CHRISTOPHER PIMENTA Vs. LIFE INSURANCE CORPORATION OF INDIA

JUDGEMENT

(1.) THE first and the second petitioners were clerks employed by the Bombay Life Assurance Co. Ltd. immediately prior to 1st September, 1956. The third petitioner was a clerk then employed by the Oriental Government Security Life Assurance Co. Ltd. The fourth petitioner was a clerk then employed by the Hindus than Co-operative Insurance Society Ltd. The fifth petitioner was then employed ns an assistant doing clerical work by the New India Assurance Co. Ltd. at Bombay. The sixth petitioner was a peon then employed by the New India Assurance Co. Ltd. at Bombay. The seventh petitioner was then employed as a clerk by the National Insurance Co. Ltd. On 19th January, 1958, the President of India promulgated an Ordinance called The Life Insurance (Emergency Provisions) Ordinance, 1956. Under that Ordinance, on and from the appointed day, that is, the 19th January. 1956. the management of the controlled business of all the insurers carrying on life insurance business vested in the Central Government. The said Ordinance was repealed and replaced by the Life Insurance (Emergency Provisions) Act, 1956. On 18th June, 1956, the Life Insurance Corporation Act, 1956, was enacted. That Act came into force on the 1st July, 1956. Under Section 7 of that Act, on the appointed day, that is, the date on which the Life Insurance Corporation of India was established viz. , 1st September, 1956, all the assets and liabilities appertaining to the controlled business of all insurers were transferred to and vested in the Life Insurance Corporation of India, the respondent to the petition. The controlled business referred to in the said section included all the business appertaining to life insurance business of the insurers. Under Section 11 of the Life Insurance Corporation Act, 1956, the petitioners became the employees of the Corporation on and from the appointed day.

(2.) THE petitioners have prayed for a writ of mandamus and/or other appropriate writs, orders or directions under Article 226 of the Constitution of India and/or an order under Section 45 of the Specific Relief Act against the Corporation directing the Corporation to cancel and/or withdraw and/or for-bear from implementing and/or giving effect to and/or in any way enforcing the alterations in the terms and conditions of service as contained in "the Summary" dated the 10th September, 1956, being Ex. F to the petition, and/or "the instructions" issued by the Corporation on 18th September, 1956, being Ex. G to the petition and/or in "the Summary" dated 24th December, 1956 (being Exhibit No. 2 to the affidavit of Mr. T. S. Swaminathan, dated 9th February, 1957) and/or those purported to be prescribed in the letter dated 21st February, 1957 (being Ex. No. 1 to the affidavit of Mr. T. S. Swaminathan, dated 7th March 1957 ). The petitioners nave further prayed for the issue of a writ of mandamus and/or appropriate writs, orders or directions under Article 226 of the Constitution of India or an order under Section 45 of the Specific Relief Act against the Corporation directing the Corporation to give effect and to continue to give effect to the awards, settlements and agreements being Exhibits A, B, C, D and E to the petition subsequent to 31st August, 1956. They have further prayed for an order and injunction restraining the Corporation, its servants and agents from implementing and/or giving effect to and/or in any way enforcing the said alterations in the terms and conditions of service or any part thereof.

(3.) THE material circumstances giving rise to the petition are as hereinafter stated : Prior to and on 1st September 1956, the scales of pay and other terms and conditions of service of the first and second petitioners as also of about 300 other employees of the Bombay Life Assurance Co. Ltd. were governed by an award of the Industrial Tribunal, dated 12th May 1954. The said award was published on 11th June, 1954 and is contained in Ex. A to the petition. Prior to and on 1st September, 1956, the scales of pay and other terms and conditions of service of the third petitioner and about 2000 other employees employed by the Oriental Government Security Life Assurance Co. Ltd. at Bombay and elsewhere in India were governed by a Memorandum of Settlement dated 22nd September, 1955 arrived at between the Oriental Government Security Life Assurance Co. Ltd. and the representatives of its employees. That settlement was to remain in force up to 31st December, 1957 and was thereafter to continue to remain in force until the expiry of two months from the date on which a notice in writing for terminating the said settlement was given by either party thereto to the other party. A print of the said Memorandum of Settlement is annexed to the petition and marked Ex. B. The fourth petitioner and over 1000 other employees employed by the Hindusthan Co-operative Insurance Society Ltd. were prior to and on 1st September, 1956 governed by the terms of settlement dated 16th December, 1955 arrived at in the course of conciliation proceedings before Shri M. M. Mukherjee. Conciliation Officer (Central) Calcutta. The said settlement was to remain in force for 2 years from the date of the signing of the said agreement. A print of the said terms of settlement is annexed to the petition and marked Ex. C. The scales of pay and other terms and conditions of service of the workmen of the New India Assurance Co. Ltd. at Calcutta were governed by an award, dated 12th August, 1954, of the Industrial Tribunal given in the industrial dispute between the New India Assurance Co. Ltd. and their workmen at Calcutta. Following upon that award the New India Assurance Co. Ltd. entered into a settlement of pending industrial disputes with its workmen employed at Bombay. The said settlement was arrived at in the course of conciliation proceedings before the Conciliation Officer (Central), Bombay, before whom the said settlement was signed by the parties on 15th December, 1954. The said settlement provides for the scales of pay and other terms and conditions of service of the employees of the New India Assurance Co. Ltd. at Bombay including the 5th and the 6th petitioners. The said award and the said settlement were in force prior to and on 1st September, 1956. A copy of the relevant portion, of the said award and the said settlement is annexed to the petition and marked Ex. D. Prior to and on 1st September, 1956 the scales of pay and other terms and conditions of service of the seventh petitioner and other employees of the National Insurance Co. Ltd. were governed by a settlement dated 10th June, 1955 arrived at between the said company and the representatives of its employees. A copy of the said settlement is annexed to the petition and marked Ex. E.