THE HONOURABLE SRI JUSTICE GHULAM MOHAMMED WRIT PETITION No.2034 of 2000 ORDER: This writ petition is filed seeking the following reliefs: - (a) declare the instructions of the Life Insurance Corporation of India Employment of Class-III and Class-IV Instructions, 1993, dated 25.02.1992 and the Life Insurance Corporation of India Employment of Temporary Staff Instructions, 1993, dated 28.06.1993, as illegal, arbitrary, unconstitutional, without jurisdiction and violative of the provisions of Sections 48 and 49 of Life Insurance Corporation of India Act, 1956; (b) declare that the action of the respondents herein seeking to make selections on the basis of the examinations conducted in December, 1996 pursuant to the notification issued in July, 1996, as illegal, unconstitutional and violative of Articles 14, 16 and 21 of the Constitution of India; (c) direct respondent No.1 herein to frame Recruitment Rules (which include transfers and absorption) pertaining to the staff of Life Insurance Corporation (Class-III and Class-IV) by exercising powers contained in Section 48 of the Life Insurance Corporation Act, 1956, by issuance of writ, order or directions, essentially in the nature of writ of Mandamus. The case of the petitioner-South Central Zone Life Insurance Employees Congress, as averred in the affidavit, filed in support of the writ petition, is as follows: - The Management of the Life Insurance Corporation of India, Divisional Office, Hyderabad got an employment notice published in the local newspapers calling for applications for the post of sub-staff (Peon) in the offices under the jurisdiction of Hyderabad and Secunderabad Divisions and the Zonal Office, Hyderabad cancelling the earlier employment notice published in the newspapers on 01.10.2991, for the recruitment of sub- staff (Peon). A fresh notification in July, 1996 was issued calling for the applications from Indian citizens for the same posts for these offices. The recruitment advertisement, dated 01.10.1991, seeks to fill up 200 vacancies, whereas the Advertisement of July, 1996 seeks only employment of 400 vacancies. The probable date for the pre-recruitment test has been fixed on 03.11.1996. However, the examination was held in December, 1996. The reasons for not holding examination in pursuance of Advertisement dated 01.10.1991 and trying to hold examination in the light of the advertisement of July, 1996 are only in the knowledge of L.I.C., and are inexplicable. That, since 1991 onwards, the members of the petitioner- Union are working without any break till date. The holding of examination by the L.I.C. in the month of December, 1996 has cast a shadow on the hopes of the members of the petitioner- union. The petitioner union advised their members not to take the examination conducted by the L.I.C., in December, 1996, for the reason that they were selected from the lists supplied by the employment exchanges, a mode, which is well recognised under the law. It is stated that the second advertisement issued in July, 1996 is mischievous and was issued with a mala fide intention to defeat the legitimate claims of those employed through the employment exchange. That Life Insurance Corporation of India (for brevity ‘LIC’), framed “L.I.C. Recruitment (of Class III and Class IV) Staff Instructions, 1979” vide their Circular No. ZD/492/ASP/79, dated 27.11.1979. The said circular details the procedure to be followed for recruitment of Class-III and IV staff and the instructions issued by the Chairman had the approval of the Board of LIC. In the year 1993, these instructions were substituted by “L.I.C. of India Recruitment (of Class III and Class IV) Staff Instructions” vide their Circular No. ZD/1/1993, Dated 25.02.1993. The LIC also issued “Life Insurance Corporation of India (Employment of Temporary Staff) Instructions, 1993 on 28.06.1993. The petitioner submits that the two circulars issued in the year 1993 are ultra vires of the provisions of the Act and therefore, bad in law and hence, fit to be declared null and void. That the petitioner-Union submits that the Chairman has no power to make regulations determining the promotional policy or the method of recruitment or promotion, a power which expressly vests with the Corporation. Under the grab of directions and instructions, the Chairman cannot lay down regulations regarding the said aspects. As such, all such circulars issued by the Chairman were not stated to be the administrative instructions coming strictly within the purview of Regulation 4 of Staff Regulations, 1960 and are not consistent with the said Regulation. It is further stated that Regulation 8 of the Staff Regulations, confers arbitrary powers on the Corporation to employ and terminate, without assigning any reasons, any number of persons in the capacity of temporary employees. But, as no guidelines are prescribed to guide the Corporation in respect of exercise of power under Regulation 8 of the Staff Regulations, the same is being misused by the Corporation. It is further averred that the Corporation is now contemplating to go ahead with the selection and appointments after holding the examinations in December, 1996 and if the said process is undertaken, the same would cause irreparable loss to the members of the petitioner-union. Hence, the present writ petition is filed seeking the aforementioned reliefs. In the counter-affidavit filed by respondents 1 to 5, it is averred that earlier also, in the name of Insurance Corporation Employee’s Congress, a writ petition being W.P.No.429 of 1997 was filed with a prayer not to proceed with the recruitment without regularizing the temporary employees. The said writ petition was heard and dismissed by a learned single judge of this Court by an order, dated 29.12.1997. As against the dismissal of the said writ petition, the Employees’ Association filed W.A.No.22 of 1998 and a Division Bench of this Court dismissed the same by its judgment, dated 04.02.1998. Further, it is also averred that W.P.No.23458 of 1998 was filed by 99 temporary employees for regularization and absorption before any recruitment on regular basis is made by test and interview, etc. The same was also dismissed by a learned single judge of this Court on 16.08.1999. As against the said judgment, W.A.No.1091 of 1999 was filed, which was disposed of on 16.08.1999 with a direction to the Life Insurance Corporation of India to frame a scheme for regularization of the appointment of the appellants-petitioners numbering 99 and regularize their services in accordance with the scheme. The matter was carried in appeal before the Supreme Court in S.L.P.No.17391 of 1991 by the L.I.C., and the Supreme Court of India by its order, dated 13.12.1999 stayed the operation of the said order of this Court and the main case is pending as such before the Supreme Court. Learned counsel for the petitioner contended that Life Insurance Corporation Act, 1956 (for short ‘the Act’) is a central piece of legislation and as such, any amendment or modification, etc of the rules and regulations concerning to L.I.C. are subject to the prior approval of the Central Government and it also mandatory that they are to be laid before the house of parliament for its agreement. Learned counsel has also drawn our attention to Section 49 of the Act. Section 49 of the Act deals with the power to make regulations. Section 49 of the Act reads as under: - “The Corporation may, with the previous approval of the Central Government, by notification in the Gazette of India, make regulations not inconsistent with this Act and the rules made thereunder to provide for all matters for which provision is expedient for the purpose of giving effect to the provisions of this Act. (2) In particular, and without prejudice to the generality of the fore-going power, such regulations may provide of- (b) The method of recruitment of employees and agents of the Corporation.” Apart from that, she has also drawn our attention to the employment notice published in the newspaper on 22.07.1996 and contended that the same was issued without following the procedure contemplated under the Act. Learned counsel further contended that the regulations impugned herein are issued without the previous approval of the Central Government and the procedure laid down was not followed. The Chairman of the Corporation on his own accord has framed these regulations and Regulation 4 of the Staff Regulation, 1960 is not in accordance with the spirit of the Act and hence, she prayed this Court to allow the writ petition. Learned Standing Counsel for Life Insurance Corporation of India rebutted the said contentions of the learned counsel for the petitioner and reiterated the averments made in the counter- affidavit. He further contended that the prayer in this writ petition is same that of the relief sought for in W.P.No.429 of 1997, which was dismissed by this Court and the said verdict was upheld by a Division Bench of this Court in the W.A.No.22 of 1998. He further contended that the SLP filed by the Life Insurance Corporation of India before the Supreme Court against the judgment in the said W.A. is pending consideration, nevertheless interim stay was granted therein. Thus, he contends that in the above background, the present writ petition is not maintainable and is liable to be dismissed. Apropos the submissions of the learned counsel appearing on either side, this Court looked into Section 48 of the Act. Section 48 (1)(cc) of the Act reads as under: - “The Central Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act. The terms and conditions of service of the employees and agents of the Corporation, including those who became employees and agents of the Corporation on the appointed day under this Act.” Section 48(j) of the Act reads as under: - “The conditions subject to which the Corporation may appoint employees.” Thus, from a reading of the aforesaid Sections, it is evident that the power is conferred on the Corporation to frame regulations of the L.I.C. However, the said power is subject to the prior approval of the Central Government and the rules, as such, soon after they are made have to be laid before House of the Parliament while it is in session, both the Houses agree in making any modification in the regulation or not agree that Regulations should be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be. In the instant case, the Chairman of the Corporation has issued the proceedings impugned herein which relates to recruitment of Class-III and Class-IV employees in L.I.C. In other words, the circular No.ZD/492 /ASP/79, dated 27.11.1979, which gives the procedure to be followed for recruitment of Class-III and Class-IV staff, is allegedly without obtaining the prior approval from the Central Government and has to be laid before the House of the Parliament, as envisaged in Sections 48 and 49 of the Act. Nothing is placed before this Court to show as to whether the said procedure was followed before issuance of the Life Insurance Corporation of India Employment of Temporary Staff Instructions, 1993 or Life Insurance Corporation of India Employment of Class-III and Class-IV Instructions, 1993. For the foregoing reasons and in the circumstances of the case, the writ petition is allowed and that there shall be a direction to the Life Insurance Corporation to follow Sections 48 and 49 of the Act and act in accordance with law. There shall be no order as to costs. ______________________________ JUSTICE GHULAM MOHAMMED 02nd December 2010 DR