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Friday, February 12, 2016

SN (a 1992 pensioner)



Briefly Speaking :  Section 48 of LIC Act, 1956 - Revision of terms and conditions of service & Section 21 of LIC Act, 1956 - Public Interest
The Gazette Notification (Extraordinary) dated 14th January, 2016 revising the pay scales of Class I, II, III and IV have been issued by Ministry of Finance, Dept. of Financial Services, (Insurance Division), in exercise of the power conferred by Section 48 of LIC Act, 1956 on the Central Government. The notification says that these rules may be called ..Revision of terms of conditions of service - Amendment Rules, 2016. Save as otherwise provided in these rules, these rules shall be deemed to have come into force on the 1st day of August, 2012.

This kind of exercise, issue of gazette notification etc. post finalisation of wage revision negotiations has been followed 'religiously' with every revision of pay scales. This is not a formality, as it outwardly, appear. It is a legal requirement. Section 48 of the Life Insurance Corporation Act, 1956, confers the Power to make rules. Some rules, relevant to revision of terms and conditions of service, say, pay scales, are as under:
 
(1) The Central Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act.
 
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— 

(cc) 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 day under this Act;
( j ) the conditions subject to which the Corporation may appoint employees; 

2[(2A) The regulations and other provisions as in force immediately before the commencement of the Life Insurance Corporation (Amendment) Act, 1981, with respect to the terms and conditions of service of employees and agents of the Corporation including those who became employees and agents of the Corporation on the appointed day under this Act, shall be deemed to be rules made under clause (cc) of sub-section (2) and shall, subject to the other provisions of this section, have effect accordingly.

(2B)The power to make rules conferred by clause (cc) of sub-section (2) shall include— (i) the power to give retrospective effect to such rules; and (ii)the power to amend by way of addition, variation or repeal, the regulations and other provisions referred to in sub-section (2A), with retrospective effect,

Section 21 of the Life Insurance Corporation Act, 1956 : In discharge of its functions under this Act, the Corporation shall be guided by such directions in the matters of policy involving public interest as the Central Government may give in writing and if any question arises whether a direction relates to a matter of policy involving public interest, the decision of the Central Government shall be final.

The Hon. Judge Shri M.N.Bhandari had held that the resolution passed by the Board does not need the approval of the Government and may give effect to its resolution to avoid discrimination amongst pensioners. It had been made clear in the judgement that a perusal of Section 21 of LIC Act revealed that ONLY in regard to discharge of its function under the Act, the Corporation shall be guided by such directions of the Central Government which involves Public Interest....

L.I.C. of India (Employees) Pension, 1995 are also framed in exercise of the power conferred under Section 48 of LIC Act, 1956. The terms and conditions of about 50,000 ex - employees of LIC, pensioners and family pensioners (no Public Interest involved) have not been revised along with the revision of pay scales of in- service employees. The LIC Board is competent to decide the pension revision on its own. The Central Government has only make the Board's decision 'legal' by publishing it in the Gazette Notification.

But, all is not that simple as stated in the foregoing paragraph. Our leaders have been forced to fight legal battle with LIC and GOI to get what is reasonably just and due. They would have won the battle long back but the fight continues for the last fourteen years mainly because of the system in which our judiciary functions.

I appreciate Shri BGR 's sum up and pray along with him and others for the Almighty's blessings for good health and glorious success of our leaders.

SN ( a 1992 pensioner) 
(From Sources)

L.I.C. of India (Employees) Pension Rules, 1995 are also framed in exercise of the power conferred under Section 48 of LIC Act, 1956. Central Government has a set a practice and procedure in regard to the periodic revision of terms and conditions of in- service employees. It would be in the larger interest of the 50000 ex- employees and their spouses or siblings (- no harm done to public interest-) if the terms and conditions of pensioners and family pensioners are also revised along with the wage revision of in-service employees. The Board is competent to decide.