LexSUKHDEV SINGH & ORS. versus BHAGATRAM SARDAR SINGH RAGHUVANSHI AND ANR.
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A B c D E F G H 619 SUKHDEV SINGH & ORS. I'. BHAGA TRAM SARDAR SINGH RAGHUVANSHI AND ANR; February 21, 1975 [A. N. RAY, C.J., K. K. MATHEW, Y. v. CHANDRACHUD, A. ALAGIR!SWAMI AND A. c. GUPTA, JJ.] Stal1aory Corporations-Regulations made by, whether have force of law-. Wlwthcr employees of corporation are servants of Union or State. Constitution of. India. Art. 12-WJiether statutory corporations are 'State' or 'authority', The Oil and Natural Gas Com'mission, the Industrial Finance Corporation ~nd the Life Insurance Corporation are .:reated by statutes. The Oil and 'C.!'l·ral Gas Commission is owned by the Government, the management is by the Government and it could be dissolved only by the Government. The p1w. isions of the Oil and Natural Gas Commission Act, 1954, creatil}g it. show that it acts as 1an agency of the cen~ral Government. The provisions of the Jndu·strial Finance Corporation Act, 1948, creating the Industrial Fina,nce Corpo- ration show that the Corporation is under the complete contl'ol and managemwt ~f the Central Government. Provisions of the Life Insurance Act, 1956, whi:h creates the Life Insurance Corporation, show that this Corporation is also ari agency of the Government carrying on the exclusive business of Life ,Insurance. The Corporation is owned and managed by the Government and it can be dissolved only by the Government. All the three statutes constituting the three statutory corporations enabled them to male regulations which provide, il!ll'r a/ia, for the terms and conditions of ·employment and '3ervices of their employees. On the question whether, (i) the regulations have the for.:e of law, and (ii) whether the statu.tory corporations are 'State' within the meaning o'f Art. 12 of the Constitution, HELD: (Per A. N'. Ray, CJ., Y. V. Chandrachud and A. C. Gupta, JJ.) The regulations have the for~-e of law and the employees arc entitled lo the declamtion of being in employment when their dismissal or removal is in contravention of the regulations. [642E-F] (a) Regulations under an Act are framed in exercise of a specific power conferred by the statute to make regulations. The authority making the regulations must specify the sources of its specific power. The essen:e of Jaw is that it is made by the law makers in exerci·3e of specific authority. The vires of such of law is capa,ble of being challenged if the power is absent or has been exceeded by the authority making ru.les or regulations. The manner and procedure adopted in making the regulations in the instant case, by the three statutory corporations, have this characteristic of law. [629G-A] (b) Another characteristic of law is its content. Law is a rule of general conduct while administrative instructions relate to a particular person. [630A] (c) Broadly stated the distinction between rules and regulations on one hand, and administrative instructions on the other, is that rules and regulations can be made· only after reciting the sour.:e of power whereas administrative instructions are not issued after reciting the sou.rce of power. There is, however, no substantial difference between rules and regulations inasmuch as both are subordinate legislation under powers conferred by the statute. A regulation framed under statute applies uniform treatment to everyone or to aJl members of some group of class. [630G; 6330] (d) The regulations in the present case are, inter alia, for the purpose of defining the duties, conduct and conditions of service of officers and other 6 :io SUPREME COURT REPORTS [1975] 3 S.C.R. employees. They contain the terms and conditions of aippointment which are imperative. The form and content of the contract with a particular employee is prescriptive and statutory. The notable feature is that these statu- tory bodies have no free hand in framing the conditions and temis of service of their employees. They are bound to apply the terms and conditions as laid down in tile regulations. These regulaitions are not only binding on the authority but nl5o on the public. They imposed obligations on the statutory authorities. The statutory authorities cannot deviate from the conditions of service. Any deviation will b.t; enforced by legal sanction of courts to invalidate actions in violation of rules and regulations. The existence of rules and regulations u:nder the :itatnte is to ensure regµlar condll'Ct with a distinctive attitude
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