TMI Blog1992 (1) TMI 348X X X X Extracts X X X X X X X X Extracts X X X X ..... Society Ltd. Service Rules (for short the Rules ) as unconstitutional and void offending Article 14 of the Constitution of India. The material facts relevant to the point are that 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 replaced by Act 57 of 1972 (for short the Act ) and vested in the custodian of the New India Assurance Co. Ltd., the management of Orissa Insurance Co-operative Society Ltd. By operation of s.7 of the Act, the services of the appellant and others stood transferred and vested with the custodian. Under the Act, the Board of Directors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one or more schemes providing for all or any of the following matter; (e) the rationalisation or revision of pay-scales and other terms and conditions of service of officers and other employees wherever necessary. Pursuant thereto, the central Govt. framed the New India Assurance Co. Ltd Merger Scheme, 1973 with effect from December 31, 1973. Thereunder by Rule 3, the undertaking was transferred to the respondent; under Rule 5 the existing whole time officer etc. became the officer of the transferee company (New Indian Assurance Co. Ltd) and could hold his office on the same terms and conditions as would have been admissible to him if there had been no such transfer, as referred to in paragraph 3. He shall continue to remain an officer unle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loyee under Rule 8 for misconduct etc. without any notice or salary in lieu of notice, in the manner prescribed in these rules. An employee shall ordinarily retire from the Society's services on completion of his 55th year unless the Board reserves to continue him in office of such period as may be determined from time to time. It is thus manifest that an employee, whether permanent or temporary, has an option to leave or discontinue by giving 30 days' notice in writing of his intention to do so. His failure thereof shall entail forfeiture of the pay of the month. The employee ordinarily would be superannuated on completion of his 55th year unless the Board continues him for an extended period as may be determined from time t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave to take a decision, whether the need to continue the employee's service subsists which would be based on the relevant material. Thereby, 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. Though the rule does not provide for prior notice, post-decisional opportunity would be read into the rule. If so read, the rule is not ultra vires Article 14. In our view the ratio in D.T.C.'s case has no application. Rule 9 of the rules of Delhi Transport Corporation Service Regulation gives naked power to terminate the services of a permanent employee by giving one month's notice or pay in lieu thereof. It was not the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, though the post which the employee is occupying may continue and would be put to an end by giving one month's notice or pay in lieu thereof. In that event the rule per se is arbitrary offending Article 14. The other view capable to be construed from the language employed would be that the Board of Management may form an objective opinion, on the basis of the material, that the post which the officer or the employee is occupying no longer is in need. Thereby, the post would be abolished. This would be a policy decision depending on the exigencies. In consequences the service of the employee also would become redundant or surplus. In that event his service would no longer be needed. The officer or employee may be permanent or temporar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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