( 1 ) BY this petition under Article 226 of the Constitution a certain regulation framed by the Life Insurance Corporation of India (hereafter referred to as the " Corporation ") has been challenged. Shyam Lal Sharma is the petitioner. The Corporation is respondent No. 1. The chairman of the Corporation is respondent No. 2.

( 2 ) THE Corporation was established under the Life Insurance Corporation Act, 1956 (hereafter referred to as "the Act") with effect from the 1st of September, 1956. The petitioner is an employee of the Corporation. Section 49 of the Act has conferred on the Corporation power to make regulations. By virtue of that authority, the Corporation has made a number of regulations. Regulation No. 25 prohibits employees of the Corporation from participating in politics and standing for elections. According to the petitioner, regulation No. 25 violates a number of fundamental rights conferred on him by Article 19 of the Constitution, and is, therefore, void. The petitioner applied to the respondents for permission to offer himself as a candidate for a seat in the U. P. Vidhan Sabha. Permission was refused. The petitioner has, therefore, prayed that regulation No. 25 be declared void in so far as it prohibits the petitioner from taking ,part in the normal political activity and seeking nomination and election for membership of the U. P. Vidhan Sabha.

( 3 ) THE petition has been opposed by the respondents. According to the respondents, regulation No. 25 is valid.

( 4 ) THE petition was filed in this court on December 15, 1966. In paragraph 14 of the petition it was stated that the petitioner is not a member of any political party. Nor did he wish to offer himself as a candidate representing any political party. The petition was later amended. In Clause (m) of paragraph 22 of the petition it was stated that the petitioner wishes to associate himself and be a member of one of the political parties in opposition to the Indian National Congress party, and desires to take part in and subscribe in, aid and assist the political movement and the activities of the party. Initially, Clause 1 of the prayer stood thus:

"to declare that regulation 25. . . . . in so far as it prohibits the petitioner from seeking nomination and election for membership of the U. P. Vidhan Sabha is void. "

( 5 ) AS a result of the amendment allowed on December 19, 1969, the following words have been added in the first clause of the prayer : "or taking part in the normal political activity and in the elections. "

( 6 ) IN order to appreciate the rival contentions of the parties, it will be convenient to set forth the material provisions of the Act. The preamble of the Act runs thus:

"an Act to provide for the nationalisation of life insurance business in India by transferring all such business to a Corporation established for the purpose and to provide for the regulation and control of the business of the Corporation and for matters connected therewith or incidental thereto. "

( 7 ) SECTION 4 of the Act provides for constitution of the Corporation. The Corporation shall consist of a number of persons and a chairman to be appointed by the Central Government. Under Section 5 of the Act the original capital of the Corporation amounting to five crores of rupees was provided by the Central Government. Section 6 deals with functions of the Corporation. It shall be the general duty of the Corporation to carry on life insurance business in such a manner that life insurance business is developed to the best advantage of the community. Section 30 gives the Corporation monopoly of carrying on life insurance business. Section 49 of the Act gives the Corporation power to make regulations. By virtue of power conferred by Section 49 of the Act, the Corporation has framed regulations. Regulation No. 25 has four clauses. Clause (1) of regulation No. 25 is in these terms :

"no employee shall be a member of, or be otherwise associated with, any political par