Judgment

MOHAN, J.:- Leave granted.

2. The short facts leading to this civil appeal are as under:

Life Insurance Corporation of India (hereinafter referred to as the Corporation) is the appellant in the civil appeal. It was established under the Life Insurance Corporation Act, 1956 (hereinafter referred to as the Act). Section 49 of the said Act empowers the Corporation to make regulations with prior approval of the Central Government. In exercise of these powers, the Corporation has framed the Life Insurance Corporation of India (Staff) Regulations, 1960 providing for terms and conditions of service of the staff of the Corporation. Regulation 4 of the said Regulations empowers the Chairman of the Corporation to issue such instructions or directions as may be necessary to give effect and carry out instructions of the Corporation in order to secure effective control over the staff employed by the Corporation. The Chairman of the Corporation with the approval of the Board on 27-11-1979 issued the Life Insurance Corporation Recruitment (of Class III and Class IV staff) Instructions, 1979. These instructions also contain provisions for the appointment of staff on compassionate ground upon