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1981 Supreme(SC) 510

A.C.GUPTA, O.CHHINNAPPA REDDY, R.S.PATHAK
A. V. Naghane: S. N. Bhowmik: S. S. Jain: B. S. Dogra: T. N. Krishnan – Appellant
Versus
Union Of India – Respondent


JUDGMENT

GUPTA, J. (For himself and an behalf of R. S. Pathak, J.) :— 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 :

"Where the Central Government is satisfied that for the purpose of securing uniformity in the scales of remuneration and the other terms and conditions of service applicable to employees of insurers whose controlled business has been transferred to a






















































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