FOOD CORPORATION OF INDIA Vs. BHANU LODH
LAWS(SC)-2005-2-91
SUPREME COURT OF INDIA (FROM: GAUHATI)
Decided on February 24,2005

FOOD CORPORATION OF INDIA Appellant
VERSUS
BHANU LODH Respondents

JUDGEMENT

Srikrishna, J. - (1.) Leave granted in Special Leave Petition (Civil) Nos. 9016-9018 of 2004. These appeals are directed against the common judgment of the Division Bench of the Gauhati High Court in Writ Appeals Nos. 78/2002, 79/2002 and 102/2002.
(2.) The material facts relevant for deciding the present appeals lie in a narrow compass. The appellants in the appeals arising out of Special Leave Petition (C) Nos. 9016-9018 of 2004 are the Food Corporation of India (hereinafter referred to as the FCI), its officers and the Union of India. The respondents in these appeals are the employees of the FCI, who were candidates for direct recruitment to certain posts. The petitioner in Special Leave Petition (C) No. 11475 of 2004 is one more such candidate of the FCI, and the Union of India, FCI and its officers are the respondents in the said special leave petition.
(3.) Statutory Provisions: The FCI was established by the Food Corporations Act, 1964 (hereinafter referred to as the Act), which was brought into force with effect from 17th December, 1964. As the preamble of the Act indicates, this is a Corporation established for the purpose of trading in foodgrains and other foodstuffs and for matters connected therewith and incidental thereto",. Section 13 of the Act declares that it shall be the primary duty of the Corporation to undertake the purchase, storage, movement, transport, distribution and sale of foodgrains and other foodstuffs". For the purpose of carrying on the business assigned to it under the Act, FCI had been invested with the power of management of the Corporation and the authority to employ such officers and employees as may be required for the efficient carrying out of its statutory work. Section 6 of the Act deals with the management of the Corporation and provides as under: "Management- (1) The general superintendence, direction and management of the affairs and business of the Corporation shall vest in a board of directors which may exercise all such powers and do all such acts and things as may be exercised or done by the Corporation under this Act. (2) The board of directors, in discharging its functions, shall act on business principles having regard to the interests of the producer and consumer and shall be guided by such instructions on questions of policy as may be given to it by the Central Government. (3) If any doubt arises as to whether a question is or is not a question of policy, the decision of the Central Government thereon shall be final." Section 12 of the Act deals with the power of the Central Government to employ officers and other employees of Corporation and reads as under: "Officer and other employees of Corporation - (1) The Central Government shall, after consultation with the Corporation, appoint a person to be the Secretary of the Corporation. (2) Subject to such rules as may be made by the Central Government in this behalf, the Corporation may appoint such other officers and employees as it considers necessary for the efficient performance of its functions. (3) The methods of appointment, the conditions of service and the scales of pay of the officers and other employees of the Corporation shall - (a) as respect the Secretary, be such as may be prescribed; (b) as respects the other officers and employees, be such as may be determined by regulations made by the Corporation under this Act." Section 12A of the Act empowers the Central Government to transfer certain types of Government employees, serving in the Department of the Central Government dealing with food or any of its subordinate or attached offices, to the FCI. Section 45 of the Act invests power in the FCI to make regulations not inconsistent with this Act and the rules made thereunder, to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act." Under sub-section (2)(a) of Section 45 such regulation may provide for the methods of appointment, the conditions of service and the scales of pay of the officers and employees of a Food Corporation." In exercise of its power under Section 45, the FCI has framed regulations styled as the Food Corporation of India (Staff) Regulations, 1971." ;


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