Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Service Rules |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Orissa Insurance Co-operative Society Limited Service Rules. Rule 5-Whether arbitrary, unreasonable and void- Declared to be recast. Statutory Interpretation. Presumption in favour of constitutionality of legislation-Interpretation favouring constitutionality to be accepted. While the appellant was working as Divisional Manager at Delhi, the general insurance business was nationalised and its management was taken over by the Central Government under General Insurance (Emergency Provisions) Ordinance, 1971 which was replaced by Act 57 or 1972 and vested in the Custodian or the New India Assurance Co. Ltd., the management of Orissa Insurance Co-operative Society Ltd. By operation or Section 7 or the Act the services or the appellant and others stood transferred and vested with the custodian. The appellant was kept under suspension from August 9, 1973 pending investigation into charges of embezzlement. Explanation was called for on October 16, 1973 and the appellant submitted his reply on December 7, 1974. While dropping the proceeding, the appellant was served with a termination order dated April 17, 1975 issued by the respondent. The appellant challenged the aforesaid termination order in a writ petition in Delhi High Court which was dismissed by a Single Judge on November 11, 1983 and this judgment was confirmed by the Division Bench in a Letter Patent Appeal. In the appeal to this Court it was contended on behalf of the appellant placing reliance on the majority view in D.T.C. v. D.T.C. A Y Mazdoor Congress & Ors. Judgment Today 1990(3) SC 725 that Rule 5 of the Orissa Insurance Co-operative Ltd. Services Rules is ultra vires of Article 14 of the Constitution. On behalf of the respondent it was contended that unlike Rule 9 involved in D.T.C.' s case, Rule 5 in the instant case provided guidelines, and that the Board of Directors had to take a decision, whether the need to continue the employee's service subsists which would he based on relevant material and thus there would be objective consideration before taking a decision, not only regarding the need to continue the post but also the services of the Officer or the employee, and if so construed the rule is not ultra vires of Article 14. |
Judge | Hon'ble Mr. Justice K. Ramaswamy |
Neutral Citation | 1992 INSC 13 |
Petitioner | M. L. Kamra |
Respondent | Chairman-cum-managing Director, New India Assurance Co. Ltd. And Anr. |
SCR | [1992] 1 S.C.R. 220 |
Judgement Date | 1992-01-17 |
Case Number | 655 |
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