TaxTMI 
TaxTMI 
1994 (1) TMI 273
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....th the minimum business that the appellant was expected to do during the period specified, clause 11 deals with confirmation and is as follows : "11. Confirmation and Increments.- (i) On your satisfactorily completing the period of probation and your observation and compliance with all conditions set out in this letter of appointment, you will be confirmed in the services of the Corporation in Class-11. Your confirmation will depend inter alia upon the fulfilment of the minimum business guarantee set out in para 10 above and upon your record of posts and service to the Corporation's policyholders and other functions performed by you in the area allotted to you to the satisfaction of the competent authority." 3. As the appellant was required to do a minimum business mentioned in the order and as he failed to achieve the target so fixed, the Divisional Manager of the Corporation, by a communication dated February 1, 1986, advised the appellant to comply with the said term during the extended period of probation. Yet another communication was issued to the appellant on April 5, 1986, saying that he had failed to fulfil the norm prescribed to earn confirmation. He was asked t....
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....ara 10 of the said order of appointment. According to the Corporation, as admittedly the appellant did not reach the minimum target fixed in clause 10 of the order of appointment and his service was found not to the satisfaction of the competent authority, the contract of employment was "terminated under a stipulation in that behalf, contained" in the order of appointment itself and as such covered by clause (bb) of Section 2(oo) of the Act. 8. Regulation 14 of the Life Insurance Corporation of India (Stiff) Regulations, 1960 which shall now be deemed to be Rules framed under Section 48(2)(cc) of the Life Insurance Corporation Act (hereinafter referred to as "Corporation Act") provides : "14. (1) Persons appointed to posts belonging to Classes 1 and 11 shall, on the first appointment in the Corporation service, be required to be on probation for a period of one year from the date of appointment. (3) Subject to the provisions of any law for the time being in force the appointing authority may, at its discretion, dispense with, reduce or extend the probationary period, but in no case shall the total period of probation exceed : (a) In case of employees belonging to Classe....
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.... on its expiry; (ii) such contract being terminated under a stipulation in that behalf contained in contract of employment. It need not be impressed that if in the contract of employment no such stipulation is provided or prescribed, then such contract shall not be covered by clause (bb) of Section 2(oo). In the present case, the termination of service of the appellant is as a result of the contract of employment having been terminated under the stipulations specifically provided under Regulation 14 and the order of the appointment of the appellant. In this background, the non-compliance of the requirement of Section 25-F shall not vitiate or nullify the order of termination of the appellant. 10. There is yet another aspect of the matter. The Corporation Act vests power in the Central Government to make rules in order to carry out the purposes of the Act. By Life Insurance Corporation (Amendment) Act, 1981 (Act 1 of 198 1), clause (cc) was added to sub-section (2) of Section 48 with effect from January 31, 198 1. Clause (cc) provides "(cc) the terms and conditions of service of the employees and agents of the Corporation, including those who became employees and agents of the Co....
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....already framed and in existence. Sub-section (2-C) contains a non obstante clause saying that notwithstanding anything contained in the Industrial Disputes Act, 1947 or any other law or any agreement, settlement, award or other instrument for the time being in force, the provisions of clause (cc) of sub-section (2) aforesaid and any rules made under the said clause (cc) shall have effect. In view of the introduction of clause (cc) in Section 48(2) and sub-section (2-A) in Section 48 of the Corporation Act, it shall be deemed that Regulation 14 aforesaid, which had been originally framed under Section 49 of the Corporation Act, will be a rule framed under clause (cc) of sub-section (2) and shall have overriding effect because of sub-section (2- C) over the provisions of the Industrial Disputes Act in respect of terms and conditions of an employee of the Corporation, who is covered by the definition of "workman" under the Industrial Disputes Act. It may be pointed out that by the same Amending Act clause (bb) of sub-section (2) of Section 49 which authorised the Corporation with the previous approval of the Central Government to make regulations in respect of the terms and conditions....
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....o obliterate in regard thereto the provisions which were earlier applicable. The framers of the Corporation Act through the amendments aforesaid have given the provisions of tile Corporation Act an overriding effect over tile provisions of the Industrial Disputes Act, so far as the provisions relating to the terms and conditions of employment, which are in conflict with the provisions of the Industrial Disputes Act are concerned. Unless the said attempt is held to be ultra vires being in conflict with any of the provisions of the Constitution it was open to the Parliament to treat the employees and agents of the Corporation as a separate class for purpose of fixing their terms and conditions of service. 13. Earlier such employees used to be governed by the regulations framed by the Corporation under Section 49 of the Corporation Act as well as by the provisions of the Industrial Disputes Act, being "workman" within the meaning of that Act. It was up to them to enforce the rights or remedies in terms of the regulation so framed under the Corporation Act or in accordance with the provisions of the Industrial Disputes Act. But after the amendment introduced by the Parliament in Sec....