Holding

The President’s appointment of Dr. L.M. Nath as interim Director under Rule 7(4) was valid and the High Court’s stay was unjustified.

Summary

Dr. S.K. Kacker's five‑year term as Director of AIIMS expired on 14 October 1995. The Institute Body, having decided not to extend his tenure, initiated a selection process for a new Director, but the process was delayed by a writ petition. On 15 October 1995 the President of AIIMS appointed Prof. L.M. Nath, the senior most professor, as interim Director for up to six months under Rule 7(4) of the AIIMS Rules. The Delhi High Court stayed this appointment and ordered Kacker to continue as Director. On appeal, the Supreme Court held that the High Court was not justified in interfering; the Director’s post is a tenure post that ends automatically, and the President’s power under Rule 7(4) to appoint the senior most professor as interim Director was valid. Consequently, the Supreme Court set aside the High Court order and allowed the appeal.

Issues considered

Whether the Delhi High Court could stay the President’s appointment of an interim Director under AIIMS Rules 7(4).
Whether Rule 7(4) authorises the President to appoint the senior most professor as interim Director when the incumbent’s tenure has expired.
Whether a tenure post ends automatically on the expiry date absent an explicit extension.

Legislation cited

All India Institute of Medical Sciences Rules, 1958s. Rule 7(3), s. Rule 7(4)

Subjects

AIIMSDirector appointmentinterim directortenure postseniorityRule 7(4)High Court interferenceSupreme Courtadministrative law

Judgment

A DR. L.M. NATH ..,.
v.
DR. S.K. KACKER AND ORS.

NOVEMBER 8, 1995

B [K. RAMASWAMY AND K.S. PARIPOORNAN, JJ.]

Se1vice Law :

All l11dia Institute of Medical Sciences Rules, 1958 :

c Rules 7(3), 7(4}-Director of All India Institute of Medical Scien-
ces-Appointment-Tenn of respondent having expired, President of Institute
appointing senionnost Professor as interim Director-High Court restraining
authorities from implementing the order and directing the respondent to
continue-High Court not justified in its inteiference-Presidellt is empowered
D to appoint interim Director for six months or till regular appoilltment is made,
whichever is earlier.

Respondent No. 1 was appointed as Director of the All India In-
stitute of Medical Sciences, on October 15, 1990 for a tenn of 5 years. His (
term was to expire on October 14, 1995. On June 5, 1995 the Institute Body,
E which is the apex body of the Institute, appointed a Select Committee to
set in motion the process for selection of the Director. Though respondent
No. 1 applied for re-appointment, it was· decided that no extension could
be given to him and instead his case would also be considered along with
others for fresh appointment as Director. Meanwhile as a result of a writ
F petition filed before the High Court, the Committee ·could not go through
the process of selecting the Director before the term of respondent No. 1
expired on October 14, 1995. On 15.10.1995, the President of the Institute,
exercising the power under Rule 7(4) of the All India Institute of Medical
Sciences Rules, 1958, appointed the appellant to look after the functions f
of the Director of the Institute with effect from the forenoon of 15th
G October, 1995 for a period not exceeding six months or till such time a new
Director was appointed. The appellant co'ntinued to function till October
19,1995, when the High Court, in the writ petition filed by Respondent No.
1, passed an interim order restraining the Institute to implement the order
dated October 15, 1995 and directed that respondent No. 1 would continue
H to hold the office of the Director of tlie Institute and function as such till
834
L.M. NATH v. S.K. KACKER 835

,.. further orders from the Court. Aggrieved, the appellant filed the appeal A
by special leave.

Allowing the appeal and setting aside the order of the High Court,
this Court

HELD : 1. The High Court was not at all justified in its interference. B :
The post of Director of All India Institute of Medical Sciences is a tenure
post. The order of appointment of respondent-I as the Director came to
an end in the afternoon of October 14, 1995. Unless there is an order
• expressly extending his tenure under Rule 7(4) of the All India Institute
of Medical Sciences Rules 1958, he has no right to continue after C
14.10.1995. The Court cannot exercise the power of the authorities under
Rule 7(4) except when it deems legal to consider them to be so exercised
for the reasons to be given in the order. [837-H, 838-A]

2. The President of the Institute passed the order under main part
of Rule 7(4), which empowers him to appoint the seniormost Professor. In D
the 1974 seniority list, produced by respondent No. 1, he is the seniormost
and the appellant is the second seniormost. Since respondent No. 1 has
\
already held the office of the Director and the Institute Body has decided
not to reappoint him except through the process of selection, by necessary
implication, he would not be considered to be appointed even as interim E
Director pending regular appointment under Rule 7(3) of the Rules. The
consequence would be that the appellant being the next seniormost in
order, the President of the Institute was justified in appointing him as the
interim Director pending appointment of the Director or for six months
whichever may be earlier. Any other interpretation would be a negation of
the conscious action of the Institute body. [838-D-F] F

L.P. Agga1Wal v. Union of India, AIR (1992) SC 1872, referred to.

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 10205 of
1995.
G
From the Judgment and Order dated 19.10.95 of the Delhi High
Court in C.M. No. 6473/95 arising out of C.W.P. No. 3865 of 1995.

D.D. Thakur and G. Ramaswamy, Brijesh Garg and Mukul Gupta
for the Appellant. H
836 SUPREME COURT REPORTS [1995j SUPP. 4S.C.R.

A Harish Salve, Maninder Singh, Ms. Bharati Anand, G.K. Bansal, Ms.
Mukta Gupta Sanjay Bansal, Ajay Jain for the Respondents.

The following Order of the Court was delivered :

Le.ave granted.
B
We are conscious of the fact that the impugned order is only an ad
intelim one passed by the Division Bench of the Delhi High Court on
October 19, 1995. But, keeping in view the importance of administration
of All India Institute of Medical Sciences which is a premier and pres-
tigious institution in the country, its smooth functioning and efficient
c management would be the primary and sole concern of every one including
Judiciary when its intervention is deemed expedient. The Director remains
in day-lo-day management of the institute and must and ought to be a
dynamic person, efficient and of sterling character capable to carry with
him all concerned in not only proper, efficient and prompt manner to the
D needy patients thronging in thousands daily for treatment but also capable
to mobilise needed resources to fruition, the objectives of the institute.
Bearing this pragmatic consideration and not pedantic nor legalistic orien-
tation, this court in L.P. Aggarwal v. Union of India, AIR (1992) SC 1872
held that even outsiders are eligible to be considered for selection as
Director. We think that instead of prolonging the uncertainty in its ad-
E ministration, instead of relegating the authorities to go to the High Court
to have the matter decided, it would be better to dispose of the inter-
locutory application C.M. No. 6473/95 in Civil Writ Petition No. 3865/95
dated October 19, 1995 at this stage itself. We have heard counsel on both
the sides in extenso.
F
It is not in dispute that Prof. S.K. Kacker was appointed by selection
as Director on October 15, 1990 for a term of5 years on the even date he
had assumed the charge. His term as Director stood expired on October
14, 1995. It is also not in dispute that on June 5, 1995 the Institute Body f
which is the apex body of the Institution decided to select a Director as
G per the procedure contemplated under its Rules and appointed a Select
Committee to set _in motion the process for selecticin of the Director. At
that point of time, the request for reappointment by Dr. Kacker also came
up for consideration. It was decided that no extension as Director could'
be made. Instead, his case may also be considered along with others for
H fresh appointment as Director. Since its confirmation is now stayed by the
L.M. NATH v. S.K. KACKER 837

High Court in another pending writ petition, except with leave of the Court, A
they did not go through the process of selecting the Director before the
term of Dr. Kacker expired on October 14, 1995.

The President of the Institution exercising the power under Rule 7
(4) of the All India Institute of Medical Sciences Rules, 1958 (for short
'Rules') holding that "the appellant Dr. LM. Nath, the Dean of the
B
Institute, Head, Centre for Community Medicine who had always been
looking after the functions of the Director in absence, and as the senior
most Professor of the Institute kept in mind the best interest of the AIIMS,
passed the following order" . In exercise of the powers conferred on me by
Rule 7(4) of the All India Institute of Medical Sciences Rules, 1958, I c
hereby appoint Prof. Lalit Mohan Nath, Head, Centre for Community
Medicine and Dean, AIIMS to look after the functions of the Director of
AIIMS with effect from the forenoon of 15th October, 1995 for a period
not exceeding six months or till such time a new Director is appointed."

D
It would appear, as asserted by the appellant, that he assumed the
charge on October 15, 1995 and continued to function till October 19, 1995.
Prof. Kacker filed a writ petition in the High Court being Civil Writ
Petition No. 3865 on October 16, 1995 claiming certain reliefs and the
' interim relief he sought was for a direction to stay operation of the letter
dated October 15, 1995, the resolution dated June 5, 1995 and "to appoint E
him as the officiating Director in terms of Rule 7(4)," which came up before
the Bench on October 19, 1995. The Division Bench of the High Court in
the impugned order restrained the respondents therein from giving effect
to or implementing the order dated October 15, 1995 by which the appel-
lant (the Respondent No. 4 in the High Court) has been asked to look after F
functions of the Director and Dr. Kacker "shall continue to hold the office
of the Director, AIIMS and function as such till further orders from the
Court. .... "

We heard elaborate arguments on merits addressed by the learned
counsel for the appellant as well as the contesting Ist respondent, only to G
satisfy our conscience, whether Division Bench of the High Court was
justified at that stage, to interfere with the order. Giving our anxious
consideration to the contentions, we think that the High Court was not at
all justified in its interference. It is seen that the order ·of appointment of
Dr. Kacker as the Director, came to an end in the afternoon of October H
838 SUPREME COURT REPORTS [1995] SUPP. 4 S.C.R.

A 14, 1995 since admittedly it is a tenure post. Unless there is an order
expressly extending his tenure, he has no right to continue thereafter. The
Court cannot exercise the power of the authorities under Rule 7(4) except
when it deems legal to consider then to be so exercised for the reasons
given in the order. After October 14, 1995 the 1st respondent cannot
continue as Director unless he is appointed under Rule 7 (4) which
B
empowers the President or Institute Body to make an interim arrangement
till regular Director is appointed or for six months.

The main part of the Rule gives power to the President to appoint
the senior most Professor. The proviso empowers the Institute Body to
C appoint any Professor. irrespective of sel)iority. The ·only condition is that
the Institute should record reasons to justify the exercise of the power
vested in it. Admittedly, the Institute Body had not passed any orders
under the proviso. It had already rejected the claim of Dr. Kacker for
reappointment. Since the President passed the order under main part of
D Rule 7(4) the question would be whether the President would be justified
to pass the order under these circumstances. It is seen that in 1974 seniority
list, produced by Dr. Kacker, he is the senior most and the appellant is the :
second senior most. In our considered view that since Dr. Ka cker has :
already held the office of the Director and the Institute Body had already
decided not to reappoint him except through the process of selection, by
'
E necessary implication, he would not be considered to be appointed even as
interim Director pending regular appointment under Rule 7 (3) of the
Rules. The consequence would be that the appellant being the next senior
most in order, it would appear, that the President was justified in appoint-
ing him as the interim Director pending appointment of the Director or
F for six months whichever may be earlier. It is reasonable to hold that any
other interpretation would be a negation of the conscious action of the
Institute Body.

(
In view of the stalemate created in the selection of Director, since
we are informed that the writ petition filed by common cause has already
G been heard and judgment was reserved, we think that we have to make a
special request to the Division Bench of the High Court, which heard it,
to consider whether it would not be desirable to deliver the judgment as
expeditiously as possible so that the stalemate in the appointment of
Director may be put an end to and the appropriate authority may take a
H decision to make the regular selection and appointment of the Director.
L.M. NATH v. S.J<. KACKER 839

We have ventured to give this suggestion keeping the paramount interest A
of the smooth administration of the premier institution of the nation and
not of any inter se claim -0f any person entitled to these claims.

With regard to any other relief to which the respondent No. 1 may
be entitled to seek for consideration, it will be open to the High Court to
consider, if he is entitled according to Rules and to pass such orders as B
may be warranted according to law.

The appeal is accordingly allowed and the impugned order of the
High Court is set aside. But in the peculiar facts and circumstances of the
case, no costs.
c
R.P. Appeal allowed.