- (1.) This appeal, founded on the certificate granted by the High Court of Calcutta, raises questions of interpretation of Section 3 (2) of the Life Insurance (Emergency Provisions) Ordinance, 1 of 1956, S. 11 of the Life Insurance Corporation Act, 31 of 1956 and R. 12A of the Life Insurance Corporation Rules, 1956 made under S. 48 of the said Act.
(2.) These questions arise in the following circumstances : Prior to January 1, 1956 the appellant was employed as the Principal Officer of the Bengal Insurance and Real Property Co. Ltd. respondent 2 in this appeal. It was not disputed in the High Court that by Principal Officer the appellant meant that he was the Managing Director. His salary as such officer was Rs. 2630 per mensum which on and from January 1, 1956 was raised to Rs. 3000 per mensem. On January 19, 1956, respondent 2 issued in favour of the appellant four cheuqes for Rupees 5436.6.0 in all representing his salary for November and December 1955 and for certain other dues. On that very day, i.e., January 19, 1956, the Life Insurance (Emergency Provisions) Ordinance, 1956 came into force, under which January 19, 1956 was the appointed day. The management of the life insurance business carried on by all concerns including that of respondent 2 was taken over and became vested in Custodian appointed under the Ordinance. Cl. 3 (2) of the Ordinance provided that "any contract, whether express or implied, providing for the management of the controlled business of an insurer made before the appointed day between the insurer and any person in charge of the management of such business immediately before the appointed day shall be deemed to have terminated on the appointed day". The Ordinance was substituted by the Life Insurance (Emergency Provisions) Act, 9 of 1956 which came into force as from March 21, 1956. The said cheques, when presented for payment, were not honoured by the Bank on the ground that they were not signed by the custodian.
(3.) On June 18, 1956, Parliament passed The Life Insurance Corporation Act, 31 of 1956, which came into force as from July 1, 1956. A Notification, dated August 30, 1956, issued thereunder fixed September 1, 1956 as the appointed day, that is the date when the Corporation was established under Section 3 of the Act. Section 7 of the Act reads as follows : "7 (1) On the appointed day there shall be transferred to and vested in the Corporation all the assets and liabilities appertaining to the controlled business of all insurers. (2) The assets appertaining to the controlled business of an insurer shall be deemed to include all rights and powers, and all propery, whether movable or immovable, appertaining to his controlled business, including in particular, cash balances, reserve funds, investments, deposits and all other interests and rights in or arising out of such property as may be in the possession of the insurer-and liabilities shall be deemed to include all debts, liabilities and obligations of whatever kind then existing and appertaining to the controlled business of the insurer." Section 11 (1) of the Act provides that every whole-time employee of an insurer whose controlled business has been transferred to and vested in the Corporation and who was employed by the insurer wholly or mainly in connection with his controlled business immediately before the appointed day (i.e. September 1, 1956) shall on and from the appointed day become and employee of the Corporation and shall hold his office therein on the same terms and conditions as he was having on the appointed day, unless and until his employment in the Corporation is terminated by the Corporation. Sub-section (3) of Section 11 provides that if any question arises as to whether (a) any person was a whole-time employee of an insurer, or (b) as to whether any employee was employed wholly or mainly in connection with the controlled business of an insurer immediately before the appointed day (i.e. September 1, 1956) that question shall be referred to the Central Government, whose decision shall be final. Under S. 17, the Central Government has been empowered to constitute one or more tribunals. Section 48 empowers the Central Government to make rules and in particular among other subjects on the subject of jurisdiction of the tribunals constituted under S. 17, Rule 12A of the Life Insurance Corporation Rules, 1956 made under S. 48 read as under : "12A. Jurisdiction of Tribunal. The Tribunal may exercise jurisdiction in the whole of India and shall have power to decide or determine all or any of the following matters, namely. (1) any question whether of title or of liability, or of any nature whatsoever in relation to the assets and liabilities pertaining to the controlled business of the insurer transferred to and vested in the Corporation." It seems clear from Section 11 (3) of the Act and the said Rule 12A (1) that on a question whether a person was a whole-time employee of an insurer or whether any employee was employed wholly or mainly in connection with the controlled business of such insurer immediately before the appointed day, i.e., September 1, 1956, it is the Central Government which is the deciding authority and whose decision is final, and (2) that where a question, whether of title or of liability or of any nature whatsoever in relation to the assets and liabilities pertaining to the controlled business of the insurer transferred to and vested in the Corporation, arises, it is the tribunal which is the authority invested with the jurisdiction to determine such a question.;