J.K.Tandon, J. - (1.) The petitioner Sri Kedar Nath Sethi is an employee of the Life Insurance Corporation of India since its inception. The history which preceded the constitution of the Corporation in so far as it is relevant, here is that there used to be a number of insurance companies in the country which carried on life insurance business. This business which has been called as controlled business was as a result of the nationalisation transferred and vested in the Corporation. The employees of these erstwhile companies were also transferred in the process under the employment of the Corporation.
(2.) Section 11 of the Life Insurance Corporation Act which made provision for the transfer of the services of such employees laid down that every whole-time employee of an insurer, i.e. an erstwhile insurance company whose controlled business had 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., the 1st September, 1956, shall, on and from that day become an employee of the Corporation. The section further laid down that such employee shall hold his office in the Corporation by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension and gratuity and other matters- as he would have held the same on the appointed day if the said Act had not been passed and further that he shall continue to do so unless and until his employment in the Corporation is terminated or until his remuneration, terms and conditions are duly altered by the Corporation.
(3.) In pursuance of the above provision Sri Sethi became an employee of the Corporation. It is material to point out just now that according to the terms and conditions applicable to him his salary was below Rs. 500/-. This will be relevant in considering the applicability of certain regulations which in due course were promulgated by the 'Corporation governing the conditions of service etc. of the staff working under it.;