Reserve University, and later Director of Management of a great corporate undertaking.) In a sense, management has become a rigorous process, demanding proficiency in a different discipline and even in new techniques such as linear programming and operational gaming. The selection of the executive thus is a very important function in the life and career of a business organisation. Edith Sands stated: "To gamble the future of a business on haphasard methods of choosing management people is to play poorly indeed for very high Stakes. When one considers that many companies are reluctant to discharge an executive once he has been hired, the gravity of selection becomes obvious. Edith Sands stated: "To gamble the future of a business on haphasard methods of choosing management people is to play poorly indeed for very high Stakes. When one considers that many companies are reluctant to discharge an executive once he has been hired, the gravity of selection becomes obvious. The effect of the original error not only is compounded as time passes, but has repercussions throughout the entire organisation." (See "How to Select Executive Personnel", supra, Page 12) 23. Recruitment to the Executive posts can be made either by searching within the establishment for candidates or by looking for them outside the company. Generally the attempt is made to obtain the executive personnel from within the organisation, before other sources are tapped. Many establishments keep tract of the qualifications of those in their employment. Yet the stimulating effect of new blood has been emphasised in the general context of recruitment policy, as borne out by the following passages in Edith Sands: "It is generally agreed that there is a need to broaden the range of recruiting, to strike a balance between internal recruiting and attracting new people from the outside.............. Common sense suggests, therefore, that organisations should seek the stimulating effects of new blood by selecting candidates for executive positions from external sources as well as internal ones." Studies on the subject, however, point out, many pit falls of rigid internal recruitment. Quite often men who have shown ability in doing routine jobs failed miserably when they are moved in the jobs calling for applications in different capacities. When a new job calls for specialised skill and training, a need to look outside of their organisation may arise. 24. In relation to recruitment of such top Executives, techniques other than advertisement are sometimes resorted to. In advanced countries "in seeking new talent, companies frequently use the services of management consultants who specialize in recruiting Executive Personnel." There are other external agencies like Search Firms and Employment Agencies. Contacts with that section of public who could usefully contribute to the selection Such as lawyers, accountants, bankers, financial firms, and business brokers with their broad and varied acquaintance with potential candidates" is also one such recognised method. It has been noted: "Firms in scientific and engineering fields frequently obtain additional people by tapping the colleagues and former associates of their present executives. It has been noted: "Firms in scientific and engineering fields frequently obtain additional people by tapping the colleagues and former associates of their present executives. A growing company can communicate its openings and advantages more effectively through personal channels than almost any other means, if the circle of acquaintances is large enough." It is not necessary to consider whether such methods as 'Personnel piracy' or 'Colleague recruiting', need be resorted to in a country like India. One aspect which is pertinent and relevant is the existence of 'scouting' as a method of selection of top executives. Edith Sands deals with this topic at page 79 of his book: "A company does not always have to depend on outside agents in order to obtain executives; there are other methods of recruiting externally that are gaining wide acceptance. More and more companies have on their staffs permanent recruiters whose function is continually to seek oat talent for their employers. This kind of scout fulfils his job in any one of a number of ways, limited only by his ingenuity and aggressiveness Such situations provide an opportunity to hire management men of different types and skills who would otherwise be left unemployed." (emphasis supplied) These innovations in recruitment policy of top executives have been reflected in other publications of general character dealing with Management. (See 'Management' by Harold Koontz, et seq., International Student Edition, Page 405, and 'Principles of Personnel Management' by Edwin B. Flipp, Fourth Edition, page 132). The existence of scouting as a method of recruitment of top executives, is well known feature in advanced countries and in advanced industries. This has indeed a very crucial relevance in the present case. 25. In relation to certain posts, it has been observed that the problem is not one of selecting from large numbers of qualified candidates, but rather one of actively recruiting for well qualified personnel. It is a fact that a well qualified man is not likely to wait for an advertisement, take an examination, and bother himself of taking a test, particularly when he is already occupying a secure post or is otherwise in great demand. In such cases, it is the industry that literally knocks on the candidate's door and actively tries to sell him on taking a job with their company. [See 'Personnel Policy in a Public Agency' by Harry L. Case, Page 14). In such cases, it is the industry that literally knocks on the candidate's door and actively tries to sell him on taking a job with their company. [See 'Personnel Policy in a Public Agency' by Harry L. Case, Page 14). Entrusting the work of selection to those who know best as to what is wanted in a situation and who have the keenest and most direct interest in the results has been accepted as a safe method. 26. The validity of the modality of selection employed n the present case will have to be adjudged in the above background of the norms that exist in the industry in elation to recruitment techniques to top executive posts. 27. Counsel for the petitioners pitched their arguments very high by contending that no appointment to public post can be made without an advertisement. They sought to support their contention with reference to the decision of the Supreme Court in Minhas case A.I.R. 1981 S,S, 363 and this Court in Suresh Babu v, The State of Kerala I.L.R 1983 (2) Kerala 147, a decision rendered by one of us (Sukumaran, J.). The general observations contained in Ramana Dayaram Shetty v. International Airport Authority of India A.I.R. 1979 S.C. 1968, were also read and re-read to us, though the passages are by now deeply grained in the mind every student of constitutional history. 28. We are not unaware of a vital difference between private enterprises and State undertakings in modulating their recruitment policies. Selection, generally, has to be significantly related to the job and business necessity. In public enterprise, the selection has also to answer the tests of fairness, reasonableness and rationality. May be me practices are non-discriminatory on their face but have desperate impact on a group of candidates. Such practices may not be tolerated by court of law (as was declared by the American Supreme Court in the case of Griggs v. Duke Power Co. (1971). 29. We shall now consider those contentions at some length. 30 Minhas case did not lay down any inflexible dictum that an appointment to a public authority cannot be made at without an advertisement. The appointment considered in that case was to the post of the Director of the Indian Statistical Institute. It was no doubt a top post of that Institute. However, appointments of the Institute were governed by the bye-laws framed in that behalf. The appointment considered in that case was to the post of the Director of the Indian Statistical Institute. It was no doubt a top post of that Institute. However, appointments of the Institute were governed by the bye-laws framed in that behalf. Bye-law 2 expressly required that the vacancy of Directorship should be suitably publicised. It was found as a fact that there was no such publication. The committee entrusted with the recruitment had not considered the suitability to that post of a distinguished Scientist like B. S. Minhas. His bio-data, or for that matter, facts relating to other candidates, were not presented before the Selection Committee by the Chairman. It was in the above background that the Supreme Court struck down the appointment. Compliance with the bye-laws relating to publicity was essential to avoid arbitrariness even when the bye-law may not have any statutory effect. In the absence of any publicity as contemplated by bye-law 2, it was found that other qualified persons could not either be considered or recommended by other authorities or individuals. The Supreme Court further found as a fact: "In the state of the record before us it is not possible to say that the members of the Council considered the case of the petitioner and other-candidates like him before approving the appointment of Respondent No. 4." The twin reasons for invalidating the appointment were: (1) A clear breach of bye-law 2 and (2) the absence of adequate material before the Council on the basis of which there could be an application of mind and determination. 31. Even in the above background a note of caution was administered by the Court by observing: "Of course, we do not wish to suggest for a moment that appointment to every post must be made only after advertising or publicising the vacancy." Illustrations were given of high posts in relation to which there could not possibly be an advertisement. Some posts of that category are posts where no lobbying could be tolerated or applications entertained. Examples of the posts of Commander of the Armed Forces, the Chief Justice and Judges of the Supreme Court and High Courts were given therein. As regards Judges, of course, the position is transparently clear. Some posts of that category are posts where no lobbying could be tolerated or applications entertained. Examples of the posts of Commander of the Armed Forces, the Chief Justice and Judges of the Supreme Court and High Courts were given therein. As regards Judges, of course, the position is transparently clear. The high tradition of the profession in India is such that even at a time when a Judge's office was a symbol of recognition of talents and responsibility by an alien Government, the distinguished members of the Bar declined to apply for the posts. A letter of Lord Minto in reply to Lord Morley, dated 11th October 1906 contained the following passage: "A propose whether applications for judgeships are contemplated, we may recall one interesting incident. When Sir Barnes Peacock sent the name of Dwarakanath Mitter for appointment as a judge, the Governor General asked the Lieutenant Governor of Bengal to ascertain if Dwarakanath would be willing to accept. The Lieutenant Governor sent for Dwarakanath and in the course of conversation asked him, 'Did you apply for the post?' Dwarakanath replied, 'No I thought these appointment did not go by application'. (See Calcutta Weekly Notes Vol. LXXIX, Vintage Appointment of Judges). Counsel for the petitioners attempted to make out that the enumeration by the Supreme Court of the category of post to which advertisement is not contemplated as exhaustive. We cannot accept such a contention. There are a variety of posts in respect of which advertisements are not made such as, for example, Vice-Chancellors, Professors in prestigeous department, Experts in important areas like Defence, Tax structure, Atomic Energy and the like. 32. The decision in Suresh Babu v. The State of Kerala , concerned the post of a Film Editor, a comparatively lower post. Attention of the authorities had been drawn to the absence of invitation of applications in public even before appointment. Even the case of persons already in service had not been considered despite an application submitted by the petitioner therein and that too despite an earlier assurance to him that his case also would be considered when the vacancy arose. The court noted that a relevant querry raised about the necessity to make appointments on the basis of applications invited in that behalf had been ignored in unseemly haste and without due deliberation. The court noted that a relevant querry raised about the necessity to make appointments on the basis of applications invited in that behalf had been ignored in unseemly haste and without due deliberation. One application made and sent to the Corporation did not receive any attention much less fair consideration by the Selection Committee. No records were available about any interview. It was in the above background that the appointment was quashed. The necessity of public undertakings to conform to good trends and high moral standards was emphasised in that context. That decision also, however, did not altogether rule out the existence of exigencies of situation which may require a differential pattern of action. It was pointed out that the essential ingredients of a fair, reasonable and legal selection process must be scrupulously satisfied; it was also stated: "the particular manner in which appointments have to be made may differ depending upon the exigencies" This decision also would not go to establish that an appointment sans advertisement would ipso facto be a total nullity. 33. Nagarajan case, presented a converse situation. The Supreme Court said that when there is an advertisement to the post, procedural arbitrariness and violation of Articles 14 and 16 could be ruled out. That decision, however, is no authority for the proposition that advertisement is an inviolable conditional requirement for making an appointment to a public post. We may also refer, in this context, to a decision of a Full Bench of five Judges of the Punjab and Haryana High Court in Daljit Singh v. State , which after an elaborate consideration of the principles and precedents on the question, held that advertisement cannot be made a constitutional requirement under Article 16 in relation to public appointments and that payments will not be invalidated for the only reason of an absence of press advertisements. 34. We shall now recall relevant facts, even at the risk of repetition, for considering the contentions of the petitioners. The company was entering the production phase of its activity. It is a company of a rare complexion, a unique one of its kind in Asia producing a sophisticated chemical product. The post was one in which a Chemical Engineer would be the suitable person. The development of chemical engineering is a comparatively recent feature. The company was entering the production phase of its activity. It is a company of a rare complexion, a unique one of its kind in Asia producing a sophisticated chemical product. The post was one in which a Chemical Engineer would be the suitable person. The development of chemical engineering is a comparatively recent feature. Those having specialised academic qualification in chemical engineering and with sufficiently long experience to man a top executive post in a gigantic concern of the nature of the Company, would be limited in number. As for such Chemical Engineers, it appears to be a seller's market. With the proliferation of petro-chemical engineering industry in recent times, Chemical Engineers with experience and expertise are already secure in prestigeous posts of organisations of national importance, such as the O.N.G.C., I.P.C.L., the Refineries and the like. Those who are already occupying fairly high posts and drawing attractive emoluments would not be enthusiastic to join a new concern with an unfamiliar atmosphere. Previous experience of the company had demonstrated that advertisements which are extremly expensive these days did not evoke substantial response from deserving candidates. The cumulative effect of all these circumstances is such that the Company could bona fide think that advertisement and publicity arising out of that would not substantially subserve the purpose of a fair selection process. The decision of the Company to dispense with advertisements cannot be disturbed in the absence of plea and proof of dishonest motives or oblique objectives. 35. Having regard to the background in which qualified personnel with expertise in Chemical engineering were the right types of candidates to be considered for the post of General Manager, and the factual situation of paucity of such qualified candidates willing to serve as General Manager, and the futility of the advertisement exercise in attracting the talents, we are of the view that the selection process adopted by the company by entrusting the selection with the sub-committee and with a directive is contained in Ext. R-1(b), is fair and proper. We also note that the sub-committee could avail of information about the prospective candidates from one of the distinguished Scientists in India. The sub-committee was equipped with a Directory of Chemical Engineers of India. Materials and information about the availability of the entirety of the personnel, as it were, was thus available with the sub-committee. R-1(b), is fair and proper. We also note that the sub-committee could avail of information about the prospective candidates from one of the distinguished Scientists in India. The sub-committee was equipped with a Directory of Chemical Engineers of India. Materials and information about the availability of the entirety of the personnel, as it were, was thus available with the sub-committee. One of the important objectives subserved by an advertisement has already been achieved by the availability of such information. A selection process could meaningfully and fairly be attempted by the sub- committee when it was equipped with such data and information relating to those who could be considered for the post. 36. It was complained that a scouting expedition by the sub-committee was totally unwarranted when persons like the petitioners were available in the Company and with the requisite qualifications, when the petitioners had the added advantage of having been associated with the Company in its formative stage and even conversant with every facet of its working. They were in the next below rank of the executive ladder. Having regard to their academic qualifications and experience in other units, they had preferential claim to others including the ultimate appointee, the 3rd respondent. This contention has been controverted by the company in its counter-affidavit. It has inter alia, referred to the changed set up with the Company entering the production stage. Within the Company there were no senior Process Engineers with experience in operating a chemical plant. Reference is made to the difference in the qualifications required the post of General Manager at the erection stage on the one hand and the production phase on the other. Even in the erection stage the company given preference to a Chemical Engineer. At the stage when the company entered the production stage, the financial institutions were insisting on the appointment of a General Manager with the adequate experience in the operation of a chemical plant. It is stated that the financial institutions were not satisfied even h the General Manager and others already in the company. In paragraph 7 of the additional counter-affidavit, the fact that there were no internal candidates by qualified and having substantial experience in the operation of a chemical plant, for manning the post of General Manager, was reiterated. It is stated that the financial institutions were not satisfied even h the General Manager and others already in the company. In paragraph 7 of the additional counter-affidavit, the fact that there were no internal candidates by qualified and having substantial experience in the operation of a chemical plant, for manning the post of General Manager, was reiterated. That stand about the petitioners not being duly qualified and about lacking in substantial experience in operation of chemical plants has been repeated later also. 37. On a consideration of the materials before us, we are clearly of the view that the company took the policy decision after having evaluated its requirements and internal resources, while taking a decision on the manner in which the post was to be filled. Ext. R-1 (a) would indicate the background of the Company required persons with expertise in the specialised branch of chemical engineering in the operation of the plant when it entered in the production stage. Concededly both the petitioners did tot have either academic qualifications or adequate experience in chemical engineering. The note Ext. R-1(d) submitted by the Managing Director for consideration of the Board, would corroborate the fact that the sub-committee had proceeded on the basis that the company required persons with specialised expertise and experience in chemical engineering. It must be remembered that Ext. R-1 (d) was prepared at a time when the controversy had not arisen. The matter had been reported to the Government on 10th May 1985. The Government had duly considered all aspects and granted sanction for the appointment on 22nd August 1985. The letter of the Managing Director is R-1 (j). That also has stressed the fact that the Company required a General Manager with long experience in operating a chemical plant to be appointed as a Manager. We are therefore inclined to hold that the Company had taken a policy decision to select a chemical engineer with experience to fill up the post of General Manager. Even if the resolutions of the Company does not specifically enumerate or detail such a decision, that policy decision is implicit in the conduct of the company throughout, from the time it had set up the suitability for scouting up to the time of the actual issue of the impugned order. Even if the resolutions of the Company does not specifically enumerate or detail such a decision, that policy decision is implicit in the conduct of the company throughout, from the time it had set up the suitability for scouting up to the time of the actual issue of the impugned order. If the policy decision, therefore, restricted the field of choice to chemical engineers with the necessary experience and expertise the petitioner would not have any legitimate basis for complaining against selection process. In any view of the matter, not being Chemical Engineers, they could not aspire to be included in the field of choice for being considered for the post. Their locus to challenge the selection process would in a sense be lost as and when we reach the above conclusion about the policy decision. 38. Though there was complaint about the actual selection process, we have no doubt whatever that an honest and open procedure had been adopted by the sub-committee, and by the Board of Directors of the Company. The approval of the action by the Government is also significant in that context. 39. It is in evidence that despite the sub-committee knocking at the doors of various chemical engineering units public and private there was no effective response from those already employed in such companies and concerns. Only two persons came forward as person interested in the work: Padmanabhan and the 3rd respondent. Padmanabhan also withdrew after the interview. Only one person was then available for consideration by the Committee: the 3rd respondent. It was virtually a Hobson's choice. The company did make the choice. 40. The fairness and the correctness of their choice also could not be doubted at all. The 3rd respondent is head and shoulders above both the petitioners both in respect of academic qualifications in operating a chemical plant as also in relation to other indicia for measuring up to the status and standard expected of a General Manager. He was already occupying the post of a Deputy General Manager in the Cochin Refineries Limited, with substantially high basic pay and emoluments than those which could be offered by the Company. The 3rd respondent really had to sacrifice a portion of his emoluments, while accepting the post of General Manager in the Company. He was already occupying the post of a Deputy General Manager in the Cochin Refineries Limited, with substantially high basic pay and emoluments than those which could be offered by the Company. The 3rd respondent really had to sacrifice a portion of his emoluments, while accepting the post of General Manager in the Company. It is, therefore, not surprising that the 3rd respondent was insisting upon the Company accepting some of his terms before he could take up the post of the General Manager of the Company. This entailed even additional work in attending to some formalities with the 3rd respondent's previous employer, the Cochin Refineries Limited. (In relation to the Housing loan taken by the 3rd respondent from the Cochin Refineries Limited, arrangements had to be agreed by the Company for phased payment towards that loan.) The Company had also to agree to fix his basic salary at Rs. 3,900 so as to obviate a drop in the salary that he was drawing as Deputy General Manager in the Cochin Refineries. Compared to the basic salary of Rs. 3,900 so drawn by the 3rd respondent, the emoluments of the petitioners were considerably lower. The gulf between the petitioners on the one hand and the 3rd respondent on the other, both as regards the basic salary and as regards the total emoluments, is indeed very wide and substantial. This in a sense would give an empirical guidance about the merit and ability of the petitioners on the one hand and the 3rd respondent on the other. Taking consideration every relevant aspect, we have no hesitation to hold that the choice of the 3rd respondent in reference to the petitioners, could not be characterised as any way improper or ill-motivated. The sub-committee tried its best to find the most suitable person available in then existing circumstances. The choice of the 3rd respondent to the post passes all tests of fairness, reasonless and propriety. 41. Though there was some reference in the pleadings the lack of power in effecting the appointments under the articles of Association, it had not been pursued at the time of the arguments. The plea of malafides on the part of the Managing Director is also not adequate; nor is it supported by adequate data and materials. 41. Though there was some reference in the pleadings the lack of power in effecting the appointments under the articles of Association, it had not been pursued at the time of the arguments. The plea of malafides on the part of the Managing Director is also not adequate; nor is it supported by adequate data and materials. The mere fact that the Managing Director was endeavouring to enforce discipline ie establishment, is no reason whatever to attribute a motive to him. An attempt on the part of the Managing Director to enforce discipline, has only to be appreciated. Legitimate trade union activity does not and to activities tending to tarnish the image of the Company to the outside world or an ill-motivated demon of the authorities in control and management of the administration. When the employees transgress the permissible limits and indulge in undesirable activities (such as those who deal with the company to pay them), it is perfectly open to the Managing Director to take due note of that, and to deal with the erring employees, position of the office-bearer in the trade union organization does not confer any immunity from being proceeded against, if and when they become guilty of any misconception, Action taken by the Managing Director honestly and the larger interests of the Company, to maintain discipline, and to uphold its tradition and reputation, could be characterised as component factors constituting fides. We have no hesitation in rejecting the plea of malafides alleged against the Managing Director in the e circumstances. 42. We have no hesitation in rejecting the plea of malafides alleged against the Managing Director in the e circumstances. 42. In the result we hold: (1) That the company was, in the peculiar circumstances of the case, in not effecting an advertisement in filling up the post of General Manager; (2 The appointment of a sub-committee for finding out a suitable person and negotiating the terms with him, was an honest decision taken in the larger interest of the company and having regard to the prevailing situation in relation to the availability of candidates suitable for the post and the requirements of the company; (3) The sub-committee had acted properly and fairly in exploring the possibilities of getting at suitable persons; (4) The ultimate selection of the 3rd respondent was based on objective criteria: (5) The exclusion of the petitioners from consideration was fully justified in the circumstances, notwithstanding their creditable academic qualifications and satisfactory service in the lower posts in which they were hitherto functioning; (6) The approval of the selection of the sub-committee by the company and by the Government was proper and valid; (7) The 3rd respondent has better merit, longer experience and superior ability and higher professional status and standards than the petitioners and that the decision to prefer him for the post of General Manager of the Company is reasonable, rational and proper; and (8) There is no basis for the allegation that the Managing Director had a preconceived idea of appointing the 3rd respondent as the General Manager and that he had so manipulated matters to accomplish his design. 43. In the light of the above conclusion, the writ petitions tail. They are accordingly dismissed but without any order as to costs.