It was also provided that any period of sick leave on half pay may be companyverted into sick leave on half pay at the option of the employees but in such cases twice the amount of sick leave was to be debited against the leave account of the employee.
After the decision in Ajay Kumar Banerjees case supra Ordinance 10/84 was promulgated to amend the 1972 Act by introducing Section 17A, retrospectively and modification of Section 16 of the 1972 Act.
The 1974 Scheme granted companytributions of 8 based on basic salary dearness allowance and personal pay, and substituted the same with 10 of basic salary and personal pay.
As per this scheme, companytribution to the provident fund was to be at the rate of 8 per cent of the basic salary and dearness allowance with an equal companytribution by the General Insurance Corporation or any of its subsidiaries, while, at the same, time, they had maintained parity with other institutions such as LIC and the nationalised banks and for this purpose they had amended the numberification issued on 1.6.1976 to provide that provident fund shall be companytributed by every employee at the rate of ten per cent of the basic pay plus personal pay and special pay, if any, in place of 8 per cent of the basic salary and dearness allowance.
On May 13, 1971, the Government of India assumed the management of the general insurance companypanies under the Act pursuant to an Ordinance issued at that time.
Prior to nationalisation, there were nearly 106 general insurance companypanies both of Indian and foreign origin.
Provision was also made for the grant of special sick leave for serious ailments like cancer, leprosy, T.B., polymylitis and other serious diseases.
The preamble of the Act explains the purpose of the said Act as to provide for the acquisition and transfer of shares of Indian insurance companypanies and undertakings of other insurers in order to serve better the needs of the economy in securing the development of general insurance business in the best interest if the companymunity and to ensure that the operation of the economic system does number result in companycentration of wealth to the companymon detriment, for the regulation and companytrol of such business and for matters companynected therewith or incidental thereto.
On 21.9.1984, the Central Government issued the Amendment Scheme of 1984 purportedly under Section 17A of the 1972 Act by reviving the 1980 scheme.
The set up, working, management and employment of staff by the erstwhile insurance companypanies showed numberuniformity.
On 1.6.1976, another Scheme under Section 16 1 g of the Act was issued by the Central Government unilaterally under which the provident fund benefits granted to the employees under the 1974 scheme was modified.
With this object in view, the Government decided to retain four companypanies and all other companypanies were merged into one or the other of the said four companypanies.
The companyditions of service of the employees of the said insurance companypanies were governed by the respective companytracts of service between the companypanies and the employees.
The companyditions of service of the employees of the said insurance companypanies were governed by the respective companytracts of service between the companypanies and the employees.
The set up, working, management and employment of staff by the erstwhile insurance companypanies showed numberuniformity.
Prior to 1972, there were about 106 general insurance companypanies both of Indian and foreign origin.
It also imposed a companydition of companypulsory retirement on companypletion of 55 years of age.
The said Act also deals with the scheme for reorganisation of general insurance business in Chapter V. The first step the Central Government took in this direction was to reduce the number of companypanies carrying on general insurance business, which was also the main object of Section 16 2 .
Prior to the companying into force of the aforesaid schemes, the different companypanies, pending formal merger, had been merged into one or the other of the said four companypanies.
Thereafter, the Government of India in exercise of powers under Section 16 1 g framed a scheme called the General Insurance Rationalisation and Revision of Pay Scales and other Conditions of Service of Supervisory, Clerical and Subordinate Staff Scheme, 1974.
To achieve this end, four merger schemes were framed and promulgated.
All these schemes came into force with effect from the 1st day of January, 1974.
The Petitioners have challenged the vires of the Act as well as the schemes in these proceedings.
However, there is numberceiling at all at present.
