- (1.) W. P. No. 2823 of 1966 is preferred by the Head Clerk in the office of the regional Director, Employees State Insurance Corporation, Madras, for the issue of writ of certiorari quashing the order of suspension passed against him by the regional Director, Employees State Insurance Corporation on 12-7-1966, the charge Memo dated 17-8-1966 and the order dated 16-11-1966 directing an enquiry. W. P. 162 of 1967 is preferred by the employees of the Employees State insurance Corporation represented by the All India Employees State Insurance corporation Employees Federation for the issue of writ of prohibition prohibiting the employees' State Insurance Corporation or its officers from initiating or conducting action against the employees of the Employees State Insurance corporation or from enforcing decisions taken against the said employees for their participation in the agitation held in July 1966.
(2.) THE two writ petitions relate to the same matter, W. P. No. 2823 of 1966 being by one of the employees, while W. P. 162 of 1967 being by the Employees federation on behalf of the same question may be dealt with together.
(3.) THE petitioner in W. P. 2823 of 1966 joined the service of the Employees State insurance Corporation on 14-12-1954 and was promoted as Head clerk on 27-91963. The employees of the State Insurance Corporation staged demonstrations, hunger strike and work to work manual in response to the call by the Federation of employees. The Regional Director, Madras in his proceedings dated 12-7-1966 madras in his proceedings date 12-7-1966 placed the petitioner under suspension with effect from 12-7-1966. Charges were framed against the petitioner and a charge sheet was given to him on 17-8-1966. The petitioner replied on 14-8-1966. In his reply the petitioner questioned the propriety and legality of the rules and regulations under which proceedings have been initiated. On 16-11-1966, the regional Director, Employees State Insurance Corporation, Madras, appointed the deputy Regional Director, Madras as the Enquiry Officer to enquire into the charges framed against the petitioner. The petitioner's contention is that the proceeding of the Regional Director, Employees State Insurance Corporation, madras, is illegal and as such should be quashed by this Court. The contentions may be summarised as follows: 1. The Employees State Insurance Corporation (Staff and Conditions of service) Regulations 1959, and the Civil Services Conduct Rules of the central Government are not applicable to the employees of the employees State Insurance Corporation: 2. The Industrial Disputes Act is applicable to the employees and no change of conditions of service could be made without due notice to the employees, and as the rules relied on are in contravention of Sec. 9-A of the Industrial Disputes Act, the rules are no valid; and 3. The employees are governed by the Industrial Disputes (Standing orders) Act, 1946, and the Employees State Insurance Corporation (Staff and Conditions of Service) Regulations, 1959, and Central Civil services Conduct Rules are not applicable". The Employees State Insurance Act (Central Act 34 of 1948) was passed for providing certain benefits to employees in case of sickness, maternity and employment in case of sickness, maternity and employment injury and making provision for certain other matters in relation thereto. By Sec. 3, the Employees state Insurance Corporation was established. The Corporation is a body corporate having perpetual succession and a common seal. A standing Committee was also constituted by Sec. 8 of the Act, consisting of a Chairman nominated by the central Government and members representing the various interests. Sec. 16 of the Act provided for the appointment of Principal Officers of the Corporation. Section 17 empowers the Corporation to employ staff and officers other than the principal Officers as may be necessary for efficient transaction of its business, provided sanction of the Central Government was obtained for the creation of any post with a maximum salary of five hundred rupees and above. Section 17 (2)authorises the Corporation to make regulations regarding the method of recruitment, pay and allowances, discipline, superannuation benefits and other conditions of service of the members of its staff with the approval of the Central government. Section 95 enables the Central Government to make rules for the purpose of giving effect to the provisions of this Act. Section 96 empowers the state Government to make rules in regard to matters specified in the section. S. 97 empowers the Corporation, subject to the condition of previous publication, to make regulations not inconsistent with the Act and the rules made thereunder for the administration of the affairs of the Corporation and for carrying into effect the provisions of the Act. Section 97 (2) (xxi) enables the Corporation to make regulations regarding the method of recruitment, pay and allowances, discipline, superannuation benefits and other conditions of service of the officers and servants of the Corporation other than the principal officers. The condition as to previous publication required under Sec. 97 (1) by an amendment in Act 53 of 1951 was made not applicable to any regulation of the nature specified in Cl. (xxi) of sub-sec. (2 ). As a result of this amendment the necessity for previous publication was dispensed with in the case of rules relating to method of recruitment, pay and allowances, discipline, superannuation benefits and other conditions of service of the officers and servants of the Corporation.;