The Karnataka High Court has recently stayed the Centre’s notification regarding the shortlisting of a candidate for the post of Director (Production) of NMDC Limited.
A single judge bench of Justice S.R. Krishna Kumar, in its order dated June 4, issued a notice to the Central government through the Public Enterprises Selection Board (PESB), Ministry of Steel, and National Mineral Development Corporation (NMDC).
“The impugned Communication dated 27.05.2024, in so far it relates to Satyender Rai is stayed, till the next date of hearing, said the court,” the order read.
The orders came on a plea filed by Satyendra Rai, a shareholder of NMDC, who alleged that the requisite procedure for the appointment had not been followed and that the rules had been flouted.
The petitioner further submitted that, he being one of the shareholders, has locus standi to question the illegal and arbitrary action and procedure that is being resorted to and followed by the executive i.e., Public Enterprises Selection Board and Ministry of Steel.
He also contended that if an ineligible, disqualified, or inexperienced person naïve to mining and production of minerals is appointed as director, the company would suffer huge losses resulting in loss to its shareholders.
Advocate BG Nayantara appeared for the Centre, while Advocate S. Nagananda represented the petitioner.
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