9911796707
TMI Blog2003 (6) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... f Bihar, communicated the decision of the State Government to extend the facilities admissible to Cabinet Minister/Ministers of State to those Chairman of different Boards and Corporations, who had held the office of the Cabinet Minister or Minister of State respectively in the past. Such of the Chairman who had not held the office of Cabinet Minister or Minister of State in the past were also allowed the facilities available to Ministers of State. Annexure 2/A specified the particulars of the facilities of the Minister of State. The petitioner did not hold the office of Cabinet Minister or Minister of State in the past. According to him by virtue of the later part of the above decision contained in Annexure 2, he was entitled to the facili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1956 and governed by its Memorandum of Association and the Articles of Association. Under Article 76 of the Articles of Association the business of the Company is transacted/managed by the Board of Directors subject to the control of the Government. Under Article 72( a ), Subject to the provisions of section 252 of the Companies Act, the Governor is required to determine in writing, from time to time, the number of Directors not less than three and more than nine in number. Under Article 72( d ) the Governor appoints such number of Directors as may be determined from time to time in accordance with the maximum limit fixed under Article 72( a ). The Directors hold the office during the pleasure of the Governor subject to maximum term of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. The resolution only lays down the details of the facilities besides salary and allowances admissible to the Chairman of Boards and Corporation but without individual notification in respect of particular Chairman or Chairmen they are not entitled to the same. The buttress the point reference has been made to Notification No. 909 dated 19-11-1991 in respect of the then Chairman of the Corporation Shri Vishwanath Singh. No such notification was issued in the case of the petitioner and, therefore, he cannot claim the benefits in terms of Annexures 2 and 2/A. 6. The counter affidavit also sets out details of the facilities provided to the predecessor Chairman prior to the petitioner and the petitioner as well. They include the servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xure 2/A at par with the Minister of State are not automatically available to any Chairman of the Board or Corporation unless individual notification was issued. The facilities already provided to the previous Chairman of the Corporation were made available to the petitioner too. 8. In my opinion, what stares at the face of the petitioner is that the appointments of the Directors or Chairman of the Corporation are made under the relevant provisions of the Articles of Association of the Corporation subject to such terms and conditions and upon such remunerations as the Governor may fix under Article 78( a ) of the Articles of Association. No doubt, decision of the Governor under Article 78( a ) or for that matter Article 72 referred to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment of Bihar. It would be useful to quote the relevant part of the judgment in Heavy Engg. Mazdoor Union s case ( supra ) as under: "An incorporated company, as is well-known, has a separate existence and the law recognises it as a juristic person separate and distinct from its members. This new personality emerges from the moment of its incorporation and from that date the person subscribing to its memorandum of association and others joining it as members are regarded as a body incorporated or a corporation aggregate and the new person beings to function as an entity (Cf. Saloman v. Saloman Company 1897 AC 22). Its rights and obligations are different from those of its shareholders... The company so incorporated derives its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rliament certain officials or bodies who are to be treated as agents of the Crown even though they have the power of contracting as principles. In the absence of a statutory provision, however, a Commercial Corporation acting on its own behalf even though it is controlled wholly or partially by a Government department, will be ordinarily presumed not to be servant or agent of the State. The fact that a minister appoints the members or directions of a corporation and he is entitled to call for information, to give directions which are binding on the Directors and to supervise over the conduct of the business of the corporation does not render the corporation as an agent of the Government...." (p. 85) 10. The claim of the petitioner has t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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