JUDGEMENT
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(1.) Jurisdiction of the Chairman of the Life Insurance Corporation of
India (Corporation) to issue instructions in terms of Regulation 51 of the
Life Insurance Corporation of India Class-I Officers (Revision of Terms and
Conditions of Service) Instructions, 1996 is in question in this appeal which
arises out of a judgment and order dated 29th September, 1995 passed by a
Division Bench of the Kerala High Court in Writ Appeal No. 32 of 2004.
(2.) We may notice only the admitted facts herein.
Respondent No.1 is an Association of officers who have retired from
the services of the appellant-Corporation which is a statutory authority
constituted and incorporated under the Life Insurance Corporation Act,
1956.
During the period of 1st August, 1992 and 31st July, 1994 a revision of
scales of pay of the offices and employees of the Corporation took place.
Different cut off dates were fixed for grant of different nature of allowances
as also pay by the Chairman of the Corporation in purported exercise of his
power under Regulation 51 of the Regulations. Whereas 1st April, 1993 was
the cut off date for revision of pay; 1st August, 1994 was fixed as the cut off
date for the purpose of payment of gratuity on the basis of revised pay.
However, so far as those employees who had retired prior to 1st August,
1994 are concerned, they were directed to be entitled to reduce gratuity
based on the reduced scale of pay with effect from 1st April, 1993 only. The
arrears of pay were directed to be paid only w.e.f. 1st April, 1993.
(3.) Indisputably, whereas the Gujarat and Kerala High Court upheld the
validity of the instructions issued by the Chairman of the appellant-
Corporation, the Karnakata High Court took a different view.;
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