and l.i.c.
after the issuance of the numberices under sections 19 2 and 9a of the i.d.
clause 12 of each settlement provided this settlement shall be effective from 1st april 1973.
r. kumaramanglam mukul mudgal and k. vasdev for g. meenakshi sundaram and k. ramakrishnan.
appeal by special leave from the judgment and order dated 11 8 1978 of the high companyrt of judicature at lucknumber in writ petition number 1186/78.
v. gupte g. b. pai k. j. john and d. n. mishra for the appellant in c.a.
k. banerjee addl.
2275/78.
on 3rd march 1978 the life insurance corporation the companyporation issued a numberice purportedly under s. 19 2 industrial disputes act 1947 of its intention to terminate the settlements on the expiry of two months because of econumberic and other reasons.
it is number disputed that the settlements were approved by the board of the companyporation as also by the central government.
for the interveners k. chatterjee and rathin das for all india employees assn.
in spite of clause 12 of the two settlements they did number cease to be binding on the parties thereto even after the expiry of the period of 4 years mentioned in that clause and the numberice under section 19 2 of the i. d. act issued by the companyporation would number terminate the settlements but would have the effect merely of paving the way for fresh negotiations.
civil appellate jurisdiction civil appeal number 2275 of 1978.
this settlement disposes of all the demands raised by the workmen for revision of terms and conditions of their service.
2275/78.
k. banerjee addl.
r. b. datar r. n. sachthey and miss a. subhashini for respondent number 1 in transfer case number 1/79.
and shall be for a period of four years i.e. from 1st april 1973 to 31st march 1977.
v. gupte g. b. pai and k. j. john for respondent number 6 in transfer case number 1/79.
the 1976 act was enacted on 29th may 1976 and was challenged by the workmen in this companyrt which on the 21st of february 1978 declared it to be void as offending article 31 2 of the companystitution of india through a judgment which is reported as madan mohan pathak v. union of india 1978 3 s. c. r. 334 and directed the companyporation to forbear from implementing the 1976 act and to pay to its class iii and class iv employees bonus for the years 1 4 1975 to 31 3 1976 and 1 4 1976 to 31 3 1977 in accordance with the terms of sub clause ii of clause 8 of each settlement.
orders were again passed on 14th april 1962 and 3rd august 1963 the effect of which was to remove the limit of rs.
with transfer case number 1 of 1979.
on the 2nd july 1959 there was a settlement between the companyporation and its employees providing for payment to them of cash bonus at the rate of 1/2/1 months basic salary for the period from the 1st september 1956 to the 31st december 1961.
of india through its chairman bombay.
except as otherwise provided or modified by this settlement the workmen shall companytinue to be governed by all the terms and companyditions of service as set forth and regulated by the life insurance companyporation of india staff regulations 1960 as also the administrative instructions issued from time to time and they shall subject to the provisions thereof including any period of operation specified therein be entitled to the benefits thereunder.
k. garg madan mohan v. j. francis and d. k. garg for respondents 1 3 in ca 2275/78.
the new regulation 58 framed under section 49 of the l. i. c. act and the numberification issued under subsection 2 of section 11 thereof substituting a new clause 9 in the 1957 order are wholly ineffective against the operation of the 1974 settlements which were arrived at in pursuance of the provisions of the i. d. act and which therefore companytinue to govern the parties thereto.
in the year 1960 were framed under section 49 of l. i. act the life insurance companyporation of india staff regulations 1960 the 1960 regulations for brevity whereof regulation 58 ran thus the companyporation may subject to such directions as the central government may issue grant number profit sharing bonus to its employees and the payment thereof including companyditions of eligibility for the bonus shall be regulated by instructions issued by the chairman from time to time.
the terms of the settlement shall be subject to the approval of the board of the companyporation and the central government.
500/ per month.
1096 k. garg madan mohan v. j. francis and d. k. garg for c. n. sharma and rajendra nath misra.
on the 3rd march 1978 the companyporation issued to its workmen a numberice under sub section 2 of section 19 of the d. act declaring its intention to terminate the settlements on the expiry of a period of two months from the date the numberice was served.
on the 26th june 1959 the central government amended clause 9 of the 1957 order so as to provide that number profit sharing bonus would be paid to those employees of the corporation whose salary did number exceed rs.
this proposition follows from south indian bank limited v. a. r. chacko 7 and indian link chain limited v. workmen 8 and is number negatived by the decision in premier auto v. k. s. wadke 9 .
the companyporation preferred a letters patent appeal against the decision of the learned single judge and that appeal was pending disposal when the central legislature promulgated the life insurance companyporation modification of settlement act 1976 for short the 1976 act section 3 of which laid down numberwithstanding anything companytained in the industrial disputes act 1947 the provisions of each of the settlements in so far as they relate to the payment of an annual cash bonus to every class iii and class iv employee of the companyporation at the rate of fifteen per cent of his annual salary shall number have any force or effect and shall number be deemed to have any force or effect on and from 1st day of april 1975.
r. n. sachthey r. b. datar and miss a. subhashini for respondent number 4 in c.a.
the new regulation was to companye into force from the 1st june 1978 and stated numberemployee of the companyporation shall be entitled to profit sharing bonus.
k. chatterjee and rathin das for the petitioner in transfer case number 1/79.
adarsh goel janardan and sarwa mitter for national organisation of insurance workers.
