B. SUBHASHAN REDDY, J.

( 1 ) THIS batch of writ petitions may be disposed of by a common order since common questions of law and fact arise for consideration.

( 2 ) THE petitioners seek a Writ of mandamus declaring the action of the respondents in terminating the Rajlakshmi unit Scheme - 1992 as illegal, arbitrary and violative of principles of natural justice. The petitioners pray for a consequential direction directing the respondents to continue the scheme.

( 3 ) THE Unit Trust of India (UTI) launched a scheme known as Raj Lakshmi unit Scheme - 1992 (RUS-1992) (for short the Scheme ) as an exclusive scheme for the benefit of women. The scheme itself is proclaimed to be a tribute by the UTI to women. The Scheme is meant for all those who care for her future, when she would enter the most critical phase of her life, around the age of 21 and encounters challenges of marriage, entry and adjustment in a new household, motherhood and economic independence. This Scheme is intended to meet the critical financial needs of the women during the critical phase of her life. Indeed, a very laudable object.

( 4 ) THE Scheme provides for an investment that will grow 21 times in 20 years. An investment of Rs. 1,000. 00 invested in the name of a female child up to and including the age of one year will become rs. 21,000/- after 20 years and Rs. 5,000. 00 will become over one lakh. Depending upon the age of the child for whom the investment is made, the maturity value will vary from a minimum of Rs. 11,000. 00 to 21,000/- as shown below:

Entry Age (in years)

Minimum Amount

Lockin Period (in years)

Maturity amount payable after completion of lock in period

Upto & Including 1

Rs. 1,000/-

20

Rs. 21,000/-

Above 1 to 2

Rs. 1,000/-

19

Rs. 18,000/-

Above 2 to 3

Rs. 1,000/-

18

Rs. 15,000/-

Above 3 to 4

Rs. 1,000/-

17

Rs. 13,000/-

Above 4 to 5

Rs. 1,000/-

16

Rs. 11,000/-

( 5 ) THE Scheme further declares that the maturity value will be given only to the beneficiary. Till then nobody can touch it. It is supposed to be an irrevocable gift. The maturity period will be calculated from the date of acceptance of the application. In addition to the above, the Trust may, periodically declare bonus which shall be payable on maturity. Consequently the ultimate return could be still higher. This is the broad scheme.

( 6 ) THE gravamen of the complaint in this batch of writ petitions relates to the decision taken by the UTI to terminate the scheme with effect from 1st October, 2000. The decision to terminate the very scheme is challenged in this batch of writ petitions by the petitioners, who have invested in the scheme for the benefit of their minor daughters.

( 7 ) IT is broadly the case of the petitioners that the termination of the scheme is without jurisdiction and ultra vires the scheme framed under Section 21 of the Unit trust of India Act, 1963 (for short the Act ). It is also contended that there is no provision in the Scheme to cancel the investment. The unilateral termination of the Scheme without any prior notice to the investors is violative of principles of natural justice. It is also contended that the Scheme, if at all, could have been terminated only after obtaining the prior permission from the Central Government. Intimation of proposal to terminate the Scheme to the government of Rajasthan is of no consequence. These are the grounds, broadly, on which the termination of the scheme is challenged in this batch of writ petitions.

( 8 ) A detailed counter-affidavit has been filed by the UTI opposing the claim of the petitioners. The counter-affidavit inter alia provides the details and circumstances under which the UTI was constrained to take decision to terminate the Scheme before completing its full term.

( 9 ) IT is stated in clear terms that the decision to terminate the Scheme has been taken by the Board, which is the highest decision making body, consciously taking into account the prevailing volatile market conditions in equity and debt ma

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