New Delhi (20.03.2026): In a significant legal blow to the MD of a Miniratna CPSE the Delhi High Court on Thursday has effectively gave its nod for removal from service. The 'irony of time' sees Novman Ahmad lose his coveted position at HSCC a full nine years ahead of his 2035 superannuation. Hospital Services Consultancy Corporation Limited (HSCC) is a Mini Ratna Category-I CPSE and a wholly-owned subsidiary of NBCC (India) Limited.
The development marks the conclusion of a high-stakes jurisdictional battle between the administrative ministry and the PSU head, resulting in Ahmad losing his position.
Jurisdictional Overreach:
The case took a decisive turn when the Delhi High Court scrutinized the intervention of the Central Administrative Tribunal (CAT). Ahmad had initially approached the CAT to stay a February 2, 2026 order by the Ministry of Housing & Urban Affairs (MoHUA), which had seized his administrative powers and delegated them to the Chairperson of NBCC in their capacity as Chairman of HSCC.
However, in its March 13 hearing, the High Court observed that the CAT’s stay was legally untenable. As Delhi said that the matter, heard by CAT, did not fall within the ambit of "service matters" as defined under Section 14 of the Administrative Tribunals Act, 1985. By declaring the CAT's order null and void, the court restored the Ministry's executive authority.
Pre-mature Exit:
The timing of the exit is particularly stark. Ahmad, who was slated to complete his five-year tenure on February 23, 2028, has seen his term cut short by two years. More significantly, the veteran executive was not due for retirement until May 31, 2035.
The Ministry’s decision to terminate the MD's services reportedly followed a formal recommendation from the NBCC Board. With the Delhi High Court listing the matter for final disposal on March 19, the administrative transition at HSCC has now been formalized.
Corporate Governance Implications:
Market observers note that the move signals a tightening of oversight by MoHUA over its subsidiary operations. Beyond the loss of his position, Ahmad may now face a departmental enquiry initiated by the administrative ministry.
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