ALL INDIA GENERAL INSURANCE EMPLOYEES CONGRESS Vs. GENERAL INSURERS PUBLIC SECTOR ASSOCIATION OF INDIA

JUDGEMENT

(1.) The four petitioners in this writ petition are aggrieved by the fact that because of the results of the check-off system published by the respondent insurance companies on May 31st, 2004, the first and second petitioners have lost the status of representative union; and consequently, the right of further participation in the ongoing wage negotiation.

(2.) In exercise of powers conferred on it by provisions of the General Insurance Business (Nationalization) Act, 1972, the Central Government established a Government company, called General Insurance Corporation of India. In course of time it floated four subsidiaries (National Insurance Company Ltd., New India Assurance Company Ltd., Oriental Insurance Company Ltd. and United India Insurance Company Ltd.), the third, fourth, fifth and sixth respondents in this case.

(3.) Facing with the problem of claims made by the ever-increasing number of unions regarding right of representation in structured meetings and discussions on matters relating to employees of the industry, General Insurance Corporation of India decided to introduce the check-off system; and consequently, issued a notice dated January 22nd, 1999 calling upon the unions to submit application in prescribed form by February 15th, 1999. But, for some reasons or other, the system was not actually introduced.