Delhi HC upholds preference given to CA over CMA in Job appointment in Indian Oil

The Delhi High Court dismissed a plea brought by an IOC officer contesting the selection procedure, bringing the legal matter that had delayed the appointment of Director (Finance) at Indian Oil Corporation (IOC) to an end. The Delhi High Court affirmed the priority given to Chartered Accountants (CA) over Cost Accountants for recruitment to the post of Director (Finance) at Indian Oil in a judgement dated August 24 and dismissed the suit brought by Ruchir Agarwal, a Chief General Manager (CGM) at IOC.

“On a quick review of the aforementioned paragraph, it is evident that there is a contrast between the job and responsibilities of Chartered Accountants and Cost Accountants… As a result, it is established that Chartered Accountants are regarded differently from Cost Accountants under several laws, and there can be no prohibition on the authorities treating them differently,” the Delhi High Court noted in its decision. The decision clears the way for Anuj Jain to be appointed Director (Finance) at Indian Oil.

Chartered Accountants are more suited to the position of Director (Finance): HC

The court said unequivocally that Chartered Accountants are better fit for the position of Director (Finance) due to the nature of their work.

“The Director (Finance) oversees the financial administration of the company, including accounting and finances, inventories, income tax, audit assurance, and so on. Chartered Accountants are the finest candidates for the job since Cost Accountants solely supervise the company’s spending. The Cost Accountants’ work is also confined to overseeing expense reports and analyzing data pertaining to the company’s purchases. When the nature of the job is compared, it is evident that Chartered Accountants are better suited to execute the job since it needs not only the supervision of costs but also the management of audits, budgets, and financial advice. As a result, Chartered Accountants are more qualified for the position in the responding Organisation.” the court observed in the judgment.

“Thus, it is crystal clear from the preceding discussion that the Cost Accountants and the Chartered Accountants cannot be similarly placed for the appointment to the post of Director (finance) in the respondent Organisation, and treating them differently does not amount to discrimination and violation of fundamental rights as enshrined in the Indian Constitution,” the Delhi High Court stated.

“Therefore, on the establishment that no prejudice was caused to the petitioner by preferring Chartered Accountants over Cost Accountants, and the classification as created for the post of Director being well within the bounds of the respondent Body, this Court is inclined to answer the issue in favour of the respondents and against the petitioners,” the court stated.

PSUs must hire better-qualified individuals for operations: Delhi HC

While dismissing Agarwal’s suit against the advantage given to CA applicants over Cost Accountants in the appointment of Director (Finance) at Indian Oil, the court stated-

“Therefore, in light of the foregoing discussion and the settled principle of law, this Court does not find any compelling reasons to get into the decision made by the expert committee as it is assumed that the experts looked into all aspects relating to the selection process and then decided to prefer the Chartered Accountants over Cost Accountants and this subissue is also answered in favour of the respondents.”

“The CPSEs have been entrusted with the task of working efficiently and profitably for the government. To that end, the respondent Body must designate more suitable persons to administer and monitor the activities of the aforementioned businesses. As a result of the foregoing review of facts and law, this Court finds no compelling reasons to give relief to the petitioner. As a result, the instant petition is without merit and is dismissed,” the court concluded.

Agarwal applied for the post of Director (Finance), but he was not called in for an interview since he was a Cost Accountant. He then challenged his candidature for the interview round, claiming that he met the qualification criteria, and he questioned the ‘qualification’ clause added to the Job Description for the post of Director (Finance) in CPSEs, which gives preference to Chartered Accountants over Cost Accountants.

The applicant had requested permission from the court to participate in the interview for the position of Director (Finance) at Indian Oil. However, Jain was chosen for the coveted post at Indian Oil by the public sector headhunter organisation, Public Enterprises Selection Board (PESB).

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