G. ROHINI, J.

1. By common order dated 21.4.2010, the learned Single Judge allowed W.P. (C) Nos. 10426, 10442, 10443 of 2006 and W.P. (C) No. 3277 of 2007. Aggrieved by the same, the Life Insurance Corporation of India/the sole respondent therein preferred these four appeals under Clause 10 of the Letters Patent.

2. The Respondents/Writ petitioners are the agents with the Life Insurance Corporation of India (for short LIC). By separate orders dated 24.11.2005, their agency was terminated by the LIC and renewal commission was forfeited in terms of Life Insurance Corporation of India (Agents) Regulations, 1972 (hereinafter referred to as the Regulations). Against the said orders of termination though the writ petitioners preferred appeals to the Zonal Manager, the same were rejected by orders dated 30.5.2006. Aggrieved by the same, they filed W.P.(C) Nos. 10426, 10442, 10443 of 2006 and W.P. (C) No. 3277 of 2007 contending inter alia that the orders of termination as well as the orders of the Appellate Authority dismissing the appeals were in violation of the principles of natural justice. Accepting the said contention, the learned Single Judge allowed all the writ petitions. Accordingly, while setting aside the impugned orders dated 24.11.2005 and 30.5.2006, the learned Single Judge directed restoration of the agency of the writ petitioners from the date of their respective termination. The learned Single Judge also directed payment of renewal commission and the arrears together with simple interest @ 6% per annum from the date of forfeiture to the date of payment. The said order is under challenge in these appeals preferred by the LIC.

3. We have heard the learned counsel for both the parties. Since the facts have been set out in detail by the learned Single Judge in the order under appeal, we are not repeating the same. However, it is necessary to notice the relevant statutory provisions.

4. In exercise of the powers conferred in it under Section 49 of the Life Insurance Corporation Act, 1956 and with the previous approval of the Central Government, the LIC made the Regulations called the Life Insurance Corporation of India (Agents) Regulations, 1972 which shall apply to all agents appointed by LIC for the purpose of soliciting or procuring life insurance business for LIC. The Regulations contain specific provisions prescribing the qualifications for appointment as agents, the training and tests they have to undergo, the period of probation, their functions and also commission and remuneration payable for the discharge of their functions. The agency is liable to be terminated on different grounds specified in the Regulations and as per Regulation 16, the appointment of an agent may be terminated by the competent authority for any of the lapses mentioned therein. Since the impugned orders of termination were passed in terms of Regulation 16(1), the same may be reproduced hereunder for ready reference:-

“16. Termination of agency for certain lapses:

(1) The competent authority may, by order, determine the appointment of an agent.

(a) If he has failed to discharge his functions, as set out in regulation 8, to the satisfaction of the competent authority.

(b) If he acts in a manner prejudicial to the interests of the Corporation or to the interests of its policyholders.

(c) If evidence comes to its knowledge to show that he has been allowing or offering to allow rebate of the whole or any part of the commission payable to him.

(d) If it is found that any averment contained in his agency application or in any report furnished by him as an agent in respect of any proposal is not true.

(e) If he becomes physically or mentally incapacitated for carrying out his functions as an agent.

(f) If he being an absorbed agent, on being called upon to do so, fails to undergo the specified training or to pass the specified tests, within three years from the date on which he is so called upon:

Provided that the agent shall be given a reaso