LIFE INSURANCE CORPORATION OF INDIA & OTHERS versus RETIRED L.L.C. OFFICERS ASSOCIATION AND OTHERS

Citation: [2008] 2 S.C.R. 823 · Decided: 12-02-2008 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Dismissed
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Judgment (excerpt)

[2008] 2 S.C. R. 823 
~ 
LIFE INSURANCE CORPORATION OF INDIA & OTHERS 
A 
v. 
RETIRED L.l.C. OFFICERS ASSOCIATION AND OTHERS 
(Civil Appeal No. 1289 of 2007) 
FEBRUARY 12, 2008 
B 
(S.8. SINHA AND HARJIT SINGH BEDI, JJ.) 
>. ... 
Life Insurance Corporation of India (Staff) Regulations, 
-
1960: 
Regulations 51(1) and 77 - Revision of pay sea/es - c 
Chairman of Corporation issuing Life Insurance Corporation 
of India Class I Officers (Revision of Terms and Conditions of 
Service) Instructions, 1996 fixing cut-off dates as 1.4.1993 for 
revision of pay and 1. 8. 1994 for payment of gratuity in terms 
of revised pay - HELD: An employee is entitled to gratuity- It D 
is not a bounty - If an employee became entitled to revised 
-'f 
pay on date of retirement, his revised pay must be taken to be 
.. 
' 
permanent pay for purpose of computation of gratuity. 
Administrative Law: 
E 
Subordinate Legislation - Powers of sub-delegatee -
Chairman of UC issuing instructions in exercise of powers 
under Regulation 51 fixing different cut-off dates for revision 
of pay and payment of gratuity in terms of revised pay- HELD: 
A delegatee cannot act in violation of a statute - A sub-
F 
y 
delegatee cannot exercise any power which is not meant to 
be conferred upon him by reason of statutory provision -
Gratuity is not covered under Regulation 51 - Provident Fund 
and Gratuity are ordinarily governed by the Acts enacted by 
Parliament subject to conditions contained therein -
G 
Regulation 77 provides as to how amount of gratuity is to be 
~~ 
calculated- Regulation 51 provides for a rule of measurement 
- Life Insurance Corporation of India (Staff) Regulations, 1960 
- Regulations 51 and 77 - Life Insurance Corporation of India 
823 
H 
824 
SUPREME COURT REPORTS 
[2008] 2 S.C.R. 
A Class I Officers (Revision of Terms and Conditions of Service) 
Instructions, 1996. 
Words and Phrases: 
Expression "and other matters connected therewith or 
B incidental thereto." occurring in Regulation 51 (2) of Life 
Insurance Corporation of India (Staff) Regulations, 1960 -
Connotation of. 
The Chairman of the appellant-Life Insurance 
Corporation, pursuant to revision of pay of the employees 
C of the Corporation,, in exercise of powers under 
Regulation 51 of the LIC of India (Staff) Regulations 1960, 
issued Life Insurance Corporation of India Class I Officers 
(Revision of Terms and ·Conditions of Service) 
Instructions, 1996, fixing cut-off dates for grant of different 
D allowances as also the pay. The cut-off date for revision 
of pay was fixed as 1.4.1993. However, for payment of 
gratuity, the cut-off date was fixed as 1.8.1994, which was 
challenged in some of the High Courts. The Gujarat High 
Court and the Karnataka High Court upheld the validity 
E of the 1996 Instructions whereas the Kerala High Court in 
the judgment under appeal took a different view. 
In the instant appeal filed by the Life Insurance 
Gorporation, it was contended for the respondent-
employees that the power of the Chairman of the 
F appellant-Corporation to issue instructions under 
Regulation 51 being limited to Chapter IV of the 
"'rl' Regulations, the 1996 Instructions had no application to 
., 
payment of gratuity which is covered by Regulation 77. 
G 
The question for consideration before the Court was: 
Whether the expression "the date from which the revision 
shall apply, and other matters connected therewith or 
incidental thereto", occurring in Regulation 51 of the Life 
Insurance Corporation of India Regulations, 1960 would 
H also include the matter relating to payment of gratuity 
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L.l.C. OF INDIA & ORS. v. RETD. L.l.C. OFFICERS 
825 
ASSOCIATION & ORS. 
which is otherwise covered by Regulation 77 thereof?_: 
A. 
Dismissing the appeal, the Court 
HELD: 1.1 A statutory authority while exercising i"ts 
jurisdiction would be entitled to exercise incidental power 
for determination of the principal issue but it, in such B 
matters, cannot be said to have such power which ·is. 
beyond the scope and purport of the principal provisions . 
A delegatee cannot act in violation of a statute. A sub- . 
delegatee cannot exercise any power which is not meant 
to be conferred upon him by reason of statutory c 
provisions. It must conform not only to the provisions of 
the Regulations and the Act but also other Parliamentary 
Acts. The Life _Insurance Corporation of India (Staff) 
Regulations, 1960 are subordinate legislation. Chai
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