U. C. Srivastava, S. H. A. Raza, JJ. - (1.) The petitioner who at the relevant time was Development Officer at Lucknow, Life Insurance Corporation of India being transferred employee of the Corporation initially filed this writ petition against the show cause notice, dated 19/25-9-1980 issued prior to the order by which his services were terminated. During the pendency of the writ petition the Zonal Manager as appointing authority terminated the services of the petitioner who did not show cause where after writ petition was amended and prayer for quashing of the termination order, dated 16-6-1981 terminating his services with effect from 16-9-1981 in terms of the provisions of Life Insurance Corporation of India (Staff) Regulations, 1960 (hereinafter referred to as the Regulations).
(2.) The petitioner was an employee or Ruby General Insurance Company and after coming in force of the Life Insurance Corporation of India Act, 1960 (hereinafter referred to as the Act) by which Insurance Companies were taken over by the Corporation, the petitioner who was at that time Superintendent to the Insurance Company became transferred employee of Corporation as Field Officer in the service of Corporation on who was subsequently designated as Development Officer. Under Section 11 of the Act the employees of the Insurance Company so taken over became employee of the Corporation the same terms and conditions, rights and privileges to which they were entitled to or were enjoying before their transfer until employees is terminated or remuneration, term and condition of service are duly altered of (sic) Corporation. The Central Government has been empowered under sub-section (2) to alter the remuneration and other terms and conditions of service. Under Section 49 of the Act the Corporation with the previous permission of the Central Government by notification in the Gazette has been empowered to make regulation in respect of various matters including the terms and conditions of service of persons who have became employees of the Corporation under Section 11(1) of the Act that the erstwhile employee of the Insurance whose service stood transferred to Corporation. It is in exercise of these powers the Corporation framed L. I. C. (Staff) Regulation, 1960 which were amended from time to time.
(3.) In exercise of the powers under Section 11(2) of the Act the Corporation issued Life Insurance Corporation Field Officers (Alternation of Remuneration and other Terms and Conditions of Service) Order, 1957 in supersession of which another Order was issued in 1976 which was replaced by Order of 19 8. The question of conflict and primacy between the 'Order' and 'Regulation' so framed under Section 49 of the Act came up for consideration in the case Life Insurance Corporation of India v. Sunil Kumar Mukherjee and others, AIR 1964 SC 847. It was held that the provisions contained in Section 11(2) are paramount and would override any contrary provision contained in L. I. C. Field Officers (Alteration of Remuneration and others Terms and Conditions of Service) Order 1957 or the Regulation. Subject to the proviso of Section 11(2), the provisions of Order will prevail as the Order has been issued by the Central Government by virtue of the powers conferred on it by Section 11(2) itself. The provisions of the Order in law partake the character of the rules framed under Section 48 of the Act. Thus, next to the provision of Section 11(2) of the Act will stand the provisions of the Order. Thus, we have the Regulation issued by the Corporation under Section 49( 1; of the Act. But it must be borne in mind that the power of the Corporation to make Regulation is bonded with the condition that these Regulations must not be inconsistent with the Act and Rules framed thereunder so that if any of the provisions contained in the Regulations made by the Corporation under Section 49 are found to be inconsistent with Section 11(2) or with the Order made by the Central Government under Section 11(2), they would be invalid.;