BHASHIR KUMAR AGARWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) All these writ petitions filed by various transporters, whose vehicles have been insured by the Nationalised Insurance Companies, raise a common question : whether the tariff rates revised with effect from 1-2-1982 by the Tariff Advisory Committee (for short the T.A.C.) are valid. Involving common points, all the writ petitions are connected and are being disposed of by a common order. Writ petition No. 882 of 1982 is treated as leading one. By the General Insurance Business (Nationalisation Act 1972) passed by the Parliament, all the Insurance Companies located all over the country were nationalised by the Government of India. After nationalisation the entire business of general insurance was entrusted to the four major Insurance Companies, namely : 1. United Insurance Company Ltd. 2. India Insurance Company Ltd. 3. National Insurance Company Ltd., and 4. Oriental Fire and General Insurance Company Ltd.

(2.) The case of the petitioners is that the revised rates that came into force with effect from 1-2-1982 are wholly arbitrary, unjust and discriminatory and they are violative of the provisions of Art.14 and 19(1)(g) of the Constitution of India. In the counter affidavit filed on behalf of the T.A.C. the case of the petitioners has been denied.

(3.) We have heard Sri Sudamaji Shandilya, Sri Murlidhar, Shri Kazmi and Sri Saunders for and on behalf of different sets of petitioners and Sri A. B. Saran, learned counsel for the respondent No. 2, at considerable length. The Chief question for consideration is: whether the rates revised by the T.A.C. are arbitrary, unjust and discriminatory. The contentions of Sri Shandilya are as follows : a) The decision of the T.A.C. revising the rates is violative of Arts.14 and 19(1)(g) of the Constitution of India. b) No opportunity of being heard was afforded to the petitioners by the T.A.C. before revising the rates and hence the principles of natural justice were violated.