A V NAGHANE S N BHOWMIK S S JAIN B S DOGRA T N KRISHNAN Vs. UNION OF INDIA

JUDGEMENT

(1.) The validity of the provisions of the Life Insurance Corporation (Amendment) Act, 1981 and the Life Insurance Corporation (Amendment) Ordinance, 1981 which preceded it is challenged in this batch of writ petitions. The writ petitions have a history behind them which can be conveniently divided into three chapters. However, it will be easier to follow this history if we refer to some of the provisions of the Life Insurance Corporation Act, 1956 first. The Life Insurance Corporation was constituted under the Life Insurance Corporation Act, 1956 to provide for the nationalisation of life insurance business in India by transferring all such business to the Life Insurance Corporation of India. Under S. 11 (1) of the Act the services of the employees of insurers whose business has vested in the Corporation are transferred to the Corporation. Sub-sec. (2) of S. 11 provides :

(2.) Turning now to the history of the litigation, the first chapter begins with two settlements reached on Jan. 24, 1974 and Feb. 6, 1974 between the Life Insurance Corporation and its Class III and Class IV employees. These were settlements under S. 18 read with S. 2 (p) of the Industrial Disputes Act, 1947. The settlements were identical in terms; four of the five unions of workmen subscribed to the first settlement while the remaining union was a signatory to the second. The settlements cover a large ground including the claim for bonus. Cl. 8 of each of the settlements was as follows :-

(3.) The second chapter began on Mar, 31, 1978 when the Corporation issued a notice under S. 19 (2) of the Industrial Disputes Act declaring its intention to terminate the settlements on the expiry of the period of two months from the date the notice was served. On the same day another notice was issued by the Corporation under S. 9A of the Industrial Disputes Act stating that it proposed to effect a change in the conditions of service applicable to the workmen. The change proposed was set out in the annexure to the notice which reads :