The President of India

16 December 2014

Rashtrapati Bhawan
New Delhi.

Sir,
Re: GIPSA companies tactics of Writ Petition filed to harass,intimidate
and finish the career of honest citizens of India
With reference to above I beg to lay before your most exalted honour
that due to the extremely litigious attitude in the following 4 General
Insurance Public Sector (henceforth called as GIPSA ) Companies millions
of rupees of Public money and innumerable national resources ,including
precious time of our judiciaries are deliberately wasted.

As your excellency is the appointing authority of the CMDs of the

GIPSA companies,I bring it to your kind attention that :1. That as per the Law Commission report No. 126th the Public Sector
Undertakings (PSUs) must eschew litigation with their employees.
(relevant pages are enclosed in the annexure*).
2. That the Ministry of Finance is a very big Ministry and GIPSA officials
have effectively colluded so as to apply bureaucracys layer of non
transparency to take advantage of unclear law and non transparent
manner of working as a two pronged strategy:(a):To protect the interests of employees of doubtful integrity:example: I got such a list from CBI,almost all the GIPSA employees

Page 2 :Complaint of ShriGopal Soni 16.12.14

list facing the charges under the Prevention of Corruption Act shows
that every one of such GIPSA employees are promoted either in the
grade or designation.
(b): To harass,intimidate,destroy the career of honest employees.
That at least 3 known cases of taking stay orders over the decision of
Central Information Commission have come to notice of the
complainant,moreover the GIPSA a non registered association has
secured court stay to keep itself out of RTI act,though it runs entirely
on public money.

That the complainant, an activist for the cause of transparency in public life
wrote RTIs in the matter to all the concerened departments,i.e. the law
Commission,Dept of Law & Justice, Ministry of Finance,LIC,GIC,GIPSA
companies etc,he got vague and evasive replies on the basis of which it is
reasonably concluded that there is no clarity in the matter before the 4 PSU
GIPSA companies,besides LIC and GIC,however both LIC and GIC replied
that they do not file Writ Petitions against their employees.
However the following 4 GIPSA companies where corruption is
systematically supported and where the employees of doubtful
integrity continue to be showered with prospects/opportunity of
promotion are continuing with the recourse of Writ Petitions
effectively to curb the legal rights of honest employees:1. The New India Assurance Co. Ltd
2. National Insurance Co. Ltd
3. Oriental Insurance Co. Ltd

Page 3: Complaint of ShriGopal Soni 16.12.14

4. United India Insurance Co. Ltd

As the 4 General Insurance Public Sector companies are fully owned

by the Central Government your excellency may issue suitable
directions to the CMDs of all the GIPSA companies and the chairman
of the GIPSA Mr. G Srinivasan to strictly follow the law commission
report in respect of eschewing litigation with the employees.
A lawful intervention for saving the livelihood of honest
employees,saving the precious resources of our nation,saving the
habitual abuse of public money and to stop the personal hatred in
public life against the complainant is prayed.
Yours Sincerely,

Shri Gopal Soni

Address: C231,Panchsheel Nagar,
AJMER-305004
revribhav@gmail.com

Cell No. 9414982395

https://twitter.com/revribhav

Enclosed:Annexure:
1. Relevant pages of law commission report 2.relevant details
published in social media/public forum.
(P.S.) 3.News clip of a sitting high court
judge saying that 300 minutes time is accorded to him to hear 300 cases. Stay order to
implement the Govt of India order in favour of the complainant is granted by the same
authority.

Annexure1 to complaint of ShriGopal

Soni 16.12.14
Law
India126th
4

Commission of

Report

the case of a Government company, as defined in section 617 of the

Companies Act, 1956, which would mean that it is a company in which not
less than 51% of the paid up share capital is held by the Central Government,
or by any State Government or Governments, or partly by the
Central Government and partly by one or more Stiuc Govern
ments, including its subsidiary, failed when Project and Equipment
Corpoialion of India Ltd., a wholly owned subsidiary company of State
Tradmg Corporation, which itself was a Government of India undertaking,
was hcid to be an instrumentality or agency of the State and, therefore,
governed by Part 111 of the Constitution.''' It is thus now unquestionably
established that either a corporation set up under a statute enacted by
Parliament or State Legislature or a Government company or even a coopeiative society if it satisfies certain criteria, namely, it is carrying on a
public or Governmental function and is either aided by the State or its
management is captive under the State, then, notwithstanding the form it has
adopted, v/ould be compreherded in ilie expression 'other authorities' in
article 12 of the Constitution and would for practical purposes be State for
the purposes of the Constitution.
1.5. If the public sector undertakings by and large are comprehended in
the expression 'other authorities' in article 12 and are shown to be the
instrumentaUties and agencies of the State and hence 'the State' for all
purposes, consistent, of course, with the purpose for which they have been
set up, they should act like State and when a body is supposed to act like a
State, amongst others, it must be fair and just and rational in its activities,
in its relation to its employees, on the ground that the State is an ideal
employer and its activities must be conducive to the formation and setting
up of a welfare State. The ideal of the Constitution unquestionably is to
set up a welfare State. And, apart from other things, the welfare State must
eschew litigious attitude. This report deals with the problem of htigation
policy and strategy of public, sector undertakings as part of the ongoing
programme of the Law Commission for recommending basic judicial reforms.

1.6. There is an alternative route which takes one to the same destination.
The goal of setting up a Democratic Socialist Secular State was to be achieved
by concrete steps taken towards implementing the Directive Principles of
State Policy. One of the fundamental assumptions on which a welfare State
can be founded is to so arrange the social order that in it justice, social,
economic and political, will inform all institutions of national life. It is,
therefore, a safe assumption that Industrial Pohcy Resolutions would have
twin objectives to be attained, namely, to avoid concentration of wealth and
means of production to subserve the common good by distributing ownership
and control of material resources of the community on instrumentalities of
the State which are more or less expected to work on no profit no loss basis.
The aims and objectives of the Constitution are clearly reflected in the
Resolutions dated 6-4-1948 and 30-4-1956 laying down the industrial policy
of the State which, amongst other things, required the State to progressively
assume a predominant and direct responsibiUty for setting up new industrii
undertakings. Public corporations, State holding companies and State
controlled societies were chosen as the vehicles for translating this
mdustrial policy into action-oriented programme. Whatever garb they
may wear, then: life and soul, bone and blood, is the State itself.
They ate limbs of the State and they exist for the sole purpose of running
the huge apparatus of the State industry smoothly and efficiently in pursuit
of the objectives of the State policy." They should, however, be distinguished
from a Department of the Government under the administrative control of
any Ministry, otherwise a provision like sub-section (4) of section 32 of the
Payment of Bonus Act, 1965, would create an unnecessary confusion.
National Textile Corporation was appointed as an authorised controller under
section 18A of the Industries (Development and Regulation) Act, 1951, for
reviving a sick unit, called the Model Mills. As the workmen raised a
demand for bonus for the period 1964-65 to 1967-68, it was sought to be
countered by urging that on the appointment of an authorised controller, the
Model Mills is an establishment engaged in an industry carried on by or under
the authority of a Department of the Central Government and, therefore,

La w Co nvnission of I nd ia 1 26 th Report
e x c lu d e d troni the o p era ti o n (jf the P a y m e u t of B o n u s Act.
Ne ga t iv i ng the
I'li ( h f a p p o i n t m e n t of a n a u t h o r i se d c on trol ler,
c on t e nti o n, it wa s lield
only the m a n a g e m e n t cha n g e s biii the u nit r e ma i n s by itself a u nit i r r e sp e c t i w
T h e sta n d t a k e n b y the
c ha ra c t er of
of th e n a t u r e a n d
management.''
e m p l o y e r tha t since the a p p o i n t m e n t of a n a u t h o ri se d co ntr oll er, t h e M o d e l
the
Mills b e c o m e s a n e sta bl i sh m e n t in a n i n du str y r u n by a D e p a r t i n e n t of
U n i o n Government b etra y s a very n a r r o w ou t l o ok a n d sel f-d efea ting a tti tu de
b e ca u se if t he u n it b e c o m e s a D e p a r t m e n t of the G o v e r n m e n t , it may a t b e st
go ou t of th e t enta cle s of the P a y m e n t of B o n u s Ac t b u t it wo u l d b e su b je ct
A cl ea r poli cy sta t e m e n t wa s made
to all th e pr o vi si on s of the C on sti tu ti o n.
t h a t t he pu bli c se ctor c o r p ora ti o n s or c o m p a n i e s m u st ru n on c o m m e r c ia l
prin ci pl e s a n d in bu sine ss liice m a n n e r to a cliieve t he g oa ls a n d obj e cti ve s set
for t h e m b u t e sc he wi n g ail the priva te sec tor t a n t r u m s of e x ploi tin g wo r k m e n .
I n a n y view o f the ma tt er, a s these c o r p o r a t i o n s a n d c o m p a n i e s, ha v e be e n
the
hel d t o b e i n stru m e n ta l i d e s a n d a ge nci e s of the Sta te, th ey a re with in
p u r v i e w of Part I I I of t he C o n st itu t io n .
H o we v e r, th e se pu b li c se ct or u nder
tak ings, ha v i ng a c qu ir e d the fo r m a t of a G o v e r n m e n t c o m p a n y or a c or p o ra t i o n ,
ha v e m o r e or less b e t r a y e d a n a p p r o a c h of th e pri va te se ct or w h e n t h e y lo st
An
th e ba ttle on th e gr ou n d of a pp lica ti o n o f P a r t I II of the C o n sti tu ti o n.
a lterna ti v e wa s a d o p t e d by urging tiiat P a r t XIV of t h e C o n st i tu t i o n wou l d
n o t a p pl y to the e m pl o ye e s of the se c o r p o r a t i o n s a n d a Government company
on the sp eci ou s plea tha t llie e m p hi x e e s of t h e se b o di e s a re n ot members of
a civil service of tlie Unio n or an a ll -In dia service or a civil servic e of t h e
Sta te or h e k l a civil post u nd e r the Un i o n or t h e Sta te.
T h e p r ot e c t i o n of
Part XIV wa s sou g ht to be a \'oid cd by this c o nt e nti o n on th eir b eha lf.
Even
tha t st o o d n e ga t iv e d wh e n the cou rt s ru le d t ha t t he se pu bli c sect or u nder
ta k ing s will b e su bject to the limita tio n o n h eir p o w e r i m p o s e d b y a rticle 14
in t ha t t hey c a n n ot a ct in an a r bit ra r y m a n n e r or be guilty of di sc ri mi na t i on
a n d th e a c d o n s qu a not onl y th eir e m pl o y e e s b u t e ve n t he c o n su m e r s o f th eir
g oo d s a n d services will ha v e to b e ju dg e d in t he light of th e c o n sti tu ti o na l
cu ltu re.'"'
To illu strate, a Sta te F i n a n c e C o r p o r a t i o n , a ft er ha vi n g e n t e r e d
into a c o n tra c t to fina nce th e pr oj ec t of setting u p a five sta r hotel,
back ed
o u t a ft er t he p r o j e ct wa s ha l f t hr ou gh ,
so -ca lle d
lea ving t h e vi cti m to t he
r e m e d y of a su it for d a m a g e s for a br ea c h of c o nt ra c t b e ca u se it wa s c o n t e n d e d
t ha t c o nt ra c tu a l o bli ga ti on s e ven of a pubhc sec tor u n d e rta k i n g , wh i c h is a n
in stru m en ta li t y of the Sta te, c a n n o t b e e n fo r c e d b y a hig h pr er o ga ti v e writ.
T hi s la st a t t e m p t e qu a lly fa iled a n d the Sta te F i n a n c e C o r p o r a t i o n , b y a writ
of ma n d a mu s, wa s di re c t ed to fulfil its o bli ga ti on of
fina n cing th e
pr o j e c t
within t h e limits a gr e e d u p o n . -"

1.7. Ke e p i n g in a b e ya n c e for t h e ti m e b e i n g t h e qu e sti o n of tr ea ti n g all

pu bli c sect or u n d er ta k i n g s as b ei n g within the c o m p r e h e n si o n of a rticle 12
of the C o n st i t u d o n , their role as pu blic se ctor u n d e r t a k i ng s m u st b e e m p h a si se d
b y specifica lly c on tra st i ng t h e m with pr iva t e se ct or en ter pri se s in contra di stinc
tion t o whi ch t h ey wer e
existence.
T he
In du st ria l
b r o u g h t i nto
Poli c y
R e so lu t i o n a i m e d at r e du ci n g dispa rities in i n c o m e a n d wea lt h wh i c h we r e
t h e n existe nt, to p r e v e n t pr iva t e m o n o p ol i e s a n d c o n c e n t r a t i o n of e c o n o m i c
The
p o w e r in di fferent fields in the h a n d s of sma ll n u m b e r s o f i ndi vidu a ls.
Sta te, th er e for e , r e sol v ed t o a ssu m e a p r e d o m i n a n t a n d dir ect
re sp on si bil ity
for setti ng u p n e w i ndu stria l u n d er ta k i n g s a n d o t h er service fa cilities.
In
cer ta in c o m m od it i e s. Sta te tra d in g wa s to be a cc el era te d; the a d o p t i o n of
t h e socia list pa tt e r n of society
wi t h ou t t h e
wo r d 'so cia h st '
b e i n g in the
p r e a m b l e wa s a c c e pt e d a s a na ti o na l objective; t h e e c o n o m i c pl a n ni n g wa s t o
a im a t ra pi d d e v el o p m en t; a nd, with this e n d in view, all i ndu stri e s o f ba sic
a n d stra tegi c i m p o r t a n c e or in the na tu r e of pu bli c utility services we r e to b e
in t h e pu bl i c se ctor.
H i g h ca pita l i nten siv e in du strie s, whi c h the Sta te a l on e
ca n u n d e r t a k e wit h ou t b ei n g i nflu e nc ed b y th e fa ct of a profit m oti v e in shor t
te r m, wer e a lso t o b e in the pu b lic sector.
1.8.

T h e g r o u n d norm.';
were la id
for
m i x e d e c o n o m y.
B u t o v er a
th
e
line
b
e
t
we
en
th
e
se
ct
or
a
n
d
p eri o d,
de ma rca ting
pu bli c
pr iva t e se ct or is
If pri va t e se ct or wer e to i m pl y tha t the ca pita l for setting
b e c o m i n g dim.
u p in du stria l u nits will be pr o v i d e d by the e n t r e p r e n e u rs a n d wh e r e t h e Sta te
fina n ced th e pr oj e ct eith er wh olly or su bsta ntia lly, the i ndu stria l u n d e r t a k i n g
wou l d be t r ea t e d as o ne in pu bli c sector, th e n this ha s b e c o m e a e u p h e m i sm .
A su r v e y w o u l d sh o w t ha t th e so -ca lled pr i va t e se ct or u n d e rta k i n g s m obi li se
the ir fina ncia l r e sou r c e s fr o m the pu bli c wit h ou t t h e e n t r e p r e n e u r in a n y wa v

Annexure 2 to Complaint of ShriGopal Soni 16.12.14

Annexure 3 to complaint of ShriGopal Soni 1