IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated : 16..7..2008 Coram: The Hon'ble Mr. Justice K.CHANDRU W.P. No. 1967 of 1999 Tamil Nadu General Insurance Agents Welfare Association Rep. by its President Mr. S. Thiyagarajan 7 Somu Mudaliar Street Ranipet Vellore .. Petitioner Vs. 1. The General Insurance Corporation of India Rep. by its General Manager Suraksha, 170 J Tata Road Church Gate, Mumbai 400 020 2. The Chairman-cum-Managing Director United India Insurance Company Ltd. 24 Whites Road Chennai 14 3. The Chairman-cum-Managing Director The New India Assurance Company Ltd. 87 M.G. Road Mumbai 400 023 4. The Chairman-cum- Managing Director National Insurance Company Ltd. 3 Middleton Street Calcutta 700 071 5. The Chairman-cum-Managing Director Oriental Insurance Company Ltd. a-25/27 Asaf Ali Road New Delhi 110 002. .. Respondents Petition filed under Article 226 of the Constitution of India seeking for issuance of writ of Certiorarified Mandamus calling for the proceedings relating to the first respondent in his letter Ref. Personnel GVP) 231A dated 29th September 1998 and quash the same and consequently directing the respondents herein to consider the members of the petitioner Association annexed who are working as GIC agents / rural Representative /Marketing https://hcservices.ecourts.gov.in/hcservices/ Agents to the post of Development Officer in the respondent Insurance companies in accordance with the source of recruitment procedure providing a source for the petitioner's category. For Petitioner : Mr. K.M. Vijayan, SC for M/s La Law For Respondents : Mrs. Rita Chandrasekar for M/s Aiyar and Dolia ORDER Heard the arguments of Mr. K.M. Vijayan, learned Senior Counsel appearing for M/s La Law, for the petitioner and Mrs.Rita Chandrasekar, learned counsel appearing for the respondents and perused the records. 2. The petitioner is an Association representing the General Insurance Agents working in the respondent General Insurance Corporation [for short, 'GIC']. In the present writ petition, they are seeking to set aside the order dated 29.9.1998 passed by the first respondent and to consider the members of the petitioner Association, who are working as GIC agents / Rural representatives / Marketing Agents to the post of Development Officers as an additional source of recruitment. A list of 20 members who are eligible for such promotion has been furnished by the petitioner. 3. By the impugned order dated 29.9.1998, the first respondent GIC stated that there was no recruitment for 4-5 years for the post of Development Officer. Therefore, having regard to the representations received from Class III employees to convert them as Development Officers, it was directed that the subsidiary Corporations, viz., respondents 2 to 5 can recruit Class III employees. On the basis of considering the claims of Class III employees with certain conditions, it was stated that the conversion can be made after determining the vacancies which arose out of retirement and potential future vacancies depending upon the business. A selection committee was to be formed and also roster must be followed. The minimum eligibility was that they should be clerical staff in the cadre of Assistant, Senior Assistant, Stenographers and relaxations have been given in case of reserved candidate. It is this circular which is challenged by the petitioner Association since it will eschew their members from future consideration. 4. Initially, an interim stay was granted on 10.02.1999. Subsequently, it was extended vide order dated 07.4.1999 Again, when the matter came up on 05.7.1999, the stay was modified to the extent that only 50% of the expected vacancies should be https://hcservices.ecourts.gov.in/hcservices/ filled up by the staff of GIC and for the remaining 50%, the stay order will continue. The said interim order was also made absolute on 29.8.2003 when a vacate stay application was filed by the respondents. 5. A counter affidavit dated 26.4.1999 has been filed. It is stated that the Development Staff Service Conditions of the respondents provided for direct recruitment of Development Staff (Inspectors) from the agents with certain prescribed eligibility may be preferred and also a scheme for absorption of clerical staff as Development Staff in Class III cadre was also provided. Subsequently, the Board in its meeting held on 27.5.1977, decided that the cadre of Assistants and Senior Assistants (Class III cadre) was also be eligible for conversion in development side. The said scheme was discontinued on 09.6.1986. But, however, class III employees applying for the post of Inspectors were considered along with external candidates which included agents represented by the petitioner Association. 6. It was now found that because of the computerisation, manpower in class III posts became excess and, therefore, the Board was claiming ways and means to absorb such surplus power. Therefore, it was decided in the Board meeting by the Board proceedings dated 02.9.1998, as a measure of optimal utilisation of excess in-house employees at reduced cost of better and efficient purpose, to convert them into development staff and it does not violate Articles 14 and 16 of the Constitution. It was also stated that during May 1994, in a centralised recruitment, 50% of the vacancies were filled up for Agents and Rural Representatives. It was found that many of the agents failed to qualify to meet the prescribed eligibility and many of the members of the petitioner Association had crossed even the prescribed upper age. Inasmuch as the decision of the Board to recruit by conversion so as to absorb the local manpower is not unconstitutional, the petitioner Association cannot make a grievance about the policy enshrined in the impugned order. Therefore, they prayed for dismissal of the writ petition. 7. Mr. K.M. Vijayan, learned Senior Counsel appearing for the petitioner submitted that there was a promise for recruitment of the members of the petitioner Association and they are only a vanishing tribe and, therefore, they should be considered for recruitment. He also stated that when the category of Agents is a feeder category, they cannot be totally excluded. 8. Such a plea made by the petitioner Association overlooks the stated policy of the respondent GIC wherein faced with the problem of excess manpower due to computerisation, they have decided to go for conversion of the existing Class III staff so that there will be a cut in the labour staff. This cannot be found fault with and in the absence of any violation of Articles https://hcservices.ecourts.gov.in/hcservices/ 14 and 16 of the Constitution, it is not open to the petitioner Association to challenge the impugned circular which is based upon a sound policy. In the absence of any constitutional infringement and in the absence of any written agreement between the petitioner Association or its members with the GIC, they cannot claim that they should have a quota for absorption of development staff. In fact, the relationship between the agents represented by the petitioner Association with the respondent GIC is only contractual and it does not create any vested right for them to demand such a special quota. 9. In view of the above, the writ petition fails and the same will stand dismissed. However, there will be no order as to costs. Gri Sd/ Asst.Registrar /true copy/ Sub Asst.Registrar To 1. The General Manager The General Insurance Corporation of India Suraksha, 170 J Tata Road Church Gate, Mumbai 400 020 2. The Chairman-cum-Managing Director United India Insurance Company Ltd. 24 Whites Road Chennai 14 3. The Chairman-cum-Managing Director The New India Assurance Company Ltd. 87 M.G. Road Mumbai 400 023 4. The Chairman-cum- Managing Director National Insurance Company Ltd. 3 Middleton Street Calcutta 700 071 https://hcservices.ecourts.gov.in/hcservices/ 5. The Chairman-cum-Managing Director Oriental Insurance Company Ltd. a-25/27 Asaf Ali Road New Delhi 110 002. • 1 cc to M/s. Aiyar and Dolia, Advocate SR No. 37610 • 1 cc to M/s. La Law, Advocate SR No. 37529 RSY(CO) SR/31.7.2008 Delivery Order in W.P. No. 1967 of 1999 https://hcservices.ecourts.gov.in/hcservices/