R. K. ABICHANDANI, J.

( 1 ) THE petitioner Trade Union challenges the provisions of Section 3 of the Insurance Act, 1938 and Section 30 of the Life Insurance Corporation Act, 1956, as unconstitutional, on the ground that they violate the fundamental rights guaranteed by Articles 14 and 19 (1) (c) of the Constitution of India. The petitioner also challenges the communication at Annexure "b" dated 22nd May 1989 sent by the respondent No. 1 - Life Insurance Corporation of India to the petitioner Trade Union informing it that its proposed "uco Bank Employees Death Benefits Scheme" contravened the provisions of Section 3 of the Insurance Act, 1938 and Section 30 of the Life Insurance Corporation Act, 1956 and the notice dated 6-11-1989, at Annexure "d" to the petition, calling upon the petitioner to withdraw the said Scheme.

( 2 ) ACCORDING to the petitioner, it is a registered trade union in existence since 1957 and as per the rules constituting the Union, one of its object was to provide funds for the relief of the needy or distressed members or the families of such members, under Rule 3 (k ). Apart from the objects contained in the Rules of the petitioner trade union, reliance was placed on Sections 15 (f) and (g) of the Trade Unions Act, 1926, in justification of the Scheme. As per the said Scheme, a member was required to pay Rs. 50 as admission fee and then to contribute Rs. 10 every month and such member was eligible for the benefit of payment of Rs. 50,000 to his nominee in the event of his death and on permanent disablement, a member was to be paid the amounts stipulated under the Scheme. According to the petitioner, the provisions of Section 3 of the Insurance Act, 1938 and Section 30 of the Life Insurance Corporation Act, 1956, refer to `life insurance business and did not refer to `life insurance activities. The Scheme like the one undertaken by the petitioner was not a business venture and was, therefore, outside the scope of this provision, as contended in paragraph 12 of the petition. It is contended that the registered trade union can legitimately undertake by way of welfare measure, activity for providing financial relief to the members of the family of a deceased member or in the event of the disablement of a member suffering from physical disablement. It is contended:"section 30 of the Life Insurance Corporation Act, 1956 curtails the freedom of association of a registered Trade Union inasmuch as it curtails its freedom to provide financial help by way of welfare measure to the family members of the deceased member. ". Such a restriction cannot be saved by article 19 (4) of the Constitution of India since it was not a reasonable restriction contemplated thereunder and therefore, it was violative of Article 19 (1) (c ). It is also contended that the provision imposes unreasonable and arbitrary restriction on the legitimate welfare activities of a registered trade union and therefore, was violative of the provisions of Article 14. Section 3 of the Insurance Act, 1938 was violative of Article 14 for the same reason. According to the petitioner, from May 1989 onwards, there were about 1300 employees of the bank paying contribution under the Scheme and the bank was deducting contribution from the salary of the concerned employee as per their written authorization.

( 3 ) IT appears from the record that, while issuing "rule" on the petition on 27-11-1989, ad-interim relief in terms of paragraph 17 (C) (ii) was granted, as per which, the respondent No. 2 was restrained from discontinuing the practice of deduction of contribution towards the Scheme from the salary of the employees who had given written authorization. It will be seen that the prayer in terms of Clause 17 (C) (i) of the petition, by which an interim relief was prayed for restraining the respondent No. 1 from taking action of discontinuing the scheme and from taking any legal proceedings against the petitioner, was not granted. The effect of the interim relie

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