Explanation:

The Chief Justice of India and the Judges of the Supreme Court (SC) are appointed by the President under clause (2) of Article 124 of the Constitution. 

• As far as the CJI is concerned, the outgoing CJI recommends his successor.
• The Union Law Minister forwards the recommendation to the Prime Minister who, in turn, advises the President.
• SC in the Second Judges Case (1993), ruled that the senior most judge of the Supreme Court should alone be appointed to the office of the CJI. 
• The Supreme Court collegium is headed by the Chief Justice of India and comprises four other senior most judges of the court.
• The collegium system is the system of appointment and transfer of judges that has evolved through judgments of the Supreme Court (Judges Cases), and not by an Act of Parliament or by a provision of the Constitution.

Hence only statement 1st is correct.