Sabyasachi Mukharji, J. - (1.) Them petitions under Article 32 of the Constitution are filed by The employees of the General Insurance Companies and the All India Insurance Employees Association. The respondents are, Union of India, the General Insurance Corporation of India and four General Insurance companies.
(2.) The petitioners challenge the Notification dated 30th September, 1990 of the Ministry of Finance (Department of Economic Affairs) (Insurance) introducing what is called General Insurance (Rationalisation and Revision of Pay Scales and Other Conditions of Service of Supervisory, Clerical and Subordinate Staff) Second Amendment Scheme, 1980 as being illigal and violative of their fundamental rights under Arts. 14. 19 (1) (g) and 31 of the Constitution of India.
(3.) Prior to 1972, there were 106 General Insurance companies - Indian and foreign. Conditions of service of theft employees were governed by the respective contracts of service between the companies and the employers. On 13th May, 1971, the Government of India assumed management of the general insurance companies under the General Insurance (Emergency Provisions) Act, 1971. The general insurance business was nationalised by the General Insurance Business (Nationalisation) Act, 1972 (Act 57 of 1972). The preamble of the Act explains the purpose of the Act as to provide for the acquisition and transfer of shares of Indian insurance companies and undertakings of other Insurers in order to serve better the needs of economy in securing development of general insurance business in the best interest of the community and to ensure that the operation of the economic system does not result in the concentration of wealth to the common detriment, for the regulation and control of such business and for matters connected therewith or incidental thereto.;