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  • Section 5, Subsection 2 of the 1983 Income Tax Act
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  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

Respondent 4 applied for the post of Principal of a college pursuant to an advertisement dated 29-10-1995/2-11-1995 issued by Appellant 1. A Selection Committee, constituted in accordance with Rule 7 of the Haryana Affiliated Colleges (Security of Service) Rules, 1993, selected Respondent 4 for appointment. The Managing Committee, however, declined to issue an appointment letter and instead resolved on 18-2-1996 to readvertise the post after six months, citing four reasons including alleged pressure from Kurukshetra University.

Respondent 4 filed a writ petition before the High Court. After examining the facts and the applicable rules, the High Court found the Managing Committee’s reasons arbitrary, held that the selection complied with the Rules, and directed the appointment of Respondent 4 as Principal. The present civil appeal challenges that High Court order.

Legal Issues Presented

  1. Whether a candidate selected by a properly constituted Selection Committee acquires an enforceable right to appointment when the employer declines to issue an appointment letter.
  2. Whether the High Court exceeded its jurisdiction in issuing a mandamus compelling the Managing Committee to appoint the selected candidate.
  3. Whether the Managing Committee’s refusal to appoint the selected candidate was arbitrary and therefore amenable to judicial interference.

Arguments of the Parties

Appellant's Arguments

  • A selected candidate has no indefeasible right to appointment; the employer may lawfully decide not to complete the recruitment process.
  • Functional autonomy of a private educational institution would be undermined if an employee is imposed upon an unwilling employer, leading to administrative friction.
  • The High Court lacked jurisdiction to issue mandamus on the basis of mere selection.
  • Reliance placed on five Supreme Court decisions (Shankarsan Dash, Jatinder Kumar, Subash Chander Marwaha, Jai Singh Dalal, and Dr H. Mukherjee) to support the above propositions.

Respondent 4's Arguments

  • The Selection Committee was constituted strictly under the 1993 Rules; its decision is final and cannot be revisited by the Managing Committee.
  • The reasons recorded in Resolution No. 26 are arbitrary and unsupported by evidence; no pressure was exerted by Kurukshetra University.
  • The precedents cited by the appellants are distinguishable and do not justify the refusal to appoint a duly selected candidate.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Shankarsan Dash v. Union of India (1991) 3 SCC 47 A candidate merely selected has no indefeasible right to appointment; the recruiting authority may decide not to fill the post. Accepted as a correct statement of law but distinguished; such power cannot be exercised arbitrarily or mala fide.
Jatinder Kumar v. State of Punjab (1985) 1 SCC 122 Employer’s discretion to withhold appointment despite selection. Cited by appellants; Court reiterated that discretion must not be arbitrary.
State of Haryana v. Subash Chander Marwaha (1974) 3 SCC 220 Authority may decide not to make appointments even after selection. Same principle acknowledged; Court found the Managing Committee’s decision arbitrary.
Jai Singh Dalal v. State of Haryana 1993 Supp (2) SCC 600 No vested right to appointment following selection. Cited for general principle; Court held it did not justify arbitrary refusal.
Dr H. Mukherjee v. Union of India 1994 Supp (1) SCC 250 Selection does not automatically confer right to appointment. Relied on by appellants; Court maintained the same limitation of non-arbitrariness.

Court's Reasoning and Analysis

The Court noted that, under the 1993 Rules, the Managing Committee has no authority to revisit the merits of a selection made by the duly constituted Selection Committee. The High Court had meticulously examined the four reasons recorded in Resolution No. 26 and found each to be unsupported by evidence and thus arbitrary. The Supreme Court agreed with this assessment, observing that:

  • The allegation of pressure from Kurukshetra University lacked any material support.
  • Once the Selection Committee complied with the statutory rules, the Managing Committee could not override its decision.
  • While case law recognises an employer’s discretion not to complete a recruitment process, such discretion is subject to judicial review when exercised arbitrarily or mala fide.

Because the Managing Committee’s refusal was arbitrary, the High Court’s mandamus merely ensured completion of the lawful selection process. The precedents cited by the appellants state a principle that supports the Court’s position: cancellation or non-completion of selection is permissible only when not arbitrary.

Holding and Implications

HELD: The civil appeal is dismissed.

Consequently, the High Court’s direction to appoint Respondent 4 as Principal stands, and no order as to costs is made. The decision reinforces that managing bodies of private educational institutions cannot arbitrarily refuse to appoint candidates selected in accordance with statutory rules, though it sets no new broad precedent beyond applying established principles of non-arbitrariness in public or quasi-public employment processes.

    Bhagwan Parshu Ram College And Another v. State Of Haryana And Others

    1. Respondent 4 applied for the post of Principal pursuant to an advertisement issued on 29-10-1995/2-11-1995 by Appellant 1. The Selection Committee constituted in terms of Rule 7 of the Haryana Affiliated Colleges (Security of Service) Rules, 1993 (for short, hereinafter referred to as the rules) selected Respondent 4. The Managing Committee, however, did not issue any letter of appointment to Respondent 4 and at that stage he approached the High Court for appropriate directions in regard to the selection made. The High Court, on examination of the matter, came to the conclusion that the selection had been done in accordance with the relevant rules applicable to such selection and the reasons assigned by the appellants as to why Respondent 4 could not be appointed now are arbitrary and not germane to the appointment. On that basis it allowed the writ petition and directed the respondents to appoint Respondent 4 as the Principal of the College. This order is in challenge before us in this appeal.

    2. Mr Pankaj Kalra, learned counsel for the appellant contended that there is no indefeasible right in any selected candidate to get appointed to a post for which he was selected and relied upon five decisions of this Court in Shankarsan Dash v. Union of India (1991) 3 SCC 47, (1991) 17 ATC 95, Jatinder Kumar v. State of Punjab (1985) 1 SCC 122, State of Haryana v. Subash Chander Marwaha (1974) 3 SCC 220, Jai Singh Dalal v. State of Haryana 1993 Supp (2) SCC 600, (1993) 24 ATC 788 and H. Mukherjee (Dr) v. Union of India 1994 Supp (1) SCC 250, (1994) 26 ATC 833. He submitted that the Managing Committee for good reasons did not appoint Respondent 4, though selected, and if those reasons are brushed aside, the functional autonomy of the private educational institution will be lost. An employee if imposed upon an unwilling employer would result in friction in the administration of the college creating an anomalous situation. The effect of the mandamus issued by the High Court is of that a nature (sic) and calls for interference in our hands. He further pointed out that there was no jurisdiction vested in the High Court to issue a mandamus in respect of mere selection that had taken place. He, therefore, strongly contended that the order made by the High Court needs to be set aside.

    3. Learned counsel for Respondent 4 fully supported the view taken by the High Court and submitted that when an independent Selection Body as constituted under the rules had selected Respondent 4 such action could not be faulted with. The reasons assigned by the appellant for not appointing Respondent 4 are arbitrary and therefore, the High Court had rightly issued appropriate directions. He submitted that the decisions relied on by the learned counsel for the appellant have no bearing on the issue raised in this case.

    4. The High Court had made a thorough examination of facts and proceeded to consider firstly the scope of the relevant rules and came to the conclusion that the rules have been scrupulously followed in the matter of selection of Respondent 4 by the Committee consisting of a nominee of the Director, Higher Education, a nominee of the Vice-Chancellor, an outside expert, a representative of the Managing Committee and Principal of a Government College for selecting the persons available. The members of the Governing Body gave reasons in Resolution No. 26 dated 18-2-1996 for not appointing Respondent 4. For the purpose of convenience, we extract the resolution:

    “Agenda No. 1 The interview for the post of Principal of the College which was held in December 1995 The members of the Governing Body discussed the interview of the Principal and came to know that Shri Sudhir Kaushik has been selected for this post under the pressure from Kurukshetra University authorities. But after analysing his previous temporary job in the College, his merits among the applicants for this post and the future prospects of the institution, it is unanimously decided that Shri Sudhir Kaushik should not be given the appointment letter and the post should be readvertised after the expiry of six months.”

    5. The four reasons set out in the said resolution had been critically considered by the High Court and each of them was rejected for cogent reasons. There is no material to come to the conclusion that there was any pressure exerted by the Kurukshetra University. The appointment made by the Selection Committee had to be accepted inasmuch as the relevant rules did not permit the Managing Committee to sit in judgment over such a selection made and, therefore, the view taken by the Managing Committee in this regard is wholly arbitrary.

    6. It is no doubt true that the position in law is that a selection process commenced for an appointment may be cancelled or stopped at any stage or not completed by appointment of the selected candidate but such action can be attacked as arbitrary or mala fide. The decisions relied upon by the appellant state this very principle. The decision of the appellants in not issuing a letter of appointment to Respondent 4 results in not completing the process of recruitment commenced earlier by them. The direction issued now by the High Court only ensures the completion of the process of selection, by appointing Respondent 4. In that view of the matter, the High Court was right in issuing the direction. We find no merit in the appeal. The civil appeal is dismissed. However, there will be no order as to costs.

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    Bhagwan Parshu Ram College And Another v. State Of Haryana And Others
    (Apr 6, 1999)