L.PONNAMMAL Vs. UNION OF INDIA

JUDGEMENT

(1.) By this writ petition a challenge is made to Ss. 128 to 146 of the Finance Act, 2021 [for brevity, "the Act of 2021"], with an alternative prayer to declare Sec. 5(9) of the Life Insurance Corporation Act, 1956 [for brevity, "the Act of 1956"] and Ss. 128 to 130 and Ss. 132 to 146 of the Act of 2021 as ultra vires Article 110 of the Constitution of India. An alternative prayer is also made to declare Sec. 140 of the Act of 2021 as ultra vires Article 110 of the Constitution of India.

(2.) Learned counsel submits that the petitioner is a policyholder of the Life Insurance Corporation (for brevity, "the LIC") and being aggrieved by Ss. 128 to 146 of the Act of 2021, as also Sec. 5(9) of the Act of 1956, she has filed this writ petition. It is mainly on the premise that the provisions aforesaid were introduced by a Money Bill under Article 110 of the Constitution of India, though the amendment does not fall in the category of Money Bill.

(3.) Coming to the facts of the case, it is submitted that every participating policyholder was entitled to a minimum of 90% of the surplus arising from non-participating policies, but the amendment under challenge has reduced their entitlement to nil and, therefore, being a policyholder, she has challenged Ss. 128 to 146 of the Act of 2021, apart from Sec. 5(9) of the Act of 1956.