SC refuses interim relief in LIC IPO matter, issues notice to Centre

The Supreme Court on Thursday refused to grant any interim relief in a matter pertaining to the Life Insurance Corporation of India (LIC) initial public offering (IPO) issue and issued notice to the Centre on petitions challenging the constitutional validity of provisions of certain sections of Finance Act, 2021 and certain provision of LIC Act 1956.

A bench of Justices DY Chandrachud, Surya Kant and PS Narasimha asked the Centre to file a reply on various petitions. But the bench said, "We are of the view that no case of interim relief has been made out. No interim relief granted."

The Court also tagged the matter with the proceedings before the Constitution Bench as the petitions also raised issues regarding the enactment of law as a money bill.

One of the petitioners in the matter has challenged the order of the Madras High Court while other one has challenged Bombay High Court order.

The petitioner in Madras High Court was filed by L Ponnammal, a LIC policyholder, challenging the passing of the Finance Act, 2021 as a money bill and as the petitioner stated that the provisions were introduced by a Money Bill despite amendment does not fall in the category of Money Bill.

The petition sought to declare sections 128 to 146 of the Finance Act, 2021 as ultra vires Article 110 of the Constitution of India or alternatively declare 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 Constitution of India or alternatively declare section 140 of the Finance Act, 2021 as ultra vires Article 110 of the Constitution of India.