The Bill was moved following a Delhi High Court ruling of March 29, 2007 which held that the appointment to the director’s post was a tenure appointment and cannot be curtailed except for justifiable reason and with prior notice to the director.
The court had then also directed the Centre and the AIIMS’s governing body to formulate a policy covering the various facets and conditions of service of its employees, including the director, in accordance with law and to uniformly apply such policy in the future.