K.A. NAGAMANI Vs INDIAN AIRLINES .
Case number: C.A. No.-005314-005314 / 2007
Diary number: 18540 / 2006
Advocates: PETITIONER-IN-PERSON Vs
BINA GUPTA
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
CIVIL APPEAL No. 5314 OF 2007
K.A. Nagamani …Appellant
Versus
Indian Airlines & Ors. … Respondents
J U D G M E N T
B.SUDERSHAN REDDY, J.
This appeal has been filed against the judgment
and order of the High Court of Delhi passed in LPA (C)
No. 1069 of 2004 affirming the judgment of the
learned Single Judge in CWP No. 2338 of 1991.
1
2. Brief facts needed for disposal of this appeal are
as under:
3. The appellant Ms. K.A. Nagamani was appointed
as a Programmer with the Indian Airlines in the year
1984. The designation of the post of Programmer was
changed to that of System Officer in the year 1985.
The appellant was promoted to the next higher post of
Assistant Manager (Systems) in the Department of
Electronic Data Processing (for short ‘EDP’) sometime
in the year 1986 and confirmed in the said post on
15.9.1987. The EDP consisted of four divisions viz.
Software, Hardware, Data Communications and
Computer Operations. Indian Airlines Officers’
Association vide its representations dated 19.9.1990
and 28.9.1990 suggested and requested the
Management to merge the hardware and software
cadres and to prepare a common seniority list. A
2
common seniority list dated 24.9.1990 had been drawn
for the purpose of promotions.
4. Thereafter interviews were held on 15.10.1990 for
the post of Deputy Manager (Maintenance/Systems).
The said post was to be filled from the merged
seniority list of hardware and software cadres. The
Management vide its letter dated 23.11.1990 informed
the appellant and others that their candidatures were
being considered for filling up the post of Deputy
Manager (Maintenance/Systems). Thereafter,
respondent nos. 2, 3 and 4 were selected for the post
of Deputy Manager (Maintenance/Systems). The
appellant unsuccessfully challenged the promotion of
respondent nos. 2 to 4 as the writ petition filed by her
was dismissed and confirmed in Letters Patent Appeal
by the Division Bench of the High Court.
5. The High Court inter alia held that promotion to
the post of Deputy Manager (Maintenance/Systems) is
3
to be on the basis of merit and, therefore, found no
merit in the submission of the appellant that her
juniors (respondent nos. 3 & 4) could not have been
promoted to the said post. That so far as the
promotion of the second respondent is concerned the
Division Bench while confirming the order of the
learned Single Judge found that his promotion had
been upheld by the court in Civil Writ Petition No.
3647/93 titled as Jaidev Chakraborthy & Ors. Vs.
Indian Airlines & Ors. in which the appellant herein
was also arrayed as a party respondent.
6. The main thrust of the submission made by the
appellant in-person was that the promotion to the post
of Deputy Manager (Maintenance/Systems) could not
have been made based on the terms of the settlement
between the Indian Airlines and its Officers’
Association. That all along there has been separate
seniority list of Assistant Managers and Senior
4
Computer Officers in EDP Department of the
Corporation. The respondent no. 2 was on seniority list
of Systems Officers who was promoted as Assistant
Manager (Systems) in 1985 and continued to be borne
on the seniority list of Assistant Manager (Systems) till
1988. Though, he was on the cadre of Systems called
for interview for the post of Senior Computer Officer
(Technical) in 1988 and was illegally shown at sl. no. 1
in the seniority list of Senior Computer Officer. He was
not eligible to be considered for the higher post. That
Rule 4 (d) of the Recruitment and Promotion Rules
provides that within a department, employees will be
divided into kindred occupational groups called cadres
as shown in the annexed schedule to the Rules and
seniority shall be on the basis of such cadres. That the
cadres of Systems and Maintenance being new cadres
have not been shown in the annexed schedule but have
been shown separately on seniority lists. The
submission was: two separate cadres could not have
5
been merged into one based on agreement arrived at
between the Corporation and the Officers’ Association.
It was submitted that settlement arrived at between
the Management and the Officers’ Association is
contrary to the Recruitment and Promotion Rules which
govern the promotions of the officers from the lower
post to the higher post. It was submitted that the
Recruitment and Promotion Rules are statutory in
nature and binding upon the Management. The
agreement/settlement is contrary to the Recruitment
and Promotion Rules.
7. Shri P.S. Narasimha, learned senior counsel
appearing on behalf of the first respondent ably
supported the judgment under appeal and submitted
that the impugned judgment does not suffer from any
errors requiring interference of this court.
6
8. Be it noted, the appellant did not make any
challenge in the writ petition as regards the validity of
the merger of two cadres. She, however, appears to
have raised the dispute for the first time in her
rejoinder affidavit filed in the High Court. There is no
prayer to set aside the settlement arrived at between
the Management and the Officers’ Association of which
she is also a member. It is not as if the appellant was
not aware of the merger of two streams in the EDP
Department and consequent preparation of a combined
seniority list. The appellant was a party- respondent in
writ petition No. 3647/93 in which the same issue as
the one raised by the appellant had fallen for
consideration and the High Court after an elaborate
consideration found nothing wrong with the settlement
and merger of the cadres. The Letters Patent Appeal
no. 75/94 preferred against the said judgment of the
learned Single Judge came to be dismissed because of
7
the non-appearance of the appellant vide order dated
7.5.2001.
9. The main issue that arises for our consideration is
whether the Recruitment & Promotion Rules are
statutory in nature or mere administrative instructions?
The said Rules are issued in exercise of the
powers conferred by Rule 4 read with Rules 8 to 15 of
Indian Airlines (Flying Crew) Service Rules, Indian
Airlines (Aircraft Engineering Department) Service
Rules and Indian Airlines (Employees other than Flying
Crew and those in the Aircraft Engineering
Department) Service Rules. The Air Corporations Act,
1953 (for short ‘the Act’) is an Act to provide for the
establishment of Air Corporations, to facilitate the
acquisition by the Air Corporations of undertakings
belonging to certain existing air companies and
generally to make further and better provisions for the
8
operation of air transport services. The Central
Government by notification established two
Corporations to be known as ‘Indian Airlines’ and ‘Air-
India International’. Under Section 4 of the Act the
general superintendence, direction and management of
the affairs and business of each of the Corporations
vest in a Board of directors which consists of a
Chairman and other Directors appointed by the Central
Government. Section 8 provides for appointment of
officers and other employees of the Corporations. The
appointment of the Managing Director and such other
categories of officers as specified after consultation
with the Chairman shall be subject to such rules and
approval of the Central Government. Section 44 of the
Act, which is crucial for our purpose empowers the
Central Government to make rules to give effect to the
provisions of the Act; in particular, and without
prejudice to the generality, such rules may provide for
all or any of the matters, namely: the terms and
9
conditions of service of the Managing Director of the
two Corporations; and such other categories of officers
as may be specified from time to time under sub-
section (1) of Section 8. The rules so made are
required to be published by notification in the official
gazette. Every rule made under Section 44, shall be
laid as soon as may be after it is made before each
House of Parliament as provided for. Section 45,
confers power on Corporations to make regulations. It
provides that each of the Corporations may subject to
the rules made by the Government, by notification in
the Official Gazette, make regulations not inconsistent
with the Act or the rules made thereunder for the
administration of the affairs of the Corporation and for
carrying out its functions; the regulations inter alia
may provide for the terms and conditions of service of
officers and other employees of the Corporation other
than the Managing Director and officers of any other
categories referred to in Section 44. The regulations
10
made are also required to be placed before each House
of Parliament. The Parliament is entitled to make
modifications.
10. The Indian Airlines Corporation vide its
Notification dated 6th April, 1955 in exercise of the
powers conferred by clauses (b) and (c) of sub-section
(2) of Section 45 of the Act (27 of 1953) with the
previous approval of the Central Government notified
the regulations which have come into force from 1st
January, 1955. The Regulations are called the Indian
Airlines Corporation Employees Service Regulations,
1955. The Regulations deal with the conditions of
service, recruitment, promotion, discipline, control and
appeal, pay and allowances, leave and retirement
benefits of (a) Flying Crew; (b) Aircraft Engineering
and (c) other employees, which shall be respectively as
in the following rules namely:-
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a) The Indian Airlines Corporation (Flying
Crew) Service Rules;
b) The Indian Airlines Corporation (Aircraft
Engineering Department) Service Rules;
c) The Indian Airlines Corporation
(Employees other than Flying Crew and
Aircraft Engineering Department) Service
Rules.
11. Rule 4 of Service Rules for employees other than
the Flying Crew and Aircraft Engineering Department
with which we are concerned provides the Corporation
with a right to modify, cancel, or amend all or any of
these rules or supplementary rules issued in connection
with these rules, without previous notice of their
intention, and the right to give effect thereto
immediately from the time or date of issue. Rule 8
provides for appointments to various posts to be made
by promotion or direct recruitment in accordance with
12
such conditions as the Corporation may determine from
time to time. Rule 14 provides that the employees of
the Corporation will be eligible for promotion to the
higher grade subject to possessing the requisite
educational, technical and other qualifications and is
considered fit in all respects for the promotion.
Promotions normally will be made on the basis of
merit.
12. As noticed herein above the Recruitment and
Promotion Rules were framed in exercise of the powers
conferred under the Regulations referred to herein
above. Be it noted, there is no power vested in the
Corporation to make any rules since Section 44 of the
Act confers power to make rules only in the Central
Government and not in the Corporation. The
Corporation is entitled to make only regulations which
it did and published by way of Notification referred to
herein above dated 6th April, 1955. The Recruitment
13
and Promotion Rules are not even notified in the
Gazette as it is not required whereas the service
Regulations referred to herein above have been
gazetted. The Indian Airlines Corporation Employees
Service Regulations, 1955 which are made in exercise
of the powers conferred upon the Corporation by the
Act are undoubtedly statutory in nature but the
Recruitment and Promotion Rules are not statutory in
their nature. These Rules are not framed in exercise of
any Rule Making Power. Mere administrative rules are
not legislation of any kind. They are in the nature of
statements of policy and the practice of government
departments, statutory authorities, whether published
or otherwise. Statutory rules, which are made under
the provisions of any enactment and regulations,
subject to Parliamentary approval stand on entirely
different footing. The administrative rules are always
considered and have repeatedly been held to be rules
of administrative practice merely, not rules of law and
14
not delegated legislation and they have no statutory
force. Mere description of such rules of administrative
practice as “rules” does not make them to be statutory
rules. Such administrative rules can be modified,
amended or consolidated by the authorities without
following any particular procedure. There are no legal
restrictions to do so as long as they do not offend the
provisions of the Constitution or statutes or statutory
rules as the case may be.
13. In the present case the agreement/settlement
arrived at between the Management and its Officers’
Association has the effect of protanto amending the
Recruitment and Promotion Rules. The Rules and the
agreement/settlement are complimentary to each other
and have to be read together.
14. The decisions, in Sukhdev Singh Vs.
Bhagat Ram Sardar Singh Raghuvanshi [ AIR 1975
SC 1331], B.K. Srinivasan Versus State of
15
Karnataka [ AIR 1987 SC 1059] and Inder Pradash
Gupta Vs. State of Jammu & Kashmir & Ors.
[(2004) 6 SCC 786], in no manner assist the point
urged by the appellant. The High Court having
analysed those decisions came to the right conclusion
that they are not applicable in deciding the issue
whether the Recruitment and Promotion Rules are
statutory in nature? We are in agreement with the
view taken by the High Court. It is unnecessary to
burden this short order of ours with the various
authorities upon which the appellant sought to place
reliance as we have no doubt in our mind whatsoever
that the Recruitment and Promotion Rules are not
statutory in nature.
15. For the aforesaid reasons, we are in complete
agreement with the view taken by the Division Bench
of the High Court and as well as the learned Single
judge in coming to the conclusion that the Recruitment
16
and Promotions Rules do not draw any statutory
flavour from the service Regulations.
16. The next question that requires consideration is
whether the merger of the two cadres is valid?
The Indian Airlines Officers’ Association of which
the appellant is also a member had requested the
Corporation for merger of seniority of the cadres. The
Corporation having considered the representations so
made decided that the software and hardware divisions
of EDP Department should be merged and a common
seniority list should be maintained. It was also decided
that the vacancies of Deputy Manager
(Maintenance/Systems) may be filled up through the
merged cadre of software and hardware where
technically qualified personnel are available. Later,
pursuant to a further request by the Officers’
17
Association, it was decided that the seniority of
software and maintenance cadre be merged.
17. We find it difficult to agree with the contention of
the appellant that the respondents could not have
entered into agreement/settlement with the Indian
Airlines Officers Association and decided to make
promotions/appointments as per the said agreement
contrary to Recruitment and Promotion Rules. It is not
unusual for the Managements to consider the
representation of its Officers’ Association and arrive at
a mutually agreed settlement after negotiations as long
as such settlement does not run counter or contrary to
any statutory instrument. Once it is to be held that the
Recruitment and Promotions Rules are not statutory in
nature but are in the nature of guidelines, there are no
impediments to uphold the merger of software and
hardware cadres into one cadre. Be it noted, the
appellant did not question the merger of cadres in the
18
writ petition filed by her except contending the decision
of the authorities of merger of two cadres into one was
in violation of the Recruitment and Promotion Rules. No
doubt an attempt was made by the appellant to
contend before us that the merger of the two cadres
into one is violative of Articles 14 and 16 of the
Constitution of India. This belated attempt on the part
of the appellant cannot be countenanced and we
cannot entertain any such plea at this stage without
there being any pleadings in that regard in the writ
petition filed in the High Court.
18. The appellant herself relied on number of
recruitments and promotion guidelines issued from
time to time without questioning and challenging the
same. The agreement between the Corporation and its
Officers’ Association including the promotion of 2nd
respondent as noted herein above was subject matter
of the writ petition filed by Joydev Chakraborthy in
19
which the appellant was arrayed as respondent. The
High Court upheld the promotion of the 2nd respondent
as Deputy Manager (Maintenance/Systems) based on
the agreement between Indian Airlines and its Officers’
Association. The High Court upheld the merger of the
two cadres/streams. The judgment of the High Court
attained its finality.
19. Now we proceed to consider the case on merits as
to whether the promotion of the respondent nos. 2, 3
and 4 is not in accordance with law?
The appellant nowhere disputed the fact that
respondent no. 2 – Mr. M.M. Narula is senior to her in
terms of “length of service”. It is apparent from the
record that when seniority of two cadres was merged,
the Senior Computer Officers (Technical/Assistant
Manager (Systems), who had completed two years in
any capacity in any of the divisions were taken into
20
consideration. Respondent No. 2 was initially
appointed as an Assistant Manager (Systems) in the
erstwhile grade 13/14 w.e.f. August, 1985 and later
appointed as Senior Computer Officer (Tech.) which
was also in the same department. The appellant herein
was appointed to the post of Assistant Manager
(Systems) much later to the respondent no. 2 and only
on 5.9.1986. The attack is mounted only on the ground
that the respondent no. 2 belonged to different cadre,
namely hardware cadre and therefore, he was not
eligible to be considered for promotion. It is by virtue
of the agreement/settlement, Senior Computer Officers
(Technical/Assistant Manager (Systems) who had
completed two years in any division – be it hardware or
software, were considered for the post of Deputy
Manager (Maintenance/Systems) and a common
seniority list was prepared. It is on that basis the
Corporation has rightly considered the case of the 2nd
respondent and selected him to the post of Deputy
21
Manager (Systems/Maintenance). There is no
substantial challenge to the decision of merger of
software and hardware cadres into one cadre having
the common seniority list as arbitrary or on the ground
of mala fide on the part of the Corporation. The
challenge is based on violation of the Recruitment and
Promotion Rules about which we have already dealt
with in preceding paragraphs. It needs no restatement
that the authorities are entitled to determine all
conditions of service, alteration thereof by amending
rules, constitution, classification, abolition of posts,
cadres or categories of service, amalgamation or
bifurcation of departments, reconstitution,
restructuring of the pattern etc. as the same pertain to
the field of policy within the exclusive jurisdiction of the
employer, subject to limitations or restrictions
envisaged in the Constitution. “There is no right in any
employee to claim that rules governing conditions of
his service should be forever the same as the one when
22
he entered service for all purposes and except for
ensuring rights or benefits already earned, acquired or
accrued at a particular point of time, a government
servant has no right to challenge the authority of the
State to amend, alter and bring into force new rules
relating to existing service.” (See: P.U. Joshi Vs.
Accountant General [(2003) 2 SCC 632]. The High
Court came to the right conclusion that the promotion
of the respondent no. 2 as Deputy Manager
(Maintenance/Systems) is not vitiated for any reason
whatsoever requiring interference.
20. Now we shall consider the question whether
promotion of respondent no. 3 and 4 was valid?
The selection of respondent no. 3 and 4 by a duly
constituted Selection Committee was made on the
basis of assessment of comparative merit, as per Rules
19 to 22 of the Recruitment and Promotion Rules.
23
Rules 19 to 22 of the Recruitment and Promotion Rules
are as follows:
“19. The recommendations of the Promotion Committees will be passed on to the Competent Authority in the matter of appointments as defined in the ‘Instrument of Delegation of certain powers and Functions I.A.’
20. Promotions will be considered on the basis of suitability-cum-seniority in the grades or inter-linked grade below the grade for which promotions are being considered subject to fitness of the employee being certified by the Sectional/Departmental Head for the employee in the following form:
‘Certified that Shri /Smt. …………………. Designation …………………………. Grade …… …….. in view of his/her integrity/ability is fit to be considered for promotion/selection to scale or pay……… ….’
21. No employee can claim promotion as a matter of right. The advancement of an employee will depend as much on his suitability as on his relative standing with the others eligible for promotion.
22. Promotions to Selection Grade will be on the basis of rigorous selection on merit from amongst the employees in grades or inter-linked grades below the grade concerned and shall be limited to the number of posts declared as such on the cadre
24
according to the sanctioned strength from time to time.”
21. The appointments to the post of Deputy Manager
(Maintenance/Systems) in the present case were
obviously not made on the basis of direct recruitment
but the selection and appointment were made on the
basis of promotion. The list of candidates called for
selection was only of serving employees and no claim
of any outsider was considered. It is evident from a
bare reading of Rule 21, that no employee can claim
promotion as a matter of right. It will depend on one’s
own suitability as on his relative standing with the
others eligible for promotion. Rule 20, provides that
promotions will be considered on the basis of
‘suitability-cum-seniority’ in the grades or inter-linked
grade below the grade for which the promotions are
being considered subject to fitness of the employee
being certified by the Head of the Department. A
combined reading of Rules 20, 21 and 22 makes it
25
abundantly clear that suitability of a candidate for
promotion has to be compared with others eligible for
promotion. Promotion to selection grade is to be on
the basis of ‘selection on merit’ from amongst the
employees in grades or inter-linked grades below the
grade concerned and shall be limited to the number of
posts declared as such on the cadre according to the
sanctioned strength from time to time. Rule 22 is
specific in its terms. It says, in case of ‘selection grade
posts’, the selection is a ‘rigorous selection on merit’.
22. It is not the case of the appellant that her
case was not at all considered for promotion to the
post of Deputy Manager (Maintenance/Systems). It is
clear from the record that the claim of the appellant for
promotion was duly considered along with other
eligible candidates including respondent nos. 3 and 4
who were ultimately found eligible and suitable for
promotion. The Selection Board having assessed the
26
ratings of each of the previous three years’ annual
performance appraisals and performance of the
appellant in the interview found her not suitable for
promotion. The respondent nos. 3 and 4 had
outstanding ratings in their annual performance
appraisals and were found suitable by the Selection
Board. We cannot sit in appeal over the assessment
made by the Selection Board and substitute our own
opinion for that of the Board. In the result, we find the
decision to select and appoint respondent nos. 3 and 4
is not vitiated for any reason whatsoever.
23. The post of Deputy Manager
(Maintenance/Systems) is a an upper managerial post,
which in terms of the existing Recruitment and
Promotion Rules, could be filled either by direct
recruitment or by promotion. If the vacancy was to be
filled up by way of promotion, promotion in such cases
obviously means promotion on the basis of suitability-
27
cum-seniority. The process of selection on the basis of
suitability–cum-seniority is in accordance with the
package of Rules referred to herein above. It is not
necessary in this case to restate and reiterate the
difference between promotion based on seniority-cum-
merit and merit-cum-seniority. The concept is
different. In case of the former, greater emphasis is
laid on seniority, though it is not the determinative
factor, while in the latter, merit is the determinative
factor. (See: K. Samantaray Vs. National Insurance
Co. Ltd. [ (2004) 9 SCC 286].
24. For the aforesaid reasons, we concur with the
view taken by the High Court that seniority alone was
not the determinative criteria for promotion, merit or
comparative merit was also taken into consideration by
the Selection Board and the same is not contrary to law
and guidelines.
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25. Yet another aspect remains to be dealt with. The
appellant made an attempt to challenge the selection
procedure in which 50% marks were reserved for
interview and balance 50% marks on the evaluation of
the annual confidential reports. The High Court in this
regard rightly relied upon the decision in R.S. Parti Vs.
Indian Airlines Corporation & Ors. in W.P. (c) No.
3364/90 dated 31.8.1995 in which the Court took the
view that post of Deputy Manager belongs to upper
managerial cadre and allocation of 50% marks for the
interview and 50% marks on the evaluation of the
ACRs is not arbitrary. In R.S. Parti (supra) reliance
was placed upon the decision of this Court in Indian
Airlines Corporation Vs. Capt. K.C. Shukla & Ors.
[(1993) 1 SCC 17], in which the post of Deputy
Operations Manager was in question and the method of
evaluation was the same as in the present case. In the
said case, this Court held as under:
29
“Law on the proportion between written test and interview or evaluation on confidential entries and personality test have been laid down in a series of decisions by this Court commencing from Ajay Hasia v. Khalid Mujib Sehravardi; Lila Dhar v. State of Rajasthan; Ashok Kumar Yadav v. State of Haryana and State of U.P. v. Rafiquddin. Distinction appears to have been drawn in interview held for competitive examinations or admission in educational institutions and selection for higher posts. Effort has been made to eliminate scope of arbitrariness in the former by narrowing down the proportion as various factors are likely to creep in. But same standard cannot be applied for higher selections. Lila Dhar case brings it out fully. In respondent’s case the personality of the respondent was being judged by a Committee constituted under the rules for purposes of higher promotional posts and, therefore, it was governed by the ratio laid down in Lila Dhar case and it would be unsafe to strike down the rules as arbitrary when the evaluation was job oriented. Marks to be allotted by the Committee were on professional ability and management capacity.”
This authoritative pronouncement of this Court, in our
considered opinion, should put an end to the
controversy raised by the appellant. It is not
necessary to dilate any further on the subject.
30
26. Yet another aspect of the matter: That the
appellant admittedly had participated in the similar
selection process for erstwhile grade 15 and 16,
Manager (Maintenance/Systems) and Senior Manager
(Maintenance/Systems) respectively. The Corporation
had given adequate opportunity to the appellant to
compete with all other eligible candidates at the
selection for consideration of the case of all eligible
candidates to the post in question. The Corporation did
not violate the right to equality guaranteed under
Articles 14 and 16 of the Constitution. The appellant
having participated in the selection process along with
the contesting respondents without any demur or
protest cannot be allowed to turn round and question
the very same process having failed to qualify for the
promotion. In Madan Lal & Ors. Vs. State of J & K
& Ors.[ (1995) 3 SCC 486], this Court observed: “It
is now well settled that if a candidate takes a
calculated chance and appears at the interview, then,
31
only because the result of the interview is not palatable
to him, he cannot turn round and subsequently contend
that the process of interview was unfair: Therefore, the
result of the interview test on merits cannot be
successfully challenged by a candidate who takes a
chance to get selected at the said interview and who
ultimately finds himself to be unsuccessful.” Reference
may also be made to the decision of this Court in
Chandra Prakash Tiwari Vs. Shakuntala Shukla
[(2002) 6 SCC 127].
27. No other point arises for consideration.
However, before parting with the case, we must
make it clear that the appellant in her anxiety to
persuade this Court to set aside the promotion of
respondent nos. 2, 3 and 4 and to secure a writ of
mandamus to grant her seniority, cited number of
32
authorities in her written submissions. On
consideration, we find many of them are not relevant
for the purposes of disposal of this appeal and for that
reason we have relied upon only such of those
judgments which are relevant to decide the appeal.
28. We are unable to grant any relief to the appellant
but appreciate the manner in which the appellant
presented her case before us.
29. The appeal is, accordingly, dismissed with no
order as to costs.
……………………………………J. (Lokeshwar Singh Panta)
……………………………………J. (B. Sudershan Reddy)
New Delhi; March 27, 2009
33