SUKHDEV SINGH THE OIL AND NATURAL GAS COMMISSION THE L 1 C LIMITED THE INDUSTRIAL FINANCE CORPN EMPLOYEES ASSOCIATION Vs. BHAGATRAM SARDAR SINGH RAGHUVANSHI:THE ASSOCIATION OF CLASS II OFFICERS 0 N G C:SHYAM LAL SHARMA:THE INDUSTRIAL FINANCE CORPN

JUDGEMENT

(1.) There are two questions for consideration in these appeals. First, whether an order for removal from service contrary to regulations framed under the Oil and Natural Gas Commission Act, 1959; the Industrial Finance Corporation Act, 1948; and the Life Insurance Corporation Act, 1956 would enable the employees 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 a statutory corporation is entitled to claim protection of Articles 14 and 16 against the Corporadon. 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. 1956. The question which really falls tor decision is whether regulations framed under these statutes have the force of law.

(3.) The Oil and Natural Gas Commission Act, 1959 hereinafter referred to as the 1959 Act established the Commission as a body corporate having perpetual succession and a common seal. The composition of the Commission 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 Finance 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 S. 12 of the 1959 Act the Commission may, for the purpose of performing its functions or exercising its powers, appoint such number of employees as it may consider necessary. The functions 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. 22/29/55-0 and G dated 14/08/1956. 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 S. 13 of the 1959 Act.