LIFE INSURANCE CORPORATION OF INDIA is an autonomous body.
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| Supreme Court |
The Board of Life Insurance Corporation of India has passed
a Resolution proposing certain changes in the Pension Rules. It has also resolved
that these changes would be implemented with the approval of Government of
India.
Government never approved these proposals.
Rajasthan High Court was moved.
It was argued, Government could interfere with a decision of
the Corporation. But it chose not to
interfere. No directive was ever given
against the Board resolution.
LIC being an autonomous body, it could have implemented its
own Resolution.
But there were clear hurdles. Pension Scheme was implemented in the
Corporation through a Government Notification dated 28-6-1995. Can the Corporation bring about changes on
its own now without a Notification being issued by Government of India
(GOI).
Rajasthan High Court order would suggest, LIC could
implement its Board Resolution. But LIC
thinks that Government approval is required.
Government of India has joined the issue in the Supreme Court. Government counsel will appear in the Supreme
Court today for the first time.
Now let us wait for Supreme Court developments !
