RAMAPAL MANDADA Vs. LIFE INSURANCE CORPORATION

JUDGEMENT

(1.) Plaintiff is the appellant in this appeal which arises out of the suit 0.S. No. 10 of 1966 on the file of 2nd Additional Chief Judge, City Civil Court, Hyderabad, filed for recovery of compensation for wrongful dismissal and other reliefs.

(2.) The case of plaintiff is as follows: He was originally working as an Agent of the Oriental Government Security Life Assurance Company since 1948. He procured very good business to the said - company till 1959 to the tune of more than twenty lakhs. In the year 1956 the Life Insurance Business was nationalised and the Life Insurance Corporation Act was passed. The plaintiff was absorbed as an agent of the Life Insurance Corporation (hereinafter referred to as the L.I.C.) in the branch office at Warangal and he worked as such agent till 30th June, 1959 from 1956. On 1-7-1959 he was appointed as field officer of the L.I.C. of Taluk Siricilla, District Karimnagar, and in such capacity he transacted good business. In 1960 he had also undergone training of Field Officer. On 9-4-1959 a proposal on the joint life of Mr. and Mrs. Narla Narayana, resident of Karimnagar was submitted by the plaintiff, who did not know that Mrs. Narayana was pregnant. Anyhow, there was an objection by the department, even though the plaintiff acted bona fide. The said case was closed by the Corporation, which gave a warning to the plaintiff on 16-3-1960.

(3.) On 2-2-1961 the L.I.C. wrongfully terminated the plaintiff's services as field officer and also that of an agent. The Divisional Manager, who is the appointing authority under the staff regulations of 1960, had no disciplinary powers for terminating the services of field officer. It was only the Zonal Manager of the L.I.C. who was competent to take such action against Class II Officers of the type of the plaintiff. The order in question having issued by the Divisional Manager was, therefore, without jurisdiction and in excess of his powers.