UNITED INDIA INSURANCE COMPANY LIMITED Vs. SECRETARY

JUDGEMENT

(1.) THE above writ appeals have been filed praying to set aside the order of the learned Single Judge dated 7. 11. 1996 made in W. P. Nos. 2900, 2902, 8498 and 2901 of 1987.

(2.) ON a perusal of the materials placed on record, what comes to be known is that the appellants/petitioners have filed W. P. Nos. 2900, 2902, 8498 and 2901 of 1987 for quashing the demand for payment of contribution under the Tamil Nadu Labour Welfare Fund Act, 1972 and to direct the respondent to forbear from making any demand under Section 2 of the said Act. Learned Single Judge, after considering all the relevant facts and circumstances of the case, dismissed the writ petitions with costs, holding that the Insurance Companies are not establishments of the Central Government and hence they are liable to pay contribution under the Tamil Nadu Labour Welfare Fund Act, 1972. As against the said order, the above writ appeals are filed.

(3.) THE case of the appellants is that Government Companies are registered under the Indian Companies Act, 1956; that they are subsidiaries of the General Insurance Corporation of India formed in pursuance of Section 9 of the General Insurance Business Nationalization Act, 1972; that under Section 16 of the said Act, the Union of India has framed schemes for running the business of the Company; that the schemes framed under Section 16 of the Act have the force of law, as they are placed on the table of the Parliament as per Section 17 of the Act; that Corporation and Company are created by the directions of the Central Government under Section 23 of the Act; that the Company is fully held and controlled by the Central Government; that it is held to be a State under Article 12 of the Constitution of India by the decisions of the Court; that the Companies are establishments of the Central Government and the Insurance Companies are controlled by the Central Government, but the respondent has been demanding payment of contribution for the period from 1972; in spite of several discussions and correspondences held and hence the petitioners/appellants filed the writ petitions, which were dismissed by the learned Single Judge.