A.V. NACHANE & ANOTHER versus UNION OF INDIA & ANOTHER

A.V. NACHANE & ANOTHER versus UNION OF INDIA & ANOTHER

Rule 3 of the Bonus and Dearness Allowance Rules and the Amendment Act cannot retrospectively nullify the Supreme Court's writ and the terms of the 1974 settlements relating to bonus; any legislative abrogation can operate only prospectively from the date of the rules' publication.

Parties
Petitioner: A.V. Nachane & Another; Respondent: Union of India & Another
Jurisdiction
India
Judgment Date
28 December 1981
Procedural Posture
Writ Petition (under Article 32 of the Constitution of India) / Final Judgment
Outcome
Petitions partly allowed.
Legal Topics
Retrospective Operation of Statutes, Delegated Legislation, Hostile Discrimination, Payment of Bonus, Fundamental Rights
Constitutional Law Administrative Law Labour Law Retrospective Operation of Statutes Delegated Legislation Hostile Discrimination Payment of Bonus Fundamental Rights

Case Brief

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Parties

A.V. Nachane & Another

Petitioner

Union of India & Another

Respondent

Procedural Posture

Writ Petition (under Article 32 of the Constitution of India) / Final Judgment

Legal Issues

  1. 1 Whether the Life Insurance Corporation (Amendment) Act 1981, the Ordinance, and the Bonus/DA Rules are ultra vires Articles 14, 19(1)(g) and 21 of the Constitution
  2. 2 Whether the Act suffers from excessive delegation of powers
  3. 3 Whether Rule 3 can operate retrospectively to nullify the Supreme Court's writ

Ratio Decidendi

Rule 3 of the Bonus and Dearness Allowance Rules and the Amendment Act cannot retrospectively nullify the Supreme Court's writ and the terms of the 1974 settlements relating to bonus; any legislative abrogation can operate only prospectively from the date of the rules' publication.

Court Disposition

Petitions partly allowed.

Orders

  • Life Insurance Corporation (Amendment) Act 1981 and Bonus/DA Rules 1981 can operate prospectively only, from February 2, 1981.
  • LIC employees are entitled to bonus earned before the publication of the Rules.