On Thursday, the Supreme Court refused to grant any interim relief in a case involving the Life Insurance Corporation of India (LIC) initial public offering (IPO) and issued notice to the Centre in response to petitions challenging the constitutional validity of provisions of the Finance Act, 2021 and certain provisions of the LIC Act 1956.
The Centre has been summoned to respond to different petitions by a bench of Justices DY Chandrachud, Surya Kant, and PS Narasimha.
However, the bench stated, “We believe that no cause for interim relief has been shown. Interim relief was not granted.”
The subject was further tagged with the proceedings before the Constitution Bench because the petitions highlighted concerns about the law being enacted as a money bill.
One of the petitioners in the case has contested the Madras High Court’s decision, while the other has disputed the Bombay High Court’s decision.
L Ponnammal, a LIC policyholder, filed a suit in Madras High Court contesting the Finance Act, 2021 as a money bill, claiming that the provisions were introduced by a Money Bill despite amendment, which does not fall under the purview of Money Bill.
The petition sought to declare sections 128 to 146 of the Finance Act, 2021 as ultra vires Article 110 of the Indian Constitution, or alternatively, Section 5(9) of the LIC Act 1956 and Section 128 to 130 Section 132 to 146 of the Finance Act, 2021 as ultra vires Article 110 of the Indian Constitution, or alternatively, section 140 of the Finance Act, 2021 as ultra vires Article 110 of the Indian Constitution.