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Judgment
Petitioner seeks for a declaration that R. 3. 10(2) of the Service Rules of respondent-Corporation, is illegal.
Already, dealing with the points arising in W.P. 2976 of 1985, it has been held that the Corporation is an instrumentality of the State of Tamil
Nadu in respect of service condition of its employees, and they are entitled to protective benefits under Parts III and IV of the Constitution, as held
in Ajay Hasia and Others Vs. Khalid Mujib Sehravardi and Others, and, therefore, any term relating to their service conditions, which confers
arbitrary powers, and which is capable of vicious discrimination, is illegal. Mr. Santhanam, learned counsel for Corporation would submit that the
Rules having been framed by the Board of Directors of Company registered under the Companies Act, petitioner cannot seek for such a
declaration. This plea is without substance, because as ''other authority'' under Art. 12, it cannot enforce an illegal condition of service, which
offends any of the provisions in Parts III and IV of the Constitution. A similar provision formulated by West Bengal Electricity Board was struck
down by the Supreme Court in West Bengal State Electricity Board and Others Vs. Desh Bandhu Ghosh and Others, . Hence, R. 3. 10(2), is
hereby declared as illegal. Therefore, this writ petition is allowed with costs. Counsel''s fee Rs. 250/-.