- (1.)THIS is an appeal from the judgment and order of Mir. Justice D. N. Sinha discharging the Rule without prejudice to any other kind of legal action that the petitioner before him might be advised to bring against the Life Insurance Corporation or any other authority.
(2.)THE appellant was employed previously under various life insurance companies. In 1956 he was working as an Inspector in the Lakshmi Insurance Company at the Asansol Branch. In that year, the Life Insurance Corporation Act nationalising all life insurance business in India came into force. In 1956, the Life Insurance Corporation was established. The appellant thereafter became an employee of the said Corporation.
(3.)THE appellant thereupon became an employee of the said Corporation under section 11 (1) of the said Act whereby employees of all insurers whose business was taken over by the Corporation were to continue under the employment of the Corporation under the same terms and conditions as before. Section 11 (2) of the Life Insurance Corporation Act enables the Central Government to make rule's for the purpose of rationalising the pay scales and/or reducing the remuneration of the employees if it was to the benefit of the Corporation or the policy-holders. In exercise of this power, an order was promulgated by the Central Government on 30th December, 1957, known as "catagorisation Order". It was also referred to as the "blue Order''. Under this order, the staff, excepting those who were concerned purely with administrative posts like Managers or Assistant Managers became known as 'field Officers' and they were governed by certain rules including the rule framed under Clause 10 (a) of the Categorisation Order which is to the effect that before terminating their services, they should be given an opportunity of showing cause.