JUDGMENT

Mrs. Sujata V. Manohar, J.-The first petitioner in this writ petition was an employee of M/s. Indian Oxygen limited. He retired from service at the end of March, 1980 on attaining the age of superannuation. Indian Oxygen Ltd. has set up a non-contributory superannuation fund known as the Indian Oxygen Ltd. Staff Pension Fund. It is a non-contributory approved superannuation fund set up under the provisions of the Income-tax Act, 1961. On retirement, under the rules of the fund, the first petitioner is receiving an annuity under a policy purchased by the trustees of the Fund from the Life Insurance Corporation of India. The second petitioner is a society registered under the West Bengal Societies Registration Act, 1961. Its membership consists of pensioners of various non-contributory approved superannuation funds. Petitioner No. 1 is the Secretary of the Association.

2. It is the contention of the petitioners that certain improvements which have been effected in the executive staff pension fund of Indian Oxygen Ltd. in 1985 should be made available to the existing pensioners of the Indian Oxygen Ltd. and that the denial of the benefits of such an improvement to the existing pensioners of the said fund is arbitrary and violative of Article 14 of the Constitution. The petitioners have also challenged Clause 11(cc) of Part B of schedule IV of the Income Tax Act, 1961 as conferring an unguided power to the Board to frame rules. They have also challenged Rules 89 and 91 of the Income Tax Rules, 1962 as arbitrary and violative of Article 14. The petitioners have also alleged that these rules suffer from the vice of excessive delegation. They have further submitted that the appropriation of the purchase price of annuities after the death of the annuitant/pensioner by the Life Insurance Corporation of India (respondent No. 4) is ultra vires Clause 3 of Part B of Schedule IV of the Income Tax Act, 1961 and constitutes an arbitrary or excessive use of power. The petitioners have contended that the scheme of such non-contributory approved superannuation funds should be modified so as to provide for disbursement of pension by the funds themselves or in the alternative by a statutory body to be newly constituted under a new scheme.

3. Under Section 2(6) of the Income Tax Act, 1961, an approved superannuation fund has been defined to mean a superannuation fund or any part of a superannuation fund which has been and continues to be approved by the Commissioner in accordance with the rules contained in Part B of the Fourth Schedule. Under Section 36(1) of the Income-tax Act, 1961, deductions as provided in that sub-section shall be allowed in respect of the matters dealt with therein in computing the income of an assessee. Clause (iv) of sub-section (1) of Section 36 grants such deduction, inter alia, in respect of any sum paid by the assessee as an employer by way of contribution towards an approved superannuation fund subject to such limits as may be prescribed for approving the superannuation fund and subject to such conditions as the Board may think fit to specify as set out therein. Therefore, any amount paid by an employer by way of contribution towards, inter alia, an approved superannuation fund, subject to such limits as may be prescribed is deductible in computing the income of the assessee employer.

4. Part B of Schedule IV of the Income-tax Act, 1961 deals with approved superannuation funds. Under Clause 3 of Part B, in order that a superannuation fund may receive and retain approval, it shall satisfy the conditions set out in the said clause as well as any other conditions which the Board may, by rules, prescribe. Under clause 3 one of the conditions is to the effect that the fund shall be a fund established under an irrevocable trust in connection with a trade or undertaking carried on in India. Another condition so prescribed is that the fund shall have for its sole purpose the provision of annuities for employees in the t