JUDGMENT : Pradipta Ray, J. - Petitioner Bipin Bihari Nayak is at present posted as Senior Manager (Personnel & Administration), a post in Grade E-5 in Orissa Power Generation Corporation (hereinafter referred to as the 'Corporation'). He was promoted to the post of Senior Manager with effect from April. 1992 (vide Annexure-3). The next promotional post is the post of Deputy General Manager in Grade E-6.. On September 6, 1996 the Managing Director of the Corporation issued an Advertisement in the Times of India inviting applications for direct recruitment to the post of Deputy General Manager. By a representation dated October 25, 1996 (Annexure-5) to the Chairman of the Corporation the Petitioner pointed out that the said post of Deputy General Manager is too filled up by promotion and direct recruitment was not permissible. He appealed to the Chairman to consider his case for promotion to the said post of Deputy General Manager. There being no response from the Chairman he sent representations to the Hon'ble Chief Minister and the Hon'ble Deputy Chief Minister. According to the Petitioner, he is the only eligible Grade E-5 officer for promotion to Grade E-6. One Shri S.C. Padhi who was working Manager (Recovery) in a lower scale has been appointed as Deputy General Manager (Personnel) on deputation without obtaining approval of the Board. Being aggrieved ~by attempt of the Corporation to appoint, Deputy General Manager by direct recruitment or by deputation ignoring lawful claim of the Petitioner and non-consideration of the Petitioner's claim for promotion to the said post Petitioner had filed this application under Article 226 of the Constitution of India. 2. In the Context of the aforesaid circumstances the questions which are required to be determined are: (i) Whether direct recruitment or deputation is permissible to fill up post in E-6 Grade; and. (ii) Whether the Petitioner is entitled to be considered for promotion to the post of Deputy General Manager (Personnel) in E-6 Grade. 3. Mr. Dora, learned Advocate appearing for the Petitioner has drawn attention of this Court to the Recruitment and Promotion Rules for Executives of the Corporation (hereinafter referred to as 'the Promotion Rules') particularly to Rules 7.3, 7.5 and 10.3. Mr. 3. Mr. Dora, learned Advocate appearing for the Petitioner has drawn attention of this Court to the Recruitment and Promotion Rules for Executives of the Corporation (hereinafter referred to as 'the Promotion Rules') particularly to Rules 7.3, 7.5 and 10.3. Mr. R.K. Mohapatra, Senior Advocate appearing for the Corporation has submitted that the Corporation is at liberty to fill up the disputed post by direct recruitment or by deputation and the Rules do not contain any prohibition as alleged by the Petitioner. 4. Some of the relevant rules of the Promotion Rules for Executives are reproduced below: 7.3 The major induction point for executives in all cadres and ex-cadres excepting Finance & Accounts and Company Secretariship shall be E-1 grade. For Finance & Accounts cadre and Company Secretariship, the induction point for candidates having prescribed qualification and experience shall be E-2 Grade. In Electrical Engineering, Mechanical Engineering and Electronics and Instrumentation cadres, if considered necessary by the Management, Candida the having Post-Graduate degree in the concerned discipline and experience as prescribed may be directly inducted in E-2 Grade. 7.5 The Corporation may subject to prescribed qualification age and experience make direct recruitment to any grade higher than E-2. if considered necessary by the Board. 9.1 Direct recruitment shall generally be made from the following sources: (a) Advertisement in press. (b) Circulation among departments of Govt. & Public Sector Enterprises where candidates with requisite qualification and experience and likely to be available. (c) Graduate Engineer Apprentices engaged under the provisions of these rules provided the apprenticeship is satisfactorily completed. (d) Deputation from Government & Public Sector Enterprises including absorption of deputation sits in the Corporation. (e) Personal contact for recruitment to posts requiring specialized knowledge or expertise and/or exceptional ability qualification and merit. (f) Eligible internal candidates that is to say the internal candidates serving in the Corporation in the scale next-lower to the level for which recruitment is being made and who fulfill necessary requirements stipulated for the post under recruitment; may be considered along with other candidates provided they have completed two years of service in the existing grade and have successfully completed the prescribed period of probation. The prescribed age limit shall not be applicable in, such cases: 9.2 The two other source's of recruitment are promotion and absorption of deputations in the Corporation in accordance with these rules. The prescribed age limit shall not be applicable in, such cases: 9.2 The two other source's of recruitment are promotion and absorption of deputations in the Corporation in accordance with these rules. 10.1 These shall be a Corporate Selection Committee (hereinafter referred to of C.S.C.) as mentioned below for selection and recommendation of candidates. 10.3 The C.S. C. for recruitment to E-5 Grade and above shall be as follows: (a) Chairman -Chairman (b) Vice-Chairman (if any) -Member (c) Managing Director. -Member (d) Whole time Director of concerned discipline, if any or Executive Director of the concerned discipline -Member (e) Representative of Government (if any) appointed under Article 19(b) of the Article of Association -Member (f) Head of the Deptt. representing the discipline if there is no exclusive whole time Director of Executive Director -Member (g) Specialist, if any under Rule 10.4 -Member (h) Head of P & A Department -Member Secretary. 5. Referring to Rule 7. 5 Mr. Mohapatra has submitted that the Corporation has discretion to make direct recruitment to Grades higher than E-2. Before dealing with Rule 7.5 it is necessary to look at rule. 7.3 which clearly indicates that the direct recruitment is permissible only at the induction level and the induction point for executives in all cadre and ex-cadres excepting Finance & Accounts and Company Secretary ship is E-l Glade for the cadres of Finance & Accounts and Company Secretaries the induction point is E-2 Grade. In Engineering discipline, the normal induction point is E-l Grade, but the management has the liberty to induct direct recruits even in E-2 Grade if the recruits are highly qualified or experienced. Rule 7.5, however, has given power to the Board of Directors of the. Corporation (in short, 'Board') to make direct recruitment to any Grade higher than E-2 if the same is considered necessary by the Board. Rule 75 fortifies the Petitioner's claim that under normal circumstances Rules do not Permit any direct recruitment to any Grade higher than E-2. 6. Corporation has filed counter. In the counter the Corporation has not claimed that here is any decision of the Board authorizing direct recruitment in the concerned post. During hearing we adjourned the case to enable the Corporation to disclose if there was any such decision by the Board. In spite of opportunity given Corporation has not been able to produce any decision of the Board. During hearing we adjourned the case to enable the Corporation to disclose if there was any such decision by the Board. In spite of opportunity given Corporation has not been able to produce any decision of the Board. The Corporation has not also disclosed any reason worth the name necessitating direct recruitment in preference to normal method of appointment by promotion. 7. In bur view Rule 7.5 postulates that there must be a resolution/decision by the Board recording or indicating brief reason why the Board considers it necessary to depart from the normal procedure of promotion and to make direct recruitment. Rules do not authorize or empower Managing Director or Chairman to depart from the usual method of promotion in absence of any decision by the Board. 8. In the counter the Corporation has claimed that the management has got every' right to bring officers on deputation from the. State Government or from other Corporations. The said claim of Corporation is also not acceptable in view of the provisions of the Recruitment and Promotion Rules for Executive. It is well settled that if the Recruitment Rules prescribe specific methods of recruitment, an authority or management has no right to adopt any other method than permitted by the rules. 9. Promotion Rules came into force with effect from June 1, 1993. Rule 9.2 states "two other sources of recruitment are promotion and absorption of deputations in the Corporation in accordance with these rules" (emphasis supplied). The said Rule 92 in our view, does not authorize to fill up a post by deputation after promulgation of these rules. Rule 9.2 authorizes absorption of a deputations if he is already there occupying the post in the Corporation on the date when Rules came into force. It appears that authorities of the Corporation are still laboring under obsolete ideas that they have the liberty of acting in any manner they like. An artificial person like a statutory Corporation or a Company cannot do anything unless permitted by law. No functionary of the Corporation can act contrary to the provision of the Rules governing recruitment and promotion. 10. Taking all the provisions of the Rules together it is quite clear that the normal and usual procedure of recruitment to any Grade higher than E-2 is by promotion. No functionary of the Corporation can act contrary to the provision of the Rules governing recruitment and promotion. 10. Taking all the provisions of the Rules together it is quite clear that the normal and usual procedure of recruitment to any Grade higher than E-2 is by promotion. Only 'under exceptional circumstances the Board of Directors has the authority to have recourse to direct recruitment if it is necessary. The Corporation has not been able to place any decision of the Board in this regard to show anything that the Petitioner is in-eligible or unsuitable for being considered for promotion to the post in E-6 Grade. 11. By an additional counter affidavit Corporation has urged that the Petitioner was at liberty to apply in pursuance of the advertisement and he has forfeited his right by not availing such opportunity. Such a submission appears to be misconceived. According to the Petitioner direct recruitment was not legally permissible and from the very beginning he objected to such a move. In such circumstances he acted rightly in not responding to an act which he challenged as unauthorized. For the purpose of consideration of promotion no application was ever invited from eligible officers and as such there was no question of making any application and forfeiture of any right. 12. The Petitioner has prayed for an order directing the Corporation to promote him to the concerned promotional post. Such prayer cannot be acceded to inasmuch as promotion cannot be claimed as at matter of right and under the Rules promotion can be given after due consideration by the Corporate Selection Committee constituted for the purpose. 13. In the circumstances, we hold that the Corporation has' acted illegally in seeking to fill up the post in question by direct I' recruitment and in filling up the post by deputation. We direct p' the Corporation to constitute the Corporate Selection Committee as provided in Rule 10.3 and to consider the Petitioner's case along with other eligible candidates if any within a period of three months from the date of communication. Till such consideration Corporation may retain Shri S.C. Padhi on deputation as an ad hoc arrangement. 14. The writ application is allowed to the extent indicated above. No costs. R.K. Patra, J. I ageer. Writ application allowed. Final Result : Allowed