Facts of the Case

Forty-five individuals, together with the South Central Zone Insurance Employees Federation, had filed Contempt Case No. 392 of 2018 before the Telangana High Court under Sections 10 to 12 of the Contempt of Courts Act, 1971, against senior officials of the Life Insurance Corporation of India (LIC) — its Chairman, its South Central Zonal Manager, and a Senior Divisional Manager.

The contempt petition alleged wilful, deliberate and intentional violation of an interim order dated 11.07.2017 passed in W.P.M.P. No. 27572 of 2017 in W.P. No. 22396 of 2017, in which the underlying prayer had been for absorption of the petitioners into LIC service pursuant to their applications submitted following a 2015 notice, without reference to a subsequent LIC circular dated 16.05.2017.

There is no reference to GST anywhere in the substance of this dispute, which concerns absorption of insurance-sector workers into regular LIC employment.

Issues Involved

  1. Whether the LIC officials had wilfully violated the interim order dated 11.07.2017, warranting punishment under the Contempt of Courts Act, 1971.
  2. Whether the contempt case survived once the main writ petition (W.P. No. 22396 of 2017) from which the interim order arose had itself been finally disposed of.

Petitioner's Arguments

  • The petitioners had sought to be absorbed into LIC service in terms of their applications, without reference to LIC's Circular No. ZO/MPPR/LGL/2017/165 dated 16.05.2017, and alleged that the respondent LIC officials had failed to implement the interim order protecting their position pending final disposal of that claim.

Respondent's Arguments

  • The respondents' counsel represented LIC at the hearing; the order records no separate substantive defence, the matter being closed on the ground that the main petition itself had already been finally disposed of.

Court Order / Findings

  • The Court noted that the main writ petition, W.P. No. 22396 of 2017, from which the interim order arose, had itself been disposed of on 21.08.2023.
  • Since the main petition stood disposed of, it held that no further adjudication was required in the contempt proceeding, and accordingly closed the contempt case, with no costs.
  • No finding was recorded on whether the LIC officials had in fact violated the earlier interim order — that question became moot once the underlying writ petition was finally decided.

Important Clarification

This order does not decide whether the LIC officials committed contempt, nor does it touch any GST question — it simply records that the contempt proceeding had become moot once the underlying absorption petition was finally disposed of. Anyone interested in the substance of the absorption dispute should look to the judgment in W.P. No. 22396 of 2017 itself, not this contempt order.

Sections Involved

  • Contempt of Courts Act, 1971 – Sections 10 to 12
  • Article 226 of the Constitution of India – the underlying writ jurisdiction from which the interim order arose

Decision – In Favour of

No decision on the merits of the contempt allegation — the contempt case was simply closed as having become infructuous once the main writ petition was finally disposed of.

Case Details

High Court for the State of Telangana at Hyderabad. Contempt Case No. 392 of 2018 (E. Rajender and 45 Others v. Sri V.K. Sharma, Chairman, LIC of India and Others). Coram: Hon'ble Sri Justice J. Sreenivas Rao. Order dated 22.08.2023.

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.