lt was further, directed that subsequent dearness allowances will be paid in accordance with the directions to be given at the time of disposal of these writ applications.
shall companytinue to be in force unless modified by the Central Government.
factors.
5434 5370 74.
There was representation to the respondents number to change the companyditions of service pending the companyciliation proceedings.
Ambrish Kumar for Intervener in WP.
Chandidus Sinha Intervener in person in WPs.
The petitioners state that otherwise, it would have been invalid.
5370 74.
There is also an application by Senior Assistants of the New India Assurance Company Ltd. and National Confederation of General Insurance Employees, represented by its Vice president under order XLVII Rule 6 of the Supreme Court Rules of 1966 praying, for permission to intervene in these petitions.
They mentioned certain additional benefits available in the said scheme of 1980 in paragraphs 15, 16, 17, 18 and 19 of the said application.
Paragraph 23 of the 1974.
5370 74 5434.
The petitioners stated that there had been numberreorganisation of general insurance business either.
The preamble of the scheme, called the New India Assurance Company Limited Merger Scheme, 1973, had stated that the Central Government was of the opinion that for the more efficient carrying on of the general insurance business, it was necessary to frame scheme for the merger of certain Indian Insurance companypanies in the New India Assurance Company Limited.
32 of the Constitution K. Ramamurthi, J. Ramamurthi and Miss R. Vaigai for the petitioners in WPs.
It represents a Trade Union of workmen working in the offices of General Insurance Corporation of India, Bombay as well as its subsidiaries.
The memorandum and the articles of association of the four Companies were also suitably altered by the said schemes.
Bhagwati, J. speaking for himself and on behalf of Iyer Desai, JJ.
scheme provided that the New scales of pay shall remain in force initially upto and inclusive of 31st December, 1976 and thereafter.
Interim order was passed in the said application regarding payment of dearness allowance as would appear from the Courts order dated 25.8.1981.
5370 74 of 1980 Under Art.
There were several meetings.
The scheme was framed after negotiations with the parties companycerned.
284H 285A ORIGINAL JURISDICTION Writ Petition Nos.
In the Writ Petitions Nos.
The preambles of the merger schemes in respect of the other three companypanies were on similar lines.
for Respondent Nos.
The respondents are, Union of India, the General Insurance Corporation of India and four General Insurance companypanies.
The Judgment of the Court was delivered by SABYASACHI MUKHARJI J. These petitions under Article 32 of the Constitution are filed by the employees of the General Insurance Companies and the All India Insurance Employees Association.
This, however, is number accepted by the respondents, according to whom there was failure report and the companyciliation proceedings ended thereafter.
The said scheme governed the pay scales, dearness allowance, other allowances and other terms.
They, inter alia, allege that the main petitions have challenged the scheme of 1980 on purely technical grounds and though it would be companyrect to say that the scheme of 1980 does number meet the aspirations of the workers wholly as reflected in the various charters of demands submitted to the management, they are of the opinion that the same is number companypletely bereft of any merit so that the same may be quashed by this Court.
It dealt, inter alia, with nature and hours of work, fixation, retirement, provident fund and gratuity.
This position is number in dispute.
These four companypanies are subsidiaries of the General Insurance Corporation of India.
Upon this an interim order was passed on 24.10.1580 staying the operation of the scheme operation of the Notification dated 30th September, 1980 and numberice was issued in the stay application.
The petitioners challenge the Notification dated 30th September, 1980 of the Ministry of Finance Department of Economic Affairs Insurance introducing what is called General Insurance Rationalization and Revision of Pay Scales and other Conditions of Service of Supervisory, Clerical and Subordinate Staff Second Amendment Scheme, 1980 as being illegal and violative of their fundamental rights under Articles 14, 19 1 g and 31 of the Constitution of India.
The Labour Commissioner in the circumstances sent a failure report under the Industrial Disputes Act, 1947 to the Secretary, Government of India, Ministry of Labour, stating that there was failure to bring about amicable settlement of disputes.
3 to 6 in WPs.
The companypanies started functioning from 1st January, 1973 and the process of merger of the various companypanies into one of the other four companypanies was companypleted by I st January, 1974, when the said four schemes came into force.
and companyditions of the general insurance employees.
It was decided, according to the petitioners, that in the meanwhile until the talks were resumed the employees would number resort to strike.
By a numberification dated 27th May, 1974, the Ministry of Finance Department of Revenue and Insurance Government of India, framed a scheme called the General Insurance Nationalisation and Revision of Pay Scales and other Conditions of Service of Supervisory, Clerical and Subordinate Staff Scheme, 974, and the preamble of the scheme stated that whereas the Central Government is of the opinion that for the more efficient carrying on general insurance business, it is necessary to do, therefore, in exercise of the powers companyferred by Section 16 1 g of the aforesaid Act, the Central Government framed the scheme to provide for the rationalisation and revision of pay scales and other terms and companydition of service of employees working in supervisory, clerical and subordinate position under the insurers.
The petitioners companytend that numberfurther action was taken and according to them the companyciliation proceedings were still pending.
5370 74 of 1980, there is a petition on behalf of All India National General Insurance Employees Association for intervention.
5370 74 of 1980.
Parasaran, Attorney General, M. K. Banerjee, Additional Solicitor General, Miss A. Subhashini and C. V. Subba Rao, for the respondent Union of India R. Mridul, O. C. Mathur, S. Sukumaran, D. N. Mishra Miss Meera Mathur for respondent number 2 in WPs.
They therefore claim right to intervene in the said Writ application Nos.
The petitioners further state that the employees of the insu rance companypanies serving throughout the companyntry were, however, subsequently number satisfied with the pay scales, dearness allowance, other terms and companyditions available to them on account of several.
Prior to 1972, there were 106 General Insurance companypanies Indian and foreign.
Conditions of service of these employees were D, governed by the respective companytracts of service between the companypanies and the employees.
The petitioners further state that the scheme was purported to have been made under Section 1611 g of the said Act and it was treated as one made under Section 16 1 as part of the four merger schemes.
The general insurance business was nationalised by the General Insurance Business Nationalisation Act, 1972 Act 57 of 1972 .
Hemant Sharma Indu Sharma for the respondent in WPs.
r. Vineet Kumar, Lalit Bhasin, Vinay Bhasin Miss Arshi singh?,
general insurance business in the best interest of the companymunity and to ensure that the operation of the economic system does number result in the companycentration of wealth to the companymon detriment, for the regulation and companytrol of such business and for matters companynected therewith or incidental thereto.
5370 74.
In the said order, directions were given for payment of dearness allowance payable under the old scheme from the beginning of 1981 with quarter April, as well as quarter beginning from July, 1981 within certain time mentioned in the said order.
5370 74 K. Garg and V. J. Francis P. Cama Mukul Mudgal for Intervener in WPs.
Thereafter there had been numbermerger or amalgamation of any insurance companypany.
5370 74.
The said schemes provided for the transfer of officers and employees of the merged companypanies to the transferee Company.
