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1975 DIGILAW 27 (DEL)

SUKHDEV SINGH v. BHAGAT RAM

1975-02-21

A.ALAGIRISWAMI, A.C.GUPTA, A.N.RAY, K.K.MATHEW, Y.V.CHANDRACHUD

body1975
( 51 ) THE Industrial Finance Corporation is a body corporate. The authorised capital of the Corporation shall be ten crores of rupees divided into twenty thousand fully paid up shares of five thousand rupees each Ten thousand shares of the total value of five crores of rupees shall be issued in the first instance. The remaining shares may be issued with the sanction of the Central Government. Of the capital issued in the first instance, the Central Government and the Reserve Bank of India shall each subscribe for two thousand shares. Scheduled banks may subscribe for two thousand five hundred shares. Insurance companies, investment trusts and other like financial institutions for two thousand five hundred shares and cooperative banks for one thousand shares of the Corporation. It is significant that ordinary citizens cannot be shareholders. All shares of the Corporation held by the Central Government and the Reserve Bank of India shall stand transferred to and vest in the Development Bank. As compensation therefor, the Development Bank shall pay to the Central Government and to the Reserve Bank respectively the face value of the shares held by that Government and by that Bank. The shares of the Corporation shall be guaranteed by the Central Government as to the re-payment of the principal and the payment of the annual dividend at such minimum rate as may be fixed by the Central Government by notification. The Development Bank means the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964. ( 52 ) THE Chairman of the Corporation shall 'be appointed by the Central Government. Four Directors are nominated by the Development Bank; two directors are nominated by the Central Government: two directors are elected by Scheduled Banks; two directors are elected by shareholders of the Corporation other than the Development Bank, Scheduled Banks and the co-operative banks; two directors are elected by co-operative banks. The Central Government may remove the Chairman. Four Directors are nominated by the Development Bank; two directors are nominated by the Central Government: two directors are elected by Scheduled Banks; two directors are elected by shareholders of the Corporation other than the Development Bank, Scheduled Banks and the co-operative banks; two directors are elected by co-operative banks. The Central Government may remove the Chairman. ( 53 ) WHERE any industrial concern which is under a liability to the Corporation makes any default in repayment or otherwise fails to comply with the terms of the agreement with the Corporation, the Corporation shall have the right to take over the management or possession or both of the concern as well as the right to transfer by way of lease or sale and realise the property, pledged, mortgaged, hypothecated or assigned to the Corporation. ( 54 ) THE Corporation shall furnish to the Central Government statement of assets and liabilities at the close of the year together with profit and loss account and a report of the "working of the Corporation and the report shall be published in the Official Gazettee and shall be laid before Parliament. No provision of law relating to the winding up of companies or corporations shall apply to the Corporation. The Corporation shall not be placed in liquidation save by order of the Central Government. ( 55 ) THE superintendence and the affairs of the Corporation shall be entrusted to a Board. In the discharge of functions, the Board shall be guided by the Development Bank. If any 'dispute arises between the Development Bank and the Board, the dispute shall be referred to the Central Government whose decision shall be final. The Central Government shall have. the power to supersede the Board and appoint a new Board in its place to function until a properly constituted Board is set up. ( 56 ) THE Corporation may invest funds in the securities of the Central Government or of any State Government and may with the approval of the Central Government contribute to the initial capital of the Unit Trust of India. The Corporation may also subscribe to or purchase the shares of any financial institution which the Central Government in consultation with the Development Bank may notify in this behalf. The Corporation may issue and sell bonds and debentures. The Corporation may also subscribe to or purchase the shares of any financial institution which the Central Government in consultation with the Development Bank may notify in this behalf. The Corporation may issue and sell bonds and debentures. Bond and debenture of the Corporation shall be guaranteed by the Central Government as to the re-payment of the principal and the payment of interest. ( 57 ) THE Central Government may issue directions to auditors requiring them to report to it upon the adequacy of measurers taken by the Corporation for the protection of its share holders and creditors. The Central Government may appoint the Comptroller and Auditor General of India to examine and report upon the accounts of the Corporation and expenditure. Every audit report shall be forwarded to the Central Government and the Government shall cause the same to be laid before both Houses of Parliament. ( 58 ) THE Central Govt. may decide to acquire the shares held by the shareholders other than the Development Bank. The shareholders shall be paid for the shares so acquired an amount equal to the paid up value of the shares together with a premium calculated at the rate of one per cent of the paid up value for every year from the date of issue to the date of acquisition subject to a maximum of ten per cent. After the acquisition of the shares, the Central Government shall transfer the shares to the Development Bank, that Bank paying an amount equal to the amount paid by the Central Government for such acquisition, the Central Government may direct that the entire undertaking of the Corporation shall stand transferred to and vest in the Development Bank. ( 59 ) THESE provisions of the Industrial Finance Corporation Act show that the Corporation is in effect managed and controlled by the Central Government. ( 60 ) THE Oil and Natural Gas Commission is owned by the Government. It is a statutory body and not a company. The Commission has the exclusive privilege of extracting petroleum. The management is by the Government. It can be dissolved only by the Government. . ( 61 ) THE Life Insurance Corporation is owned by the Government. The Life Insurance business is nationalised and vested in the Corporation. No other insurer can carry on life insurance business. The management is by the Government. The management is by the Government. It can be dissolved only by the Government. . ( 61 ) THE Life Insurance Corporation is owned by the Government. The Life Insurance business is nationalised and vested in the Corporation. No other insurer can carry on life insurance business. The management is by the Government. The dissolution can be only by the Government. ( 62 ) THE Industrial Finance Corporation is under the complete control and management of the Central Government. Citizens cannot be shareholders. Certain specified institutions like Scheduled Banks, Insurance Companies, Investment Trusts and Co-operative Banks may apply for the shares. The Central Government may acquire shares held by shareholders other than the Development Bank. After such acquisition, the Government may direct that the entire undertaking of the Corporation shall be vested in the Development Bank. The Corporation cannot be dissolved except by the Government. ( 63 ) IN the background of the provisions of the three Acts under consideration, the question arises as to whether these corporations can be described to be authorities within the meaning of Article 12 of the Constitution. In the Rajsthan Electricity Board case, (1967) 3 SCR 377 = ( AIR 1967 SC 1857 ) it was said that the power to give directions, the disobedience of which must be punishable as a criminal offence would furnish one of the reasons for charateris- ing the body as an authority within the meaning of Article 12. The power to make rules or regulations and to administer or enforce them would be one of the elements of authorities contemplated in Article 12. Authorities envisaged in Article 12 are described as instrumentalities of State action. On behalf of the State it was contended that the Oil and Natural Gas Commission as well as Industrial Finance Corporation was not granted immunity from taxation and therefore the liability to be taxed would indicate that the Corporation was not a State authority. Reference is made to Article 289 which speaks of exemption of property and income of a State from Union taxation. The liability to taxation will not detract from the Corporation being an authorty within the meaning of Art. 12. Article 289 empowers Union to impose tax in respect of trade or business carried on by or on behalf of a State. The liability to taxation will not detract from the Corporation being an authorty within the meaning of Art. 12. Article 289 empowers Union to impose tax in respect of trade or business carried on by or on behalf of a State. ( 64 ) THE Oil and Natural Gas Commission Act confers power of entry on employees of the Commission upon any land or premises for the purpose of lawfully carrying out works by the Commission. The members and employees of the Commission are public servants within the meaning of Section 21 of the Indian Penal Code. The Commission enjovs protection of action taken under the Act. ( 65 ) THE Life Insurance Act provides that if any person lawfully withholds or fails to deliver to the Corporation any property which has been transferred to and vested in the Corporation or wilfully applies them to purposes other than those expressed or authorised by the Act, he shall, on the complaint of the Corporation be punishable with imprisonment which may extend to one year or with fine which may extend to one thousand rupees or with both. The Corporation also enjoys protection of action taken under the Act. ( 66 ) THE Industrial Finance Corporation Act states that whoever in any bill of lading,. warehouse receipt or other intrument given to the Corporation whereby security is given to the Corporation for accommodation granted by it wilfully makes any false statement or knowingly permits any false statement to be made shall be punishable with imprisonment for a term which may extend to 2 years or with fine which may extend to two thousand rupees or with both. Further whoever without the consent in writing of the Corporation uses the name of the Corporation in any prospectus or advertisement shall be punishable with imprisonment for a term which may extend to six months or one thousand rupees or with both. The Corporation enjoys protection of action. taken under the Act. A company incorporated: under the Indian Companies Act does not enjoy these privileges. ( 67 ) FOR the foegoing reasons, we hold" that rules and regulations framed by the Oil and Natural Gas Commission, Life Insurance Corporation have the force of law. The employees of these statutory bodies have a statutory status and they lare entitled to declaration of being in employment when their dismissal or removal is in contravention of statutory provision. ( 67 ) FOR the foegoing reasons, we hold" that rules and regulations framed by the Oil and Natural Gas Commission, Life Insurance Corporation have the force of law. The employees of these statutory bodies have a statutory status and they lare entitled to declaration of being in employment when their dismissal or removal is in contravention of statutory provision. By way of abundant caution we state that these employees are not servants of the Union or of the State. These statutory bodies Are "authorities'' within the meaning of Article 12 of the Constitution. [mathew, J. wrote a separate but concurring judgement. Algiri Swami, J. wrote a dissenting judgement. ] Appeals were decided according to majority opinion. A. N. Ray, C. J ( 1 ) THERE are two questions for consideratson in these appeals. First, whether an order for removal from service contrary to regulations framid under the Oil and Natural Gas Commmission Act, 1959 ; the Industrial Finance Corporation Act. 1943 ; and the Life Insurance Corporation Act. 1956 would enable the empployees to a declaration against the statutory corporation of continuance in service or would only give rise to a claim for damages. Second, whether an employee of statutory corporation is entitled to claim protection of Articles 14 and 16 against ths Corporation. In short the question is whether these statutory corporations are authorities within the meaning of Article 12. ( 2 ) THE statutes for consideration are the Oil and Natural Gas Commission Act, 1959 ; the Industrial Finance Corporation Act, 1948 ; and the Life Insurance Corporation Act,k 1956. The question which really falls for decision is whether regulations framed under these statues have the force of law. ( 3 ) THE Oil and Natural Gas Commission Act, 1959 hereinafter referred to as the 1959 Act established the Commission a body corporate having perpetual succession and a common seal. The composition of the Commmission is the Chairman, and not less than two, and not more than eight, other members appointed by the Central Government. One of the members shall be a whole-time. Finan Member in charge of the financial matters relating to the Commission. The Central Government may if it thinks fit, appoint one of the members as Vice-Chairman of the Commission. One of the members shall be a whole-time. Finan Member in charge of the financial matters relating to the Commission. The Central Government may if it thinks fit, appoint one of the members as Vice-Chairman of the Commission. Under Section 12 of the 1959 Act the Commission may, for the purpose of performing its powers, appoint such number of employees as it may consider necessary. The function and the terms and conditions of service of such employees shall be such as may be provided by regulations made under the 1959 Act. There was an existing organisation set up in pursuance. of a resolution of the Government of India No. 22/29/55-C and G dated 14 August, 1956. Every person employed by the said existing organisation before the establishment of the Commission became an employee of the Corporation in accordance with the provisions contained in Section 13 of the 1959 Act. ( 4 ) SECTION 31 and 32 of the 1959 Act are important. Section 31 states that the Central Government may, by notification in the Official Gazette, make rules to give effect to the provisions of the Act. The rules provide inter alia tor the term of offce of, and the manner of filling casual acancies among tie members, and their conditions of service : the disqualifications for membership of the Commission and the procedure to be followed in removing a member who is or becomes subject to any disqualification ; the procedure to be followed in the discharge of functions by members ; the condition subject to which contract may be entered into by or on behalf of the Commission and some other matters. Every rule made under Section 31 of the 1959 Act shall be laid as soon as may be before each House of Parliament as mentioned in the section. Both Houses may agree to or annul the rule 01 modify it. ( 5 ) UNDER Section 32 of the 1959 Act the Commission may, with the previous approval cf the Central Government, by notification in the Official Gazette, make regulations not in consistent with the Act and the rules made thereunder, for enabling it to discharge it function under the Act. ( 5 ) UNDER Section 32 of the 1959 Act the Commission may, with the previous approval cf the Central Government, by notification in the Official Gazette, make regulations not in consistent with the Act and the rules made thereunder, for enabling it to discharge it function under the Act. The regulations pro vide inter alia for the terms and conditionsof appointment and service and the scales of pa of employees of the Commission ; the time an place of meetings of the procedure to be follow ed in regard to the transaction of business at such meetings ; the maintenance of minutes of meetings of the Commission and the tranmission of copies thereof to the Centr Government ; the persons by whom, and the manner in which payments, deposits and invesstments may be made on behalf of the Cornmission : the custody of moneys required and the ,. maintenance of accounts. The Central Government may amend, vary or rescind any regulation which it has approved, and thereupon t regulation shall have effect accordingly I without oreiudice to the exercise of the powi of the Commission under sub-section (1) of Section 32. ( 6 ) THE Life Insurarce Corporation Act, 1956 hereinafter referred to as the 1956 Act established tie corporation under section 3 of the Act. Under Section 11 of the 1956 Act existing employees of an insurer whose controlled business was transferred to and vested in the Corporation and who were employed by the insurer wholly or mainly in connection with his controlled business immediately before the appointed day became from the appointed day employees of the Corporation. Section 11 of the 1956 Act further states that the employees of the Corporation would told office upon the same terms and with the same rights and duties as they would have held on the appointed day. These employees were further to continue under the 1956 Act unless and until their employment was terminated or until the remuneration, terms and conditions were duly altered by the Corporation. ( 7 ) THE two important sections of 1956 Act are Sections 48 and 49. Section 48 states that the Central Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act. ( 7 ) THE two important sections of 1956 Act are Sections 48 and 49. Section 48 states that the Central Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act. The rules inter alia provide for the term of office and the conditions of service of members ; the jurisdiction of the Tribunals constituted under Section 17 of the Act, the manner in which and the persons to whom, any compensation under this Act may be paid ; the conditions subject to which the Corporation may appoint employees. All rules made shall be laid as stated in the section before both Houses of Parliament and shall be subject to such modification as Parliament may- make. ( 8 ) SECTION 49 of the 1956 Act states that the Corporation may, with the previous approval of the Central Government, by notifica tion in the Gazette of India, make regulations - not inconsistent with the Act and the rules. 1 made thereunder to provide for all matters for s which provision is expedient for the purpose of " giving effect to the provisions of this Act. The - regulations may provide inter alia for the powers and functions of the Corporation which may be delegated to the Zonal Managers ; the - method of recruitment of employees and agents. of the Corporation and the terms and conditions of service of such emyloyees or agents ; -s the terms and conditions of service of persons who have become employees of theCorporation under Section 11 of the Act; the number, term of office and conditions of service of members of Boards constituted under Sec. 22 of the Act; the manner in which the Fund of the Corporation shall be maintained ; the form and manner in which policies may be issued and contracts binding on the Corporation may be executed. ( 9 ) THE Industrial Finance Corporation Act, 1948 hereinafter referred to as the 1948 Act establishes ths Corporation under Section 3 of. the Act. The superintendence of the business of the Corporation shall be entrusted to a Board of Directors. ( 9 ) THE Industrial Finance Corporation Act, 1948 hereinafter referred to as the 1948 Act establishes ths Corporation under Section 3 of. the Act. The superintendence of the business of the Corporation shall be entrusted to a Board of Directors. Section 42 of the 1948 Act enacts that the Central Gouernment may make rules in consultation with the Development Bank not inconsistent with the provisions of this Act and to give effect to the provisions of the Act and where there is any inconsistency with rules and regulatians the rules shall prevail. The rules under the Act are to be laid before each House of Parliament in the same manner as in the Oil and Natural Gas Commission Act. Section 43 of the 1948 Act enacts that the Board may with the previous approval of the Development Bank make regulations not inconsistent with the Act and the rules made thereunder to provide for all matters for which provision is necessary or expendient for the purpose of giving effect to the provisions of this Act. The Development Bank means the industrial Development Bank established under the Industrial Development Act, 1964. The shares of the Central Government in the Corporation shall stand transferred to the Development Bank when the Central Government shall so notify. Ths regulation provide inter alia for the holding and conduct of elections under this Act including the final decision of doubts or disputes regarding the validity of ths election; the manner in which and the conditions subject to which ths shares of the Corporation may be held and transferrel; the manner in which. general msstings shall bs convened, the procedure to b2 followed thereat; ths duties and conduct, salaries, allowances and conditions of ;service of officers and other employees and of advisers and agents of the Corporation. ( 10 ) THE contentions on behalf of the State are these. Regulations are framed under powers given by the statute affecting matters of internal management. Regulations do not have a statutory binding character. Terms and conditions of employment as laid down in the regulations are not a matter of statutory obligations. Regulations are binding not as law but as contract. Regulations have no force of law. Regulations provide the term? and conditions of employment and thereafter the employment of each person is contractual. ( 11 ) THE contentions on behalf of the employees are these. Regulations are binding not as law but as contract. Regulations have no force of law. Regulations provide the term? and conditions of employment and thereafter the employment of each person is contractual. ( 11 ) THE contentions on behalf of the employees are these. Regulations are made under the statute. The origion and source of the power to make regulations is statutory. Regulations are self binding in character. Regulations have the force of law inasmuch as the statutory authorities have no right to make any departure from the regulations. ( 12 ) RULES, Regulations, Schemes. By-laws, orders made under statutory powers are all comprised in delegated legislation. The need for delegated legislation is that statutory rules are framed with care and minuteness when the statutory authority making the rules is after the coming into force of the Act in a better position to adapt the Act to special circumstances. Delegated legislation permits utilisation of experience and consultation with interests affected by the practical operation of statutes. ( 13 ) IN England the Statutory Instruments (Confirmatory Powers) Orders in Council or other instruments which are described as orders. Ths Rules Publication Act 1893 in England defines "rule making authority" to include every authority authorised to make any statutory rules. Statutory rules are defined there as rules, regulations or by-laws made under any Act of Parliamsnt, in England. Orders are excluded from the statutory definition of statutory rules as being administrative. In England regulation is the term most popularly understood and the one favoured by the Committee on Ministers Powers, who suggested that regulations should be used for substantive law and rules for procedural law, while orders should be reserved to describe the exercise of executive power or the taking of a judicial or quasi judicial decision (See Crates on Statute Law, 7th Ed. at P. 303 ). The validity of statutory instruments is generally a question of vires, i. e. , whether or not the enabling power has been exceeded or otherwise wrongfully exercised. ( 14 ) SUBORDINATE legislation is made by a person or body by virtue of the powers conferred by a statute. By-laws are made in the main Toy local authorities of similar bodies or by statutory or other undertakings for regulating the conduct of persons within their areas or resorting to their undertakings. ( 14 ) SUBORDINATE legislation is made by a person or body by virtue of the powers conferred by a statute. By-laws are made in the main Toy local authorities of similar bodies or by statutory or other undertakings for regulating the conduct of persons within their areas or resorting to their undertakings. Regulations may -determine the class of cases in which the exercise of the statutory power by any such authority constitutes the making of statutory :rule. ( 15 ) THE words "rules" and "regulations". are used in an Act to limit the powers of statutory bodies are derived, controlled and restricted by the statutes which create them and the rules and regulations framed thereunder. Any action of such bodies in excess of their powers or in violation of the restrictions placed on their powers is ultra vires. The reason is that it goes to the root of the power of such corporations and the declaration of nullity is the only relief that is granted to the aggrieved party. ( 16 ) IN England subordinate legislation has, if validly made, the full force and effect of a statute, but it differs from a statute in that its validity whether as respects form or substance is normally open to challenge in the Courts. ( 17 ) SUBORDINATE legislation has, if validly made, the full force and effect of a statute. That is so whether or not the statute under which it is made provides expressly that it is to have effect as if enacted therein. If an instrument made in the exercise of delegated powers directs or forbids the doing of a particular thing, the result of a breach thereof is, in the absence of provision to the contrary, the same as if the command or prohibition had been contained in the enabling statute itself Similarly, if such an instrument authorises or requires -the doing of any act, the principles to be applied in determining whether a person injured by the act has any right of action in respect of the injury are not different from those applicable whether damage results from an act done under the direct authority of a statute. Re. Langlois and Biden, (1891) 1 QB 349 and Kruse v. Joshnson, (1898) 2 QB 91. Re. Langlois and Biden, (1891) 1 QB 349 and Kruse v. Joshnson, (1898) 2 QB 91. ( 18 ) THE authority of a statutory body or public administrative body or agency ordinarily includes the power to make or adopt rules and regulations with respect to matters within the province of such body provided such rules and regulations are not inconsistent with the relevant law. In America a "public agency" has been defined as an agency endowed with governmental or public functions. It has been held that the authority to act with the sanction of Government behind it determines whether or not a governmental agency exists. The rules and regulations comprise those actions of the statutory or public bodies in which the legislative element predominates. These statutory bodies cannot use the power to make rules and regulations to enlarge the powers beyond the scope intended by the legislature. Rules and regulations made by reason of the specific power conferred by the statute to make rules and regulations establish the pattern of conduct to be followed. Rules are duly made relative to the subject matter on which the statutory bodies act subordinate to the terms of the statute under which they are promulgated. Regulations are in aid of the enforcement of the provisions of the statute. Rules and regulations have been distinguished from orders or determination of statutory bodies in the sense that the orders or determination are actions in which there is more of the judicial function and which deal with a particular present situation. Rules and regulations on the other hand are actions in which the legislative element predominates. ( 19 ) THE process of legislation by departmental regulations saves time and is intended to deal with local variations and the power to legislate by statutory instrument in the form of rules and regulations is conferred by Parliament and can be taken away by Parliament. The legislative function is the making of rules. Some Acts of Parliament decide particular issues and do not lay down general rules. ( 20 ) THE justification for delegated legislation is three fold. First, there is pressure on parliamentary time. Second, the technicality of subject-matter necessitates prior consultation and expert advice on interests concerned. The legislative function is the making of rules. Some Acts of Parliament decide particular issues and do not lay down general rules. ( 20 ) THE justification for delegated legislation is three fold. First, there is pressure on parliamentary time. Second, the technicality of subject-matter necessitates prior consultation and expert advice on interests concerned. Third, the need for flexibility is established because it is not possible to foresee every administrative difficulty that may arise to make adjustment that may be called for after the statute has be- gun to operate. Delegated legislation fills those needs. ( 21 ) THE characteristic of law is the manner and procedure adopted in many forms of subordinate legislation. The authority making rules and regulation must specify the source of the rule and regulation making authority. To illustrate, rules are always framed in exercise of the specific power conferred by the statute to make rules. Similarly, regulations are framed in exercise of specific power conferred by the statute to make regulations. The essence of law is that it is made by the law-makers in exercise of specific authority. The vires of law is capable of being challenged if the power is absent or has been exceeded by the authority making rules or regulations. ( 22 ) ANOTHER characteristic of law is its content. Law is a rule of general conduct while administrative instruction relates to particular person. This may be illustrated with reference to regulations under the Acts forming the subject matter of these appeals. The Life Insurance Corporation Act as well as the Industrial Finance Corporation Act confer power on the Corporation to make regulations as to the method of recruitment of employees and the terms and conditions of service of such employees or agents. The Oil and Natural Gas Commission Act under Section 12 states that the functions and terms and conditions of service of employees shall be such as may be provided by regulations under the Act. Regulations under the 1959 Act provide inter alia the terms and conditions of appointment and scales of pay of the employees of the Commission. The regulations containing the terms and conditions of appointment are imperative. The administrative instruction is the entering into contract with a particular person but the form and content of the contract is prescriptive and statutory. Regulations under the 1959 Act provide inter alia the terms and conditions of appointment and scales of pay of the employees of the Commission. The regulations containing the terms and conditions of appointment are imperative. The administrative instruction is the entering into contract with a particular person but the form and content of the contract is prescriptive and statutory. ( 23 ) THE noticeable feature is that these statutory bodies have no free hand in framing the conditions and terms of service of their employees. These statutory bodies are bound to apply the terms and conditions as laid down in the regulations. Thestatutory bodies are not free to make such terms as they think fit and proper. Regulations prescribe the terms of appointment, conditions of service and proce- dure for dismissing employees. These regulations in the statutes are described as "statute" "fetters on freedom of contract". The Oil and Natural Gas Commission Act in Section 12 specifically enacts that the terms and conditions of the employees may be such as may be provided by regulations. There is a legal compulsion on the Commission to comply with the regulations. Any breach of such compliance would be a breach of the regulations which are statutory provisions. In other statutes under consideration, viz. , the Life Insurance Corporation Act and the Industrial Finance Corporation Act though there is no specific provision comparable to Section 12 of the 1959 Act the terms and conditions of employment and conditions of service are provided for by regulations. These regulations are not only binding on the authorities but also on the public. ( 24 ) BROADLY stated, the distinction between rules and regulations on the one hand and administrative instructions on the other is that rules and regulations can be made only after reciting the source of power whereas administrative instructions are not issued after reciting source of power. Second, the executive power of a State is not authorised to frame rules. under Article 162. This Court held that the Public Works Department Code was not a subordinate legislation (See G J. Fernandez v. State of Mysore, (1967) 3 SCR 636 = (AIR. 1967 SC 1753 ). The rules under Article 309 on. the other hand constitute not only the constitutional rights of relationship between the State- and the Government servants but also establish that there must be specific power to frame rules. and regulations. 1967 SC 1753 ). The rules under Article 309 on. the other hand constitute not only the constitutional rights of relationship between the State- and the Government servants but also establish that there must be specific power to frame rules. and regulations. ( 25 ) THE Additional Solicitor General submitted that regulations could not have the force of law because these regulations are similar to regulations framed by a company incorporated under the Companies Act. The fallacy lies in equating rules and regulations of a company with ru es and regulations framed by a statutory body. A company makes rules and regulations in accordance with the provisions of the Companies Act. A statutory body on the other hand makes rules and regulations by and under the powers conferred by the Statutes creating such bodies. Regulationsin Table-A of the Companies Act are to be adopted by a company. Such adoption is a statutory requirement. A company cannot come into existence unless it is incorporated in accordance with the provisions of the Companies Act. A company cannot exercise powers unless the company follows the statutory provisions. The provision in the Registration Act requires registration of instruments. The provisions in the Stamp Act contain provisions for stamping of documents. The non-compliance with statutory provisions will render a document to be of no effect. The source of the power for making rules and regulations in the case of Corporation created by a statute is the statute itself. A company incorporated under the Companies Act is not created by the Companies Act but comes into existence in accordance with the provisions of the Act. It is not a statutory body because it is not created in accordance with the provisions of the statute. ( 26 ) THE character of regulations has been decided by this Court in several decisions. It is not a statutory body because it is not created in accordance with the provisions of the statute. ( 26 ) THE character of regulations has been decided by this Court in several decisions. One group of decisions consists of S. R. Tewari v. District Board Agra, (1964) 3 SCR 55 == AIR 1964 SC 1680 ); Life Insurance Corporation of India v. Sunil Kumar Mukherjee (1964) 5 SCR 528 = ( AIR 1964 SC 847 ); Calcutta Dock Labour Board v. Jaffar Imam (1965) 3 SCR 453 = ( AIR 1966 SC 282 ); Mafatlal Narandas Barot v. Divisional Controller S. T. Mehsana (1966) 3 SCR 40 = ( AIR 1966 SC 1364 ); The Sirsi Municipality v, Cecelia Kom Francis (1973) 1 SCC 409 == ( AIR 1973 SC 855 ); U. P. State Warehousing Corporation v. C. K. Tyagi, 1970 2 SCR 250 = ( AIR 1970 SC 1244 ) and Indian Airlines Corporation v. Sukhdeo Rai (1971) 2 SCC 192 = ( AIR 1971 SC 1828 ). ( 27 ) IN Narandas Barot s case, (1966) 3 SCR 40 = ( AIR 1966 SC 1364 ) this Court held that the termination of services by Corporation created by a statute without complying with the requirements of the regulations framed by the Corporation under the Statute governing conditions of the employees of the Corporation was bad. The reason is that the termination contravened the provisions contained in the regulations. ( 28 ) IN Tewari s case. (1964) 3 SCR 55 = AIR 1964 SC 1680 ) the termination of the employment of Tewari was challenged on the ground that the resolution of the District Board terminating the services was invalid. The High Court dismissed Tewari s application under Art. 226 in limine. The Court held that the Courts are invested with the power to declare invalid the act of a statutory body, if by doing -the act the body has acted in breach of the mandatory obligation imposed by statute. The District Boards Act conferred power upon the State Government by S. 172 to make rules under the Act. The District Board relied on a notification headed "regulation regarding dismissal, removal or reduction of officers and servants of District Boards". The District Boards Act conferred power upon the State Government by S. 172 to make rules under the Act. The District Board relied on a notification headed "regulation regarding dismissal, removal or reduction of officers and servants of District Boards". It was treated -as a rule inasmuch as Section 173 (2) of the District Boards Act which conferred power to frame regulations did not confer any power to frame rules regulating the exercise of the power of dismissal of offcers or servants of the Board. This Court held that under the rules dismissal, removal or reduction of an officer or servant might be effected only after affording him a reasonable opportunity of showing cause against the action proposed to be taken in regard to him. In Tewari s case this Court also said that the order of dismissal involving punishment must be exercised consistently with the rules or regulations framed under the Statute. ( 29 ) IN the Life Insurance Corporation case, (1964) 5 SCR 528 = ( AIR 1964 SC 847 ) there were regulations framed under the Act. Clause 4 (3) of the Regulations prescribed that in judging a Field Officer s work, the Corporation shall observe theprinciples contained in the circular issued by the Managing Director on 2nd Dec, 1957. Paragraph 4 (h) of the circular which became an integral part of the regulations inter alia stated that where the Committee of its own decided that the poor performance of a Field Officer was not due to circumstances beyond his control or that he had made no efforts and not shown inclination or willingness to work the services of such Field Officer would be terminated. There was also in existence a Field Officer s order which was issued in exercise of the powers conferred on the Central Government by Section 11 (2) of the Act, Clause 10 of the order provided for penalties and termination of service. The contention of the employee was that the termination of service could be brought about only under clause 10 of the Order. This Court held that the regulations to be framed by the Corporation were not to be inconsistent either with the Act or with orders made under Section 11 (2) of the Act. The circular which was a part of the regulations under Cl. This Court held that the regulations to be framed by the Corporation were not to be inconsistent either with the Act or with orders made under Section 11 (2) of the Act. The circular which was a part of the regulations under Cl. 4 (3) thereof and clause 10 of the order were reconciled by this Court by stating that paragraph 4 (h) of the circular could be availed of to terminate the services of the officers but such termination was to be effected in the manner prescribed by the clause 13. The termination was not in accordance with either clause 10 (a) or (b) of the order. Therefore, the termination was invalid. The Life Insurance case (supra) recognised regulations framed under the Act to have the force of law. ( 30 ) IN the Indian Airlines Corporation case, (1971) 2 SCC 192 = ( AIR 1971 SC 1828 ) this Court said that there being no obligation or restriction in the Act or the rules subject to which only the power to terminate the employment could be exercised the employees could not contend that he was entitled to a declaration that the termination of his employment was null and void. In the Indian Airlines Corporation case reliance was placed upon the decision of Kruse v. Johnson (1898) 2 QB 91 for ths view that not all by-laws have the force of law. This Court regarded regulations as the same thing as by-laws. In (1898) 2 QB 91. the Court was simply describing the effect that the county by-laws have on the public. The obervations of the Court in (1898) 2 QB 91 that the by-law "has the force of law within the sphere of its legitimate operation" are not qualified by the words that it is so "only when affecting the public. . . . . . ordering fomething to be done or not to be done and accompanied by some sanction or penalty for its non-observance. " In this view a regulation is not an agreement or contract but a law binding the corporation, its officers, servants and the members of the public who come within the sphere of its operations. The doctrine of ultra vires as applied to statutes, rules and orders should equally apply to the regulations and any other subordinate legislation. " In this view a regulation is not an agreement or contract but a law binding the corporation, its officers, servants and the members of the public who come within the sphere of its operations. The doctrine of ultra vires as applied to statutes, rules and orders should equally apply to the regulations and any other subordinate legislation. The regulations made under power conferred by the statute are subordinate legislation and have the force and effect, if validly made, as the Act passed by competent legislature. ( 31 ) IN U. P. Warehousing Corporation and Indian Airlines Corporation cases, (1970) 2 SCR 250 = ( AIR 1970 SC 1244 ) and (1971) 2 SCR 192 = ( AIR 1971 SC 1828 ) the terms of the regulations were treated as terms and conditions of relationship between the Corporation and its employees. That does not lead to the conclusion that they are of the same nature and quality as the terms and conditions laid down in the contract of employment. Those terms and conditions not being contractual are imposed by one kind of subordinate legislation, viz. , regulations made in exercise of the power conferred by the statute which constituted that Corporation. Terms of the regulations are not terms of contract. In the Indian Airlines Corporation case under Section 45 of the Air Corporations Act, 1953, the Corporation had the power to make regulations not inconsistent with the Act and the rules made by the Central Government thereunder. The Corporation had no power to alter or modify or rescind the provisions of these regulations at its discretion, which it could do in respect of the terms | of contract that it may wish to enter with its : employees independent of these regulations. So far as the terms of the regulations are concerned, the actions of the Corporation are controlled by (he Central Government. The decisions of this Court in U. P. Warehousing Corporation and Indian Airlines Corporation are in direct conflict with the decision of this Court in Narandas Barot s case, (1966) 3 SCR 40 = ( AIR 1966 SC 1364 ) which was decided by the Constitution Bench. ( 32 ) IN (1973) 1 SCC 409 == (AIR 1973- SC 855) the dismissal was held to be contrary to Rule 143 framed under Section 46 of the Bombay District Municipalities Act. ( 32 ) IN (1973) 1 SCC 409 == (AIR 1973- SC 855) the dismissal was held to be contrary to Rule 143 framed under Section 46 of the Bombay District Municipalities Act. This Court held that in regard to the master-servant cases in the employment of the State or of other public or local authorities or bodies created under statute, the courts have decided in appropriaie cases the dismissal to be invalid , if the dismissal is contrary to rules of natural justice or if the dismissal is in violation of the provisions of the statute. Where a State or a public authority dismisses an employee in violation of the mandatory procedural requirements on grounds which are not sanctioned or supported by statute the courts may exercise jurisdiction to declare the act of dismissal to be a nullity. The ratio is that the rules or the regulations are binding on the authority. ( 33 ) THERE is no substantial difference be tween a rule and a regulation inasmuch as both are subordinate legislation under powers conferred by the statute. A regulation framed under a statute applies uniform treatment to everyone or to all membersof same group or class. The Oil and Natural Gas Commission, the Life Insurance Corporation and Industrial Finance Corporation are all required by the statute to frame regulations inter alia for the purpose of the duties and conduct and conditions of service of officers and other employees. These regulations impose obligation on the statutory authorities. The statutory authorities cannot deviate from the conditions of service. Any deviation will be enforced by legal sanction of declaration by courts to invalidate actions in violation of rules and regulations. . the existence of rules and regulations under statute is to ensure regular conduct with a distinctive attitude to that conduct as a standard. The statutory regulations in the cases under consideration give the employees a statutory status and impose restriction on the employer and the employee with no option to vary the conditions. An ordinary individual in a case of roaster and servant contractural relationship enforces breach of contracttural terms. The remedy in such contraclural retionship of master and servant is damages because personal service is rot capable of enforcement. In cases of statutory bodies there is no personal element whatsoever because of the impersonal character of statutory bodies. An ordinary individual in a case of roaster and servant contractural relationship enforces breach of contracttural terms. The remedy in such contraclural retionship of master and servant is damages because personal service is rot capable of enforcement. In cases of statutory bodies there is no personal element whatsoever because of the impersonal character of statutory bodies. In tie case of statutey bodies it has been said that the element of public employment or service and the support of statue require observance of rules and regulations. Failure to observe requirements by statutory bodies is enforced by courts by declaring dismissal in violation of rules and regulations to be void. This Court has repeatedly observed that whenever a man s rights ere affected by decision taken under statutory powers, the Court would presume the existence of a duty to observe the rules of natural justice and compliance with rules and regulations imposed by statute. ( 34 ) ON behalf of the State it is contended that these Corporations cannot be said to be "other authority" contemplated in Article 12 for two principal reasons. First, one of the attributes of a State is making laws. The State exercises governmental functions and the executive power of the State is co extensive with the legislative power of the State. Second, authority as contemplated in Article 12 means a body of persons established by statute who are entitled as such body to command obedience and enforce directions issued by them on pain of penalty for violation. On these grounds it was said that these corporations cannot make laws like a Stale and cannot enforce directions. ( 35 ) THE State undertakes commercial functions in combination with governmental functions in a welfare State. Governmental function must be authoritative. It must be able to impose decision by or under law with authority. The element of authority is of a binding character. The rules and regulations are authoritative because these rules and regulations direct and control not only the exercise of powers by the Corporations but also alt; persons who deal with these corporations. ( 36 ) THIS Court in Rajasthan State Electricity Board, Jaipur v. Mchan Lal (1967) 3 SCR 377 == ( AIR 1967 SC 1857 ) said that an "authority" is a public administrative agency or corporation having quasi governrrental powers and authorised to administer a revenue-producing public enterprise. ( 36 ) THIS Court in Rajasthan State Electricity Board, Jaipur v. Mchan Lal (1967) 3 SCR 377 == ( AIR 1967 SC 1857 ) said that an "authority" is a public administrative agency or corporation having quasi governrrental powers and authorised to administer a revenue-producing public enterprise. The expression "other authorities" in Article 12 has been held by this; Ccurt in ihe Rajasthan Electricity Board case to be wide enough to include within it every authority created by a statute and functioning within the territory of Irdia, or under the- control of the Goverrment of India. This: Court further said referring to earlier decisions that the expression "other authorities" in Article 12 will include all constitutional or statutory authorities on whom powers are conferred by law. The State itself is envisaged under Article 298 as having the right to carry on trade and business. The State as defined in Article 12 is comprehended to include bodies created for t e purpose of promoting economic interest of the people. The circumstance that the statutory body is required to carry on some activities of the nature of trade or commerce does not indicate that the Board must be excluded from the scope of the word "state". The Electricity Supply Act showed that the Board" had power to give directions, the disobedience of which is punishable as a criminal offence. The power to issue directions and to enforce - compliance is an important aspect. ( 37 ) THE concurring judgment in the Rajasthan Electricity Board case, (1967) 3 SCR 377 " = (AIR 1967 SC (1857) said that the Board was invested by statute with extensive powers. of control over electricity undertakings. The power of the Board to make rules and regulations and to administer the Act was said to be- in substance the sovereign power of the State- delegated to the Board. ( 38 ) IN the British Broadcasting Corporation v. Johns (Inspector of Taxes) (1965) 1 Ch. 32 ). it was said that persons who are created to carry out governmental purposes enjoy immunity like Crown servants. Government purposes include the traditional provinces of Government as well as non-traditional provinces of Government if the Crown has constitutionally asserted that they are to be within the province of government. 32 ). it was said that persons who are created to carry out governmental purposes enjoy immunity like Crown servants. Government purposes include the traditional provinces of Government as well as non-traditional provinces of Government if the Crown has constitutionally asserted that they are to be within the province of government. The British Broadcasting Corporation was held not to be within the province of government because broadcasting was not asserted by the government to be within the province of government. The Wireless Telegraphy Act provided for regulation of wireless telegraphy by a system of liceness. The Court gave two reasons as to why the Broadcasting Corporation was not within the province of the government. If the Broadcasting Corporation was exercising functions required and created for the purpose of government it is difficult to see why a licence was required to be. issued to it. Again, it is difficult to understand why in the event of an emirgeacy powers should be given to the Postmaster-General to direct that the Broadcasting stations of the Corporation should be deemed to be in possession of Her Majesty if it be the fact that such stations axe already used for purposes of exercising functions required and created forpurposes of the Government. ( 39 ) A public authority is a body which has public or statutory duties to perform and which performs those duties and carries out its transactions for the benefit of the public and not for private profit. Such an authority is not precluded from making a profit for the public benefit (See Halsbury s Laws of England 3rd. Ed. Vol. 30 paragraph 1317 at p. 682 ). ( 40 ) THE Oil-fields (Regulation and Deve- lopment) Act, 1948 defines "oilfield" as any area where any operation for the purpose of obtaining natural gas and petroleum, crude oil, refined oil, partially refined oil and any of the products of petroleum in a liquid or solid state, ,is to be or is being carried on. S. 4 of the said 1948 Act states that no mining lease shall be.-granted after the commencement of the Act otherwise than in accordance with the rules made under the Act. Section 5 of the said 1948 Act confers power on the Central Government to make rules for regulating grant of mining leases or prohibiting grant of leases. S. 4 of the said 1948 Act states that no mining lease shall be.-granted after the commencement of the Act otherwise than in accordance with the rules made under the Act. Section 5 of the said 1948 Act confers power on the Central Government to make rules for regulating grant of mining leases or prohibiting grant of leases. Section 6 of the said Act confers power on the Central Government to make rules for the conservation and development of mineral oils. Mining gas includes natural gas and petroleum. Section 9 of the said 1948 Act states that any rule made. under any of the provisions of the Act may. provide that any contravention thereof shall bepunishable with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both. The Petroleum Concession Rules, 1949 say that the Central Government grants approval for searching, drilling and producing petroleum and licences for exploring and prospecting. The Oil and Natural Gas Commission is given merely the duty to perform the leases. ( 41 ) THE 1959 Act speaks in Section 14 of the functions of the Commission and in Section 15 of the powers of the Commission. The functions of the Commission are to plan, promote, organise and implement programmes for the development of petroleum resources and the production and sale of petroleum and petroleum products produced by it and to perform such functions as the Central Government may, from time to time, assign to the Commission. The powers of the Commission are such as may be necessary and expedient for the purpose of carrying out the functions under the Act. The Government acquires land for the Commission. The acquisition is for public purpose. The Commission extracts petroleum from the land. Entry No. 53 in list I of the Seventh Schedule speaks of regulation and development of oilfields and mineral oil resources; petroleum and petroleum products: other liquids and substances declared by Parliament by law to be dangerously inflammable. Entry No. 54 in list I speaks of regulation of mines and mineral development to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest. Entry No. 54 in list I speaks of regulation of mines and mineral development to the extent to which such regulation and development under the control of the Union is declared by Parliament by law to be expedient in the public interest. ( 42 ) SECTION 23 of the 1959 Act says that the Oil and Natural Gas Commission shall furnish to the Central Government returns and statements and particulars in regard to proposed or existing programme for the development of petroleum resources and the production and sale of petroleum and petroleum products produced by the Commission as the Central Government may require. Section 24 of the 1959 Act speaks of compulsory acquisition of land by the Commission. Section 25 of the 1959 Act confers power on any employee of the Commission authorised by it to enter upon any land or premises and there do such things as may be reasonably necessary for the purpose of lawfully carrying out any of its works or to make survey, examination or investigation pre liminary or incidental to the exercise of powers or the performance of functions by the Commission under the Act. The employees of the Commission are deemed by Section 27 of the 1959 Act to to public servants under Section 21 of the Indian Penal Code. ( 43 ) THE Oil and Natural Gas Commission Act, 1959 is an Act to provide for the establishment of a Commission for the development of petroleum resources and the production and sale of petroleum and petroleum products produced by it and for matters connected therewith. Article 298 states that the executive power of the Union and of each State shall extend to the carrying on of any trade or business and to the acquisition, holding and disposal of property and the making of contracts. Under Article 73 subject to the provisions of the Constitution, the executive power of the Union shall extend to the matters with respect to which Parliament has power to make laws; and to the exercise of such rights, authority and jurisdiction as are exercisable by the Government of India by virtue of any treaty or agreement. The Union is competent, to carry on trade andbusiness in mines and mineral resources. The power of the Union is co-extensive with the legislative power of the Parliament. The Union is competent, to carry on trade andbusiness in mines and mineral resources. The power of the Union is co-extensive with the legislative power of the Parliament. The Oil and Natural Gas Commission is established for the development of pertoleum resources and the production and sale of petroleum and petroleum products. The exploitation of the resources is by the Union through the agency of the statutory Commission- The members of the Commission are appointed by the Central Government. If they want to resign, resignation has to be sent to the Central Government. Termination of appointment of members is by the Central Government. The powers and functions of the Commission are those assigned by the statute and such functions as the Central Government may assign. No industry which will use any of the gases produced by the Commission as a raw material shall be set up by the Commission without the previous approval of the Central Government. The capital of the Commission is what has already been incurred by the Central Government as non-recurring expenditure in connection with the existing organisation. The Central Government may also provide to the Commission any further capital which may be required by the Commission for carrying on its business. The Commission may, with the previous approval of the Central Government borrow money. The budget is to be in such form as the Central Government may prescribe. The Commission may net re-appropriate without the previous approval cf the Central Government. The reports, accounts are to be audited by the Comptroller and Auditor-General of India and these are not only to be forwarded to the Central Government but are also to be laid before the Parliament. The audit report is also- to be placed before the -Parliament. Any land? required by the Commission is to be acquired uncer the Land Acquisition Act as if it were- required by a company. The Commission is. empowered to enter upon any land or premises. The dissolution of the Commission is by the- Central Government. ( 44 ) ALL these provisions indicate at each stage that the creation, composition of" membership, the function and powers, the financial powers, the audit of" accounts, the returns, the capital, the borrowing: powers, the dissolution of the Commission and; acquisition cf land for the purpose of the company and the powers of entry are all authority and agency of the Central Government. ( 45 ) THE Life Insurance Act is an Act to provide for the nationalisation of life insurance business to the Corporation established for tile purpose and to provide for the regulation and control of the business of the Corporation and for matters connected therewith or incidenial thereto. On the appointed day viz. 1st July, 1956, all assets and liabilities appertaining to. the controlled business of all insurers became transferred to and vested in the Corporation- Ihe service of existing employees of insurers- was transferred to the Corporation. It became the duty of every person in possession, custody or control of property appertaining to the controlled business of an insurer to deliver the same to the Corporation forthwith. The Corporation was empowered to reducethe amounts of insurance under contracts of life insurance in such manner and; subject to such conditions as it thought fit. In the discharge of functions under the Act, the Corporation is guided by directions in matters. of policy involving public interest as the Central Government may give to it. If any question arises whether a direction relates to a matter or policy involving public interest, the decision of the Central Government shall be final. ( 46 ). The Corporation is to submit to the central Government an account of activities during the financial year. The Corporation has the exclusive privilege of carrying on life insurance business in India. On and from the appointed day, none but the Corporation can carry on life insurance business in India. The sums assured by policies issued by the Corporation including bonuses shall be guaranteed as to payment in cash by the Central Government. No suit, prosecution or other legal proceedings shall be against any member or employee of the Corporation for anything which is in good faith done or intended to be done under the Act. ( 47 ) THE provisions of the Life Insurance Corporation Act amply establish that the Corporation has the exclusive privilege of carrying on life insurance business. The policies are. guaranteed by the Central Government. If profits accrue from any business other than life insurance business then after making provision for reserves and other matters, the balance of profit shall be paid to the Central Government. The report of the activities of the Corporation is to be submitted to the Central Government. The policies are. guaranteed by the Central Government. If profits accrue from any business other than life insurance business then after making provision for reserves and other matters, the balance of profit shall be paid to the Central Government. The report of the activities of the Corporation is to be submitted to the Central Government. ( 48 ) THE original capital of the Corporation is five crores of rupees provided by the Central govt. The Central Govt. may reduce the capital of the Corporation. The corporation may ask for relief in respect of certain transactions of the)insurer whose controlled business has been transferred to the Corporation. The relief is. granted by the Tribunal. The Tribunal is constituted by the Central Government. The Central office of the Corporation shall be at such place as the Central Government may specify. In the discharge of functions under the Act the Corporation shall be guided by such directions in matters of policy involving public interest as the Central Govt. may direct. If any question arises relating to a matter of policy involving public interest, the decision of the Central Govt. shall be final. The accounts of the Corporation shall be audited by auditors who will be appointed with the previous approval of the Central Government. The auditors shall submit the report to the Corporation and shall also forward a copy of the report to the Central Government. ( 49 ) IF as a result of any investigation undertaken by the Corporation any surplus emerges, ninetyfive percent of such surplus or such higher percentage therere of as the Central Government may approve shall be allocated to or reserved for the life insuranse policy holders of the Corporation and after meeting the liabilities of the Corporation the remainder shall be paid to the Central Government or if that Government so directs be utilised for such purposes and in such manner as that Government may determine. If profits accrue after making provision for reserves and other matters, the balance shall be paid to the Central Government. The Central Government shall cause the report of the auditors, the report of the actuaries and the report giving an account of the activities of the Corporation to be laid before the Parliament. The provisions of the Companies Act do not apply to the Corporation with regard to winding up. The Central Government shall cause the report of the auditors, the report of the actuaries and the report giving an account of the activities of the Corporation to be laid before the Parliament. The provisions of the Companies Act do not apply to the Corporation with regard to winding up. The Corporation cannot be placed in liquidation except by an order of the Central Government. ( 50 ) THE structure of the Life Insurance Corporation indicates that the Corporation is an agency of the Government carrying on the exclusive business of life insurance. Each and every provision shows in no uncertain terms that the voice is that of the Central Government and the hands are also of the Central Government.