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Supreme Court of India

UNION OF INDIA & ORS.versusN. HARGOPAL & ORS.

Citation
1987 INSC 105
Decided
13 April 1987
Disposal
Disposed off

Holding

The Act applies to government establishments but does not compel any employer to appoint only exchange‑sponsored candidates; Government instructions to its own departments are permissible and do not breach Articles 14 and 16.

Summary

The Supreme Court examined whether the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 applies to government establishments and whether it obliges any employer to recruit only candidates sponsored by employment exchanges. It held that government offices are "establishments in public sector" and thus fall within the Act’s definition, but Section 4(4) makes clear that the Act imposes no duty to appoint only exchange‑sponsored candidates. The Court further ruled that the Government may issue instructions to its own departments to fill vacancies through exchanges, provided such instructions do not violate the Constitution, and that such a restriction does not offend Articles 14 and 16. Private employers and statutory bodies cannot be compelled by government instructions. The appeal was disposed of, with the High Court’s view on the Act’s applicability to government establishments reversed.

Issues considered

  • Whether the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 applies to government establishments.
  • Whether the Act obliges public‑sector or private‑sector employers to recruit only candidates sponsored by employment exchanges.
  • Whether Government instructions to fill vacancies through employment exchanges violate Articles 14 and 16 of the Constitution.
  • Whether the Government can compel statutory bodies or private employers to follow such instructions.

Legislation cited

Subjects

Employment lawPublic sector recruitmentEmployment Exchanges ActConstitutional lawEqualityArticles 14 and 16Government instructionsStatutory interpretationPrivate sector

Judgment

                         UNION OF INDIA & ORS.
A
                                   v.
                          N. HARGOPAL & ORS.

                                APRIL 13, 1987
                                                                                  y
B     [0. CHINN APPA REDDY AND MURARI MO HON DUTT, JJ.]

          Service Law.

         Employment Exchanges (Compulsory Notification of Vacancies)
    Act, 1959: Ss. 2(e), (f) and 4-Establishment in public sector/private
C   sector-Whether bound to appoint only persons sponsored by employ-
    ment exchanges-Statute whether covers government departments.

         Constitution of India, Arts. 14 & 16: Insistence on recruitment
    through employment exchanges-Whether offends equality clause.

D         Sub-section (1) of s. 4 of the Employment Exchanges (Compulsory
    Notification of Vacancies) Act, 1959 requires every·establishment in
    public sector to notify vacancy in any employment to the employment
    exchange. Suh-section (2) lays down similar requirement in respect of
    every establishment in private sector, while suh-s. (4) lays down that
    nothing in sub-ss. (1) and (2) shall be deemed to impose any obligation
E upon any employer to recruit any person through the employment
    exchanges to rdl any vacancy merely because that vacancy has been
    notified. An 'establishment' is defined ins. 2(e) of the Act to mean any
    office or any place where any industry, trade, business or occupation is
    carried on, an 'establishment in public sector'in s. 2(f) as an establish-
    ment owned, controlled or managed by the Government or a Depart-
F ment of the Government, and an 'establishment in private sector' ins .
  . 2(g) as an establishment which is not an establishment in public sector.

          Instructions issued by the Government oflndia from time to time
    enjoined upon employers-Central Government offices, quasi-
    Government institutions and statutory organisations and estahlish-
G   ments in the private sector to restrict their field of choice for vacancies
    to which the Act applied in the first instance, to candidates sponsored
    by employment exchanges.

         A question arose as to whether an 'establishment in the public
    sector', or an 'establishment in the private sector', as defined in the
H . Act, could make appointments to posts to which the Act applies, of

                                       910
                                        UNION v. N. HARGOPAL                           911

               persons not sponsored by the employment exchanges, and whether the             A
~I             Act covers Government establishments also.

                     The High Court held that the Act had no application to Govern-
               ment establishments, that it casts no obligation either on the public
               sector establishments or on the private sector establishments to make
               the appointment from among candidates sponsored by the employment              B
    -~..       exchange only, and that any insistence that candidates sponsored by the
               employment exchanges alone should be appointed would be contrary to

-              the right guaranteed by Arts. 14 and 16 of the Constitution.

                     Disposing of the Appeal of the Union of India, the Court,

                      HELD: 1. The High Court was wrong in holding that the Act was
                                                                                              c
               not applicable to Government establishments. If the definition of
               'establishment' in s. 2(e). which includes an 'office', is read alongside
               the s. 2(t), it will be clear that Government offices are also included in
               the expression 'establishment in public sector'. [914E]
                                                                                              D
                      2.1 There is no provision in the Act which obliges an employer to
               employ those persons only who have been sponsored by the employment
               exchanges. Section 4(4) of the Act makes it explicitly clear that the
               employer is under no obligation to recruit any person through the emp-
               loyment exchanges to fill iu a vacancy merely because that vacancy has
               been notified under ss. 4(1) and 4(2). The compulsion extends only to          f
               notification of vacancies that may occur in the establishment before
               filling them up. [915G-H; 916G]

                     2.2 The object of the Act is not to restrict, but to enlarge the field
           I
               of choice so that the employer may choose the best and the most efficient
     _)
               and to provide an opportunity to the worker to have his claim for              F
               appointment considered without having to knock at every door for
               employment. [918B-C]

                      3. The Government is at perfect liberty to issue instructions to its
               own departments and organisations to adhere to the role that not
               merely vacancies should be notified to the employment exchanges but the        G
               vacancies should also be filled by candidates sponsored by the employ-
               ment exchanges, provided the instructions do not contravene any con-
               stitutional provision or any statute. But these instructions cannot bind
               other bodies which are created by statute and which function under the
               authority of ·statute. In the absence of any statutory presumption, the
               statutory authority may adopt and follow such instructions if it thinks        H
    912                   SUPREME COURT REPORTS            [1987] 2 S.C.R.

A   fit. Otherwise, the Government may not compel statutory bodies
    appointment of persons from among candidates sponsored by employ-
    ment exchanges only. Private employers cannot be so compelled by any
    instructions issued by the Government. [921C-E]                                     I
          4. Any restriction that employment in Government Departments
B   should be through the medium of employment exchanges ·does not
    offend Arts. 14 and 16 of the Constitution. In public employment, it is


                                                                                    -
    necessary to eliminate arbitrariness and favouritism and introduce
    uniformity of standards and orderliness. There has to be an element of
    procedural fairness in the recruitment. A public employer cannot                  '
    choose to receive applications for employment where and when he
    pleases and to make appointments as he likes. The insistence on recruit·
c   ment through employment exchanges therefore, advances rather than
    restricts the rights guaranteed by Arts. 14and16. [922E; B·D]              >----,
          CIVIL APPELLATE JURISDICTIOI;: Civil Appeal Nos. 9-15
    of 1986 etc.
D
         From the Judgment and Order dated 4.9.1985 of the Andhra
    Pradesh High Court in W.P. Nos. 8120, 8121, 7932, 8095, 8032, 8107
    and 8109 of 1984.

          B. Datta, Additional Solicitor General, P.P. Rao, C.V. Subba
E   Rao, R.P. Srivastava, B. Parthasarthi, K.V. Sreekumar, D. Vidya-
    nandam, M.K.D. Namboodary, T.V.S.N. Chari, Ms. V. Grover, Ms.
                                                                                    -
    Anita, W.A. Qadri, A. Subba Rao, A.T.M. Sampath, R. Venkatara-
    mani, R.A, Perumal, S.M. Garg and S. Markandeya for the appearing
    parties.

F         The Judgment of the Court was delivered by

        CHINNAPPA REDDY, J. The question raised in these appeals is
  whether an 'establishment in the public sector' or an 'establishment in
  the private sector' as defined in the Employment Exchanges (Com-
  pulsory Notification of Vacancies) Act, 1959 may make appointments
G to posts to which the Act applies, of persons not sponsored by the            \;-
  Employment Exchanges? A further question is whether the Act covers
  Government establishments also? A Division Bench of the High Court
  of Andhra Pradesh l1as held that the Act has no application to Govern-
  ment establishments, that the Act casts no obligation either on the
  public sector establishment or on the private sector establishment to
H make the appointments from among candidates sponsored by the
                       UNION v. N. HARGOPAL [CHINNAPPA REDDY, J.l                 913

            Employment Exchanges only and that any insistence that candidates A
            sponsored by the Employment Exchanges alone should be appointed
            would be contrary to the right guaranteed by Arts. 14 and 16 of the
            Constitution. The learned Additional Solicitor General appearing for
            the Union of India argued that the object and the scheme of the
            Employmtnt Exchanges (Compulsory Notification of Vacancies) Act
            and the instructions issued by the Government of In~ia from time to B
            time left no option to the employers but to confine their field of choice
            to candidates sponsored by the Employment Exchanges. It was argued
            that such insistence that appointments should be made from candi-
            dates sponsored by the Employment Exchanges only did not offend
            Arts. 14 and 16 of the Constitution. He also argued that the Act was
            applicable to Government Establishments also.                             c
                   We may refer to the provisions of the Employment Exchanges
            (Compulsory Notification of Vacancies) Act, 1959 without further
            ado. The title of the Act itself suggests that the compulsion is in regard
            to notifying of vacancies only and nothing more. The preamble to the
            Act, like the title of the Act, also does not suggest any compulsion in      D
            the making of appointments, but only in the notifying of vacancies.
            The preamble says "An Act to provide fot the compulsory notification
            of vacancies to employment exchanges." Section 2(e), (f) and (g)
    ~       defines "establishment", "establishment in public sector" and


-           "establishment in private sector" as follows:-

                        "(e) "establishment" means-
                                                                                         E



       -'                     (a) any office, or
       I                      (b) any place where any industry, trade, business or
    ~                         occupation is carried on;                                  F

                        (f) "establishment in public sector" means an establish-
                            ment owned, controlled or managed by-

                            (1) the government or a department of the Govern-

.--i                        ment;

                            (2) A Government company as defined in section 617
                                                                                         G


                            of the Companies Act, 1956;

                            (3) A corporation (including a cooperative society)
                            established by or under a Central, Provincial or State       H
A
    914                    SUPREME COURT REPORTS             [1987] 2 S.C.R.

                    Act, which is owned, controlled or managed by the
                    Governmnt;
                                                                                     I
                                                                                  '( f
                    (4) A local authority;                                               i,'
                (g) "establishment in private sector" means an establish-
B                   ment which is not an establishment in public sector and
                    where ordinarily twenty-five or more persons are emp~
                    loyed to work for remuneration;"

    The High Court thought that the definition of "establishment in public
    sector" as meaning an establishment owned, controlled or managed
                                                                                        -
    by the Government or a Department of the Government indicated that
c   an establishment in public sector was something different from the
    Government or a Department of Government and did not include the
    Government or Department of the Government. It had to be some-
    thing which could be owned, controlled or managed by the Govern-
    ment or a department of the Government. The High Court also
D   thought that the expression 'public sector' was used in contradiction to
    'private sector' and that it could not include offices of the Govern-
    ment. The expression would only take in an agency or instrumentality
    of the State, but not the State itself. We are unable to agree with the
    conclusion of the High Court on this part of the case. If the definition
    of 'establishment' which includes an 'office' is read alongside the
E   definition of 'establishment in public sector', it will be clear that
    Government offices are also included in the expression 'establishment
    in public sector'. That is the interpretation which the Government
    itself is advancing before us and that is how the Government has
    always understood the provision during these three decades as will be
    evident from the instructions issued by the Government from time to
F   time to which we shall be referring later in the course of our judgment. We
    are unable to agree with the view of the High Court that the Act is not
    applicable to Government establishments.

         Section 3 of the Act specifies posts, vacancies to which the Act
    does not apply. Section 4 provides for the notification of vacancies to
G   employment exchanges. It is desirable to extract the whole of sec. 4              '
                                                                                      ·"v-,
    which is as follows:-

                "4. (1) After the commencement of this Act in any State
                or area thereof, the employer in every establishment in
                public sector in that State or area shall, before filling up
H               any vacancy in any employment in that establishment,              I
                                                                                  I

                                                                                  1
               UNION v. N. HARGOPAL [CHINNAPPA REDDY, J.]                915

               notify that vacancy to such employment exchanges as may
               be prescribed.                                                   A

                     (2) The appropriate Government, may, by notifica-
               tion in the Official Gazette, require that from such date as
               may be specified in the notification, the employer in every
               establishment in private sector or every establishment           B
               pertaining to any class or category of establishments in
               private sector shall, before filling up any vacancy in any
               employment in that establishment notify that vacancy to
               such employment exchanges as may be prescribed, and the
               employer shall thereupon comply with such requisition.

                (3) The manner in which the vacancies referred to in sub-       c
                section (1) or sub-section (2) shall be notified to the
                employment exchanges and the particulars of employments
                in which such vacancies have occurred or are about to occur
                shall be such as may be prescribed.
                                                                                D
               (4) Nothing in sub-sections (l) and (2) shall be deemed to
               impose any obligation upon any employer to recruit any
               person through the employment exchanges to fill any
               vacancy merely because that vacancy has been notified
                under any of the sub-sections."


-   Section 5 deals with the duty of the employers to furnish information
    and returns in prescribed forms. Section 6 provides for official access
    to records and documents. Section 7 provides for penalities. Section 8
    deals with cognizance of offences. Section 9 provides for protection of
                                                                                E




    action taken is good faith. Section JO vests the rule making power in the
    Central Government.                                                         F

          It is evident that there is no provision in the Act which obliges an
    employer to make appointments through the agency of the Employ-
    ment Exchanges. Far from it, sec. 4( 4) of the Act, on the other hand,
    makes it explicitly clear that the employer is under no obligation to
    recruit any person through the Employment Exchanges to fill in a G
    vacancy merely because that vacancy has been notified under sec. 4( !)
    or sec. 4(2). In the face of sec. 4(4), we consider it utterly futile for the
    learned Additional Salicitor General to argue that the Act imposes any
    obligation on the employers apart from notifying the vacancies to the
    Employment Exchanges. The learned Additional Solicitor General
    invited our attention to the speach of the Minister of Labour and H
      ,
    916'                   SUPREME COURT REPORTS            [1987] 2 S,C,R,

A Employment and Planning (Shri Nanda) made at the time of the intro-
    duction of the Employment Exchanges (Compulsory Notification of
     Vacancies) BilL Far from being of any assistance to the learned
    Addititional Solicitor General, the speech appears to be against his
    submission, In his speech, the Minister quoted from the report of the
    Training and Employment Services Organisation Committee and
B observed that the recommendation of the Committee offered a full
    explanation of the provisions of the BilL The recommendation of the
    Committee which he quoted was, "Though we have not, for the
    present, recommended compulsion on private employers to recruit
     through the employment exchanges, we recommend that they be re-
    quired on a compulsory basis to notify to the Exchanges all vacancies,
    other than vacancies for unskilled categories, vacancies of very
c temporary duration and vacancies proposed to be filled through pro-
    motion," The Minister further said, "The main thing is that an obliga-
    tion is being placed that after this legish.tion becomes operative, from
    that date, the employer in every establishment in the public sector
    shall, before filling up any vacancy in any employment in that establish-
D ment, notify that vacancy to such Employment Exchanges as may be
    prescribed. And so far as the private sector is concerned, there is this
    furth2r qualification that the Government concern may specify by
    notification that the employer in every establishment in private sector
    or every establishment pertaining to any class or category of establish-
    ments in private sectors shall, before filling up any vacancy in any
E employment in that establishment, notify that vacancy to such
    Employment Exchanges as may be prescribed. This is the kernel of this
    provision. This is the main object, th~t is, an obligation placed on the
    employer to notify the vacancies that may occur in their ,establishment
                                                                                -
    before filling these vacancies." The Minister was conscious that there      i
    was a likelihood of the Bill being misunderstood as compelling the
F employers to make appointments through the Employment Exchanges
    only, He clarified the position saying, "The misunderstanding is as if
  1 this Bill gives power to the Government to compel the employers to

    recruit only such persons as are submitted by the employment
    exchanges, That is not so, This compulsion extends only to notification
 , of vacancies. Naturally the employer has to consider the names which
G are submitted by the employment exchanges but there is no compul-
    sion that they must restrict to the choice only to :he least that is
    submitted to them. Of course, there is also the objection from the
    other side that it may not go far enough. We believe that even this will
    make things very much better, In any case, when the Committee re-
    ported, they also suggested this much advance. At present, they said,
H we should have only compulsory notification, but not compel the emp-
                       UNION v. N. HARGOPAL [CHINNAPPA REDDY, J.]             917

            loyers to recruit only out of the least that is sent by the employment A
            exchanges."

                 As we said the speech of the Minister, at the time of the intro-
            duction of the Bill, is totally destructive of the contention of the
            learned Additional Solicitor General that the employers are under an
            obligation to recruit persons for appointment through the Employ- B
            ment Exchanges only. The learned Additional Solicitor General re-
       J quested us to give a purposive interpretation to the provisions of the
     \      Act and insist that employers, in making appointments, should restrict
       -~-~their field of choice to candidates sponsored by the employment
            exchanges. We are unable to appreciate the argument since there is no
            provision of the Act which requires interpretation by us and which we C
            may reasonably interpret as compelling the employer to appoint
            persons sponsored by the employment exchanges. On the other hand,
     -~ we have already referred to sec. 4(4) which is explicit that there is no
            such obligation on the part of the employer. We also notice that the
            object of the Act is not to restrict the field of choice in any perticular
            manner, but to enlarge the field of choice. That is why in his intro- D
            ductory speech, the Minister said, " ......... a large number of
           employers, particularly in similar industrial establishments and in
             construction works, do not employ any scientific method, but depend
     _\      for their supply of labour on agents or recruit in a haphazard manner
     -r from amongst these assembled at factory gates or at works sites. The .
          . methods adopted are not always dictated by a consideration of effi- E
-~           cient service, but as more a matter of bestowing patronage and favour.
             This applies in varying degrees to a large number of employers." The
             Minister discussed the existing position and anticipated position in the
       ,.... following words:-

                       "The Act of notification of vacancies has important conse- f
                       quences. In the first place, so far as the employer is con-
                       cerned, he will be placed in a position to have a much wider
                        hoice for the purpose of selection. Now, what is the pre-
                       sent position? Any person knocks at the gate of the factory
                       or the mill or other establishment and from those few who
                       are there they choose. Now it would be possible for them to G
                       haye a wider area of selection. The names of so many
                       others who may not be able to go and knock at every gate,
                       can be submitted and out of them, the best can be selected.
                       So far as the quoting of selection is concerned, it should
                       improve because of the wider range of choice. On the side
                       of the worker certainly it means a more equitable distribu- H
    918                  SUPREME COURT REPORTS             [1987] 2 S.C.R.

               tion of employment opportunities. It should not be neces-
A              sary for a person to be all the day moving from place to
               place. It should be sufficient for him to register at a place,
               give all the particulars about his qualifications and then he
               should be sure that at any rate, his name will be considered
               along with other names and there will be some regard for
B              fitness in the choice of people who enter these new places
               for employment."

        It is, therefore, clear that the object of the Act is not to restrict,
  but to enlarge the field of choice so that the employer may choose the---->\
  best and the most efficient and to provide an opportunity to the worker
C to have his claim for appointment considered without the worker
                                                                                 -
  having to knock at every door for employment. We are, therefore,
  firmly of the view that the Act does not oblige any employer to employ ).---
  those persons only who have been sponsored by the employment
  exchanges.

D       The next question for consideration is whether the instructions
  issued by the Government from time to time have the effect of compel-
  ling the employers to restrict their field of choice to candidates
  sponsored by the employment exchanges. We may straightaway rafer
  to some of the instructions on which reliance was placed by the learned
  Additional Solicitor General. In O.M. No. 14/11/64-Estt. (D) dated
E March 21, 1964, the Ministry of Home Affairs addressed all the
  Ministries regarding recruitment of staff through the agency of the
  National Employment Service and the utilisation of Employment
  Exchanges by quasi-government institutions and statutory organisa-
  tions. It is enough if we extract paragraphs I, 4 and 5 of this communi-
  cation which are as follows:-
F
                "1. The undersigned is directed to say that in paragraph 6
                of this Ministry's office Memorandum No. 71/40-DGS
                (Apptts) dated the 11th December, 1949 (copy enclosed) it
                was laid down that all vacancies in Central Government
                Establishments, other than those filled through the Union
G               Public Service Commission should be notified to the
                nearest Employment Exchange and that no Department or
                office should fill any vacancy by direct recruitment unless
                the Employment Exchanges certified that they were unable
                to supply suitable, candidates. Subsequently in this
                Ministry's Office Memorandum Nos. 71/49-DGS (Apptts)
H               dated 30th January, 1951 and 71/222/56-CS(C) dated the
            UNION v. N. HARGOPAL [CHINNAPPA REDDY. J.]              919

            14th December, 1956 (copy enclosed). The Ministry of A
            Finance etc. were requested to issue immediate instruc-
            tions to all quasi-Government institutions and statutory
            Organisations with which they were concerned asking them
            to fall in line, as far as possible, with the Central Govern-
            ment establishments in the matter of recruitments, by
            suitably amending their recruitment rules or adopting B
            Resolutions to achieve this object if necessary. The
            Ministries were also requested to impress upon these in-
            stitutions that it was in their own interest as well as in the
'j-4_...-   interest of the country as a whole that recruitment should
            be made through the Employment Exchanges, as a large
            number of experienced and trained hands were available on C
            their registers 'and the need for tapping other sources of
            recruitment should arise only if the Employment Exchange
            has certified that they were unable to nominate suitable
            recruits from their registers.

                                                                           D



            4. Under the EE (CNV) Act, recruitment of staff through
            the Employment Service is voluntary su far as the private
            sector is concerned. Even so, efforts are made by the          E
            Employment Service to persuade the private sector to
            accept candidates sponsored by the Employment Exch~n-
            ges. The Directorate General of Employment and Training
            are placed in a very embarrassing situation when they have
            to approach the State Governments and establishments in
            the private sector to utilise the Employment Service in fil-   F
            ling up the vacancies, when some establishments in the
            public sector do not recognise the Employment Service as
            the normal channel of recruitment.

            5. It is accordingly requested that the Ministry of Finance
            etc., may issue instructions to all quasi-Government irrsti-   G
            tutions and Statutory Organisations with which they are
            concerned requiring them to notify vacancies in the manner
            and form prescribed in Rule 4 of the EE( CNV) Rules 1960
            to the prescribed Employment Exchange and to fall in line
            with the Central Government Departments in the recruit-
            ment of staff through the agency of the Employment             H
                                    '
    920                  SUPREME COURT REPORTS            (1987] 2 S.C.R.

               service. The need for issuing advertisements for inviting
A
               applications or tapping other sources of recruitment should
               be considered only if the Employment Exchanges issue
               non-availability certificates. A copy of the instructions
               issued by the Ministry of Finance etc., may kindly be
               endorsed to the Ministry of Home Affairs and the Directo-
B              rate General of Employment and Training."

    It will be noticed that in order to give effect to such instructions in the    >-
    case of quasi-Government institutions and statutory organisations, it
    would be necessary to suitably amend the recruitment rules or adopt ~
    resolutions to achieve that object. This is so mentioned in para 1. In
    Office Memorandum No. 14/22/65-Estt. (H) dated June 12, 1968, the
c   Ministry of Home Affairs informed all the other Ministries:-

               "The undersigned is directed to say that in paragraph 6 of
               this Ministry's O.M. No. 71/49/DGS (Apptt) dated the
               11th December, 1949, it was laid down that all vacancies in
D              Central Government Establishments, other than those fil-
               led through the Union Public Service Commission, should
               be notified to the nearest Employment Exchange and that
               no Department or Office should fill any vacancy by direct
               recruitment unless the Employment Exchange certified
               that they were unable to supply candidates."
E
    In office Memorandum No. 14024/2/77-Estt(D) dated April 12, 1977,
    the Department of Personnel addressed all the Ministries/Depart-
    ments and said,


F
                     "As the Ministry of Agriculture and Irrigation, etc.
               are aware, in accordance with the instructions issued by the
               Central Government (vide marginally-noted communica-
                                                                              ""
                                                                               \..

               tions), all vacancies arising under Central Government
               Offices/establishments (including quasi-Government insti-
               tutions and statutory organisations), irrespective of the
               nature and duration (other than those filled through the
G              Union Public Service Commission), are not only to be
               notified to, but also to be filled through, the Employment          ~
               Exchange alone and other permissible sources of recruit-
               ment can be tapped only if the Employment Exchange con-
               cerned issued a'non-availability' c.ertificate. There can be
               no departure from this recruitment procedure unless a
               different arrangement in this regard has been previously
                                      ;'
               UNION v. N. HARGOPAL (CHINNAPPA REDDY, J.]                  921

                agreed to in consultation with this Department and the A
                Ministry of Labour (Directorate General of Emloyment
                and Training). Similar instructions are also in force requir-
                ing vacancies against posts carrying a basic salary of less
                than Rs.500 p.m. in Central Public Employment
                Exchanges."
                                                                                  B
          It is clear that it is the desire of the Government of India that all
    Government Departments, Government Organisation and statutory


-   bodies should adhere to the rule that not merely vacancies should be
    notified to the Employment Exchanges, but the vacancies should also
    be filled by candidates sponsored by the Employment Exchanges. It
    was only when no suitable candidates were available, then other
    sources of recruitment were to b~ considered. While the Government            C
    is at perfect liberty to issue instructions to its own departments and
    organisations provided the instructions do not contravene any
    constitutional provision or any statute, these instructions cannot bind
    other bodies which are created by statute and which function under the
    authority of statute. In the observation of any statutory prescription        D
    the statutory authority may however adopt and follow such instruc-
    tions if it thinks fit. Otherwise, the Government may not compel
    statutory bodies to make appointments of person from among candi-
    dates sponsored by employment exchanges only. The question, of
    course, does not arise in the case of private employers which cannot be
    so compelled by any instructions issued by the Government.                    E

          The further question is whether the instruction issued by the
    Government that in the case of Government Departments the field of
    choice should, in the first instance, be restricted to candidates
    sponsored by the employment exchanges offend Arts. 14 and 16 of the
    Constitution. Shri P. Parmeshwara Rao, learned counsel appearing for F
    some of the respondents strenuously urged that such a restriction
    would offend the equality clauses of the Constitution, namely, Arts. 14
    and 16. He urged that when Parliament had gone into the question and
    decided that there should be no compulsion in the matter of appoint-
    ment by way of restriction of the field of choice, it was not open to the
    Government to impose such compulsion. He argued that it would be G
    unreasonable to restrict the field of choice to these sponsored by the
    employment exchanges. In a country so vast as India, in a country
    where there was so much poverty, illiteracy and ignorance, it was not
    right that employment opportunities should necessarily be channelled
    through the employment exchanges when it is not shown that the
    network of employment exchanges is so wide, that it reaches all the H
    922                  SUPREME COURT REPORTS           [1987] 2 S.C.R.

A corners of this vast country. He argued that it is futile to expect that
  persons living in distant places could get themselves registered with
  employment exchanges situated far away. The submission of Shri                ''!'- ,'
                                                                                  I "
  Parmeshwara Rao is indeed appealing and attractive. Nonetheless, we
  are afraid we cannot uphold it. The object of recruitment to any
  service or post is to secure the most suitable person who answers the
8 demands of the requirements of the job. In the case of public employ-
  men!, it is necessary to eliminate arbitrariness and favouritism and
  introduce uniformity of standards and orderliness in th> matter of
  employment. There has to be an element of pracedural fairness in
                                                                                  >-·
  recruitment. If a public employer chooses to receive applications for
  employment where and when he pleases, and chooses to make
c appointments as he likes, a grave element of arbitrariness is certainly
  introduced. This must necessarily be avoided if Arts. 14 and 16 have to
                                                                             .-"'(
                                                                                        -
  be given any meaning. We, therefore, consider that insistence of
  recruitment through employment exchanges advances rather than               'r-
  restricts the rights guaranteed by Arts. 14 and 16 of the Constitution.
  The submission that employment exchanges do not reach every-where
D
  applies equally to whatever method of advertising vacancies is
  adopted. Advertisement in the daily Press, for example, is also equally
  ineffective as it does not' reach everyone desiring employment. In the
  absence of a better method of recruitment, we think that any restric-
  lion that employment in Government Departments should be through
  the medium of employment exchanges does not offend Arts. 14 and 16           -~-
E of 'the Constitution. With this modification of the judgment of the
  High Court, the appeals and the special leave petitions are disposed
  of. No orders are necessary in the writ petition .                                    -
    P.S.S
                                      •              Appeals disposed of.
                                                                             ~.
                                                                               \.


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