R S HARI SHANKAR Vs. GENERAL MANAGER

JUDGEMENT

(1.) BY consent of both parties, the writ petitions are taken up for final disposal.

(2.) PRAYER in these writ petitions are to quash the show cause notice issued against the petitioners dated 13.8.2007 and for consequential direction to the first respondent not to proceed with the impugned show cause notice till the criminal appeal preferred by them is finally disposed of.

(3.) ACCORDING to the petitioners, after privatisation of Insurance business, there was a stiff competition from the private Insurance Companies as well as from multi nationals and as part of the business strategy, there is a practice of giving gifts to important customers. The accounts manual issued by the Company in the year 1994 states that there is a practice of purchasing and giving gifts to promote business, which was restricted upto Rs.1,000/- subsequently. There is provision for spending amount towards gifts.