STATEMENT OF OBJECTS AND REASONS Act 17 of 1962. -Section 30of the Air Corporations Act, 1953 provides for the constitution of an Air Transport Council. The Air Transport Council constituted under this section has at present no work pending before it. The Council, however, cannot be dissolved otherwise than by an amendment of the Act. The Bill, therefore, provides for the dissolution of the council. At the same time, section 30is being amended so as to empower the Central Government to constitute an Air Transport Council as and when it becomes necessary. Section 18Of the Act confers upon the two Corporations monopoly for operating scheduled transport services. On certain rules, however, neither of the two corporations is in a position to provide a scheduled air transport service. It has, therefore, become necessary in the public interest to grant permission to private operators to operate a scheduled service on these routes for a limited period. Section 18is being amended to confer such power upon the Central Government. "Air India International" is better known abroad as "Air India". It is, therefore, proposed to change the name of the Corporation from "Air India International" to "Air India". The Bill makes the necessary provision in this behalf. Opportunity has been taken to make some other minor and clarificatory amendments in the Act. -S.O.R. Gaz. ofind., 28-1 1-1961. Pt. U.S. 2, Ext., p. 844. Art 49 of 1971.- Under sub-section (1) ofsection 4of the Air Corporation Act, 1953 (27 of 1953), each of the Corporations established under that Act shall consist of not less than five but not more than nine members appointed by the Central Government. In the light of the experience gained, it is considered necessary to increase the maximum number of members from nine to fifteen and the minimum from five to nine and to vest the general superintendence, direction and management of the affairs and business of each of the Corporations in a Board of directors. In accordance with the recent decisions of the Government, on the recommendations of the Administrative Reforms Commission, it is also considered necessary to appoint functional directors on the Boards of the Corporations. 2. In furtherance of their activities in running international air-transport services, Air-India have found it necessary to establish and manage hotels, restaurants and charter companies.Section 7(2)(k)of the Act, as at present worded, does not permit this. To achieve this objective, it is proposed to amend the section suitably enabling the Corporations to establish and manage hotels, restaurants and charter companies also. It is also proposed to enable the Corporation to form companies underthe Companies Act. 1956, to further the efficient performance of their duties and the exercise of their powers under the Act. It has been proposed that the accounts of the companies proposed to be formed by the Corporations should be subject to the audit of the Comptroller and Auditor General. 3. In the light of the recommendations of the Administrative Reforms Commission and of the Committee on Public Undertakings, it is proposed to empower the Corporations to incur capital expenditure without the previous approval of the Government up to rupees forty lakhs instead of rupees fifteen lakhs as at present. It is also proposed to increase the period for which each Corporation can enter into a lease of immovable property without the previous approval of the Central Government from five to ten years. 4. Sub-section (1) ofsection 41of the Act empowers the Central Government in consultation with the Corporation concerned to appoint an Advisory Committee for the purpose of advising the Corporation in respect of such matters as may be referred to it by the Corporation or as may be prescribed. As experience has shown that the advisory Committees set up under this provision serve no useful purpose, it is proposed to omit this provision. 5.Section 45of the Act empowers each of the Corporations, with the prior approval of the Central Government, to make regulations with respect to the matters specified in that section. It is proposed to amend the section to do away with the need for prior approval of the Central Government for the making of regulations, other than those relating to the terms and conditions of service of the employees of the Corporations. 6. The Bill is mainly intended to achieve the above objects. Opportunity has also been taken to make certain other amendments in the Act, which are either minor or consequential in nature. -Gaz. of Ind., 22-7-1971, Pt. II, S. 2, Ext., p. 447.
An Act to provide for the establishment of Air Corporations, to facilitate the acquisition by the Air Corporations of undertakings belonging to certain existing Air companies and generally to make further and better provisions for the operation of air transport services. BE it enacted by Parliament as follows:-
CHAPTER 01: PRELIMINARY
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called The Air Corporations Act, 1953.
(2) It shall come into force on such date as the Central Government may, by notification2[in the Official Gazette, appoint.
SECTION 02: DEFINITIONS
- In this Act, unless the context otherwise requires-
(i) "aircraft" means any machine which can derive support in the atmosphere from reactions of the air and includes balloons, whether fixed or free, airships, kites, gliders and flying machines;
(ii) "air transport service" means a service for the transport by air of persons, mails or any other thing, animate or inanimate, for any kind of remuneration whatsoever, whether such service consists of a single flight or a series of flights;
(iii) "associate" in relation to either of the corporations means any subsidiary of the corporation or any person with whom the corporation has made an agreement in accordance with clause (h) of sub-section (2) ofsection 7-;
(iv) 'Corporations' means Indian Airlines' and 'Air India International' established under section 3-, and "Corporation" means either of the Corporations;
(v) the expression "existing air companies" means the Air India Ltd., the Air Services of India Ltd., the Airways (India) Ltd., the Bharat Airways Ltd., the Deccan Airways Ltd., the Himalayan Aviation Ltd., the Indian National Airways Ltd., the Kalinga Airlines and the Air India International Ltd., and "existing air company" means any of the existing air companies;
(vi) "prescribe" means prescribed by rules made under this Act;
(vii) "regulations" means regulations made by either of the Corporations undersection 45-;
(viii) "Scheduled air transport service" means an air transport service under taken between the same two or more places and operated according to a published time table or with flights so regular or frequent that they constitute a recognisably systematic series, each flight being open to use by members of the public;
(ix) "Tribunal" means the Tribunal constituted undersection 25-.
CHAPTER 02: CONSTITUTION AND FUNCTIONS OF THE CORPORATIONS
SECTION 03: INCORPORATION OF THE CORPORATIONS
- (1) With effect from such date as the Central Government may, by notification3in the Official Gazette, appoint, there shall be established two Corporations to be known as "Indian Airlines" and "Air India International"4
(2) Each of the Corporations aforesaid shall be a body corporate having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire and hold property, and may by its name sue and be sued.
SECTION 04: CONSTITUTION OF THE CORPORATION
- 5[(l) The general superintendence, direction and management of the affairs and business of each of the Corporations shall vest in a Board of directors which may exercise all such powers and do all such acts and things as may be exercised or done by the Corporation under this Act.
(1-A) The Board of directors shall consist of a Chairman to be appointed by the Central Government, and not less than eight and not more than fourteen other directors to be appointed by the Central Government and the Chairman or any other director may be required to render whole-time or part-time service as the Central Government may direct: Provided that-
(a) that same person may be appointed to be the Chairman of both the Corporations or Chairman of one and director of the other;
(b) the same persons may be appointed to be directors of both the Corporations.]
(2) Before appointing a person to be a6[director] of either of the Corporations, the Central Government shall satisfy itself that that person will have no such Financial or other interest as is likely to affect prejudicially the exercise or performance by him of his functions as a6[director] of the Corporation and the Central Government shall also, satisfy itself from time to time with respect to every6[director] of the Corporation that he has no such interest; and any person who is, or whom the Central Government proposes to appoint and who had consented to be a6[director] of the Corporation shall, whenever required by the Central Government so to do, furnish to it such information as the Central Government considers necessary for the performance of its duties under this sub-section.
(3) A6[director] of either of the Corporations who is in anyway directly or indirectly interested in a contract made or proposed to be made by the Corporation, or in any contract made or proposed to be made by an associate of the Corporation which is brought up for consideration by the Corporation, shall, as soon as possible after the relevant circumstancse have come to his knowledge disclose the nature of his interest at a meeting of the Corporation; and the disclosure shall be recorded in the minutes of the Corporation arid the6[director] shall not take any part after the disclosure in any deliberation or decision of the Corporation with respect to that contract.
(4) During the temporary absence of the Chairman of either of the Corporations, the Central Government may appoint another person, whether a6[director] of the Corporation or not; to act as the Chairman.
(5) Save as otherwise provided in this section, nothing contained in this Act shall be deemed to disqualify the6[managing director] of either of the Corporations from being appointed to be a6 [director] thereof.
SECTION 05: CONDITIONS OF SERVICE OF MEMBERS
- (1) The Chairman and other7[directors] of each of the Corporations shall ordinarily be entitled to hold office the period specified in the order of appointment, unless the appointment is terminated earlier by the Central Government: Provided that any7[director] may at any time by notice in writing addressed to the Central Government resign his office.
(2) Subject to the previous approval of the Central Government, each of the Corporations shall pay to every7[director] thereof in respect of his office as such,8[such remuneration by way of salary, allowances,] fees or otherwise as may be determined by the Corporation and to the Chairman in respect of his office as such, such remunderation, whether in addition to the remuneration to which he may be entitled in respect of his office as a7[directors] or otherwise, as it may similarly determine.
SECTION 06: VACANCY IN CORPORATION NOT TO INVALIDATE PROCEEDINGS
- No act or proceeding of either of the Corporations shall be deemed to be invalid by reason merely of any vacancy in, or any defect in the Constitution of, the Corporation.
SECTION 07: FUNCTIONS OF THE CORPORATION
- (1) Subject to the rules, if any, made by the Central Government in this behalf, it shall be the function of each of the Corporations to provide safe, efficient, adequate, economical and properly co-ordinated air transport services, whether internal or international or both, and the Corporations shall so exercise their powers as to secure that the air transport services are developed to the best advantage and, in particular, so exercise those powers as to secure that the services are provided at reasonable charges.
(2) Without prejudice to the generality of the powers conferred by sub- section (1), each of the Corporations shall, in particular, have power-
(a) to operate any air transport service, or any flight by aircraft for a commercial or other purpose, and to carry out all forms of aerial work;
(b) to provide for the instruction and training in matters connected with aircraft or flight by aircraft of persons employed, or desirous of being employed, either by the Corporation or by any other person;
(c) with the previous approval of the Central Government, to promote any organisation outside India for the purpose of engaging in any activity of a kind which the Corporation has power to carry on;
(d) to acquire, hold or dispose of any property, whether movable or immovable, or any air transport undertaking;
(e) to repair, overhaul, reconstruct, assemble or recondition aircraft, vehicles or other machines and parts, accessories and instruments thereof or therefore and also to manufacture such parts, accessories and instruments, whether the aircraft, vehicles or other machines are owned by the Corporation or by any other person;
(f) to enter into and perform all such contracts as are calculated to further the efficient performance of its duties and the exercise of its powers under this Act;
(g) to perform any functions as agent or contractor in relation to an air transport service operated by any other person;
(h) with the previous approval of the Central Government, to enter into agreements with any person engaged in air transportation with a view to enabling such person to provide air transport services on behalf of or in association with the Corporation;
(i) with the previous approval of the Central Government, to determine and levy fares and freight rates and other charges for or in respect of the carriage of passengers and goods on air transport services operated by it;
9[(ii) to make such grants as it thinks fit as contribution or donation, in furtherance of the interests of the Corporation, to any fund established for a benevolent or charitable purpose: Provided that nothing in this clause shall be construed as empowering the Corporation to make any such grant to any political party or for any political purpose to any individual or body;]
(j) to take such steps as are calculated to extend the air transport services provided by the Corporation, whether within or without India, including the development of feeder services and the improvement of the types of aircraft used in air transport services;
(k) to take such steps as are calculated to promote the interests of the Corporation or to improve the services the Corporation may provide,10[including provision of catering, hotels, restaurants, restrooms] goods-shed, ware-houses and transport by land or water in connection with any air transport service or any other amenity or facility;
11[(kk) to form one or more companies underthe Companies Act, 1956-to further the efficient performance of its duties and the exercise of its powers under this Act; Provided that the paid up share capital of every company so formed shall be held exclusively by the Corporation;]
(1) to take all such steps as may be necessary or convenient for, or may be incidental to, the exercise of any power, or the discharge of any function or duty conferred or imposed on it by this Act.
(3) Nothing contained in this section shall be construed as-
(a) authorising the disregard by the Corporation of any law for the time being in force, or
(b) authorising any person to institute any proceeding in respect of a duty or liability to which either of the Corporations or its employees would not otherwise be subject.
SECTION 08: APPOINTMENT OF OFFICERS AND OTHER EMPLOYEES OF THE CORPORATION
- (1) For the purpose of enabling it efficiently to discharge its functions under this Act, each of the Corporations shall appoint a12[managing director] and, subject to such rules as may be prescribed in this behalf, may also appoint such number of other officers and employees as it may think necessary: Provided that the appointment of the12[managing director] and such other categories of officers as may be specified after consultation with the Chairman in such rules shall be subject to the approval of the Central Government.
(2) Subject to the provisions ofsection 20-, every person employed by each of the Corporations shall be subject to such conditions of service and shall be entitled to such remuneration and privileges as may be determined by regulations made by the Corporation by which he is employed.
(3) Neither the12[managing director] nor such other employee of either of the Corporations as may be specified in this behalf by the Central Government shall, during his service in the Corporation, be employed in any capacity whatsoever or directly or indirectly have any interest in any air transport undertaking other than an undertaking of either of the Corporations, or in any other undertaking which is interested in any contract with either of the Corporations.
SECTION 09: CORPORATIONS TO ACT ON BUSINESS PRINCIPLES
- In carrying out any of duties vested in it by this Act, each of the Corporations shall act so far as may be on business principles.
CHAPTER 03: FINANCE, ACCOUNTS AND AUDIT
SECTION 10: CAPITAL OF THE CORPORATIONS
- (1) All non-recurring expenditure incurred by the Central Government for, or in connection with, each of the Corporations up to the date of establishment of that Corporation and declared to be capital expenditure by that Government, shall be treated as capital provided by the Central Government to that Corporation.
(2) The Central Government may provide any further capital that may be required by either of the Corporations for the carrying on of the business of the Corporation or for any purpose connected therewith on such terms and conditions as the Central Government may determine.
(3) Each of the Corporations may, with the consent of the Central Government, or in accordance with the terms of any general authority given to it by the Central Government-
(a) borrow money for all or any of the purposes of the Corporation, and
(b) secure the payment of any money borrowed by it or any interest thereon by the issue of bonds, debentures, debenture-stock or any mortgage or charge or other security on the undertaking of the Corporation or any part of it or on any of its properties.
SECTION 11: VESTING OF PROPERTIES IN THE CORPORATION
- All properties, assets and funds owned or acquired by the Central Government for the purpose of Indian Airlines or, as the case may be. Air India International before the establishment of those Corporations shall, on such establishment, vest in the Corporation concerned.
SECTION 12: FUNDS OF THE CORPORATION
- (1) Each of the Corporations shall have its own funds and all receipts of the Corporations shall be carried thereto and all payments for the Corporations shall be made therefrom.
(2) Each of the Corporations may keep in13[account] with any scheduled bank as defined in section 2 of the Reserve Bank of India Act, 1934-or in any other bank approved by the Central Government in this behalf a sum of money not exceeding such amount as may be prescribed, but any moneys in excess of the said sum shall be deposited in the Reserve Bank of India or with the agents of the Reserve Bank of India or invested in such manner as may be approved by the Central Government.
SECTION 13: POWERS OF THE CORPORATIONS IN REGARD TO EXPENDITURE
- Each of the Corporations shall have power, subject to the provisions of this Act, to spend such sums as it thinks fit on objects or for purposes authorised by this Act and such sum shall be treated as expenditure out of the funds of that Corporation.
SECTION 14: CORPORATIONS TO ASSUME OBLIGATIONS OF CENTRAL GOVERNMENT IN RESPECT OF CERTAIN MATTERS
- (1) All obligations incurred, all contracts entered into and all matters and things engaged to be done by, with, or for the Central Government for any of the purposes of this Act before the establishment of either of the Corporations shall be deemed to have been incurred, entered into or engaged to be done by, with or for Indian Airlines or, as the case may be. Air India International according as the obligations, contracts, matters and things relate to the purposes of the former Corporation or the latter.
SECTION 15: ACCOUNTS AND AUDIT
- (1) The Corporations shall maintain proper accounts and other relevant records and prepare annual statement of accounts including the profit and loss account and the balance sheet in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor General of India.
(2) The accounts of the Corporations shall be audited annually by the Comptroller and Auditor General of India and any expenditure incurred by him in connection with such audit shall be payable by the Corporations to the Comptroller and Auditor General of India.
(3) The Comptroller and Auditor General of India and any person appointed by him in connection with the audit of the accounts of the Corporations shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the corporations.
(4) The accounts of the Corporations as certified by the Comptroller and Auditor General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament.
SECTION 15A: AUDIT OF ACCOUNTS OF COMPANIES FORMED BY CORPORATIONS
- (1) Notwithstanding anything contained inthe Companies Act, 1956-, the auditor of any company formed by either of the Corporations under clause (kk) of sub-section (2) of section 7-shall be appointed or re-appointed by the Corporation concerned on the advice of the Comptroller and Auditor General of India.
(2) Save as otherwise provided in sub-section (1), in addition to the provisions contained in the Companies Act, 1956-, relating to the audit of the accounts of any company, the following provisions shall apply to the. audit of the accounts of any company referred to in sub-section (1), namely:-
(i) the Comptroller and Auditor General of India shall have power to conduct a supplementary or test audit of the company's accounts, such person or persons as he may authorise in this behalf; and for the purposes of such audit to require information to be furnished to any person or persons so authorised, on such matters by such person or persons and in such form as the Comptroller and Auditor General may, by general;or special order, direct;
(ii) the author appointed or re-appointed under sub-section(1) shall submit a copy of his audit report to the Comptroller and Auditor General of India who shall have the right to comment upon, or Supplement, the audit report in such manner as he may think fit;
(iii) any such comments upon, or supplement to, the audit report shall be placed before the annual general meeting of the company at the same time and in the same manner as the audit report.]
CHAPTER 04: ACQUISITION OF UNDERTAKINGS OF EXISTING AIR COMPANIES
SECTION 16: UNDERTAKINGS OF EXISTING AIR COMPANIES TO VEST IN THE CORPORATION
- On such date as the Central Government may, by notification15in the Official Gazette, appoint (hereinafter referred to as "the appointed date"), there shall be transferred to and vest in-
(a) Indian Airlines, the undertakings of all the existing air companies (other than Air India International Ltd.), and
(b) Air India International, the undertaking of the Air India International Ltd.
SECTION 17: GENERAL EFFECT OF VESTING OF UNDERTAKINGS IN THE CORPORATIONS
- (1) The undertaking of each of the existing air companies which is transferred to and which vests in either of the Corporations underSection 16-shall, subject to the provisions of section 22-, be deemed to include all assets, rights, powers, authorities and privileges and all property, movable and immovable, including lands, works, workshops, aircraft, cash balances, reserve funds, investments and book debts and all other rights and interests arising out of such property as were immediately before the appointed date in the ownership, possession or power of the existing air company in relation to the undertaking Whether within or without India, and all books of account and documents relating thereto, and subject to the provisions contained inSection 22-, shall also be deemed to include all borrowings, liabilities and obligations of whatever kind then subsisting of the existing air company in relation to the undertaking.
(2) Any lands, works, aircraft, assets or other property vesting in the Corporation under subsection (1) shall by force of such vesting be freed and discharged from all trusts, obligations, mortgages, charges, liens and other encumbrances affecting it, and any attachment, injunction or any other order of a Court restricting the use of such property in any manner shall be deemed to have been withdrawn.
(3) Subject to the other provisions contained in this Act all contracts and working arrangements which are subsisting immediately before the appointed date and affecting any of the existing air companies shall, in so far as they relate to the undertaking of that company, cease to have effect or be enforceable against that company or any person who was surety or had guaranteed the performance thereof, and shall be of as full force and effect against or in favour of the Corporation in which the undertaking has vested by virtue of this Act and enforceable as fully and effectually as if, instead of the company, the Corporation had been named therein or had been a party thereto.
(4) Subject to the other provisions contained in this Act, any proceeding or cause of action pending or existing immediately before the appointed date by or against any of the existing air companies in relation to its undertaking may as from that date be continued and enforced by or against the Corporation in which it has vested by virtue of this Act as it might have been enforced by or against that company if this Act had not been passed, and shall cease to be enforceable by or against that company, its surety or guarantor.
SECTION 18: RESERVATION OF SCHEDULED AIR TRANSPORT SERVICES TO THE CORPORATIONS
- (1) After the appointed date, it shall not be lawful for any person other than the Corporations or their associates to operate any scheduled air transport service from, to in or across India:
Provided that nothing in this section shall restrict the right of any person,-
(a) for the purpose of any air transport undertaking of which the principal place of business is in any country outside India, to operate an air transport service in accordance with the terms of any agreement for the time being in force between the Government of India and the Government of that country; or
(b) to carry passengers for the sole purpose of instructing them in flying or on duties of air-crews; or
(c) to carry passengers or goods for the sole purpose of providing an air ambulance service or a rescue or relief service during any natural calamity; or
(d) to carry passengers or goods for the sole purpose of providing joy rides consisting of flights operated from and to the same aerodrome or place without any intermediate landing or for the purpose of aerial survey, fire fighting, crop-dusting, locust control or any other aerial work of a similar nature;16 [or
(e) to operate, with the previous permission of the Central Government for such period and subject to such terms and conditions as that Government may determine, any scheduled air transport service as aforesaid which is not provided by either of the Corporations or their associates].
(2) Any person who operates a scheduled air transport service in contravention of the provisions of this section shall be liable in respect of each offence to a fine which may extend to one thousand rupees, or to imprisonment which may extend to three months, or to both.
Explanation.- The operation of each flight shall constitute a separate offence for the purposes of this section.
SECTION 19: LICENCES TO CEASE TO BE VALID
- With effect from the appointed date, all licences granted underthe Indian Aircraft Act, 1934 (22 of 1934)-or under the rules made thereunder for the operation of scheduled air transport services shall cease to be valid.
SECTION 20: PROVISIONS RESPECTING OFFICERS AND EMPLOYEES OF EXISTING AIR COMPANIES
- (1) Every officer or other employee of an existing air company (except a director, managing agent, manager or any other person entitled to manage the whole or a substantial part of the business and affairs of the company under a special agreement, employed by that company prior to the first day of July, 1952, and still in its employment immediately before the appointed date shall, in so far as such officer or other employee is employed in connection with the undertaking which has vested in either of the Corporations by virtue of this Act, become as from the appointed date an officer or other employee, as the case may be, of the Corporation in which the undertaking has vested and shall hold his office or service therein by the same tenures, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension and gratuity and other matters as he would have held the same under the existing air company if its undertaking had not vested in the Corporation and shall continue to do so unless and until his employment in the Corporation is terminated or until his remuneration, terms or conditions are duly altered by the Corporation: Provided that nothing contained in this section shall apply to any officer or other employee who has, by notice in writing given to the Corporation concerned prior to such date as may be fixed by the Central Government by notification in the Official Gazette, intimated his intention of not becoming an officer or other employee of the Corporation.
(2) Not with standing anything contained in sub-section (1), the Central Government may direct either of the Corporations in which the undertaking of any existing air company has vested to take into its employment any officer or other employee who was employed by the existing air company prior to the first day of July, 1952, and who has been discharged from service in that company on or after the said date for reasons which, in the opinion of the Central Government appear to be inadequate for the purpose, and where the Central Government issues any such direction, the provisions of sub-section (1) shall apply to such officer or other employee as they apply to any officer or other employee referred to therein.
(3) As from the appointed date the trustees of the provident funds and pension funds or pension schemes of each of the existing air companies shall transfer to the Corporation concerned the balances lying to the credit of each of the employees whose services have been transferred to that Corporation by virtue of this Act and also all other balances of the funds or schemes as shall remain after satisfying all demands and liabilities, and thereupon the trustees shall be discharged of the trusts by virtue of this Act.
(4) Notwithstanding anything contained in this Act or in the Indian Companies Act, 1913 or in any other law for the time being in force or in any agreement entered into by an existing air company or in the articles of association of any such company, no director, managing agent, manager or any other person entitled to manage the whole or a substantial part of the business and affairs of the company shall be entitled to any compensation against any existing air company or against either of the Corporations for the loss of office or for the premature termination of any contract of management entered into by him with any existing air company and where any existing air company has, after the first day of July, 1952, and before the commencement of this Act, paid to any such person as is referred to in this sub-section any sum by way of compensation to which the person receiving such compensation would not have been entitled if this sub-section were in force at the time of such payment, the existing air company shall be entitled to claim refund of any sum so paid.
SECTION 21: DUTY TO DELIVER UP POSSESSION OF PROPERTY ACQUIRED AND DOCUMENTS RELATING THERETO
- (1) Where any property has vested in either of the Corporations undersection 16-, every person in whose possession or custody or under whose control the property may be, shall deliver up the property to the Corporation concerned forthwith.
(2) Any person who on the appointed date has in his possession or under his control any books, documents or papers relating to any undertaking which has vested in either of the Corporations under this Act and which belong to an existing air company or would have so belonged if its undertaking had not so vested shall be liable to account for the said books, documents and papers to the Corporation in which the undertaking has vested and shall deliver them up to the Corporation or to such person as the Corporation may direct : Provided that the Corporation shall produce for inspection by such companies or their authorized representatives the books of account and documents as relate to the affairs of the company for any period prior to the appointed date.
(3) Without prejudice to the other provisions contained in this section, it shall be lawful for the Corporation and the Central Government to take all necessary steps for securing possession of all properties which have vested in the Corporation undersection 16-.
SECTION 22: DUTY OF EXISTING AIR COMPANIES TO SUPPLY PARTICULARS
- (1) Where the undertaking of an existing air company vests in either of the Corporations under this Act, the existing air company shall within thirty days from the appointed date or within such further time as the Corporation concerned may allow in any case, supply to the Corporation particulars of book debts and investments belonging to and all liabilities and obligations of the company subsisting immediately before the appointed date, and also of all agreements entered into by the existing air company and in force on the appointed date, including agreements, whether express or implied, relating to leave, pension, gratuity and other terms of service of any officer or other employees of the existing air company, under which by virtue of this Act the Corporations have or will or may have liabilities except such agreements as the Corporation may exclude either generally or in any particular case from the operation of this sub-section.
(2) If any existing air company fails to supply to the Corporation concerned particulars of such book debts, liabilities and agreements within the time allowed to it for the purpose under subsection (1), nothing contained in this Act shall have effect so as to transfer any such book debts, liabilities and agreements to, or to vest the same in, the Corporation.
(3) Either Corporation may by notice in writing within a period of18[six months] after submission of the particulars referred to in sub-section (1) intimate to the existing air company submitting the particulars that such of the book debts and investments as are specified in the notice are not included in the properties vesting in the Corporation whereupon the compensation provided by section 25-of this Act and the Schedule thereto shall be reduced by the amount of such excluded book debts and investments but the right of such existing air company to recover and retain such excluded book debts shall remain unaffected by this Act.
SECTION 23: RIGHT OF CORPORATIONS TO DISCLAIM CERTAIN AGREEMENTS
- (1) Where it appears to either of the Corporations that the making of any such agreements as is referred to in section 22-under which the Corporation has or will have or may have liabilities was not reasonably necessary for the purposes of the activities of the existing air company or has not been entered into in good faith, the Corporation may, within19[one year] from the appointed date, apply to the Tribunal for relief from such agreement, and the Tribunal, if satisfied after making such inquiry into the matter as it thinks fit that the agreement was not reasonably necessary for the purposes of the activities of the existing air company or has not been entered into in good faith, may make an order cancelling or varying the agreement on such terms as it may think fit to impose and the agreement shall thereupon have effect accordingly.
(2) All the parties to the agreement which is sought to be cancelled or veried under this section shall be made parties to the proceeding.
SECTION 24: TRANSACTIONS RESULTING IN DISSIPATION OF ASSETS
- (1) This section shall apply where any existing air company has, after the first day of July, 1952, and before the appointed date,-
(a) made any payment to any person without consideration or for an inadequate consideration;
(b) sold or disposed of any of its properties or rights without consideration or for an inadequate consideration;
(c) acquired any property or rights for an excessive consideration;
(d) entered into or varied any agreement so as to require an excessive consideration to be paid or given by the company;
(e) entered into any other transaction of such an onerous nature as to cause a loss to or impose a liability on the company exceeding any benefit accruing to the company; or
(f) sold or otherwise transferred any aircraft, equipment, machinery or other property of book value exceeding rupees ten thousand; and the payment, sale, disposal, acquisition, agreement or variation thereof, or other transaction or transfer, was not reasonably necessary for the purposes of the company or was made with an unreasonable tack of prudence on the part of the company regard being had in either case to the circumstances at the time.
(2) Either of the Corporations may, in the case of any such existing air company as is referred to in sub-section (1) the undertaking of which was vested in the Corporation under this Act, at any time within20[one year] from the appointed date, apply for relief to the Tribunal in respect of any transaction to which in the opinion of the Corporation this section applies, and all parties to the transaction shall, unless the Tribunal otherwise directs, be made parties to the application.
(3) Where the Tribunal is satisfied that a transaction in respect of which an application is made is a transaction to which this section applies, then, unless the Tribunal is also satisfied that the transaction was a proper transaction made in the ordinary course of business regard being had to the circumstances at the time and was not in any way connected with any provision made by this
SECTION 25: COMPENSATION TO BE GIVEN FOR COMPULSORY ACQUISITION OF UNDERTAKING
- (1) Where the undertaking of any of the existing air companies has vested ineither of the Corporations under this Act. compensation shall be given by the Corporation to that Company in the manner specified insection 27-and the amount of such compensation shall be determined in accordance with the principles specified in the Schedule to this Act.
(2) Notwithstanding that separate valuations are calculated under the principles specified in the Schedule in respect of the several matters referred to therein, the amount of compensation to be given shall be deemed to be a single compensation to be given for the undertaking as a whole.
(3) The amount of the compensation to be given in accordance with the aforesaid principles shall be determined by the Corporation and if the amount so determined is approved by the Central Government, it shall be offered to the existing air company in full satisfaction of the compensation payable under this Act, and if the amount so offered is not acceptable to the existing air company, it may within such time as may be prescribed for the purpose have the matter referred to a Tribunal constituted for this purpose by the Central Government for decision.
SECTION 26: CONSTITUTION OF SPECIAL TRIBUNAL TO DETERMINE COMPENSATION
- (1) The Tribunal to be constituted undersection 25-shall consist of three members appointed by the Central Government, one of whom shall be a person who is or has been a Judge of a High Court or has been a Judge of the Supreme Court.
(2) The Tribunal may for the purpose of deciding any matter under this Act choose one or more persons possessing special knowledge of any matter relating to the case under inquiry to assist it in determining any compensation which is to be given under this Act.
(3) The Tribunal shall have the powers of a civil court while trying a suit underthe Code of Civil Procedure, 1908-in respect of the following matters :
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) issuing commissions for the examination of witnesses or documents.
(4) The Tribunal shall by a majority of its number regulate its own procedure and decide any matter within its competence and may review its decision in the event of there being a mistake on the face of the record or correct any arithmetical or clerical error therein but subject thereto the decision of the Tribunal on any matter within its jurisdiction shall be final and shall not be called in question in any court.
SECTION 27: MODE OF GIVING COMPENSATION
- (1) When the amount of compensation to be given under this Act to an existing air company has been determined undersection 25-, the Corporation shall give to the company one or more bonds of the face value of the amount of compensation so determined less such portion thereof as is payable in cash under this section.
(2) Out of the compensation to be given to each of the existing air companies under this Act, there shall be paid in cash-
(a) ten per cent. of the amount of compensation payable to each of such companies (which percentage shall be uniformly applicable to all existing air companies); or
(b) the amount borrowed by any such company from any bank and outstanding on the 31st day of December, 1952, or on the appointed date, whichever amount is less; or
(c) an amount equal to the cash of any such company, including cash in deposit with a bank, which has vested in the Corporation under this Act; whichever of the amount specified in clauses (a), (b) and (c) is the greatest.
(3) The bonds aforesaid shall be issued by the Corporation with the previous approval of the Central Government and shall be negotiable and shall be redeemed at their face value by the Corporation concerned on the demand of the holder within one hundred and eighty days after the expiry of five years from the date of their issue and the redemption of the bonds and payment of all interest thereon shall be guaranteed by the Central Government.
(4) If within the expiry of the said period of one hundred and eighty days, the holder of any bond fails to require payment of its face value from the Corporation concerned, the bond shall cease to be redeemable at the option of the holder: Provided that in any case the Corporation may by notice require the holder of the bond to accept its face value in cash at any time whether before or after the expiry of the period of five years aforementioned.
(5) The holder of the bond shall be entitled to receive from the Corporation interest on the bond at three-and-a-half per cent per annum at such intervals as may be prescribed, with effect from the appointed date and until the bond is duly redeemed.
(6) Bonds issued under this section shall, for the purpose of redemption and of computing interest, be deemed to have been issued on the appointed date.
(7) Any bond issued under the provisions of this section shall be deemed to be a security in which a trustee may invest trust monies within the meaning of section 20 of the Indian Trusts Act, 1882-.
SECTION 28: WINDING UP OF EXISTING COMPANY WHOSE UNDERTAKING HAS BEEN ACQUIRED
- (1) The Central Government may, on the application of any existing air company or on the application of a majority in number representing three-fourths in value of its members holding ordinary shares, by order in writing, authorise the existing air company the undertaking of which has vested in either of the Corporations, to be wound up voluntarily in accordance with the provisions of the Indian Companies Act, 1913relating to voluntary winding up : Provided that-
(a) the winding up of the company shall commence on the day on which the Central Government authorises the winding up without the passing by the company of any special or other resolution for winding up; and
(b) the directors of the existing company shall not be under an obligation to make any such statutory declaration as is required by section 207 of the Indian Companies Act, 1913and
(c) the winding up of the company shall be continued by the directors of the existing company in office at the time the Central Government authorises its winding up and they shall be deemed to be joint liquidators for the purpose of the said winding up with power to act by a majority of their number.
(2) For the purposes of winding up the affairs of any existing air company or for any other purpose necessary for enabling it to give effect to the provisions of this Act, the Central Government may, notwithstanding anything contained in this Act, permit the existing air company to occupy, keep in its custody, or utilise, as the case may be, for such period as it may allow any office, books, accounts and other documents and the services of any officers or other employees, which have been transferred to either of the Corporations under this Act, on such terms and conditions as may be agreed between the Corporation in which the undertaking has vested and the existing air company, or failing agreement, as may be determined by the Central Government.
SECTION 29: AUTHORISATION UNDER SECTION 28 MAY CONTAIN CERTAIN DIRECTIONS
- Any authorisation granted under section 28-may include a direction requiring an existing air company the voluntary winding up of which has been authorised under that section to distribute its net assets among the various classes of members of the company in such proportion as the Central Government may, having regard to the amount subscribed by each class of such members or having regard to the circumstances relating to the issue of the shares to the various classes of members, specify in the direction, and any such direction shall have effect notwithstanding anything contained in the Indian Companies Act, 1913or in the articles of association or resolution of the company or in any agreement, and every such company shall be bound to comply with any such direction.
CHAPTER 05: AIR TRANSPORT COUNCIL
SECTION 30: CONSTITUTION OF AIR TRANSPORT COUNCIL
- 21[(1) The Central Government may, from time to time, by notification in the Official Gazette constitute] an Air Transport Council consisting of a Chairman and such other number of members not exceeding eleven as the Central Government may appoint thereto : Provided that amongst the members to be so appointed there shall at least be one person with experience in financial matters and one person who is an employee of either of the Corporations with experience in labour matters.
22[(2) If at any time the Central Government is of opinion that the continued existence of an Air Transport Council is not necessary, it may, by notification in the Official Gazette, declare that the Air Transport Council shall be dissolved with effect from such date as may be specified in the notification, and thereupon the Air Transport Council shall be deemed to be dissolved, accordingly.]
SECTION 31: FUNCTIONS OF THE AIR TRANSPORT COUNCIL
- (1) It shall be the duty of the Air Transport Council to consider-
(a) at the request of either of the Corporations any matter of the kind referred to insection 38-; and
(b) any matter of importance which may be referred to it by the Director General of Civil Aviation or the Director General of Posts and Telegraphs relating to matters of common interest, between either of the Corporations and the Director General of Civil Aviation, or as the case may be, the Director General of Posts and Telegraphs, including rates for the carriage of postal articles by air, and to make recommendations thereon to the Central Government.
(2) At the request of the Central Government, the Air Transport Council shall investigate any matter relating to the fares, freight rates or other charges, levied by either Corporation in respect of any service or facility provided by the Corporation and of the adequacy or efficiency of such service or facility and shall make recommendations thereon to the Central Government.
(3) The Council shall, if so required by the Central Government, tender advice to that Government in regard to financial and economic analysis, accounting, costing and statistical techniques and financial reporting relating to air transport and, in particular, advise in regard to the matters specified in the proviso to sub-section (2) ofsection 34-.
(4) The Central Government after taking any recommendation made by the Air Transport Council under this section into consideration, may issue such directions in the matter as it thinks fit and such directions shall be binding on the Corporation concerned.
SECTION 32: STAFF OF THE COUNCIL
- The Council shall have a Secretary and such other employees as the Central Government may appoint, and the expenditure on the staff and other charges of the Council shall be borne by the Central Government.
SECTION 33: PROCEEDINGS OF THE COUNCIL
- (1) The Council shall regulate its own procedure.
(2) No proceedings of the Council shall be deemed to be invalid by reason merely of any vacancy in, or any defect in the constitution of, the Council.
CHAPTER 06: CONTROL OF CENTRAL GOVERNMENT
SECTION 34: POWER OF CENTRAL GOVERNMENT TO GIVE DIRECTIONS
- (1) The Central Government may give to either of the Corporations directions as to the exercise and performance by the Corporation of its functions, and the Corporation shall be bound to give effect to any such directions.
(2) The Central Government may, if it is of opinion that it is expedient in the national interest so to do, after consultation with the Corporation concerned, direct either of the Corporations-
(a) to undertake any air transport service or other activity which the Corporation has power to undertake;
(b) to discontinue or make any change in any scheduled air transport service or other activity which it is operating or carrying on;
(c) not to undertake any activity which it proposes to do:
Provided that, if, at the direction of the Central Government, the Corporation establishes, alters or continues to maintain an air transport service or other activity and satisfies the Central Government that during the relevant financial year the Corporation has suffered an over-all loss in respect of the operation of all its air transport services and of all its other activities and also that the service or activity so established, altered or continued to be maintained in compliance with the directions of the Central Government as aforesaid has been operated at a loss in any financial year, then the Central Government shall reimburse the Corporation to the extent of the loss relatable to the operation of that particular service or activity.
SECTION 35: PRIOR APPROVAL OF CENTRAL GOVERNMENT NECESSARY IN CERTAIN CASES
- Neither Corporation shall, without the previous approval of the Central Government-
(a) undertake any capital expenditure for the purchase or acquisition of any immovable property or aircraft or any other thing at a cost exceeding23[such amount as the Central Government may, from time to time, by order, fix in this behalf.]
(b) enter into a lease of any immovable property for a period exceeding24[ten years] or
(c) in any manner dispose of any property, right or privilege having an original ot book value exceeding23[such amount as the Central Government may, from time to time, by order, fix in this behalf].
SECTION 36: SUBMISSION OF PROGRAMME OF WORK FOR EACH YEAR
- (1) Each of the corporations shall prepare and submit to the Central Government, not less than25 [two months] before the commencement of the financial year of the Corporation a statement showing the programme of operation and development of air transport services to be operated by the Corporation and its associates during the forthcoming financial year and its other activities as well as its financial estimate in respect thereof, including any proposed investment of capital and increase in the strength of its total staff.
(2) If, during any financial year, either of the Corporations engages or proposes to engage in any air transport service or ancillary activity in addition to those specified in the programme previously submitted under sub-section (1) and a substantial alteration of the financial estimates is likely to be involved thereby, the Corporation shall submit to the Central Government for approval a supplementary programme of such service or activity and a supplementary estimate of the expenditure and revenue to be incurred and received by the Corporation in respect thereof during the remainder of that period: Provided that, to meet any unexpected traffic demand or other special situation either of the Corporations may undertake any additional service or other ancillary activity not specified in the programme submitted under sub-section (1) or sub-section (2) and subsequently submit a report on the matter to the Central Government in the prescribed manner.
SECTION 37: SUBMISSION OF ANNUAL REPORT TO PARLIAMENT
- (1) Each of the Corporations shall, as soon as may be after the end of each financial year, prepare and submit to the Central Government, in such form as may be prescribed a report giving an account of its activities during the previous financial year, and the report shall also give an account of the activities, if any, which are likely to be undertaken by the Corporation during the next financial year.
(2) The Central Government shall cause every report to be laid before both Houses of Parliament as soon as may be after it is submitted.
CHAPTER 07: MISCELLANEOUS
SECTION 38: CORPORATIONS TO ACT IN MUTUAL CONSULTATION
- It shall be the duty of each of the Corporations to enter into consultations with the other in matters of common interest to the two Corporations including, in particular, the operation of scheduled air transport services, the routes on which such services should be operated by each of the Corporations, the frequency of such services, the passenger fares and freight rates to be charged, the measures of economy to be adopted, the provision of any services in regard to over-haul and maintenance of aircraft or any other matter falling within the scope of the functions of either of the Corporations, and, generally, in regard to ensuring the fullest co-operation and co-ordination in respect of all such matters.
SECTION 39: TRANSFER OF SCHEDULED AIR TRANSPORT SERVICES OR ASSETS FROM ONE CORPORATION TO THE OTHER
- The Central Government may, for the purpose of improving the air transport services provided by either of the Corporations or for effecting better co-ordination in respect of such services, direct that with effect from such date as may be specified in the direction and subject to such conditions as may be similarly specified,-
(a) any scheduled air transport service operated by one Corporation shall no longer be operated by that Corporation but shall be operated by the other Corporation, and
(b) any property belonging to one Corporation shall be transferred to the other Corporation.
SECTION 40: CORPORATIONS MAY DELEGATE THEIR POWERS
- (1) Each of the Corporations may appoint a Committee or Committees consisting of some or any of its26[directors] with or without the addition of any officer or employee of the Corporation and delegate any of the functions and powers of the Corporation to such Committee or Committees and may limit the exercise of such delegated authority to any specified area.
(2) Either of the Corporations may, in relation to any particular matter or class of matters or to any particular area, by general or special order, direct that any of its officers or other employees may also exercise all or any of its powers under this Act (except the powers given to it by this section) to the extent to which the Corporation deems it necessary for the efficient running of its day to day administration.
SECTION 41: ADVISORY AND LABOUR RELATIONS COMMITTEES
-27[* * *] Each of the Corporations shall constitute in the prescribed manner a Labour Relations Committee consisting of representatives of the Corporation and of its employees, so however, that the number of representatives of the employees on the Committee shall not be less than the number of representatives of the Corporation, and it shall be the duty of the Labour Relations Committee to advise the Corporation on matters which relate to the welfare of the employees or which are likely to promote and secure amity and good relations between the two.
SECTION 42: MEETINGS OF THE CORPORATION
- (1) Meetings of the Corporation shall be held at such times and places and, subject to subsections (2) and (3), the proceedings of the Corporation shall be conducted in such manner as may be provided by the regulations.
(2) The Chairman or in his absence any person chosen by the28[directors] present from amongst themselves shall preside at the meeting.
(3) At a meeting of the Corporation all questions shall be decided by a majority of votes of the28 [directors] present, and for this purpose, each28[director] shall have one vote and in the case of equality of votes the Chairman or, in his absence, the person presiding at the meeting shall have a second or casting vote.
SECTION 43: PENALTY FOR WRONGFUL WITHHOLDING OF PROPERTY
- If a director, managing agent, manager or other officer or employee of an existing air company who wilfully withholds or fails to deliver to the Corporation as required by sub-section (2) of section 21-any books, documents or papers which may be in his possession or who wrongfully obtains possession of any property of any such company which has vested in either of the Corporations under this Act or having any such property in his possession wrongfully withholds it from the Corporation or wilfully applies it to purposes other than those expressed in, or authorised by, this Act shall on the complaint of the Corporation concerned, be punishable with fine which may extend to one thousand rupees and may be ordered by the Court trying the offence to deliver up or refund within a time to be fixed by the Court any such property improperly obtained or wrongfully withheld or wilfully misapplied or in default to suffer imprisonment which may extend to one year.
SECTION 44: POWER TO MAKE RULES
- (1) The Central Government may, by notification in the offficial Gazette, make rules to give effect to the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the terms and conditions of service of the29[managing directors] of the two Corporations; and such other categories of officers as may be specified from time to time under sub-section (1) of section 8-;
(b) the form in which the budget of the two Corporations shall be prepared and submitted to the Central Government; and the form and the manner in which the accounts of the two Corporations shall be maintained and in which any returns or statistics shall be furnished or submitted;
(c) the reports which should be submitted by the Corporations and the intervals within which they should be so submitted;
(d) the maintenance of books of accounts;
(e) the establishment and maintenance of a fund by each of the Corporations for meeting any liability arising out of any act or omission in respect of which the Corporation may incur any liability to any third party;
(f) the provision of30[* *] reserve and other funds;
(g) the prohibition of persons who are directly or indirectly interested in any subsisting contract with either of the Corporations from becoming or being employees of the Corporation;
(h) the powers which may be exercised by either of the Corporations to facilitate the acquisition of any undertaking;
(i) the issue of bonds by either of the Corporations to meet any compensation payable by it under this Act;
(j) the training of the employees of either of the Corporations or other persons and the fees which may in its discretion be charged therefor;
(k) the term of office and other conditions of service of members of the Air Transport Council constituted undersection 30-;
(l) the prohibition of any interference with any air transport services or with any property of the Corporation or of any interference with or obstruction of any officer or employee of the Corporation in the performance of his duty;
(m) the punishment which shall not exceed imprisonment for three months or fine of rupees one thousand but which may consist of both such imprisonment and fine, in respect of any contravention of the provisions of any rules made under this section.
31[(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in32[two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions] both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]
SECTION 45: POWER OF CORPORATIONS TO MAKE REGULATIONS
- (1)33[Subject to the provisions of sub-section (3), each of the Corporations may] by notification in the Official Gazette, make regulations not inconsistent with this Act or the rules made thereunder for the administration of the affairs of the Corporation and for carrying out its functions.
(2) In particular and without prejudice to the generality of the foregoing power, any such regulations34may provide for all or any of the following matters, namely :-
(a) the time and place of the meetings of the Corporation and the procedure to be followed for the transaction of business at such meetings;
(b) the terms and conditions of service of officers and other employees of the Corporation other than the35[managing director] and officers of any other categories referred to insection 44-;
(c) the issue of passes by the Corporation to its officers and other employees either free of cost or at concessional rates for travel on its air services and the conditions relating thereto;
(d) the authentication of orders and decisions of the Corporation and the instruments executed by it;
36[(e) the grant of refund in respect of any unused tickets and the issue of passes free of cost or at concessional rates;]
(f) the period after the expiry of which unclaimed goods may be disposed of and the manner of their disposal;
(g) the conditions governing the carriage of persons or goods on its services.
37[(3) No regulation under clause (b) of sub-section (2) shall be made except with the previous approval of the Central Government.]
38[(4) Every regulation made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that regulation.
SCHEDULE 01: THE SCHEDULE
(See section 25-) PRINCIPLES FOR DETERMINING COMPENSATION UNDER THIS ACT Paragraph I.- The compensation which shall be given by Indian Airlines or Air India International, as the case may be, to any existing air company in respect of the vesting, in accordance with the provisions of this Act, of the undertaking of such company in that Corporation shall be the sum of the amounts computed in accordance with the provisions of paragraph II, less the sum of the amounts computed in accordance with the provisions of paragraph III. Paragraph II.- The aggregate written down value of all airframes of aircraft in respect of which there are certificates of airworthiness in force or, which can be rendered fit for certificates of airworthiness if the Corporation concerned were to incur expenditure within the normal rates for rendering the airframes airworthy, plus- A sum of Rs. 12,000 in respect of each airframe of a Dakota aircraft and a sum of Rs. 24,000 in respect of each airframe of a Viking aircraft in any case where the existing air company had obtained a certificate of airworthiness in respect of it within ninety days immediately preceding the appointed date or if a certificate of airworthiness had not actually been obtained within that period but the existing air company had incurred expenditure within that period for the purpose of rendering that airframe airworthy, the value, of the spare parts used for the purpose subject to a maximum of Rs, 12,000 in the case of each airframe of a Dakota aircraft and Rs. 24,000 in the case of each airframe of a Viking aircraft. NOTE.- In this Schedule, the expression "airframe" includes also the equipment of the aircraft,whether fixed or removable; (b) the aggregate written down value of all such power plants, aeroengines, air screws, spare aeroengines and spare air screws (all of which are in this Schedule collectively referred to as power plants) as are suitable for use in the airframes mentioned in sub-clause (a) and as are of an approved standard or can be rendered fit to be of an approved standard if the Corporation concerned were to incur expenditure within the normal rates for such purposes, plus the following, namely:- (i) a sum of Rs. 6,000 in respect of each engine of a Dakota aircraft and a sum of Rs, 12,000 in respect of each engine of a Viking aircraft in any case where the existing air company had made it an approved engine within a period of ninety days immediately preceding the appointed date or if the engine had not been made completely fit to be an approved engine within that period but the existing air company had incurred expenditure within the said period for the purpose of making that engine an approved engine, then, the value of the spare parts used for that purpose subject to a maximum of Rs. 6,000 in the case of each engine of a Dakota aircraft and Rs. 12,000 in the case of each engine of a Viking aircraft; and (ii) a sum of Rs. 2,000 in respect of the air screws and accessories of the power plant of a Dakota aircraft and a sum of Rs. 4,000 in respect of the air screws and accessories of the power plant of a Viking aircraft in any case where the air screws and accessories had been rendered completely fit for the approved standard within a period of ninety days immediately preceding the appionted date or if the same had not been rendered completely fit for that standard within that period but the existing air company had incurred expenditure within that peiiod for the purpose of rendering the same fit for the approved standard, then, the value of the spare parts used for that purpose subject to a maximum of Rs. 2,000 in the case of air screws and accessories of a Dakota aircraft and Rs. 4,000 in the case of air screws and accessories of a Viking aircraft, NOTE.- In this Schedule, the expression "approved standard" means such condition of efficiency of the power plant as satisfies the requirements laid down in Section E of Schedule III to the Indian Aircraft Rules, 1937; (c) the cost of purchase of all serviceable general stores and all such other serviceable stores and spares parts (all of which are in this Schedule collectively referred to as stores and spare parts) belonging to the existing air company as are suitable for use in respect of the aircraft or power plants referred to in subclauses (a) and (b), reduced in each case by 20 per cent. of such cost of purchase: Provided that the reduction shall be 10 per cent. in the case of stores and spare parts pertaining to Constellation and Skymaster aircraft. NOTE - In this Schedule- (a) stores shall be deemed to be serviceable if they are such as to satisfy the requirements laid down in Section E of Schedule III to the Indian Aircraft Rules, 1937; (b) without prejudice to the clause immediately preceding stores (other than general stores) and spare parts shall also be deemed to be serviceable if by incurring expenditure of an amount not exceeding half the costs of purchase of such stores and spare parts, they can be rendered suitable for use in respect of the aircraft or power plants; (d) the aggregate actual cost to the existing air company of all lands other than lease-holds; (e) the total amount of the premiums paid by the company in respect of all lease-holds reduced in the case of each such premium by an amount which bears to such premium the same proportion as the expired term on the appointed date of the lease in respect of which such premium shall have been paid bears to the total term of the lease; (f) the scrap value of all such aircraft, power plants, propellers and other accessories, spare parts and stores, not falling within any of the preceding sub-clauses and all properties as have become obsolete on the appointed date, the scrap value for the purposes of this Act being one per cent of the book value of the relevant item of property; (g) the price paid by the existing air company for any trustee security held by it; (h) the value of any shares held by any existing air company in any other existing air company the value being calculated on the basis of the valuation of the air transport undertaking of that other company in accordance with the provisions of this Schedule; (i) the market value on the appointed date or the purchase price, whichever is less, of any other investments held by any existing air company in any concern other than another existing air company which, subject to the provisions ofSection 22-, have vested in the Corporation; (j) the amount of cash held by any existing air company on the appointed date whether in deposit with a bank or otherwise; (k) the amount of debts other than bad debts due to any existing air company, to the extent to which they are reasonably considered to be recoverable, less the amount of the debts, if any, excluded from the transfer to the Corporation concerned under the provisions ofSection 22-; (l) the aggregate cost of all licence fees paid by the company under clause (c) of sub-rule (1) of Rule 154 of the Indian Aircraft Rules, 1937, in respect of the licences granted to it for the operation of any scheduled air transport services and held by it on the appointed date and which but for the provisions ofsection 19- would continue to remain valid plus a sum of Rs. 100 for each such licence; provided that the fees paid for each such licence shall be reduced by an amount which bears to such fees the little proportion as the period of the licence which shall have expired on the appointed date bears to the total period of the licence; (m) the aggregate written down value of all tangible assets other than those falling within the preceding clauses; (n) an aggregate amount not exceeding ten thousand rupees as may be agreed upon between the Corporation and the existing air company concerned or, failing agreement, which maybe assessed by the Tribunal, in respect of all such assets, intangible or otherwise, as do not fall within any of the preceding sub-clauses and in respect of the loss of any future profits which the existing air company might have earned but for the passing of this Act: Provided that in assessing any amount under this clause regard shall be had to the following circumstances, namely:- (i) the profits, if any, earned by it annually during the six years immediately preceding the appointed date on which income-tax has been paid, (ii) the subsidies, if any, given to that company by the Central Government during such period, and (iii) the probability or otherwise of the company earning future profits if it were allowed to continue its scheduled air transport services for the remaining period of the licence held by it after having due regard to the fact that the licence held by it did not confer any monopoly upon it in respect of the routes concerned and the fact that no subsidy would have been payable by the Central Government after the 31st day of December, 1952. Explanation A.- For the purposes of this Schedule,'the written down value in respect of each class of assets means the actual cost t0 the existing air company Of such assets respectively, less the total depreciation calculated at the rates and in manner following, namely:- (i)in respect of each airframe, depreciation shall be calculated at 15 per cent per annum for Constellation and Skymaster aircraft and 18 per cent, per annum for other aircraft from the date on which the aircraft concerned was first used in revenue operations by the company till the 31st day of December, 1952, the rates being applied as follows :- for the first year, on the actual cost of acquisition; for the second year, on an amount obtained by reducing from the actual cost of acquisition the amount of depreciation calculated as aforesaid for the first year: for the third year, on an amount obtained by reducing from the actual cost of acquisition the aggregate amount of depreciation calculated as aforesaid for the preceding two years; and soon; (ii) in respect of power plants, the depreciation shall be calculated at 20 per cent per annum for Constellation and Skymaster aircraft and at 24 per cent per annum for other aircraft from the date on which the power plant concerned was first used in revenue operations by the company till the 31st day of December, 1952, the rates being applied as follows:- for the first year, on the actual cost of acquisition; for the second year, on an amount obtained by reducing from the actual cost of acquisition the amount of depreciation calculated as aforesaid for the first year; for the third year on an amount obtained by reducing from the actual cost of acquisition the aggregate amount of depreciation calculated as aforesaid for the preceding two years; and so on; (iii) in respect of all tangible assets falling within clause (m) of paragraph II, depreciation shall be calculated at the normal annual rates for which provision is made in the Indian Income-tax Act, 1922, and in the manner provided therein, but excluding initial or other special depreciation, from the date such assets were acquired or created by the existing air company until the 31st day of December, 1952: Provided that in respect of any such asset for which no provision has been made inthe Indian Income-tax Act, 1922, the rate of depreciation shall be 10 per cent, per annum : Provided further that in respect of any such asset situate on the leasehold land other than land rented from Government, the depreciation shall be either- (a) as provided in the preceding provisions of this clause, or (b) equivalent to an amount which bears the same ratio to the total cost of acquisition or creation of the asset (situate on leasehold land) as the expired portion of the lease on the appointed date bears to the total period of the lease currently running, whichever is greater. Explanation B.- For the purposes of this Schedule, the actual cost shall include, in the case of airframes, in addition to the cost Of purchase or acquisition- (i) the actual expenditure, if any, incurred by the existing air company for reconversion or reconstruction of the airframe in order to render it fit for civil air transport before it was first used in revenue operations by the company, plus, (ii) the actual expenditure incurred in making the airframes airworthy before its first use in revenue operations. Explanation C.- In the case of power plants, the actual cost shall include, in addition to the cost of purchase or acquisition, the cost incurred by the company for conversion or reconditioning, repairing or overhauling the power plant, in order to render it fit for the purposes of a certificate under paragraph 4 of Section E of Schedule III to the Indian Aircraft Rules, 1937, before the date of its first use in revenue operations. Paragraph III.- Subject to the provisions of sections 22 and 23, all such liabilities as have been declared by the existing air company under the provisions of section 22 : Provided that if any liability so declared has been understated, the Corporation may recover the additional amount from the company.
2. The Act came into force on 28-5-1953, see S.R.0.968A, Gaz. of Ind., 28-5-1953, Pt. U.S. 3 Extra, p. 1762. The Act has been extended to the Union Territories of Goa, Daman and Diu by the Goa, Daman and Diu (Laws) Regulation, 1962 (12 of 1962), (w.e.f. 1-2-1965), to Dadra and Nagar Haveli by the Dadra and Nagar Haveli (Laws) Regulation, 1963 (6 of 1963), (w.e.f. 1-7-1965); and to Pondicherry by the Pondicherry (Laws) Regulation, 1963 (7 of 1963), (w.e.f. 1-10-1963). - Goa is now a State - See Goa, Daman and Diu Reorganisation Act (18 of 1987), S. 3 (30-5-1987).
3. The date appointed is 15-6-1953: see S.R.O. 1125-Gaz. of Ind., 11-6-1953, Pt. II, S. 3, Ext.,
p.l935.
4. Re-named as 'Air India' w.e.f. 8-6-1962, see S.O. 1676, Gaz. of Ind, 23-5-1962, Pt, II, S. 3(ii), p. 2019, as per S. 7(1) of the Air Corporations (Amendment) Act, 1962(17 of 1962), S. 7(2) of the Amendment Act (17 of 1962) provides as under:- "(2) The change of name of "Air India International" by sub-section (1) shall not affect any rights and obligations of that Corporation or render defective any legal proceeding by or against it, and any legal proceedings which might have been continued or commenced by or against that Corporation by its former name may be continued or commenced by or against it, by its new name."
5. Original sub-section (1) substituted by the Air Corporations (Amendment) Act (49 of 1971), S. 2 (1-2-1972).
6. Word "member" in sub-sections (2), (3), (4) and (5) and the words "General Manager" in sub-section (5), substituted, Ibid.
7. Word "members" in sub-section (1) and word "member" in the proviso to sub-section (1) and subsection
2), substituted by the Air Corporations (Amendment) Act (49 of 1971), S. 3 (1-2-1972).
10. Words "including provision of catering, rest rooms" in cl. (k) substituted, by the Air Corporations (Amendment) Act (49 of 1971), S. 4 (1-2-1972).
9. Clause (ii) inserted by the Air Corporations (Amendment) Act (49 of 1971), S. 4 (1-2-1972).
11. Clause (kk)inserted, by the Air Corporations (Amendment) Act (49 of 1971), S. 4 (1-2-1972)
12. Substituted for the words 'General Manager' by the Air Corporation (Amendment) Act (49 of 1971), S. 5 (1-2-1972).
13. Substituted for the words "current account" by the Air Corporations (Amendment) Act (49 of 1971), Section 6 (1-2-1972).
15. The day appointed is 1-8-1953: see S.R.O. 1262 in Gaz. Ind., 1953, Pt. II, S.3, page931.
16. Inserted by the Air Corporations (Amendment) Act, 1962. (17 of 1962), S. 2 (30-3-1962).
18. Substituted for the words "ninety days" by the Air Corporations (Amendment) Act, 1954 (10 of 1954), S. 2 (w.r.e.f. 30-1-1954)
19. Substituted for the words "six months" by the Air Corporations (Amendment) Act, 1954 (10 of 1954), S.4 (w.r.e.f. 30-l-1954).
20. Substituted for the words "six months" by the Air Corporations (Amendment) Act, 1954 (10 of 1954),S.4(w.r.e.f.30-l-1954).
21. Section renumbered as sub-section (1) and in the sub-section so renumbered the words "As soon as may be after the commencement of this Act, the Central Government may cause to be constituted" substituted by the Air Corporations (Amendment) Act, 1962 (17 of 1962), S.3 (30-3-1962).
22. Inserted, Air Corporations (Amendment) Act, 1962 (17 of 1962), S. 3 (30-3-1962).
23. Substituted for the words "rupees forty lakhs" in cl. (a) and the words "rupees ten lakhs" in cl. (c) by the Air Corporations (Amendment) Act (24 of 1982). S.2(i) and (ii)(21-S-1982).
24. Substituted for the words "five years" by the Air Corporations (Amendment) Act (49 of 1971), S. 8 (1-2-1972).
25. Substituted for the words 'three months' by the Air Corporations (Amendment) Act, 1962(17 of 1962), S. 4 (30-3-1962).
26. Substituted for the word "member" by the Air Corporations (Amendment) Act (49 of 1971), S.9 (1-2-1972).
27. Sub-section "(1)" and the brackets and figure "(2)" omitted by the Air Corporations (Amendment) Act (49 of 1971), S. 10 (1-2-1972).
28. Substituted for the word "members" in Cls. (2) and (3) and "members" in Cl. (3), by the Air Corporations (Amendment) Act 49 of 1971, S. II (1-2-1972).
29. Substituted for the words "General Managers" by the Air Corporations (Amendment) Act (49 of 1971), 8.12(1-2-1972).
30. Word "depreciation" omitted, by the Air Corporations (Amendment) Act (49 of 1971), 8.12(1-2- 1972).
31. Substituted for the original by the Air Corporations (Amendment) Act, 1962 (17 of 1962), S. 5 (30- 3-1962).
32. Substituted for the words "two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following" by the Air Corporations (Amendment) Act (24 of 1982), S. 3 (21-5-1982).
33. Substituted by the Air Corporations (Amendment) Act 49 of 1971, S. 13 (1-2-1972).
34. For some such Regulations, see S. R. 0. 2462 to 2464 in Gaz. Ind., Extra., 29-7-1954, Pt. II,Section 3, pages 1169 to 1171; for International Carriage of Cargo (other than Baggage and Mail) Regulations, 1973 and International Carriages (Passenger and Baggage) Regulations, 1973, see Gaz. of India, 1973, Pt. II, Section 4, pp. 1674-1675; (these Regulations supersede Indian Airlines (Conditions of Carriage) Regulations, 1967).
35. Substituted for the words "General Manager" by the Air Corporations (Amendment) Act (49 of 1971) Section 13 (1-2-1972).
36. Substituted for the original clause (e) by the Air Corporations (Amendment) Act 1962 (17 of 1962), S. 6 (30-3-1962).
37. Inserted by the Air Corporations (Amendment) Act (49 of 1971), S. 13 (1-2-1972).
38. Inserted by the Air Corporations (Amendment) Act (24 of 1982), S. 4 (21-5-1982).
AIR CORPORATION RULES, 1954
S.R.O. 3520, dated the 26th November, 1954.-In exercise of the powers conferred by Sec. 44of the Air Corporations Act, 1953(27 of 1953), the Central Government hereby makes the following rules, namely:
CHAPTER 01:
RULE 01: SHORT TITLE
-These rules may be called the Air Corporations Rules, 1954.
RULE 02: DEFINITIONS
- In these rules, unless the context otherwise requires-
(a) "the Act" means the Air Corporations Act, 1953 (27 of 1953);
1[(aa) "authorised officer" means, with reference to any of these rules, an officer authorised by the Chairman to perform the functions under that rule and includes the State Bank of India as such of its offices and branch as may be specified by the Chairman for the purpose of that rule;]
(b) "Chairman" means the Chairman of the Corporation;
(c) "Corporation" means the Indian Airlines, or, as the case may be, the2[Air-India], as the. context in each case may require ;
(d) "General Manager" means the General Manager of the Corporation ;
(e) "secretary" means the secretary to the Corporation ;
(f) "member" means a member of the Corporation; and
(g) "section" means a section of the Act.
CHAPTER 02: BUDGET, ACCOUNTS AND AUDIT
RULE 03: PREPARATION AND SUBMISSION OF ANNUAL BUDGET ESTIMATES
(1) The budget estimates of the Corporation for every financial year beginning on the first day of April and ending on the thirty-first day of March next following shall be prepared by the Chairman or such officer as may be empowered by the Chairman in this behalf at such time and in such form as the Central Government may lay down from time to time.
(2) A copy of the budget estimates so prepared shall be sent to each member at least fourteen days before the meeting of the Corporation at which such estimates are to be considered.
(3) The Corporation shall consider and approve the budget with such changes as it thinks fit at the meeting Fixed for the purpose of or at any other meeting to which the consideration of the budget estimates is adjourned by a resolution of the Corporation.
(4) The budget estimates, as approved by the Corporation shall be submitted to the Central Government, not later than the3[first day of February] of the financial year preceding the year to which the budget estimates relate: Provided that the particulars of all capital commitments proposed to be entered into by the Corporation which may entail expenditure from the Government funds during the succeeding Financial year shall be furnished by the 1st day of September of the preceding financial year : [Provided further that in case the budget of revenue and expenditure of the Corporation discloses a deficit and the Corporation desires that such deficit be made good from the Government funds by the grant of subsidy or loan, such budget of revenue and expenditure shall also be submitted by the 1st day of September of the preceding year: Provided further that, on a request received from the Corporation in any particular case, the Central Government may extend the date of commission of the budget by such period as it may think fit.]
(5) A summary of the budget estimates as submitted by the Corporation shall be laid before both Houses of Parliament 5[* * *] as soon as after the demands for grants to meet the expenditure of the Central Government have been assented to by Parliament.Internal aid-Proviso.-It is a well settled principle of construction that unless clearly indicated, a proviso would not take away substantive rights given by the Section or the sub-section. Estimate.- A valuing or rating by the mind, without actual measuring, weighing, or the like. [City of Tulsa v. Weston, 102 Okl. 222 : 229 P. 122]. A rough or approximate calculation only. [Bair v. Montrose, 58 Utah, 398 : 199 P. 667].
RULE 04: SUPPLEMENTARY ESTIMATES
-If during any financial year the Corporation engages or proposes to engage in any air transport service or ancillary activity in addition to those specified in the programme previously submitted under subsection (1) of Sec. 36-or if, for any other reason or reasons, a substantial modification of the budget estimates approved by the Corporation is likely to be involved, the Corporation shall submit for approval to the Central Government supplementary estimates in such form as the Central Government may by order from time to time direct.
RULE 05: RE-APPROPRIATION
-If the Chairman or any officer of the Corporation authorised by him in this behalf is satisfied in the course of the year that there is likely to be an excess of expenditure over the budget estimates approved by the . Corporation under any head, he shall examine the allotment under each head of the budget estimate with the object of ascertaining probable savings under any other head and effecting a reappropriation. Where such re-appropriation is feasible, he may sanction the re-appropriation subject to such conditions, if any, as may from time to time be laid down by the Corporation.
RULE 06: PREPARATION AND SUBMISSION OF ANNUAL REPORT AND ANNUAL ACCOUNTS
- As soon as may be after the end of each financial year, an annual report on the work and activities of the Corporation and the annual accounts showing the financial results of the Corporation shall be prepared with such subsidiary accounts as may be prescribed by the Central Government. The report and accounts authenticated by affixing the common seal of, and duly passed by, the Corporation shall be submitted to the Central Government and to the said Comptroller and Auditor General on or before the 31st August, following : Provided that on a request received from the Corporation the Central Government may with the concurrence of the said Comptroller and Auditor General, extend the date of submission of the accounts by such period as it may think fit.]
RULE 07: INITIAL ACCOUNTS OF STORES
-Initial accounts of stores including materials on the site of works and tools and plant (including special tools and plant) shall be maintained in accordance with such instructions as may, from time to time, be issued by the Corporation.
RULE 08: PHYSICAL VERIFICATION OF STORES
-A physical verification of store and tools and plant shall be made by an officer who is not the custodian thereof in such a way that every item of stores, tools and plant shall be verified at least once in two years.] The results of such verification together with the orders of the Corporation for any shortages or excesses of stores and tools and plant shall be communicated to the Comptroller and Auditor General of India.
Verification.-Confirmation of correctness, truth or authenticity by affidavit, oath or deposition.1
RULE 09: COST OF AUDIT
-The cost of audit shall be paid by the Corporation within three months from the date on which the demand therefore is made by the Comptroller and Auditor General of India.
Audit.-The process of auditing accounts; the hearing and investigating had before an auditor.4An official examination of an account or claim, comparing vouchers, charges and fixing the balance.58
RULE 10: IMPROPRIETY OR IRREGULARITY IN ACCOUNTS
- (1) The auditors shall furnish the Corporation and the Central Government with a statement each where necessary, in regard to any material impropriety or irregularity which the auditors may observe in the expenditure or in the recovery of money due to, or in the accounts of the Corporation.
(2) The Corporation shall forthwith remedy any defect or irregularity that may be pointed out by the auditors and shall report to the Central Government the action taken by it thereon within ninety days of the receipt of the report of the auditors: Provided that, if there is any difference of opinion between the Corporation and the auditors, or if the Corporation does not remedy any defect or irregularity within a reasonable period or render a satisfactory explanation in regard to the defect or irregularity, the Central Government may, and, on reference specifically made therefore by the auditor, shall, in consultation with the Comptroller and Auditor General, pass such orders thereon as it thinks fit and the Corporation shall thereafter take action in accordance therewith within such time as may be specified by the Central Government.
RULE 11-14: OMMITED
Omitted
CHAPTER 03: STATISTICS, REPORTS AND RETURNS
RULE 15: REPORTS
- (1) The annual report be submitted by the Corporation to the Central Government underSec. 37- regarding its activities during the previous financial year, shall contain particulars, amongst others, in respect of the following items and shall be in such form as the Central Government may from time to time direct, namely:
(a) routes;
(b) operations;
(c) traffic and sales;
(d) passenger services;
(e) engineering and maintenance;
(f) staff;
(g) organisation;
(h) finance and accounts; and
(i) subsidiary and associate companies.
(2) The Corporation shall also submit, along with the annual report underSec. 37-, a separate report on the operational result of any additional service or other ancillary activity undertaken during the previous Financial year in pursuance of the proviso to sub-section (2) ofSec. 36-.
Every such report shall contain, subject to any addition or alteration which may be specified from time to time, particulars in respect of the following matters, namely-
(a) the places to and from which the air transport service is operated including intermediate stops;
(b) the number of types of the aircraft operated on the air transport service, with such particulars of the aircraft and engines as may be required; and
(c) the number of pilots, wireless operators and other members of aircrew employed on the service and the number of licensed ground engineers and other technical or non-technical personnel employed.
Report.-An official or formal statement of facts or proceedings. A report of a public official is distinguished from a return of such official in that return is typically concerned with something done or observed by officer, while report embodies result of officer's investigation not originally occurring within his personal knowledge.1
1[* * *]
RULE 16: PERIODICAL RETURNS
- (1) The Corporation shall submit to the Central Government and to such authority as it may specify-
(a)11[fortnightly returns] in regard to delays, alterations or deviations of the air transport services. Subject to any additions or alterations which may be made from time to time, such reports shall contain information and explanatory notes in respect of the following matters, that is to say-
(i) delays exceeding thirty minutes on the12[scheduled air services] operated on domestic air routes and on air routes to the neighbouring foreign countries;
(ii) delays exceeding two hours on the scheduled air services operated on longhaul international routes;
(iii) alterations or deviations of the scheduled route made for reasons other than securing the safety of crew, passengers, freight or mail; and
(iv) cancellations of scheduled air services;
13[(b) monthly returns relating to services operated and load carried separately in relation to each route so as to reach not later than 60 days after the expiry of the month to which the return relates; such returns shall, subject to any additions or alterations which may be specified from time to time, contain information on the following items:
(i) Services operated-
(a) frequency;
(b) number scheduled;
(c) number and percentage completed without interruption;
(d) number and percentage interrupted en route and the cause and extent of delay;
(e) number and percentage not commenced and the causes;
(f) number and percentage not completed and the causes;
(g) number of unpremeditated landings, the services affected and the reasons;
(h) regular stops overflown and the causes;
(i) hours flown ; and
(j) miles flown;
(ii) Load carried-
(a) distance, pay load (lbs.) and the number of seats normally available for each stage;
(b) mean pay load capacity operated, i.e. sum of pay loads for each stage x mileage of stage - total route mileage;
(c) capacity [on/miles operated;
(d) passenger seat miles offered;
(e) number of passengers carried on each stage (revenue and non-revenue separately);
(f) passenger miles effected (revenue and non-revenue separately);
(g) passenger ton/miles effected (revenue and non-revenue separately);
(h) mean percentage of passenger seals occupied (passenger factor);
(i) weight of passenger excess baggage carried )revenue and non-revenue separately);
(j) excess baggage ton/miles effected (revenue and non-revenue separately);
(k) weight of mails carried;
(l) mail ton/miles effected;
(m) weight of freight (including newspapers) carried (revenue and non- revenue separately);
(n) freight ton miles effected (revenue and non-revenue separately);
(o) total ton/miles effected (revenue and non-revenue separately); and
(p) mean percentage of total pay load capacity filled (overall load factor);
(iii) Revenue earned-
(a) passenger revenue;
(b) excess baggage revenue;
(c) mail revenue; and
(d) freight revenue];
(c) annual returns regarding the financial results of the Corporation during each year as soon as these are ready in such form as may be laid down by the Central Government from time to time; and
(d) periodical returns to be furnished to the International Civil Aviation Organisation in such forms as may be laid down from time to time.
(2) No information furnished in the annual return mentioned in Cl. (c) of sub-rule (1) shall be published or disclosed without the consent of the
Corporation and if any person publishes or discloses any such information without such consent, he shall be deemed to be guilty of an offence
punishable under these rules: Provided that nothing in this sub-rule shall apply to the publication or disclosure of any information for the purpose
of any legal proceeding by any person authorised by the Chairman in this behalf.
RULE 17 Power to obtain supplementary report of information
-Notwithstanding anything contained inrules 15-and16-, the Central Government may require special
reports from the Corporation and lay down the manner and the form in which such reports shall be made
or may require from the Corporation answers to questions upon which the Central Government may
need information. The Central Government may also require the Corporation to furnish a true copy of
each or any contract, agreement, understanding or arrangement, between the Corporation and any other
carrier or person, in relation to any traffic affected by the provisions of the Act.
General Government empowered to ask for supplementary reports or inforamtion.
CHAPTER 4 BONDS
RULE 18 Form of bond and the mode of transfer thereof
-
(1) Any bond issued by the Corporation shall be issued in Form I specified in the Schedule as a
promissory note payable to, or to the order of, a person in denominations of Rs. 10, 50, 100,
1,000, 5,000,10,000 and 25,000.
(2) A bond shall be transferable by endorsement and delivery, like a promissory note payable to
order.
(3) No endorsement of a bond shall be valid unless it is made by the holder in his own handwriting
or made on his behalf by his duly constituted attorney or representative, inscribed on the back of
the bond itself.
(4) No writing on a bond shall be valid for the purpose of negotiation, if such writing purports to
transfer only part of the amount denominated by the bond.
(5)
(a) The bonds shall be issued over the joint signature of the Chairman or14[authorised officer] and a
member of the Corporation which may be printed, engraved or lithographed or impressed by such other
mechanical process as the Corporation may direct.
(b) A signature so printed, engraved, lithorgaphed or otherwise impressed shall be as valid as if it had
been inscribed in the proper handwriting of the signatory himself.
RULE 19 Trust not recognised
-The Corporation shall not be bound or compelled to recognise in any way any trust or any right in
respect of a bond other than an absolute right thereto in the holder.
RULE 20 Persons disqualified to be holders
-No minor and no person who has been found by a competent court to be of unsound mind shall be
entitled to be the holder of a bond.
RULE 21 Payment of interest
-
(1) The interest due on a bond may be paid on receipt of the bond either by post or otherwise at
the head office of the Corporation14[or such offices or branches of the State Bank of India as may
be specified for the purpose by the Chiarman] in half-yearly instalments in15[February and
August] each year.
(2) The interest shall be paid by means of a cheque on a scheduled bank.
Interest is paid half-yearly in February and August and by cheques only.
RULE 22 Procedure when bond is lost
-
(1) Every application for the issue of a duplicate bond in place of a bond which is alleged to have
been lost, stolen, destroyed, mutilated or defaced, either wholly or in part, be addressed to the
Corporation14[or to such offices or branches of the State Bank of India as may be specified for
the purpose by the Chairman] and shall contain the following particulars, namely :
(a) particulars of the bond, viz. bond for Rs............No........... of the bond............;
(b) last half-year for which interest has been paid;
(c) the person to whom such interest was paid;
(d) the person in whose name the bond was issued (if known);
(e) the circumstances attending the loss, theft, destruction, mutilation or defacement; and
(f) whether the loss or theft was reported to the police.
(2) Such application shall be accompanied by-
(a) where the bond was lost in course of transmission by registered post, the post office registration
receipt for the letter containing the bond;
(b) a copy of the police report, if the loss or theft was reported to the police;
(c) if the applicant is not the registered holder, an affidavit sworn before a Magistrate testifying that
the applicant was the last legal holder of the bond, and all documentary evidence necessary to trace
back the title to the registered holder; and
(d) any portion or fragments which may remain of the lost, stolen, destroyed, mutilated or defaced
bond.
RULE 23 Notice in Gazette
-The loss, theft, destruction, mutilation or defacement of a bond or portion of a bond shall forthwith be
notified by the applicant at his cost in three successive issues of the Gazette of India, and of the local
Official Gazette, if any, of the State in which the loss, theft, destruction, mutilation or defacement
occurred. Such notice shall be in the following form or as nearly in such form as circumstances permit,
namely: "('Lost', 'stolen', 'destroyed', 'mutilated', or 'defaced', as the case may be). The bond bearing
No................of the Indian Airlines/16[Air-India] for Rs......................original standing in the name
of..........and last endorsed to.......... the proprietor, by whom it was never endorsed to any other person,
having been lost (stolen, destroyed, mutilated or defaced), notice is hereby given that payment of the
above bond and the interest thereon has been slopped at the office of issue, and that an application is
abouLto be made or has been made for the issue of a duplicate in favour of the proprietor. The public
are cautioned against purchasing or otherwise dealing with the above-mentioned bond. Name of person
notifying. Residence."
RULE 24 Issue of duplicate bond and taking of indemnity
-
(1) After the publication of the notice as required byrule 23-, the authorised officer shall, if he is
satisfied of the loss, theft, destruction, mutilation or defacement of the bond and of the justice of
the claim of the applicant, cause the particulars of the bond to be included in a list published
underrule 25-"and shall order the office_
(a) if only a portion of the bond has been lost, stolen, destroyed, mutilated or defaced, and if a portion
thereof sufficient for its identification has been produced, to pay interest and to issue to the applicant,
on execution of an indemnity bond such as is hereinafter mentioned and on payment of the prescribed
fee, a duplicate bond in place of that of which a portion has been so lost, stolen, destroyed, mutilated
or defaced either immediately after the publication of the list underrule 25-or on the expiry of such
period as the authorised officer may consider necessary from the date of the publication of the said
list;
(b) if no portion of the bond so lost, stolen, destroyed, mutilated or defaced, sufficient for its
identification, has been produced-
(i) to pay to the applicant, one year after the publication of the said list, and on the execution of an indemnity bond in the
manner hereinafter prescribed, the interest in respect of the bond so lost, stolen, destroyed, mutilated or defaced till the expiry
of the period of three years as hereinafter provided; and
(ii) to issue to the applicant on payment of the prescribed fee, a duplicate bond in place of the bond so lost, stolen, destroyed,
mutilated or defaced three years after the date of publication of the said list: Provided that-
(i) if the date on which the bond is due for repayment falls earlier than the date on which the said period of three
years expires, the authorised officer shall, within six weeks of the former dale, invest the principal amount due on the
bond in the Post Office Savings Bank, and shall repay this amount, together with any interest which may have
accrued thereon in such bank to the applicant at the time when a duplicate bond would otherwise have been issued;
and
(ii) if at any time before the issue of the duplicate bond, the original bond is discovered or it appears to the office of
issue for other reasons that the order should be rescinded, the matter shall be referred to the authorised officer for
further consideration and in the mean time all action on the order shall be suspended. An order passed under this
sub-rule shall, on expiry of the period of three years referred to, become final unless it is in the mean time rescinded
of otherwise modified.
(2) The authorised officer may, at any time prior to the issue of a duplicate, bond, if he finds sufficient reason,
alter or cancel any order made by him under this rule and may also direct that the interval before the issue of a
duplicate bond shall be extended by such period, not exceeding two years as he may think fit.
(3)
(i) An indemnity bond shall be for twice the face value of a bond plus twice the amount of interest
accrued due thereon.
(ii) The authorised officer may direct that such indemnity bond shall be executed by the applicant alone
or by the applicant and one or two sureties approved by him as he may think fit.
Indemnity bond.- A bond for the payment of a penal sum conditioned to be void if the obliger shall
indemnify and save harmless the obligee against some anticipated loss.
RULE 25 Publication of list
-
(1) The list referred to inrule 24-shall be published half-yearly in the Gazette of India in the months
of January and July or as soon thereafter as may be convenient.
(2) All bonds in respect of which an order has been passed underrule 24-shall be included in (he
first list published next after the passing of such order.
(3) The list shall contain the following particulars regarding each bond included therein, namely,
the name of the office of issue, the number of the bond its value, the name of the persons to whom
it was issued, the date from which it bears interest, the name of the applicant for a duplicate, the
number and date of the order passed by the authorised officer for payment of interest or issue of a
duplicate, and the date of publication of the list in which the bond was first included.
List.- A docket or calendar of causes ready for trial or argument, or of motions ready for hearing.
Entering or enrolling in a list; to enter in an official list or schedule; as, to list property for taxation,
to put into a list or catalogue, register, enrol.17
RULE 26 Determination of a mutilated bond as a bond requiring
renewal
- The authorised officer shall determine whether a bond which has been mutilated or defaced requires
the issue of a duplicate underrule 24-or a renewal underrule 27-
RULE 27 When a bond is required to be renewed
-
(1) A holder of a bond may be required by the authorised officer to submit the same for renewal
in any of the following cases, namely:
(a) if only sufficient room remains on the back of the bond for one further endorsement or if any word
is written upon the bond across the existing endorsement or endorsements; or
(b) if the bond is, in the opinion of the authorised officer, torn or in any way, damaged or crowded with
writing or clumsy; or
(c) if any endorsement is not clear and distinct or does not indicate the payee or payees, as the case
may be, by name or is made otherwise than in one of the endorsement cages of the back of the bond;
or
(d) if the interest on the bond has remained undrawn for three years or more; or
(e) if the bond having been enfaced three times for payment of interest is presented for re-enfacement;
or
(f) if in the opinion of the office of issue, the title of the person presenting the bond for payment of
interest is irregular or not fully proved.
(2) When a requisition for renewal of a bond has been made under sub-rule (1) payment of any
further interest thereon shall be refused until it is submilled for renewal and actually renewed.
RULE 28 Person whose title to a bond of a deceased sole holder
may be recognised
-
(1) The executors or administrators of a deceased sole holder of a bond (whether a Hindu,
Mohammedan, Parsi or otherwise) and the holder of a succession certificate issued underPart 10
of the Indian Succession Act, 1925 (39 of 1925)in respect of the bond shall be the only persons
who may he recognised by the office of issue (subject to any general or special instructions of the
authorised officer) as having any title to the bond.
(2) Notwithstanding anything contained inSec. 45 of the Indian Contract Act, 1872 (9 of 1872),
in the case of a bond issued, sold or held payable to two or more holders jointly, the survivors or
survivor, and on the death of the last survivor, his executors, administrators, or any person who is
the holder of a succession certificate in respect of such bond shall be the only person who may he
recognised by the Corporation (subject to any general or special instructions of the authorised
officer) as having any title to such bond: Provided that nothing in this rule shall effect any claim
which any representatives of a deceased holder of such bond may have against the survivors or
survivor or his executors or administrators under or in respect of any bond to which this sub-rule
applies.
(3) The Corporation shall not be bound to recognise such executors or administrators unless they
shall have obtained probate or letters of administration or other legal representation, as the case
may be, from a competent court: Provided nevertheless that in any case where the authorised
officer shall in his absolute discretion think fit, it shall be lawful for him to dispense with the
production of probate, letters of administration or other legal representation upon such terms as to
indemnity or otherwise as he may think fit.
Succession.- The devolution of title to properly under the law of descent and distribution. State ex
rel Walker v. Payne, 129 MO. 468. The act or right of legal or official investment with a
predecessor's office, dignity, possession, or functions; also the legal or actual order of so
succeeding from that which is or is to be vested or taken.17
RULE 29 Receipt tor renewal, etc
-
(1) Subject to any general or special instructions of the authorised officer, the Corporation, by its
order, on the application of the holder, on his delivering the bond or bonds and on his satisfying
the Corporation regarding the justice of his claim, renew, sub-divide or consolidate a bond or
bonds provided the bond or bonds has or have been receipted in Form II, III or IV, as the case
may be, and the fee laid down by the Corporation in this behalf has been paid.
(2) The Corporation may, under the orders of the authorised officer require the applicant for
renewal, sub-division or consolidation of a bond under sub-rule (1) to execute a bond in Form V
with one or more sureties approved by such authorised officer.
RULE 30 Renewal of bond in case of dispute as to title
-Where there is a dispute as to the title to a bond in respect of which an application for renewal has been
made the authorised officer may-
(a) where any party to the dispute has obtained a final decision from a court of competent
jurisdiction declaring him to be entitled to such bond, issue a renewed bond in favour of such
party, or
(b) refuse to renew the bond until such a decision has been obtained.
Explanation.-For the purposes of this rule, the expression "final decision" means a decision which is not
appealable or a decision which is appealable but against which no appeal has been filed within the period
of limitation allowed by law.
Dispute.-A conflict or controversy.-A conflict of claims or right; an assertion of a right, claim or
demand on one side, met by contrary claims or allegations on the other.
RULE 31 Liability introspect of bond renewed
-When a duplicate bond or a renewed bond has been issued or a new bond has been issued upon subdivision
or consolidation underrule 29-in favour of a person, the bond so issued shall be deemed to
constitute a contract between the Corporation and such person and all persons deriving title thereafter
through him.
RULE 32 Discharge
__The Corporation shall be discharged from all liability in respect of the bond or bonds paid on maturity
or in place of which a duplicate, renewed, sub-divided or consolidated bond or bonds has or have been
issued.
RULE 33 Cessation of patent of interest
-A person to whom the Corporation has offered the face value of a bond shall cease, to be entitled to
payment of any interest on the value of the bond after the expiry of thirty days from the date of the offer
if he fails to accept payment of the amount within that period.
RULE 34 Discharge of a bond
-When a bond becomes due for payment of principal, the bond shall be presented at the office of the
corporation17[or such offices or branches of the State Bank of India as may be specified for the purpose
by the Chairman] duly signed by the holder on its reverse.
RULE 35 Fees
-A fee not exceeding half per centum of the face value shall be paid in respect of each new bond issued
on renewal, sub-division or consolidation underrule 29-, and also in respect of a duplicate bond.
RULE 36 Provision of courses for theoretical and practical
training
-The Corporation shall arrange for theoretical and practical training of its flying crew, maintenance and
operational staff and its technical personnel in consultation with the Director General of Civil Aviation:
Provided that the Corporation may, in its discretion, admit other persons also to undergo such courses of
training.
RULE 37 Liability of an employee to undergo training and test
-An employee of any of the categories specified inrule 36-when called upon by the Corporation to do
so, shall undergo such courses of training, examination and tests, whether practical or theoretical, written
or oral, as may from time to time be laid down by the Corporation.
Employee.-One who works for an employee; a person working for salary or wages ; applied to
anyone so working, but usually only to clerks, workmen, labourers, etc., and but rarely to the
higher officers of a corporation or government or to domestic servants2
RULE 38 Deputation for specialised training
-
(1) The (corporation may, in its discretion, or if so desired by the Central Government, shall
depute any of its employees for specialised training to a technical institution either in India or
abroad. The employees shall undergo and satisfactorily complete the course of training in such
institution.
(2) An employee selected for a specialised training shall, if so required by the Chairman before the
commencement of training, execute an agreement binding himself to serve the Corporation for
such minimum period on the completion of his training as the Chairman may require, or in the
alternative to refund to the Corporation the sums paid by the Corporation to him during the period
of his training, whether as salary, stipends, fees, travelling expenses, or otherwise.
RULE 39 Levy of fees
-No fee shall be charged or levied by the Corporation in respect of courses of training provided, or
examinations and tests conducted, for their employees and connected with the nature of duties assigned
to such employees : Provided that nothing herein contained shall restrict the right of the Corporation to
levy the prescribed fees in respect of persons other than its employees .
RULE 40 No fees for testing the proficiency of an employee for
the performance of assigned duties
-No fee shall be charged for any examination or test conducted by the Corporation for testing the
proficiency of an employee of the Corporation for the performance of duties assigned to him.
RULE 41 Payment of stipends and allowances during training
- The Corporation shall pay such stipends and allowances in addition to the normal emoluments as may
be specified from time to time whenever an employee of the Corporation is depuled for training either
inindia or abroad.
RULE 42 Selection of candidates for undergoing training
-The selection of candidates, not in the service of the Corporation, for undergoing courses of training
established by the Corporation or arranged for either in India or abroad shall be made by one or more
selection boards to be nominated by the Corporation in consultation with the Director General of Civil
Aviation: Provided that nothing contained herein shall restrict the right of the Corporation to nominate
separate selection boards for selecting employees of the Corporation for different courses of training.
CHAPTER 6 CHAPTER 6
RULE 43 Interference with the property and employees of the
Corporation
-
(1) Save as otherwise authorised under the provision of any law for the time being in force, no
person shall, directly or indirectly, interfere with or cause interference with the operation of any air
transport service or with any property of the Corporation or interfere with or obstruct a member
of the operating crew of an aircraft in the performance of his duty or tamper with the aircraft or its
equipment or conduct himself in a disorderly manner in an aircraft or commit any act likely to
imperil the safety of an aircraft or its passenger or crew.
(2) Any person who contravenes any of the provisions of this rule shall be punishable in respect of
every such contravention with imprisonment which may extend to three months or with Fine which
may extend to rupees one thousand or with both.
(3) Notwithstanding the contract of carriage, the pilot in command of in an aircraft or commit any
act likely to imperil the safety of an aircraft or such person tampers with the aircrafl or its
equipment or commits any act likely to imperil its safety.
CHAPTER 6A PROHIBITION OF EMPLOYMENT OF
PERSONS DIRECTLY OR INDIRECTLY INTERESTED IN ANY
SUBSISTING CONTRACT WITH THE CORPORATIONS
RULE 43A 43A
No person who is directly or indirectly interested in any subsisting contract with either of the
Corporations shall, except with the express permission inwriting of the General Manager of the
Corporation concerned, be or become an employee of that Corporation.
RULE 43B 43B
A person who is an employee or applies for employment in either of the two Corporations shall submit
to the General Manager of the Corporation concerned or any other officer nominated by him, a
declaration disclosing full details of any such contract in which he is or may be directly or indirectly
interested.
RULE 43C 43C
When a person has secured employment with either of the Corporations on the basis of a false
declaration or wilful non-disclosure of information or when an employee has wilfully made a false
declaration or concealed information as to any direct or indirect interest in any such contract, or if the
Corporation has reason to believe that he has made any such false declaration or concealed any such
information, the services of such employee shall, without prejudice to any penally which may be imposed
underrule 59-of these Rules, be liable to be terminated forthwith.]
CHAPTER 7 AIR TRANSPORT COUNCIL
RULE 44 Term of Office
-The term of office of the Chairman or any other member of the Air Transport Council (hereinafter
referred to as the Council) shall be for a period of three years commencing from the date on which the
appointment of the Chairman or other member is notified in the Official Gazette: Provided that the
Chairman or other member shall, notwithstanding the expiry of the said period, continue to hold office
until the appointment of his successor is so notified.
RULE 45 Resignation
-The Chairman or any other member of the Council may, at any time, by notice in writing under his hand
addressed to the Central Government, resign his office: Provided that such resignation shall lake effect
from the date on which it is accepted by the Central Government,19[or on the expiry of thirty days from
the date of receipt of intimation of such resignation, whichever is earlier].
Right of the employees of the statutory bodies against their dismissal or removal.__The employees
of these statutory bodies have a statutory status and they are entitled to a declaration of being in
employment when their dismissal or removal is in contravention of statutory provisions.
RULE 46 Restriction on a member considering representation in
which he is interested in his personal capacity
- No member of the Council shall sit to consider a representation or question if, in respect of the matters
to which the representation or question relates, he has, in his personal capacity, any special interest such
as may tend to interefere with his impartial consideration of the representation or question and any
member having such special interest shall notify the same to the Central Government and the Council
immediately on the representation being made or the question being referred to the Council, as the case
may be.
RULE 47 Removal of the Chairman and members
-The Central Government may, by notification in the Official Gazette, remove from office the Chairman
or any other member of the Council who-
(i) in the opinion of the Central Government, has failed or is unable carry out his duties, or
(ii) without sufficient cause is absent from three consecutive meetings the Council.
RULE 48 Temporary absence of a member
-If any member is by infirmity or otherwise rendered temporarily incapable of carrying out his duties or is
absent on leave or otherwise in circumstance? not involving the vacation of his appointment, the Central
Government may appoint another person to act in his place.
RULE 49 Eligibility for re re--appointment
-A member of the Council who ceases to be a member shall be eligible for re-appointment.
CHAPTER 8 FUNCTIONS OF THE ADVISORY COMMITTEE
RULE 50 50
(1) The Advisory Committee constituted under sub-section (1) ofSec. 41-may, in addition to such
matter as may be referred to it by the Corporation, also advise the Corporation in respect of the
following matters, namely :
(i) provision of amenities for air travellers;
(ii) improvement of services and facilities provided by the Corporation;
(iii) time-tables of air services:
(iv) extensions or improvements of the existing projects;
(v) proposals relating to opening of new air stations; and
(vi) any other mailer of general public interest or public convenience:
Provided that mailers relating to the staff, discipline and appointment shall not be referred to the
Committee for advice.
CHAPTER 9 LABOUR RELATION COMMITTEE
RULE 51 Constitution
-
(1)
(a) A Labour Relations Committee shall he constituted by each of the Corporations consisting of such
equal number of representatives of the Corporation and of its employees, which shall not be less than
six and not more than twelve, as the Corporation may, from lime to time, by resolution, determine.
(b) It shall he the duly of the Labour Relations Committee to advise the Corporation on all matters
which relate to the welfare of the employees or which are likely to promote and secure amity and
good relations between the two. If there is any difference of opinion between the Corporation and
the Committee on any question as to whether or not any particular matter relates to the welfare of
the employees or is one which is likely to promote and secure amity and good relations between
the Corporation and its employees, the opinion of the Corporation shall prevail.
(2)
(a) The tenure of office of a member of the Committee shall be two others but an outgoing member shall
he eligible for being relected.
20[(aa) A member of the Committee may resign from the Committee by giving a notice in writing to the
Chairman of the Committee. The Chairman may accept theresignation within thirty days, in which case,
the resignation shall be effective from the date mentioned in the letter of resignation or from the date of
acceptance of the resignation by the Chairman of the Committee, whichever is later. The resignation
shall be deemed to have been accepted from the date mentioned in the letter of resignation if the
Chairman of the Committee does not accept the resignation within the said period of thirty days.]
(b) If any casual vacancy occurs in the office of a member of the Committee, the Corporation shall, as
soon as may be after the occurrence of the vacancy and subject always to the provisions of sub-rules
(3) and (4), appoint a person to fill the vacancy from among its own representatives or representatives
of its employees, according as the member causing the casual vacancy was a representative of the
Corporation or, as the case may be, a representative of its employees and every member so appointed
shall continue in office for the unexpired term of his predecessor.
(3) The Corporation shall nominate its own representatives on the Committee.
(4) The representatives of employees on the Committee shall be elected by the employees of the
Corporation by means of a secret ballot from amongst themselves working in the various units and
for the purposes of the same, the Corporation shall divide the employees into six units: Provided
that the representatives of the employees shall be so elected as to ensure a representation to each
of the units.
(5)
(a) The officers of the Committee shall include-
(i) a21[Chairman of the Committee]; and
(ii) a22[Secretary of the Committee].
(b) The principal executive officer of the Corporation in charge of labour welfare shall be entitled to
attend all meetings of the Committee and shall also have the right to speak at, and otherwise lake part
in, any meeting of the Committee but shall not be entitled to vote or move any resolution, if he is not a
member thereof.
(6) The Chairman of the first Labour Relations Committee shall be the Chairman of the Corporation or a member
of the Committee appointed by the23[Chairman of the Corporation in this behalf]. Thereafter the Committee
shall elect one of its members to be the Chairman of the Committee, so however, that a representative of the
Corporation or a representative of its employees is the Chairman of the Committee in alternate years.
(7) The Secretary of the Committee shall be elected by the Committee for a period of one year from amongst the
representatives of the Corporation and of the employees, so however, that if, in any term, the Chairman of the
Committee is a representative of the Corporation, the22[Secretary of the Committee] for that term shall be a
representative of the employees of the Corporation to be elected from amongst its own number and vice versa.
(8) The Committee may constitute one or more ad hoc sub-committees as it thinks fit to enquire into any matter
and submit its report to the Committee or may appoint a Standing and Branch or Regional Sub-Committee and
entrust to it such functions and duties as the Committee may with the previous approval of the Corporation
direct.
Representative.-A person who stands in the place of another, one who takes by representation; a person who
occupies another person's place and succeeds to his rights and liabilities. [See Lee v. Dill, 39 Barbour (N.Y.)
516, 520.]
RULE 52 Functions of Officers
-
(1) The Chairman of the Committee shall ordinarily preside over meetings and shall exercise
general control and supervision. He shall also decide all questions of order at the meeting.
(2) In the absence of the24Chairman of the Committee] any other member elected by the
members present shall preside at a meeting.
(3) The25[Secretary of the Committee] shall keep a record of the minutes of meetings.
Duty of Court.-The Courts should lean more in favour of an interpretational process which would
promote a laudable object and eschew one which would sap its Officacy and leave it as a dead
wood, as it were.3
RULE 53 Meetings
-
(1) Meetings shall ordinarily be held at least once in two months at the headquarters of the
Corporation or at such other places as the Chairman of the Corporation or the Committee may
determine. If and when necessary, special meetings may be convened by the24[Chairman of the
Committee].
(2) A special meeting shall be held at a fortnight's notice on a requisition made by at least five
members of the Committee, for consideration of any urgent matter.
RULE 54 Attendance at meetings
-
(1) The members of the Committee shall be considered to be on duty for the period of attendance
at meetings of the Committee or while doing any other work for, and on behalf of the Committee
and shall be paid the usual travelling and daily allowances and wages, including other allowances,
for such period.
(2) Any member who fails to attend three consecutive meetings shall forfeit his membership, unless
the Committee decides otherwise. This provision shall not apply to the24[Chairman of the
Committee].
RULE 55 Agenda and notice for meeting
-
(1) The agenda for each meeting shall be drawn up by the25[Secretary of the Committee] under
the26[directions of the Chairman of the Committee] and the same shall be supplied to each
member of the Committee along with the notice of the meeting at least a week before the meeting,
except in the case of a special meeting. Members desiring to raise any question should send notice
in advance along with a memorandum. It shall be included in the agenda if approved by the24
[Chairman of the Committee].
(2) Business other than that appearing in the agenda shall be considered at any meeting, only with
the permission of the24[Chairman of the Committee]. The presence of a majority of members from
each side of the Committee, that is to say, from among the representatives of the Corporation and
representatives of the employees, shall be necessary to constitute a quorum. No quorum shall be
necessary for an adjourned meeting.
Notice.-Information, intelligence, knowledge. The foregoing may be true as a general definition,
but it is not strictly accurate, for "notice" is not always synonymous with "knowledge", and facts
which do not show actual knowledge may suffice to satisfy a requirement of "notice". There may
be actual notice without knowledge. [39 Am. Jur. 233-234.]
RULE 56 Facilities for the meeting
-Accommodation for holding meetings and all other facilities necessary for the functioning of the
Committee shall be provided by the Corporation.
Facilities.-That which promotes the ease of any action, operation, transaction or course of
conduct. [Webster] The term denotes inanimate means rather than human agencies. [Sloss-
Sheffield Steel & Iron Co. v. Smith, 185 Ala. 607: 64 SO. 337, 338.]
RULE 57 Administration and working
-
(1) The Chairman of the committee shall be in the administrative charge of the Committee office,
records and equipment of the Committee.
(2) The28[Secretary of the Committee] shall assist the28[Chairman of the Committee] in the
administration and working of the Committee's office.
RULE 58 Proceedings and decisions of the Committee
-
(1) All questions brought before any meeting of the Committee shall be decided by a majority of
the members of the Committee present and voting before which the matter is brought and in the
case of equality of votes, the presiding authority at the meeting shall have a second or casting vote.
(2) The functions of the Committee shall be purely advisory and the Corporation may or may not
accept any advice tendered to it by the committee.
(3) Minutes of meetings shall be drawn up by the27[Secretary of the Committee] and after
approval by the28[Chairman of the Committee], he shall send a copy of the same to each
member.
(4) It shall be lawful for the Committee to give such publicity to all important matters relating to the
welfare of the employees of the Corporation as the Corporation may from time to time direct.
CHAPTER 9A ESTABLISHMENT AND MAINTENANCE OF A
FUND TO MEET THIRD PARTY LIABILITIES
RULE 58A Establishment and maintenance of a fund to meet
third party liabilities
-
(1) Each of the two Corporations shall establish and maintain afund, the amount of which shall be
determined by the Central Government from time to time, and the fund shall be utilised by the
Corporation for meeting any liability caused by or arising out of any act or omission in respect of
which the Corporation may incur any liability to any third party.
(2) Notwithstanding anything contained in sub-rule (1) but without prejudice to the provision
thereof, it shall be lawful for the Corporation to take out such insurance policy or policies from
authorised insurers against any such liability as is referred to in sub-rule (1) as may, in the opinion
of the Corporation, be necessary or prudent.]
Liability.- The word is a broad legal term. [Mayfield v. First Nat. Bank of Chattanooga, Ternn.,
C.C.A. Tenn. 137 F. 2d 1013, 1019.] It has been referred to as of the most comprehensive
significance, including almost every character of hazard or responsibility, absolute, contingent, or
-This Chapter shall apply to the General Managers in either of the two Corporations whose
appointments are subject to the approval of the Central Government.]
RULE 58C Sources of Recruitment
-Appointments to the posts referred to inrule 58B-shall be made either by direct recruitment or by
promotion of officers employed in either of the two Corporations or by deputation of officers serving
under the Central or any State Government.
RULE 58D Conditions of Service
-
(1) Officers appointed to the posts referred to inrule 58-B-when promoted from either of the two
Corporations shall be entitled to the same scales of pay as those prescribed for the posts and shall
continue to be governed by the other conditions of service laid down from time to time in the
Service Regulations of the Corporation employing them.
(2) Officers recruited directly shall also be governed by the same scales of pay and other
conditions of service as those applicable to the promoted officers of the Corporation.
(3) The pay scales and other conditions of service of officers appointed to the above posts on
deputation shall be fixed on an ad hoc basis having regard to the pay scales and other conditions
of service to which they were entitled in their parent departments immediately before their
deputation or as may be prescribed in the terms of deputation by the appropriate
Government/Department.]
CHAPTER 10 PENALTIES
RULE 59 59
If any person contravenes any provision of these rules other than the rules for the contravention of whose
provision separate penalty has been provided in such rules, he shall be punishable with fine which may
extend to one thousand rupees.
FORM 1 FORM 1
[Seerule 18-] Bond No........................Rs.................. Indian Airlines -3 1/2 per cent. Bonds 1954 Air-
India International Issued in pursuance ofSee. 27 of the Air Corporations Act, 1953 (27 of 1953)-, and
guaranteed by the Central Government as to the repayment of the principal and the payment of interest in
terms of that section. Indian Airlines The -, in consideration of value of assets Air-India International
taken over, does hereby promise to pay to......................OR ORDER on demand at the Indian Airlines
office of the -on any day between the 1st day of August, Air-India International 1958, and the 27th day
of January, 1959, the sum of Rs.............and to pay interest on such sum from the 1st day of August,
1953, to the date on which the same shall become payable as aforesaid, at the rate of three and a half
per cent. per annum, such interest to be paid by equal half-yearly payments on the 1st day of January
and on the 1st day of July in every year. This bond is transferable by endorsement, Indian Airlines FOR
- the 1st July, 1953, Chairman or Air-India International authorised officer............... Member.
Rs..............No............All endorsements upon this bond must be clear and distinct. All endorsements if
not made in the English language must be translated into English immediately below the endorsement.
Receipts for interest are not required on this bond. Cross endorsements are inadmissible. Principal
amount Rs. Interest payment at Rs. per half Received in lieu hereof a re- year. newed bond payable
to.......... with interest payable at......... Interest cages to be printed.
......................................................... Holder's signature..................... Receipts for interest are not
required on this bond. Cross endorsements are inadmissiable. These spaces are reserved for
endorsement and each endorsement should be written within the space allotted. This bond can be
renewed at any time at the option of the holder on payment of the prescribed fee. Should this bond bear
no endorsement (other than the renewal endorsement) when the interest column has been exhausted, no
renewal fee will be charged.
FORM 2 FORM 2
[Seerule 29(1)-] Form of Endorsement for renewal of a bond Received in lieu hereof renewed bond,
payable to (name of holder), with interest payable at the office of the
Corporation................................................................................. Signature of the holder/duly
authorised representative of (name of holder.....................
FORM 3 FORM 3
[Seerule 29(1)-] Form of Endorsement for sub-division of a bond Received in lieu hereof..............bonds
Nos.............for Rs...............respectively. payable to (name of holder)............with interest payable at
the office of the Corporation. Signature of the holder/Duly authorised representative of (name of
holder)...............
FORM 4 FORM 4
[Seerule 29(1)-] Fonn ofEndorsement for consolidation of bonds, Received in lieu hereof a new bond
payable to (name of holder) for Rs.............by consolidation with bond or bonds Nos....................
(mentioning the numbers and amounts of the other bonds desired to be consolidated with it and specifying the issue) with interest payable at the office of the Corporation. Singnature of the holder/Duly
authorised representative of (name of holder)................
FORM 5 FORM V
[See30rule 29(1)-] Know all men by these presents that we- (a) Principal Son of- Resident of- and- Son of- Resident of- and- Son of- Resident of- (b) Sureties hereby bind ourselves and each of us, our and each of our heirs, executors, administrators and representatives and all of them jointly and severally to the Corporation for payment of the sum of Rs._______________to the said Corporation, its certain attorneys, successors and assigns. And I/each of us the said-hereby covenant with the said Corporation that if any suit shall be brought touching the subject-matter of this obligation or the condition hereunder written in any competent court, the same may, at the instance of the said Corporation be removed unto, tried and determined by, the High Court to which the Court may be subordinate. Whereas the said-(a) has applied to the Corporation for the renewal/consolidation/sub-division of the bond (bonds) issued by the said Corporation mentioned in the Schedule hereto. And whereas the said Corporation have consented and agreed to accept the said application on the said (a)-(a) Principal with two good and
sufficient sureties entering into and executing the above-written bond subject to the condition herunder written: And whereas the above bounden-(and)-31at the request of the said-(a) has (have) agreed to become surely (sureties) for (a) and to join with the said-(a) in executing the above-written bond. Now the condition of the above-wrilten bond is such that if the above bounden-(b) or each of them or their heirs, executors (b) Names of the Principal and sureties of (a) administrators or representatives or any or either of them shall from lime to time and at all times hereafter effectually save, defend, keep harmless
and indemnified the said Corporation from and against the claims and demands of all persons claiming to he entitled to the bond (bonds) issued by the said Corporation mentioned in the Schedules hereto or to any interest thereon and of all other persons whomsoever in respect of the said bond (bonds) or the renewal thereof or the payment of any interest thereon and from and against all demages, losses, costs, charges and expenses which the said Corporation may sustain, incur or be liable to for or in consequence of any such claim or demand or by reason of the issue of renewed bond (bonds) as aforesaid or the payment of any interest due on the said bond (bonds) or renewed bond (bonds) then the above-written bond shall be void but otherwise the same shall remain in full force and effect. Signed and delivered by- in the presence of- and of- Date: The Schedule herein referred to
________________________________________________________________________Nature and description of the bond Number Date of issue Amount
1. Ins. by S. R. O. 1040, dated 26th April. 1956.
2. Substituted by Air Corporations (Amendment) Rules, 1965, Sec. 2, vide S.R.O. 1052, dated the 25th March, 1965.
3. Substituted by S.R.O. 1870, dated the 17th August, 1956,
5. Omitted, by Substituted by S.R.O. 1870, dated the 17th August, 1956,
8. Rules 9, 10, 11 and 13 omitted by S.R.O. 1870, dated the 17th August, 1956.
11. Substituted by Omitted by S.R.O. 1871. dated the 20th August, 1956. for "weekly returns".
12. Substituted by Omitted by S.R.O. 1871. dated the 20th August, 1956. for "weekly returns".
13. Substituted by S.R.O. 1871, dated the 20th August, 1956
14. Inserted by S.R.O. 1040, dated the 26th April. 1956.
15. Substituted by S.R.O. 1524. dated the 16th July. 1955. for -January and July".
16. Substituted by Air Corporations (Amendment) Rules,1965. Sec. 3. vide S.R.O. 1052. dated the 25th March. 1965.
17. Inserted by S.R.O. 1040. dated the 26th April. 1956.
19. Added by S.R.O. 2762. dated the 19lh November. 1958.
20. Subs by G.S.R. 33(E) Dated 27th March 1982.
21. Substituted by S.R.O. 498, dated the 9th February, 1957. for "Chairman"
22. Substituted by S.R.O. 498, dated the 9th February, 1957. for "Chairman"., for "Secretary".
23. Substituted by S.R.O. 498, dated the 9th February, 1957. for "Chairman"., for "Secretary". For "Chairman in this behalf"
24. Substituted by S.R.O. 498, dated the 9th February, 1957. for "Chairman"., for "Secretary". for "Chairman in this behalf", for "Secretary".
25. Substituted by S.R.0.498, dated the 9th February, 1957, for "Chairman".
26. Substituted by S.R.0.498, dated the 9th Febuary, 1957 for "Chairman's directions".
27. Substituted by S.R.O. 498, dated the 9th February, 1957, for "Secretary'.
28. Subs, by S.R.O. 498, dated the 9th February, 1957, for "Secretary'., for "Chairman".
VAYUDOOT NON- INTERNATIONAL CARRIAGE OF CARGO (OTHER THAN BAGGAGE AND MAIL) CONDITIONS, 1982
RULE 01: SHORT TITLE
(a) These conditions may be called the Vayudoot Non-international Carriage of Cargo (Other than Baggage and Mail) Conditions, 1982.
(b) It shall come into force from 1st January, 1982.
RULE 02: DEFINITIONS
- In these conditions, linless there is anything repugnant in the subject or context:
(1) "Government" means the Government of India;
(2) "Company" means the Vayudoot Private Limited and for the purposes of these conditions include any authorised person, officer, or member of staff assigned specific duties enforcement of and compliance with these conditions from time to time by the General Manager;
(3) "Non-international carriage" means carriage other than international carriage as defined in the Carriage by Air Act, 1972-;
(4) "General Manager" means the General Manager of the Company or any such other person who may be assigned the duties, functions and powers of the General Manager from time to time;
(5) "Cargo" in this context will not include baggage and mail;
(6) "Air Way Bill" means "Air Consignment Note";
(7) "Shipper" means "Consignor";
(8) "Carriage" means "Transportation";
(9) "Carrier" means the Carrier (that is the Vayudoot Private Limited) issuing the Air Way Bill; and
(10) For the purposes of the exemption from and limitation of liability provisions setforth or referred to in the air way bill, "Carrier" includes agents, servants or representatives of the carrier.
RULE 03:
(a) Carriage hereunder is subject to the rules relating to liability established bythe Carriage by Air Act, 1972 (69 of 1972)-as extended to non-international carriage with certain exceptions, adaptations and modifications vide Government of India, Ministry of Tourism and Civil Aviation, Notification No. AV 11012/8/72-A, dated 30th March, 1973 published in Part II Sec. 3, subsection (ii) of the Gazette of India, dated 30th March, 1973, and Government of India, Ministry of Tourism & Civil Aviation, Notification No. AV. 11012/5/79-A, dated 5th July, 1980 published in Part II, Sec. 3, sub-section (ii) of the Gazette of India, dated 19th July, 1980.
(b) Carriage hereunder is subject to :
(i) Applicable laws, Government regulation, orders and requirements;
(ii) Provisions herein setforth;
(iii) Applicable tariffs, rules, regulations and time tables (but not the times of departure and arrival therein) of the Company, which are made part hereof and which may be inspected at any of its offices and at airports from which it operates regular services;
(c) The agreed stopping places (which may be altered by the Company in case of necessity), are those places of departure and the place of destination, setforth on the face of the Air way bill or shown in the Company's time tables as scheduled stopping places for the route.
(d) The shipper acknowledges that he has been given an opportunity to make a special declaration of the value of the goods at delivery and that the sum entered on the face of the air way bill as "Shipper's/Consignor declared value-for carriage" if in excess of Rs. 160 (Rupees one hundred sixty) per kilogram constitutes such special declaration of value and has paid a supplementary sum if the case so requires. In that case the Company will be liable to pay a sum not exceeding the declared sum, unless he proves that that sum is greater than the actual value to the consignor at delivery.
RULE 04:
In so far as any provision contained or referred to in this air way bill may be contrary to mandatory law, Government regulations, orders or requirements, such provision shall remain applicable to the extent that it is not overridden thereby. The invalidity of any provision shall not affect any other part thereof.
RULE 06:
There shall not be any time limit fixed for the completion of carriage hereunder and that the Company may without notice substitute alternate carriers or Aircraft. The Company does not assume any obligation to carry the goods by any specified aircraft or over any particular route or routes or to make connection to any point according to any particular schedule and the Company is authorised to select or deviate from the route or routes of shipment, notwithstanding that the same may be stated on the face of the Air way bill. The shipper shall guarantee the payment of all charges and advances. There shall not be any time limit for completion of the carriage.
RULE 05:
Except as the provisions of the First Schedule tothe Carriage by Air Act, 1972 (69 of 1972)-as applicable to carriage by air not being international carriage with exceptions, adaptations and modifications thereof or other applicable law may otherwise require:
(a) The Company is not liable to the shipper or to any other person for any damage, delay or loss of whatsoever nature (hereinafter collectively referred to as "damage") arising out of or in connection with the carriage of the goods, unless such damage excluding delay is proved to have been caused by the negligence of the shipper, consignee or other claimant. The Company will not be liable for damage caused by delay in the carriage;
(b) The Company is not liable for any damage directly or indirectly arising out of compliance with laws, Government regulations, orders or requirements of from any cause beyond the Company's control including acts of God and force majeur.
(c) The charges of carriage having been based upon the value declared by shipper, liability shall in no event exceed the shipper's declared value for carriage stated on the face of the air way bill, and in absence of such declaration by shipper, the liability of company shall not exceed Rs. 160 (Rupees one hundred sixty only) per kilograms of goods destroyed, lost or damaged. All claims shall be subject to proof of value.
RULE 07:
The goods or packages said to contain the goods, described on the face of the Air way bill, shall be accepted for carriage from their receipt at Company's terminal or Airport Office at the place of departure to the Airport at the place of destination. If so specifically agreed, the goods or packages said to contain goods, described on the face of the Air way bill, will also be accepted for forwarding to the airport of departure and for reforwarding beyond the airport of destination. If such forwarding or reforwarding is by carriage operated by the Company, such carriage shall be upon the same terms as to liability as set forth in conditions 3 and 5 above. In any other event, the issuing carrier, and last carrier, respectively in forwarding or reforwarding the goods shall do so only as agents of the shipper, owner, or consignee as the case may be and shall not be liable for any damage arising out of such additional carriage, unless proved to have been caused by its own negligence or wilful fault. The shipper, owner land consignee will authorise such carriers to do all things deemed advisable to effect such forwarding or reforwarding including, but without limitations selection of the means of forwarding or reforwarding and the routes thereof (unless these have been specified by the shipper), execution and acceptance of documents of carriage (which may include provisions exempting or limiting liability) and consigning of goods with no declaration of value notwithstanding any declaration of value in the Air Way bill.
RULE 08:
The Company is authorised (but shall be under no obligation) to pay any duties, taxes or charges and to make any disbursement with respect of the goods, and the shipper, owner and consignee shall be jointly and severally liable for the reimbursement thereof. If it is necessary to make customs entry of the goods at any place, the goods shall be deemed to be consigned at such place to the person named on the face of the air way bill as customs consignee or if no such person be named, to the carrier carrying the goods to such place or to such customs consignee, if any as such carrier may designate.
RULE 09:
Except as otherwise specifically provided in the Air Way bill, delivery of goods will be made to the consignee named on the face of the Air Way bill, or the Consignee's agent authorised in writing by a letter of authority accompanied by the consignee's copy of the Air Way Bill. Notice of arrival; of the goods will, in the absence of other instructions, be sent to the consignee by ordinary methods. The Company will not be liable for non-receipt or delay in receipt of such notice. In case urgency is pleaded, the Company may deliver the consignment to the consignee or consignee's authorised agent without production of the consignee's copy of the Air Way bill upon a Bond being furnished. The value for purposes of the Bond will be calculated at the rate of Rs. 160 (Rupees one hundred sixty) per kilogram of the weight of the consignment, where no value is declared. Where the value is declared for carriage of goods the value for purposes of the Bond would be the value of the goods so declared. The delivery of the consignment in the aforementioned manner shall be a cenipiete discharge of any responsibility or liability of the company.
RULE 10:
(a) Receipt without complaint of any consignment at the time of delivery shall be prima fade evidence that the consignment has been delivered correctly and in good condition.
(b) No action shall be maintained in the case of damage to goods unless a written notice, sufficiently describing the goods concerned, the approximate date of the damage, and the details of the claims, is presented to an office of the Company within 7 days from the date of receipt thereof and in the case of loss (including non-delivery) unless presented within 120 days from the date of issue of the Air way bill.
(c) Any rights to damages against the Company shall be extinguished unless an action is brought within two years after the occurrence of the events giving rise to the claim.
RULE 11:
The shipper shall comply with all applicable laws and other Government regulations including those relating to the packing, carriage or delivery of the goods, and shall furnish such information and attach such documents to the air way bill as may be necessary to comply with such laws and regulations. The Company is not liable to the shipper or any other person for loss or expense due to shipper's failure to comply with this provision.
RULE 12:
No Agent, servant or representative of the Company has authority to alter, modify or waive any provision of the Air Way bill.
RULE 13:
The Operator Carrier shall always be entitled to open up the consignment to ensure the correctness of its contents subject always to it being clearly understood that by doing so the operator carrier shall not undertake any responsibility or liability for any contravention of Rule 8 of Aircraft Rules, 1937-by the Consignor for which the consignor alone shall continue to be liable. NOTICE OF CARRIAGE OF PROHIBITED/RESTRICTED ARTICLES ON BOARD AIRCRAFT Carriage of arms, explosives dangerous goods which are prohibited under sub- rule (i) ofrule 8-and such class of goods the carriage of which is permitted subject to provision of sub-rules (3) and (4) of the Aircraft Rules, 1937 shall not be carried or caused or permitted to be carried in any aircraft and contravention of this conditions shall entail penal consequence under section 10 of the Aircraft Act, 1934- For all purpose consequence and the liabilities shall always be determined according to the real nature of goods carried/sent irrespective of any declarations regarding the nature of goods. A list of prohibited/restricted articles is available at all our Cargo Booking Offices in case of any doubt as to whether the carriage of any goods is prohibited and are permitted subject to any conditions, necessary information may be obtained at all our Cargo Booking Offices.
VAYUDOOT NON INTERNATIONAL CARRIAGE (PASSENGER AND BAGGAGE) CONDITIONS, 1982
RULE 01: SHORT TITLE AND EXTENT
- (1) These conditions may be called Vayudoot Non-international Carriage (Passenger & Baggage) Conditions, 1982.
(2) It shall come into force from 1st January, 1982.
(3) These conditions apply to all non-international carriage of passengers and baggage.
(4) These conditions do not apply to :-
(i) Carriage of mails;
(ii) Carriage of goods; and
(iii) Carriage of employees of Vayudoot when they are carried for the purpose of performing any duties assigned to them by Vayudoot on the aircraft.
RULE 02: DEFINITIONS
- In these conditions, unless there is anything repugnant in the subject or context.
(1) 'Government' means the Government of India;
(2) 'Company' means the Vayudoot Private Limited and for the purposes of these conditions, include any authorised person, officer or member of the staff assigned specific duties enforcement of and compliance with these conditions from time to time by the General Manager.
(3) 'Non-International carriage' means carriage other than international carriage as defined in the Carriage by Air Act, 1972.
(4) 'General Manager' means the General Manager of the Company or any such other person who may be assigned the duties functions and powers of the General Manager from time to time.
RULE 03:
(1) The passenger ticket issued by the Company will be valid only for the service for which it is issued and shall not be transferable.
(2) In the case of children under 12 years of age travelling unaccompanied the written consent of the legal guardian shall be required.
(3) The Company reserves to itself the right, without assigning any reason, to cancel or delay the commencement or continuance of the flight or to alter the stopping place or places or to deviate from the route of the journey or to change the type of aircraft in use without thereby incurring any liability in damages or otherwise to the passengers or any other person on any ground whatsoever. The Company also reserve to itself the right to refuse to carry any person whom it considers unfit to travel or who in the opinion of the Company may constitute risk to the aircraft or to the persons on board.
In the case of a child less them 12 years travelling alone the written consent of his legal guardian will be necessary.
RULE 04:
If at any stage it is found that the aircraft with the booked load or passengers etc. will be over-loaded, the Company will have the right to decide which passengers or articles shall be off-loaded and such decision shall be binding.
RULE 05:
The liability of the Company for damage sustained in the event of the death or wounding of a passenger, or any other bodily injury suffered by a passenger, or by his registered baggage during the course of carriage by air will be governed by the provisions of Sees.4-,5-,6-and the rules contained in the Second Schedule of Carriage by Air Act, 1972-, with certain exceptions, adaptations, modifications etc. as notified in the Government of India, Ministry of Tourism and Civil Aviation, Notification No. A.V. 11012/5/79A, dated 5th July, 1980, published in Part II, Sec. 3, Sub-section (H) of the Gazette of India, dated 19th July, 1980.
(a) In particular the Company is liable for damage sustained in the event of the death of wounding of a passenger, or any other bodily injury suffered by a passenger, if the accident which caused the damage so sustained took place on board the aircraft or in the course of any of the operations of embarking or disembarking.
(b) Subject to the provisions of sub-clause (e) below :
(i) In the event of death of a passenger, or any bodily injury or wound suffered by a passenger which results in a permanent disablement incapacitating him from engaging in or being occupied with his usual duties or business or occupation, the liability of the Company for each passenger shall be Rs. 2,00,000, if the passenger be 12 or more years of age, and Rs. 1,00,000, if the passenger below 12 years of age, on the date of the accident.
(ii) In the event of any injury being caused to a passenger which results in temporary disablement entirely preventing the injured passenger from attending to his usual business or occupation or duties, the liability of the company for each passenger shall be limited to a sum equal to Rs. 200 per day for every day during which he continues to be so disabled or a sum of Rs. 40,000 whichever is less.
(c) If the Company proves that the damage was caused by or contributed to by the negligence of the injured person the Company will be liable to only such liability, if any, as may be determined by a court of law, such liability, in any case, not exceeding that provided in sub-clause (b) above.
(d) Subject to the provisions of sub-clause (c) below the Company is liable for damage sustained in the event of the destruction or loss of or of damage to any registered and unregistered baggage if the occurrence which caused the damage so sustained took place during the carriage by air. The liability of the Company shall be limited to a sum of Rs. 160 per kilogram for registered luggage and Rs. 1000 (Rupees one thousand) in respect of entire unregistered baggage of which the passenger takes charge himself.
(e) In the carriage of baggage the company will not be hable if it proves that the damage was occasioned by negligent pilotage or negligence in the handling of the aircraft or in navigation and that, in all other respects it and its agents had taken all necessary measures to avoid the damage or that it was impossible for it or them to take such measures.
(f) The Company is not liable for damage occasioned by delay in the carriage by air of passengers or baggage. The compensation payable in case of death or permanent disablement of the passenger is Rs. 2,00,000 if he is 12 or more years of age and in case he is less than 12 years of age, it shall be Rs. 1,00,000 only. If the disablement is temporary the compensation will be at the rate of Rs. 200 per day for every day during which he continues to be so disabled or a sum of Rs. 40,000 (whichever is less). The compensation for loss or destruction of the baggage will be Rs. 160 per kilogram of registered luggage and Rs. 1,000 in respect of the entire unregistered baggage of which the passenger takes charge himself.
RULE 06:
The obligation of the Company is expressly limited to the journey between the airports of departure and destination and shall not in any event subsist previous or subsequent thereto, and in particular, no part of any journey undertaken by the passenger; whether such journey be any band or water borne previous or subsequent to the carriage specified on the ticket, shall be deemed to form part of such carriage.
RULE 07:
The passenger shall comply with all Government rules, regulations, promulgations or notifications for the time being in force as may be introduced from time to time and shall fulfil all requirements of law and present all exit or entry for other documents, required by law and shall not be entitled to any refund of the fare paid in the event of non-performance of the journey arising out of any cause directly or indirectly attributable to his failure to comply with such rules, regulations, etc. of the Government or law. The passengers shall also observe the instructions of the Company its agents, servants or employees concerning all matters connected with the carriage, but no agent, servant or employee of the Company shall have authority to waive any provision of the conditions.
RULE 08:
The Company shall not accept for carriage passenger's property or baggage or both with a special declaration of value at delivery.
RULE 09:
The ticket issued by the Company shall be subject to the rules of cancellation made by the Company for the time being in force which may be seen at any office of the Company on request.
RULE 10:
Receipt without complaint, of registered baggage on the termination of the journey shall be prima fade evidence that the baggage has been delivered correctly and in good condition.
RULE 11:
Any action to enforce liability against the Company may be brought by a duly authorised representative of the passenger or by any person who would be the legal heirs of the passenger according to law. But only one action shall be brought in aspect of the death of any one passenger and every such action by whomsoever rought shall be for the benefit of all entitled persons.
AIR-INDIA EMPLOYEES' SERVICE REGULATIONS, 1963
In exercise of the powers conferred by Clause (b) of sub-section (2) of Sec. 45read with Sections 8(2)and20 (1)of the Air Corporations Act, 1953 (27 of 1953), Air- India, with the previous approval of the Central Government, makes the following Regulations namely:-
Comments If no definition provided in statute itself, reference to dictionary not always safe.- It is well settled that where no definition is provided in the statute itself, for ascertaining the correct meaning of a fiscal entry reference to a dictionary is not always safe. The correct guide, it appears in such a case, is the context and the trade meaning. Scientific and technical meaning.- It is a well settled principle of construction that where the word has a scientific or technical meaning and also an ordinary meaning according to common parlance, it is in the latter sense that in a taxing statute the word must be held to have been used, unless contrary intention is clearly expressed by the Legislature. If a statute, contains language which is capable of being construed in a popular sense, such a statute is not to be construed according to the strict or technical meaning of the language contained in it, but is to be construed in its popular sense, meaning, of course, by the words "popular sense" that which people conversant with the subject-matter with which the statute is dealing would attribute to it. The ordinary words in every day use are, therefore, to be construed according to their popular sense.1Literal construction.- The dominant purpose in construing a statute is to ascertain the intention of the Parliament. One of the well recognised canons of construction is that the Legislature speaks its mind by use of correct expression and unless there is any ambiguity in the language of the provision the Court should adopt literal construction if it does not lend to an absurdity. If the literal construction leads to an absurdity, external aids to construction can be resorted to. To ascertain the literal meaning it is equally necessary first to ascertain the juxtaposition in which the rule is placed, the purpose for which it is enacted and the object which it Is required to subserve and the authority by which the rule is framed. Contempt or an exposition- Application of- Contempt or area exposition is well- settled principle or doctrine which applies only to the construction of ambiguous language in old statutes. Reliance may be placed in this connection on Maxwell, . It is not applicable to modern statutes. Interpretation of statutes in case of Ambiguity.- The purpose of legislation should be sought for to clarify the ambiguity only, if any. The fairest and most rational method, says Blackstone, to interpret the will of the legislator is by exploring his intentions at the time when the law was made, by signs the most natural and probable. And these signs are either the words, the context, the subject-matter, the effects and consequence, or the spirit and reason of the law. [See Commentaries on the Laws of England by Blackstone, Fascimile of 1st Edn. of 1765, University of Chicago Press, 1979 Vol. I, p. 59]. The words are generally to be understood in their usual and most known signification, although terms of art must be taken according to the acceptation of the learning in each art, trade and science. If the words happen still to be dubious, one may establish their meaning from the context, which includes the preamble to the statute and laws made by the same legislator on the same subject. Words are always to be understood as having regard to the subject-matter of the legislation.4
CHAPTER 01: PRELIMINARY
REGULATION 01: SHORT TITLE
- These regulations may be called the Air-India Employees' Service Regulations, and define the conditions of service of the employees of the Corporation. They are based on a recognition of the fact that the Air Transport Industry is a public utility service which must operate round the clock on all days of the week. Formation of Air India and Indian Airlines Corporation.-Historical back- ground.- By virtue of Sec. 3-of the Air Corporation Act, 1953 the Central Government by a notification published in the Official Gazette created two Corporations known as Indian Airlines and Air India International. Section 3-(2) provided that each of the two Corporations would be a body corporate having perpetual succession and a common seal and subject to the provisions of the Act to acquire and hold property. Section 4-of the said Act provides for the Constitution of the Corporations and Sec. 5- deals with the conditions of Service of the Chairman and other Directors of the Corporations. Section 7- defines the various functions of the Corporations. Section 8-deals with the appointment of the officers and other employees of the Corporations. Sections 10-to15-deal with finance, accounts and audit Section 34-defines the Control which the Central Government may exercise over the performance by the Corporation of its functions.5
REGULATION -02: COMMENCEMENT AND SCOPE
- (i) These regulations shall come into force on and from the date of notification and shall apply to all employees of the Corporation on Indian scales of pay : Provided that in respect of part-time or6[substitute] employees, the7[Managing Director] may, by general or special order, exclude or limit the application of any of these regulations.
(ii) Nothing contained in these regulations shall have the effect of altering the terms of any contract of employment which may exist between the Corporation and any of its employees, or the provisions of any special law for the time being in force in India or any other country,
REGULATION 03: DEFINITIONS
- In these regulations, unless the context otherwise requires:-
(a) "the Act" means the Air Corporations Act, 1953 (27 of 1953).
(b) "Corporation" means Air-India,
(c) "Chairman" means the Chairman of the Corporation.
(d)8["Managing Director"] means the Managing Director of the Corporation.
(e) "Competent authority" means in relation to exercise of any power, the Corporation, the Chairman, the8[Managing Director], Head of Department or any other officer specified in that behalf.
9(f) "Head of Department" means, the Commercial Director, Financial Controller,10[Deputy Managing Director], Controller of Stores and Purchases,11[Controller of Civil Works and Properties,]12[Controller-Ground Handling], Director of Operations, Director of Engineering, Director of Planning and International Relations,13[Director of Personnel and Industrial Relations,] 13[Director of Technical Planning] and14[Chief Personnel Manager] or any officer holding temporary charge for any of them and any other officer so designated by the Corporation generally or for any specific purpose.]
(g) "Employee" means a person in the service of the Corporation. Employees may be classified into permanent or temporary employees or as probationers or substitutes or as flying and non-flying or ground personnel; or as officers or executives or as supervisory or non-supervisory staff, or as clerks or operatives; or further classified as skilled, semi-skilled and unskilled workers.
(h) "Permanent employee" means a person who has been confirmed in a permanent vacancy15[on completion of probation prescribed in Regulation 8(i)].
(hh) The expression16["Flight Crew"] includes Pilots, Navigators, Flight Engineers and Flight Radio Telephony Operators; the expression "Cabin Crew" includes Flight Pursers, Air Hostesses, Assistant Flight Pursers and Cargo Attendants, and the expression17["Flight Crew and Cabin Crew"] denotes both the categories specified above.
(i) "Family" includes the employee's wife (one only) residing with him and legitimate children residing with and wholly dependent upon him.
(j) "Temporary employee" means an employee engaged by the Corporation for a limited period or for work of a temporary nature.
18[(jj) "Substitute" is an employee who is appointed to the post of a permanent employee or probationer who is temporarily absent.]
(k) "Month" means a month according to the Gregorian Calendar.
(l) "Pay" means the amount drawn monthly by an employees as:-
(i) Basic pay or basic wages in the grade of the post held by him substantively or in an officiating capacity, and
(ii) Personal pay granted to save an employee from loss of basic pay or on other personal
considerations, and
(iii) Any other emoluments which may be classed as pay for any specific purpose.
(m) Deleted.
(n) "Temporary transfer" means transfer for a limited period not exceeding one year from the date of posting.
REGULATION 04: MODIFICATION ETC. OF REGULATIONS
Subject to the provisions, of Sec. 45-of the Act, the Corporation reserves to itself the right to modify, cancel or amend any or all of these regulations or orders issued thereunder and to give effect thereto from any date which the Corporation may deem fit.
REGULATION 05: INTERPRETATION
- The Corporation reserves to itself the right to interpret the meaning of these regulations and any supplementary regulations or orders issued thereunder, and such interpretation shall be final and binding upon all employees and every person interested therein. General Statutes-Obvious and popular meaning of the language to be followed.- Craies on Statute law says that there are two rules as to the way in which terms and expressions are to be construed when used in an Act of Parliament. The first rule is that general statutes will prima facie be presumed to use words in their popular sense. In other words, the words which are not applied to any particular science or art are to be construed as they are understood in common language. The obvious and popular meaning of the language should be followed. If a statute contains language which is capable of being construed in a popular sense, such a statute is not to be construed according to the strict or technical meaning of the language contained in it, but it is to be construed in its popular sense that people conversant with the subject-matter with which the statute is dealing, could attribute to it.19"If it is a word which is of a technical or scientific character then it must be construed according to that which is its primary meaning) namely, its technical or scientific meaning" If the statute is with reference to a particular trade, business or transaction, then the word used therein which everybody conversant with that trade, business or transaction knows and understands to have a particular meaning of it, then those words should be construed as having that particular meaning which may differ from the ordinary or popular meaning.21
REGULATION 06: CANCELLATION
- All previous rules, regulations, rulings, orders or notices relating to any term or condition of service are hereby cancelled.
CHAPTER 02: APPOINTMENT PROBATION, ETC.
REGULATION 07: MEDICAL EXAMINATION
- The appointment of every person in a permanent vacancy shall be subject to his being certified medically fit by the Corporation's Medical Officer or any other Registered Medical Practitioner approved in this behalf by the22[Managing Director]: Provided that the [Managing Director] may, for reasons to be recorded, in writing, approve of an appointment notwithstanding the medical opinion expressed, if he is satisfied that the disability reported is not likely to affect the occupational suitability of the employee.
REGULATION 08: PROBATION
-23 [(i) Every person appointed in or promoted to a permanent vacancy shall, before his confirmation in the post, be required to undergo probation for six months or twelve months us may be prescribed: Provided that the stipulated period of probation may be reduced by the (Managing Director] at his discretion or, for reasons to be communicated in writing, extended by the competent authority.]
(ii) For the purposes of confirmation, increment and privilege leave, the period of probation shall be deemed to have commenced from the first day of the calendar month in cases where the employee joins duty on or before the 15th of that month, and from the first day of the following calendar month in cases where the employee joins duty on or after the 16th of that month. Regulation explained.-Regulation 8-lays down that every person appointed in or promoted to a permanent vacancy shall, before his confirmation in the post be required to undergo probation for six months or twelve months as may be prescribed. The stipulated period of probation may be reduced by the Managing Director, or for reasons to be communicated in writing extended by the competent authority. Unless there be a writing extending the probation period, it will have to be deemed that the probation has come to an end. This will be so even if no specific order of confirmation has been passed.24
REGULATION 09: TRAINING
- All employees are liable to undergo training for such period or periods as may be prescribed by competent authority.
REGULATION 10: PROVIDENT FUND
A permanent employee on confirmation and a temporary employee including a probationer, on completion of 12 months' continuous service, shall be required to subscribe to the Corporation's Provident Fund: Provided that he may be wholly or partially precluded from so subscribing to the said fund, if he is required to subscribe to any other Superannuation or Pension Fund or a Statutory Provident Fund: Provided further that the Corporation may, in its discretion, permit an employee employed on special contract to become a member of the said Fund on such terms as the Corporation may decide in each case.
REGULATION 11: SEARCH, HOURS OF WORK, REST INTERVAL, ETC
- (i) No employee shall enter or leave the Corporation's premises except by the gate or gates appointed for the purpose. While entering or leaving the premises of the Corporation, which includes an Aircraft or surface transport, he is liable to be searched by the Security Staff if, acting without malice, he is suspected of being in wrongful possession of the property belonging to the Corporation. Every search shall be conducted in the presence of not less than two persons and a female employee shall not be searched except by a female or in the presence of a male employee except with her consent.
(ii) All employees shall comply with the orders issued from time to time relating to attendance, hours of work, shifts, changeover, rest intervals or rest pauses and such other matters.
(iii) All employees shall be at work at the time and place fixed and notified to them. An employee, who after recording his attendance, absents himself from his proper place or places of work during working hours without permission or without sufficient reason, shall be liable to be treated as absent and a proportionate deduction effected from his pay or wages, in accordance with the Payment of Wages Act-where applicable,
(iv) The weekly hours of work for all categories of employees shall not exceed 48 hours. Any employee may, however, be required by competent authority to work overtime, in which case payment for such overtime to those categories who are entitled to it shall be in accordance with such provisions as may be laid down by the Corporation from time to time.
(v) Subject to the provisions of applicable law, an employee shall be liable to work on a shift or shifts, as may be necessary, which shall change at such periods as may be specified by the Head of the Department. An employee working on shift shall also be liable to be transferred from one shift to another.
(vi) Meal intervals shall be the subject of local arrangements to suit operating conditions at particular bases or stations, it being understood that during periods of abnormal pressure staff may be required to work through normal meal intervals, In such circumstances an alternative meal interval will be allowed, if practicable immediately before or after the time of the normal meal interval.
REGULATION 12: HOLIDAYS
- (i) Every employee, other than a member of the 25[Flight Crew and Cabin Crew] shall be allowed a weekly holiday. An employee required to work on a weekly holiday shall, subject to the provisions of the Factories Act-or any other applicable law, be given a day off as substituted holiday, normally within 30 day following such holiday. The day off admissible under this regulation may, with the permission of the competent authority, be combined with a holiday or any leave.
(ii) The number of additional holidays allowed to employees in a calendar year shall not exceed 15, including holidays for Republic Day, Independence Day and Mahatma Gandhi's birthday. A list of such holidays will be published before the commencement of each calendar year. An employee who is required to work on such holiday shall be paid compensation where admissible in accordance with such provisions as may be laid down by the Corporation from time to time.
CHAPTER 03: PAY, ALLOWANCES, ETC
REGULATION 13: PAY AND ALLOWANCES
- Subject to any general orders issued by the Central Government for application to employees of all Government undertakings, the Corporation shall have power to determine the scales of pay, allowances or other emoluments applicable to its employees from time to time as may be deemed necessary or desirable: Provided that this power shall not be exercised in the case of the pay and allowances of the27 [Managing Director] and other categories of officers specified from time to time under sub-section (1) of Sec. 8-of the Air Corporations Act, 1953.]
REGULATION 14: PAY AND ALLOWANCES WHEN EFFECTIVE
The pay and allowances of an employee shall be effective from the date from which he joins the post to which he is appointed. If he joins the post before the rest interval, the pay and allowances shall be admissible from the same day and, if after the rest interval, from the following day.
REGULATION 14A: FIXATION OF PAY ON PROMOTION
- (i) On appointment to a higher post, whether on a permanent or officiating basis, the basic pay of an employee in the lower grade shall first be raised by one increment in the scale applicable to the higher post and then refixed at the corresponding stage in that scale; Provided that-
(a) If the pay so raised is below the minimum of the higher scale, the pay shall be Fixed at the minimum;
(b) if the pay so raised falls below the middle point between two stages, the fixation of pay in the higher scale shall be made at the nearest lower stage and the difference between the pay so fixed and the pay raised as above shall be allowed as personal pay to be absorbed in the next increment;
(c) if the pay so raised falls at or above the middle point between two stages, the fixation in the higher scale shall be made at the next higher stage.
(ii) The increment by which the present pay shall be raised under sub regulation (i) above shall be the increment applicable to-
(a) the corresponding stage in the higher scale if there is such a stage, or
(b) the nearest lower stage, if there is no such stage, or
(c) the initial stage, if the pay in the lower scale is below the initial stage of the higher scale.
(iii) On reversion to his substantive post, the employee appointed to officiate in a higher post shall be entitled to the pay which would have been admissible to him had he not been promoted.
28[Exception: * * *]
REGULATION 14B:
29[: * * *]
REGULATION 14C: DISBURSEMENT OF SALARIES
- (i) Pay and allowances of employees will be disbursed monthly on such dates and in such manner as the Financial Controller or other officer authorised by him may notify from time to time.
(ii) Except as provided in sub-regulation (iii), no employee will be entitled to receive his pay and allowances in advance of such date.
(iii) An employee proceeding on leave or tour, may, on the sanction of the competent authority, be paid in advance his pay and allowances for the month or months during which he is on leave or tour, if he is likely to be away from his headquarters on the date or dates appointed for disbursement of pay.
REGULATION 15: INCREMENTS
- (i) Increments are dependent on business conditions as well as the conduct and ability of the employee and no increment within a grade accrues as of right or as a matter of course. The competent authority may on positive grounds grant or, for reasons to be recorded in writing, withhold an increment: Provided that no increment shall be withheld unless (a) the employee is informed in writing of the grounds on which it is proposed to withhold increment and (b) he has been given a reasonable opportunity of showing cause why his increment should not be withheld.
(ii) Where in a pay scale an efficiency or licence bar is prescribed, the increment next above the bar shall not be granted without the specific sanction of the competent authority shall.- It is a well known principle that in the interpretation of statutes where the situation and the context warrants it, the word "shall" used in a section or rule of a statute has to be construed as "may".30Increments are automatic.-Regulation 15-makes the increments automatic unless there be reasons recorded in writing explaining the withholding of an increment and giving unto the affected employee a reasonable opportunity of showing cause against the action taken or proposed to be taken.31
REGULATION 15A: ADVANCE INCREMENTS
- In any case where an employee has shown outstanding merit, or has displayed outstanding loyalty or devotion to duty, the32[Managing Director] may, in his sole discretion, sanction to him advance increments not exceeding two. In such cases, the32Managing Director] will also indicate whether the dates of normal increments shall or shall not be affected.
REGULATION 15B: SECONDARY INCREMENTS
- (i) Subject to the general conditions laid down in regulation 15(1)-and to the provisions of subregulation (ii) hereof, employees of such categories as may be specified by the Corporation shall be eligible for a secondary increment for every 3 years' service from the date on which they reach the maximum of their grade.
(ii) The rate of the secondary increment shall be at the rate of the increment last drawn by them and the number of such increments shall not exceed three in any one grade.]
CHAPTER 04: TRANSFERS AND TOURS
REGULATION 16: LIABILITY FOR TRANSFER ETC
- An employee is liable to be sent on tours or be transferred from one post, department, or station to another, provided that his pay, grade and continuity of service are not adversely affected by such transfer and provided also that an unskilled employee shall not be transferred from one station to another outside the state except with his consent or on purely temporary basis.] Placing of the Flight Navigators on their transfer to the different cadre of the Flight Despatchers.- The Appellant-Petitioners are variously Flight Despatchers and Senior Flight Despatchers employed in the Flight Despatch Section of the first Respondent- Corporation. Respondents 2 to 11 are the erstwhile Flight Navigators. They were transferred to the Flight Despatch Section as Senior Flight despatchers and were given seniority over the existing Senior Flight Despatchers and some of them were also promoted to the higher post of Deputy Manager. The petitioners, therefore filed the present petition under Article 226 of the Constitution challenging the transfer and the preferential treatment given to Respondents 2 to 11. The learned Single Judge by his order dated the 1st February, 1977 dismissed the petition summarily by a speaking order on three grounds, namely, that the Petitioners had waited sufficiently long after the changes had taken place, that they had suppressed the fact that certain assurances were given during the conciliation proceedings before the conciliation officer underthe Industrial Disputes Act-, and that the Navigators were only transferred and not reappointed. The appeal against the said decision having been admitted has now come up for final hearing. In order to appreciate the grievance of the Appellant-Petitioners (hereinafter referred to as the Petitioners), it is necessary to state the relevant facts leading to the present petition. The petitioners and the Respondents-Navigators belong to two different cadres with distinct seniority and separate channels of promotion. The Flight Despatch Section consisted of the following cadre, at the relevant lime. Assistant Flight Despatchers, Flight Despatchers and Senior Flight Despatchers in the upward order of hierarchy. The promotional post for the Senior Flight Despatchers was that of Deputy Manager-Flight Despatch. The promotion to the higher posts in the cadre was governed by a particular procedure which will be discussed at the proper place. On or about the 1st September, 1974, the first Respondent-Corporation for reasons which are not clear from the Corporation's record evolved a scheme for "alternative employment/voluntary retirement" of Navigators. Under this scheme, the Navigators were given options to select the alternate jobs or to retire voluntarily if they choose. The failure to do either, however, did riot entail any consequences. They could continue to remain as Navigators as earlier. By a letter dated the 14th January, 1975 issued in terms of the scheme. Respondents 2 to 11 were "appointed" as Senior Flight Despatchers with effect from the 15th January, 1975. By the Corporation's letter dated the 11th/12th February, 1976, the said letter was amended and it was clarified that their "appointments" were "transfers" and that they were not placed on probation as was earlier intimated, during and after completion of the refresher course given to them, and that they were permanent incumbents of the posts of Senior Flight Despatchers. One more fact which is necessary to be stated at this stage is that the scale of pay of the Navigators was from the beginning in the range of Rs. 1270-1700. However, the pay-scale of the Senior Flight Despatchers in 1962 was Rs. 750-1300. In 1964 it was increased to Rs. 1120- 1700, and was thereafter revised to Rs. 1270-1700. with effect from 1st April, 1973. Similarly the pay-scale of the Flight Despatchers was revised to Rs. 820-1380 with effect from the 1st April, 1973. Since the transfers of the Respondent-Navigators to the cadre of Flight Despatchers affected their seniority and further promotions, the Petitioner's Union raised an industrial dispute on the 29th January, 1975 underthe Industrial Dispules Act, 1947-. The Dispute was admitted in conciliation on the 3rd April, 1976 and subsequently the Conciliation Officer made his failure report to the Central Government. On the 19th November, 1976, the Government refused to make reference of the dispute to the Industrial Tribunal. On the 10th January, 1977 the Petitioner's union Filed writ petition No. 32 of 1977 against the order of the Central Government refusing to make the reference, and on the same day the Petitioners filed the present writ petition No. 31 of 1977, challenging the action of the first Respondent granting Respondent-Navigators seniority above them in violation of the Petitioners' fundamental rights under Articles 14 and 16 of the Constitution. The learned Single Judge before whom both the petitions came up for hearing on the same day, dismissed both the petitions, the present petition by a speaking order as stated earlier, and the Union's petition as a sequel to the same holding that in the circumstance the Government's order of refusal was proper. The Union preferred an appeal against the decision in its petition, and the petitioners preferred the present appeal. Both the appeals came up forhearing on the same day. Since the present appeal was admitted, the Union did not pursue its appeal and the same was dismissed. When however an employee of his own accord chooses to get himself transferred to another post, department or station, according to the normal rule, his service conditions have to be those which belong to the transferee-post and he has taken his place at the bottom of the seniority list of the cadre to which he is transferred. An employee cannot be allowed to choose a post at the cost of other employees. If this is permitted, it will lead to discrimination and choose in the administration. Employees will then be free to choose posts according to their convenience and at the cost of the other employees. It is not disputed that the cadre of the Flight Despatchers and the cadre of the Flight Navigators are two distinct cadres with separate seniority lists and separate channels of promotion. Even assuming therefore, that the Navigators belong to a superior cadre they cannot seek a voluntary transfer to the cadre of the Flight Despatchers and at the same time claim the protection of their seniority. Even if an employee belonging to a superior cadre seeks a transfer to a lower cadre for reasons of his own, he will have to take his place at the bottom of the seniority list of the transferee cadre. This is so because he does it at his own choice and of his own free will. The employee may have reasons and calculations of his own to seek such transfer. The service jurisprudence, therefore, requires that in such cases his seniority should be counted from the date he joins the transferee-cadre. In the circumstances Regulation 16- is not applicable to the transfers of respondents 2 to 11 to the Flight Despatch Section in the present case. Hence, even if respondents 2 to 11 belonged to the higher grade, they could not have been given seniority over the existing Flight Despatchers, not to speak of the Senior Flight Despatchers. Respondents 2 to 11 having sought their transfers to the Flight Despatch Section on their own could only have taken their place at the bottom of the Seniority list of Flight Despatchers as obtaining on the date of their transfers. Therefore, the seniority list which was prepared by the Corporation by showing the seniority of respondents 2 to 11 on the basis of entry into the grade of 1270-1700 was invalid.
REGULATION 16A: JOINING TIME
- (i) Subject to the provisions hereinafter contained, an employee on transfer from one station to another shall be normally allowed joining time as follows.
(a) Seven days in the case of a permanent transfer.
(b) Three days in the case of a temporary transfer.
(ii) The joining time admissible as above shall be exclusive of days involved in the journey but inclusive of intervening Sundays and holidays.
(iii) However, in the case of temporary transfers, made with immediate effect, the employee concerned may be required to proceed immediately to the station of posting, in which case he will be allowed to return to his permanent station not earlier than 15 days from the date of arrival at the station of posting and shall thereafter be given 'off in lieu of the joining time due.
(iv) No joining time will normally be admissible to an employee at the end of this temporary transfer. The competent authority may, however, with due regard to the period of temporary transfer, allow joining time not exceeding three days as mentioned under sub-regulation (i) to enable him to rejoin his permanent station.
(v) During joining time, the employee will not normally be required to attend to official duties, but the competent authority may, in the exigencies of work, recall him to duty, in which case the period of joining time shall be extended correspondingly.
(vi) During joining time, the employee will be entitled to the pay and allowances of the post from which he is transferred.
REGULATION 17: TOURS
An employee shall be deemed to be on tour if he is required to proceed on duty to a place beyond a radius of 25 miles from his headquarters.
REGULATION 18: TRAVELLING
(i) An employee on transfer or on tour and his family where permitted, shall travel by air, sea, rail or road as may be required by competent authority.
(ii) All employees and their families travelling in the Corporation's aircraft under these regulations shall travel in the lowest class, but the36[Managing Director] may, by general or special order and on such terms as he may deem appropriate, permit any employee or class of employees and their families to travel in any higher class.
(iii) The family of an employee permitted to travel by air under this regulation shall be entitled to the same facilities as the employees.
REGULATION 19: ALLOWANCES
- An employee on transfer or tour, as the case may be shall be entitled to such travelling and other allowances as the Corporation may lay down from time to time.
CHAPTER 05: LEAVE
REGULATION 20: KINDS OF LEAVE
- Subject to the conditions hereinafter laid down, employees will be eligible for the following types of leave:
(a) Casual leave
(b) Privilege leave
(c) Sick leave
(d) Special Sick leave
(e) Ex gratia Sick leave
(f) Disability leave
(g) Study leave
(h) Maternity leave
(i) Quarantine leave
(j) Sports leave
(k) Special Casual leave
(l) Extraordinary leave.
REGULATION 21: GENERAL CONDITIONS REGARDING LEAVE
- (i) No leave can be claimed as of right. The authority empowered to grant leave has the discretion to refuse, postpone, curtail or revoke leave according to the exigencies of service.
37[(ii)An employee may be required to take such privilege leave as the competent authority may decide on giving him reasonable notice. If leave so offered is not availed of by the employee, he shall forfeit it and his leave account shall be debited accordingly,]
(iii) All leaves shall be applied for in writing addressed to the competent authority. In case the application is for Privilege or Study Leave, such application shall be submitted at least 15 days prior to the date of commencement of leave.
(iv) Sundays or holidays may not be prefixed and/or suffixed to any type of leave except with the prior permission of the competent authority. When so allowed, they shall not be counted as part of the leave.
(v) Sundays or holidays intervening during the period of leave shall count as part of the leave.
(vi) If leave is refused, postponed, curtailed or revoked, the reasons therefor shall be recorded in writing and communicated to the employee.
(vii) All leave to the credit of an employee shall ordinarily lapse on the date of cessation of his services. Provided that :
38[(a) The privilege leave admissible and applied for in writing well ahead of the date of retirement or resignation and refused in writing by the competent authority may be granted from the date of such retirement or resignation, or the leave salary in lieu of privilege leave to the extent referred to above may be paid to the employee.)
38[(aa) In the case of an employee retiring on superannuation he shall be eligible to encash un-utilised privilege leave standing to his credit at the time of retirement on superannuation subject to the following conditions, namely:-
(1) The Privilege Leave which the employee is entitled to encash under this regulation shall be limited to a maximum of one hundred and eighty days and shall be paid in lump sum as one time settlement. Explanation.- For the purpose of this regulation, leave salary shall be the same as determined for the purpose of contribution to the provident fund.
(2) The authority competent to grant leave shall be authorised to grant encashment of privilege leave at the credit of the employees on the date of retirement on superannuation.
(3) The benefit under this regulation shall also be admissible to employees who have attained the age of retirement on or after 1st March, 1979 and are granted extension of service after that date.]
(b) In the case of death of permanent employee or a temporary employee who has completed one year's continuous service, the legal heir/s of the deceased employee, may be paid the leave salary in respect of the privilege leave standing to the credit of the employee on the date of his death subject to a maximum of40[180 days]. The payment of leave salary is to be made on compassionate grounds and cannot be claimed as of right.
REGULATION 21A:
38
[(1) Subject to the provisions of sub-regulation (2), an employee on Indian scale of pay shall be eligible to encash Privilege Leave in accordance with the following conditions, namely:-
(a) the encashment of Privilege Leave shall be allowed at option of an employee: Provided that encashment shall not be allowed where leave cannot be granted in the interest of the Corporation;
(b) maximum period of leave that can be encashed shall be 50% of the Privilege Leave sanctioned to an employee subject to the condition that the employee actually proceeds on not less than fifteen days leave;
(c) encashment of Privilege Leave shall be allowed only once in a financial year;
(d) for the purpose of encashment of Privilege Leave, only pay as counting for Provident Fund contribution and additional Dearness Allowance shall be taken into account;
(e) the rate of encahsment per day shall be calculated on the basis of the emoluments specified in condition(s) and drawn by an employee in the month preceding the month in which he proceeds on leave divided by thirty;
(f) where an employee, having received encashment, curtails his leave at his option, and if this results in leave being availed for less than 15 days, the entire amount paid as encashment shall be recovered from the salary next payable to the employee;
(g) if an employee who avails of encashment benefit is recalled by the competent authority before the expiry of the period of Privilege Leave permitted, the encashment benefit already sanctioned shall be allowed to the employee irrespective of the portion of the Privilege Leave actually availed of by him;
(h) the competent authority, while sanctioning the leave applied for, shall specifically indicate the total period of leave sanctioned indicating therein the portion of the Privilege Leave allowed for encashment and the portion of the Privilege Leave that the employee shall actually avail of;
(i) no encashment of Privilege Leave shall be permissible to an employee during the period of his suspension from service;
(j) no deduction other than income-tax shall be made from the amount payable if the encashment is for a period less than thirty days;
(k) the amount payable towards the Privilege Leave allowed to be encashed shall not be reckoned as pay for any purpose including Provident Fund Contribution;
(l) the period of Privilege Leave permitted to be encashed shall not be reckoned for the purpose of earning Privilege Leave or any other kind of leave:
(2) The benefits of encashment of Privilege Leave shall not be admissible to :-
(a) Employees on contract;
(b) temporary employees;
(c) apprentices and trainees;
(d) employees appointed for a specific project;
(e) employees who resign or whose services are terminated on disciplinary grounds;
(f) employees on deputation.
REGULATION 22: CASUAL LEAVE
(i) An employee will be eligible for 10 days' Casual Leave with pay in a Financial year. A temporary employee with less than a year's service will be granted Casual Leave on pro rata basis.
(ii) Casual Leave shall not be accumulated nor shall it be combined with any type of paid leave other than leave admissible under Regulations 24-,24A-,25-and28C-.
(iii) Ordinarily, not more than 3 days' Casual Leave will be granted at a time.
REGULATION 23: PRIVILEGE LEAVE
- (i) An employee on completion of 12 months continuous service shall be eligible for 30 days, Privilege Leave with pay. On completion of the first 12 months' service, his privilege leave account shall be credited with 30 days and thereafter at the rate of 2 1/2 days per month. In the case of Flight Crew, privilege leave accounts shall be credited at the end of each financial year with 30 days or proportionate number of days, as the case may be. The privilege leave may be accumulated up to 180 days.
(ii) For the purpose of determining the privilege leave entitlement, the following periods of absence shall not be counted as service:
(i) periods on loss of pay;
(ii) unauthorised absence;
(iii) study leave absence.]
REGULATION 24: SICK LEAVE
- (i) An employee other than43[Flight Crew and Cabin Crew] will be eligible for 10 days' and Flight Crew and Cabin Crew for 14 days' sick leave with pay in a Financial year. A temporary employee with less than a year's service will be granted sick leave on pro rata basis.
44[(ii) Sick Leave may be accumulated upto 120 days with full pay and may be availed of on half pay for double the period, i.e. 240 days.]
(iii) Sick Leave for a period exceeding 2 days shall be supported by a medical certificate of the Corporation's Medical Officer or of any other Registered Medical Practitioner whose certificate is acceptable to the competent authority: Provided that in the case of employees governed by the Employees' State Insurance Act-, a certificate of the Insurance Medical Practitioner will be required irrespective of the duration of the Sick Leave.
(iv) Notwithstanding anything contained in sub-regulation (i), the salary payable to an employee will be subject to adjustment in respect of any cash benefit to which he is eligible under the Employees' State Insurance Scheme.
REGULATION 24A: SPECIAL SICK LEAVE
- (i) Subject to the conditions hereinafter mentioned, Special Sick Leave will be admissible to employees at the rates and in the circumstances specified below:-
(a) To45[Flight Crew] at the rate of 15 days with pay for each completed year of service to be computed from 1st August, 1953, or the date of joining, whichever is later, in cases where the employee is suffering from any major or prolonged illness or where he has to undergo a surgical operation, or in the event of an accident involving personal injury.
46[(b) To all other categories of employees, at the rate of thirty days on half basic pay in respect of each completed year of continuous service, in cases where the employee is suffering from :
(v) paralysis of vascular, infective or degenerative origin affecting one or more limbs (minor paralysis like bell's palsy is not included in this category),
(vi) significant mental illness treated in a Government Mental Hospital (in such cases, a certificate from the following authorities regularising sickness will be accepted by the Corporation, subject to the approval of the same by the Chief Medical Officer of the Corporation)
(1) Hospital Superintendent or any other competent authority of a Government Mental Hospital empowered to issue such a certificate;
(2) A Psychiatrist on Air-India panel of specialists attached to a Government Hospital or a private hospital or nursing home.
(vii) On the basis of the recommendation of the Corporation's Chief Medical Officer, special sick leave will also be admissible in cases where the employee is suffering from the following diseases or ailments or injury, provided the employee has been hospitalised continuously for more than three months on account of any one or more of the diseases or ailments or injuries mentioned below:-
(1) head injury,
(2) fracture of bone,
(3) injury to any internal organ,
(4) renal (kidney) failure,
(5) hepatic (liver) failure,
(6) respiratory failure
(7) bone marrow failure
(8) unconsciousness from any cause,
(9) brain abscess,
(10) liver abscess,
(11) abscess of the bone(osteomyelilis)
(12) subdiaphragmatic abscess,
(13) intra-abdominal abscess,
(14) empyema,
(15) intracranical aneurysms or vascular abnormalities requiring surgical treatment,
(16) Collagen diseases listed below:
(a) systemaic lupus crythematosis,
(b) polyarthritis nodosa,
(c) progressive systemaic sclerosis,
(d) polymyositis,
(17) rhumatic polyarthritis,
(18) rhematoid arthritis
(19) septic arthritis
(20) sacroidosis,
(21) crohn's diseases.
(22) ulcerative colitis,
(23) cirosis of the liver and its sequalae,
(24) peptic ulcer and its sequalae,
(25) hyper or hypofunction of the endorcrine glands,
(26) glaucoma,
(27) prolapsed inlervertebral disc and its sequalae,
(28) demyelinating discuses,
(29) myasthenia gravis,
(30) coronary thrombosis and ils sequalae.
(ii) The leave admissible under this Regulation can be accumulated up to a maximum limit of 180 days during the entire period of his service. It can be availed of:
(a) in the case of47[Flight Crew] only when the normal sick leave, casual leave and privilege leave in excess of 45 days are exhausted, and
(b) in the case of other employees, after all other types of paid leave are exhausted.
REGULATION 25: EX GRDTIA SICK LEAVE
- The48[Managing Director] may, in his discretion, grant or authorise any other officer to grant in deserving cases Ex-gratia Sick Leave as follows to permanent employees:-
(i) 30 days leave with half basic pay and half dearness allowance or foreign allowance as may be admissible, for every two years of completed service subject to a maximum of 60 days during the entire period of the employee's service.
(ii) Ex-gratia Sick Leave will commence only after an employee has exhausted all other categories of paid leave.
(iii) Deleted.
REGULATION 26: DISABILITY LEAVE
- (i) An employee who is injured in and during the course of his employment, or who contracts any of the occupational diseases enumerated inSchedule III to the Workmen's Compensation Act-, and is thereby temporarily disabled may, on production of a medical certificate acceptable to the competent authority, be granted disability leave with pay not exceeding49[120 days] except in cases of employees who are covered by the Agreements with the appropriate Unions/Associations providing for grant of leave in excess of this limit. Such leave may also be granted in the event of an injury sustained by an employee while actually participating in any sporting event as a representative of the Corporation.
(ii) The grant of this leave is subject to the following conditions, namely:-
(a) that the accident or disease was not due to the employee's own negligence or default, and
(b) that he obeys all instructions as to treatment given by the Corporation's Medical Officer.
(iii) Where Disability Leave is admissible and the employee complies with the conditions specified in sub-regulation (ii)(b), any reasonable expenses incurred by him on the treatment of the injury or occupational disease and on transportation involved in attending hospitals or medical clinics shall
be reimbursed to him by the Corporation: Provided that in the case of an employee governed by the Workmen's Compensation Act-or the Employees' State Insurance Act-, the pay and allowances admissible to him during such leave shall be subject to adjustment in respect of any compensation or other benefits to which he may be eligible under any of the said Acts.
REGULATION 27: STUDY LEAVE
- Study Leave may be granted by the50[Managing Director] in accordance with the procedure prescribed by the Corporation.
REGULATION 28: MATERNITY LEAVE
- Where the local law applicable to a station does not provide for the grant of Maternity Leave to female employees, or where such employees are not covered by any scheme of Social or Health Insurance, permanent female employees may be granted Maternity leave with pay for a period which may extend up to 90 days.]
REGULATION 28A: QUARANTINE LEAVE
- (i) An employee may, on production of a quarantine certificate issued by a Government or Municipal Medical authority or the Medical Officer of the Corporation, be granted quarantine leave with pay for a period not exceeding 30 days.
(ii) Quarantine Leave is to be granted in cases of cholera, small pox, plague, dyphtheria, typhus fever,52[measles] and cerebrospinal menengitis.
(iii) Quarantine Leave is not admissible in cases in which an employee himself is suffering from an infectious disease. In such cases, he will be given the normal casual, sick or privilege leave, as may be due.
REGULATION 28B: SPORTS LEAVE
- An employee selected to represent the country or the State or the Corporation in any form of competitive sport or called for trials, test or training connected with/preceding such selection may, at the discretion of the competent authority, be granted Sports Leave with pay for such periods as may be necessary, but not exceeding 30 days in a financial year.
REGULATION 28C: SPECIAL CASUAL LEAVE
- (i) The53[Managing Director] may, subject to such conditions as he may prescribe, grant or authorise any other officer to grant, Special Casual Leave with pay to an employee who, being a representative of any association of the employees recognised by the Corporation, is required to attend its Annual General or Executive meetings or any International meetings or Conferences. The period of such leave on each such occasions shall be in accordance with the terms of the agreements, if any, with the respective associations but shall not, in any case, exceed 10 days at a time, inclusive of journey time. Any leave availed of in excess of this period shall be debitable to the normal casual leave or privilege leave account of the employee.
54[(ii) Any employee intending to undergo sterilisation operation under the family Planning Scheme shall be granted special casual leave with pay not exceeding 6 working days to undergo such operation and for post operative treatment or rest thereafter or for both. A woman employee who undergoes non-puerperal sterilisation operation may be granted such leave not exceeding 14 days at a stretch.]
55[(iii) A male employee whose wife undergoes non-puerperal tubectomy operation under the Family Planning Scheme may be granted special casual leave upto 7 days, subject to production of a medical certificate from the doctor who performed the operation to the effect that the presence of the employee is essential for the period of leave to look after the wife during convalescence after operation.
REGULATION 29: EXTRAORDINARY LEAVE
- Any leave granted to an employee in excess of leave with pay admissible to him shall be without pay unless the53[Managing Director], on compassionate grounds, permit any part or whole of such leave to be treated as leave with pay debitable to the employee's future leave account.
REGULATION 30: TEMPORARY EMPLOYEES
- [Deleted]
REGULATION 30A: EMOLUMENTS DURING LEAVE
- Except as otherwise expressly provided in any of these Regulations, an employee shall, during the period of his leave with pay, be eligible for drawing his pay and such other allowances as the Corporation may prescribe from time to time.
CHAPTER 06: COMPENSATION
REGULATION 31: COMPENSATION
- In the event of death or disablement caused to an employee by an accident while on duty or in the event of loss or damage to the personal belongings caused while the employee is travelling on duty, the Corporation may pay compensation to him or, as the case may be, to his legal representative or representatives at such rates and on such conditions as it may lay down from time to time, unless such accident, loss or damage is attributable to his own negligence, default or breach of instructions.]
REGULATION 31A: ACCIDENT INSURANCE
- The Corporation may insure an employee who is a member of the flight crew or cabin crew or who is treated as such member for any specific flight or flights against risk of death or personal injury by accident in accordance with such scales and conditions as may be specified by the Corporation from time to time and in the event of his death or disablement by such accident, the Corporation shall subject to the said conditions, pay to him, or, as the case may be, to his legal representative or representatives the insurance amount which may become payable.]
CHAPTER 07: CONDUCT AND DISCIPLINE
REGULATION 32: GENERAL CONDUCT
- Every employee shall at all times maintain absolute integrity and devotion to duty and conduct himself in a manner conducive to the best interests, credit and prestige of the Corporation.
REGULATION 33: RESTRICTION ON OTHER EMPLOYMENT ETC
- An employee shall be deemed to be a whole-time servant of the Corporation and shall not, without the express authority of the58[Managing Director], directly or indirectly engage in any other business, occupation or employment, nor shall he, without such express authority, accept any fee, emoluments, commission, honorarium, gift, gratuity, or reward whatsoever from any other person.
REGULATION 34: RESTRICTION ON PUBLICATIONS, ETC
- No employee shall, except with the previous approval of the58[Managing Director], in his own name or in the name of any other person:-
(a) own wholly or in part, or conduct or participate in the editing or managing of any newspaper or other publications, or
(b) participate in any radio broadcast or contribute any article to any newspaper or other publication : Provided that no such approval shall be required if such broadcast or contribution is of a purely literary, artistic or scientific character or is made in the bona fide discharge of the employee's duties.
Scope of proviso.- The scope of a proviso is well settled. In Ram Narain Sons Ltd. v. Asstt. Commissioner of Sales Tax, 1955(2) SCR 483, it was held: "It is a cardinal rule of interpretation that a proviso to a particular provisions of statute only embraces the field which is covered by the main provision. It carves out an exception to the main provision to which it has been enacted as a proviso and to no other"59
REGULATION 35: GIVING OF EVIDENCE
- (i) Save as provided in sub-regulation (ii), no employee shall, except with the previous approval of the59[Managing Director], give evidence in connection with any inquiry conducted by any persons, committees or authority.
(ii) Nothing in this regulation shall apply to evidence given:-
(a) in an enquiry before an authority appointed by Government, Parliament, State Legislature; or
(b) in any judicial inquiry; or
(c) in any departmental inquiry ordered by competent authority.
(iii) It shall also be the duty of every employee to give, when so required, all reasonable assistance to the Police, Customs and such other authorities and the Corporation's Security staff in the performance of their duties.
REGULATION 35A: POLITICAL ACTIVITIES, ETC
- No employee shall be a member of or be otherwise associated with any political party or any organisation which takes part in politics, nor shall he take part in, subscribe in aid of or assist in any other manner, any political movement or activity.]
REGULATION 35B: JOINING OF ASSOCIATIONS
- No employee shall join or continue to be a member of an association the objects or activities of which are prejudicial to the interests of the sovereignty or integrity of India or public order or morality.]
REGULATION 35C: DEMONSTRATIONS
- No employee shall engage himself or participate in any demonstration which is prejudicial to the interests of the sovereignty and integrity of India, the security of the state, friendly relations with foreign stales, public order, decency or normality, or which involves contempt of Court, defamation or incitement to an offence.]
REGULATION 36: INDEBTEDNESS
- An employee shall avoid habitual indebtedness. He shall be liable to be discharged on being adjudged or declared insolvent.
REGULATION 37: INSOLVENCY.
- An employee who applies to be, or is adjudged or declared insolvent, shall forthwith report the fact in writing to the Head of his Department.
REGULATION 38: BORROWING
- (i) No employee shall, save in the ordinary course of business with a bank or a firm of standing, borrow money from or otherwise place himself under pecuniary obligation to any person with whom he is likely to have official dealings or permit any such borrowings or pecuniary obligation in his name or for his benefit or for the benefit of any member of his family: Provided that he, may accept or permit acceptance of a purely temporary loan of a small amount from a personal friend or relative or operate a credit account with a bonafide tradesman.
(ii) When an employee is appointed or transferred to a post of such nature as to involve him in a breach of sub-regulation (i), he shall forthwith report the circumstances to the competent authority and thereafter act in the manner directed by such authority.
REGULATION 38A: MOVEABLE IMMOVEABLE PROPERTY
- The Managing Director may, at any time by general or special order, require an employee or any class or category of employee to furnish within a specified period, or at such specified intervals, a full and complete statement of such moveable and immoveable property held or acquired by him or on his behalf by any member or his family as may be specified in the order. Such statement shall, if so required by the Managing Director, include the details of the means by which or the source from which such property was acquired.]
REGULATION 39: VINDICATION OF OFFICIAL ACTS
- No employee shall, except with the previous sanction of competent authority, have recourse to any court or to the press for vindication of any official act which has been the subject of adverse criticism or an attack of defamatory character: Provided that nothing in this regulation shall be deemed to preclude an employee from vindicating his private character or any act done by him in his private/personal capacity.
REGULATION 40: INFLUENCE
- No employee shall bring or attempt to bring any outside influence to bear upon any superior authority to further his interests in respect of matters pertaining to his service in the Corporation.
REGULATION 41: BIGAMOUS MARRIAGES
- No employee who has a wife living shall contract another marriage without previous sanction of the62 [Managing Director], notwithstanding that such subsequent marriage is permissible under the personal law for the time being applicable to him. Likewise, no female employee of the Corporation shall marry any person who has a wife living without obtaining such previous permission.
REGULATION 42: MISCONDUCT
- Any breach of these regulations shall be deemed to constitute a misconduct punishable as provided hereinafter. Without prejudice to the generality of the term 'misconduct', it shall deemed to include the following:-
(i) Wilful insubordination or disobedience, whether or not in combination with others, of any lawful and reasonable order of his superior, or commission of any act subversive of discipline or of good behaviour.
(ii) Participation in an illegal strike or abetting, inciting, instigating or acting in furtherance thereof.
(iii) Wilful slowing down in performance of work, malingering or abetment, or instigation thereof or interference with the work of other employees.
(iv) Theft, fraud or dishonesty in connection with the business or property of the Corporation, or of the property entrusted to the Corporation or of another employee within the premises of the Corporation.
(v) Taking or giving bribes or any illegal gratification.
(vi) Absence without leave or over-staying the sanctioned leave without sufficient grounds or proper or satisfactory explanation or absence from the employee's appointed place of work without permission or sufficient cause.
(vii) Habitual late attendance.
(viii) Breach of any law, rules, regulations or orders applicable to the establishment.
(ix) Collection without the permission of competent authority of any money except as sanctioned by the law of the land or the rules of the Corporation for the time being in force.
(x) Engaging in any business or trade within the premises of the establishment.
(xi) Drunkenness, riotous, disorderly or indecent behaviour, gambling, extortion or committing nuisance on the premises of the establishment [or at the work place.]
(xii) Habitual negligence or neglect of work.
(xiii) Wilful damage to work in process or to any property of the Corporation.
(xiv) Interference with any safety devices installed in or about the establishment or any airport or aerodrome.
(xv) Holding meetings inside the premises of the establishment without previous permission of competent authority except in accordance with the provisions of any law for the time being in force.
(xvi) Distribution or exhibition of any newspapers, hand bills, pamphlets or posters64[on the premises of the establishment or at the work place] without the previous sanction of competent authority.
(xvii) Disclosure to any unauthorised person of information relating to the Corporation's business or to Defence or Security measures, or communicating directly or indirectly to any outside party any documents or information which has come into his possession, or of which he has secured knowledge in the course of his official duties, unless expressly permitted by the65Managing Director].
(xviii) Smoking within the premises of the establishment, where smoking is prohibited.
(xix) Failure to inform the Corporation's Medical Officer of any notifiable or contagious disease contacted by the employee or any member of his family.
(xx) Conviction in any court of law for any criminal offence,66[involving moral turpitude.]
(xxi) Furnishing, at the time of employment, of wrong or incomplete information or suppressing any information regarding age, qualification, previous service or experience, conviction in a court of law, dismissal, removal or compulsory retirement by a previous employer.
(xxii) Purchasing from or selling to the Corporation properties, machinery, stores, etc. without the express permission of the65[Managing Director].
(xxiii) Unauthorised removal or defacement of notices on the Corporation's notice boards.
(xxiv) Smuggling, aiding, or being concerned in anyway in smuggling, or carrying goods in the aircraft in circumstances which give rise to a presumption that it is done with the object of private trading or pecuniary gain or carrying currencies and/or instruments of exchange in contravention of any rules or regulations or the Governmental orders.
(xxv) Abetment of or attempt to commit any of the above acts of misconduct.
REGULATION 43: PUNISHMENTS
- Any one or more of the following punishments may, for good and sufficient reason, be imposed by competent authority on any employee of the Corporation:-
(a) Censure.
(b) Fine as provided inthe Payment of Wages Act-where applicable.
(c) Withholding of increment.
(d) Recovery from pay of the whole or part of any loss caused to the Corporation by the employee's negligence, default or any breach of any regulations or orders.
(e) Suspension on loss of pay and allowances.
(f) Reduction to a lower grade of pay or lower stage in the time-scale of pay.
(g) Removal from service.
(h) Dismissal.
Explanation.- Termination of service of any employee underRegulation 48-, or a employee appointed under contract in accordance with or on the expiration of the period of such contract, shall not be deemed to be removal from service or dismissal within the meaning of this regulation.
REGULATION 43A: SUSPENSION PENDING ENQUIRY
- (i) An authority competent to suspend an employee underRegulation 43B-, may also place him under suspension:-
(a) pending enquiry into misconduct alleged against him, or
(b) on his being apprehended or arrested in connection with any of the offences contemplated in clauses (iv), (v), (xi), (xx), and (xxiv) ofRegulation 42-. Suspension pending enquiry shall not be deemed to be a punishment.
74(ii)
(a) An employee under suspension under sub-regulation (i) shall be entitled to draw subsistence allowance equal to 50% of his basic salary provided the said authority is satisfied that the employee is not engaged in any other employment or business or profession or vocation.
(b) In addition to the subsistence allowance admissible under clause (a) every such employee shall also be entitled to dearness allowance/foreign allowance admissible on such subsistence allowance and any other compensatory allowance of which he was in receipt on the date of suspension provided the said authority is satisfied that the employee continues to meet the expenditure for which the allowance was granted.
(c) Where the period of suspension exceeds six months the said authority shall, for any period, subsequent to the period of the first six months, be competent to vary the amount of subsistence allowance as follows:-
(i) to increase the amount of subsistence allowance to 75 per cent of the basic salary and allowances thereon, if, in the opinion of the said authority, the period of suspension has been prolonged, for reasons to be recorded in writing, not directly attributable to the employees under suspension, or
(ii) to reduce the amount of subsistence allowance to 25 per cent of the basic salary and allowances thereon, if, in the opinion of the said authority, the period of suspension has been prolonged, for reasons to be recorded in writing, directly attributable to the employee under suspension.
(d) If an employee is arrested by the Police on a criminal charge and bail is not granted, no subsistence allowance shall be payable. On grant of bail, if the competent authority decides to continue the suspension, the employee shall be entitled to subsistence allowance from the date he is granted bail.
Note:- For the purpose of this sub-Regulation, the term 'basic salary' shall include all emoluments counting as 'pay' for the purpose of Provident Fund underthe Air-India Employees' Provident Fund Regulations, 1954.]
75[(iia) The order of suspension shall be given in writing and shall be followed as soon as possible by a charge sheet setting out the misconduct alleged against the employee, unless his services are terminated under Regulation 48-.]
(iii) When an employee who has been placed under suspension under Sub- Regulation (i) above is reinstated, the period of suspension will be treated as follows:
(a) If he is fully exonerated, the perioa of suspension will be treated as duty and he will be paid the pay and allowances to which he would be entitled if he were on duty less the subsistence allowance already drawn.
(b) In other cases, he will receive such portion of the pay and allowances as the competent authority decides and the period spent on suspension shall be treated as on duty only to such extent and for such purposes as the competent authority decides: Provided that if the employee so desires, the competent authority may permit the period of absence from duly being converted into leave due and admissible to the employee.
REGULATION 43B: POWER TO AWARD PUNISHMENT
- The power to award the77punishments] enumerated inRegulation 43-shall be exercisable by78[and] to the extent specified in Schedule I.
REGULATION 44: PROCEDURE FOR AWARDING PUNISHMENTS
-79
[(i) No punishment underRegulation 43-except censure, shall be awarded to an employee unless he has been informed in writing of the alleged misconduct and has been afforded an adequate opportunity of defending himself in accordance with the procedure laid down in this behalf in Schedule II.]
(ii) Notwithstanding anything contained in these Regulations, it shall not be incumbent upon the authority competent to impose a punishment to follow the procedure herein prescribed before imposing any of the penalties enumerated inRegulation 43-on an employee, when such employee has been convicted by any Court or Tribunal on a criminal charge involving moral turpitude or any penal action has been brought against him by the Customs Authorities under the Sea Customs Act-80or Rules made thereunder or by the appropriate authorities underthe Foreign Exchange Regulation Act, 194781or Rules made thereunder for activities amounting to 'misconduct' within the meaning of clause (xxiv) of82Regulation 42-.]
(iii) When increment is withheld underRegulation 43-. the order shall indicate the period for which the increment is to be withheld and whether or not it shall have the effect of postponing subsequent increments.
Principle of natural justice.- Very relevant are the observations of the Supreme Court in Union of India v. J. N. Sinha, : where after reproducing the observations of the Supreme Court in A.K. Kraipak v. Union of India, , that the rules of natural justice can operate only in areas not covered by any law validly made and they do not supplant the law but supplement it, the Supreme Court has observed as follows: "It is true that if a statutory provision can be read consistently with the principles of natural justice, the Court should do so because it must be presumed that the Legislatures and the statutory authorities intend to actin accordance with the principles of natural justice. But, if on the other hand, a statutory provision either specifically or by necessary implication excludes the application of any or all the rules of principles of natural justice then the Court cannot ignore the mandate of the Legislature or the statutory authority and read into the concerned provision the principles of natural justice. Whether the exercise of a power conferred should be made in accordance with any of the principles of natural justice or not depends upon the express words of the provision conferring the power, the nature of the power conferred, the purpose for which it is conferred and the effect of the exercise of that power.83" To the same effect are the observations of the Supreme Court in State of U.P. v. O.P. Gupta, In para 10 of that judgment after setting out the requirements ofSec. 240 of the Government of India Act, 1935. the Supreme Court has observed as follows : "It is true that an enquiry underSec. 240 of the Government of India Act, must be conducted in accordance with the principles of natural justice. But those principles are not embodied principles. What principle of natural justice should be applied in a particular case depends on the facts and circumstances of that case. All that the Courts have to see is whether the non-observance of any of those principles in a given case is likely to have resulted in deflecting the course of justice.84" Exclusion of principle of natural justice.- Normally the power to award punishment is exercisable only in the manner prescribed or after following the procedure prescribed in Sch. II. But once the compliance with Sch. II is dispended with, byRegulation 44(ii)-it is difficult to see how compliance wilh the principles on which Sch. II itself is based can be imported indirectly inRegulation 44(ii)-. Schedule II is nothing but an embodiment of principles of natural justice and that is really excluded byRegulation 44(ii)-in certain cases, probably deliberately85. If there is an exclusion of the principles of natural justice on the words of the statute or the rules or regulations, then such rules cannot be over looked and contrary to the requirements of the mandate of those rules, the requirements of natural justice cannot be imported86. Dispensing with the concept of natural justice.- When the Court comes to the mandate ofRegulation 44 (ii)-the words therein are so wide and unambiguous that in the two kinds of cases contemplated thereby, the requirement of the whole of the Second Schedule has been dispensed with. Importing the concept of natural justice in a case which is governed by Regulation 44(ii)-will be doing something which is expressly dispensed with by the express words ofRegulation 44(ii)-87. A case where there is no positive rule requiring a second showcause notice to be given in respect of punishment the absence thereof and proceeding to decide the question of punishment without such a show-cause notice will not be contrary to the principles of natural justice88.Violation of principles of natural justice.- IfRegulation 44(11)-does away with the procedure prescribed in para 15 of the Second Schedule resulting in absence of a notice to show cause against the punishment, there cannot be said to be any violation of the principles of natural justice. Hearing on the question of punishment.- Even assuming that the respondent was entitled to be heard on the question of punishment, which under the regulations was solely within the discretion of the disciplinary authority, he had never before made any such grievance even in appeal and that grievance now cannot be successfully canvassed. In any case, on the facts it was clear that he had never thought that that order worked to his prejudice on the ground that the punishment was grossly disproportionate or severe. The order of removal is not an order which is based merely on the fact that the respondent has been penalised. The order shows that the disciplinary authority had applied its mind to the facts of the case because the findings recorded by the Additional Collector of Customs are that the respondent had brought from abroad and cleared out of Customs without divulging the true contents of the coat, diamonds and foreign exchange. The fact that penalty has been imposed for this conduct has also been referred to and if for such an offence, a person has been removed, it would not be proper exercise of discretion under Art. 226 to quash the order of removal on the ground that he was not heard on the question of punishment by the disciplinary authority. It appears that having regard to the nature of the punishments permissible, removal is the lighter of the two punishments between removal and dismissal, which has been awarded by the disciplinary authority90. Applicability despite acquittal.- Notwithstanding the acquittal of the respondent in the Criminal proceeding, the order of the Additional Collector of Customs, which levied a penalty of Rs. 20,000 on him, continued to bind him and was effective against him. The acquittal by the Criminal Court did not relieve the respondent of the liability which he had incurred as a result of the order of the Additional Collector of Customs. He was bound to pay that penalty and that penalty was based on the finding that he was concerned in smuggling of diamonds. If expressly by theRegulation 44-(11) action is permitted to be taken on the basis of such an order, it is difficult to appreciate how the respondent's claim that he was entitled to show to the disciplinary authority that he was not guilty could be canvassed successfully. To adopt any such course would be to render not only Regulation 44(11)-otiose but it will give discretion to the disciplinary authority t go into the correctness of the order of a statutory authority, which could be set aside only by one of the hierarchy of authorities under the relevant Act91.
REGULATION 44A:
- (i) Notwithstanding anything contained in these Regulations and if, in the opinion of the Corporation (the Beard of Directors of Air-India), it is not possible or practicable to hold an enquiry under the relevant provisions of these Regulations, the Corporation may, if satisfied that the employee has been guilty of any act of misconduct, impose in respect of such misconduct, any one of the punishments mentioned in Regulation 43-on the employee concerned : Provided that before exercising this extraordinary power, the Board shall give 30 days prior notice to the employee concerned of the act of misconduct and the reasons why it is not possible or practicable to hold an enquiry into such misconduct, and thepunishment proposed by the Board, and the employee shall be entitled to make a full written representation to the Board in response to such notice.
(ii) No action shall be taken under this Regulation until the Board has taken into consideration the representation made by the concerned employee under the proviso to section (i) within the notice period.]
REGULATION 45: APPEALS
- Subject to the condition that no appeal lies against the order imposing the punishment of 'censure', an employee who has been awarded any punishment shall have the right of appeal as indicated in Schedule I.] Statutory protection or obligation to follow the statutory procedure.- In the undernoted case it was held that before dismissing the respondent the appellant corporation was under a statutory obligation to observe the conditions and follow the procedure prescribed in that behalf by the regulations Having regard to the admitted fact that the provisions had been disregarded in the enquiry preceding the respondent's dismissal, the impugned order of dismissal must be held to be invalid, and the Courts below were justified in granting the declaration asked for by the respondent.94Disciplinary proceedings under service regulations- If amenable to writ jurisdiction underArt. 226 of the Constitution-.- Indian Airlines Corporation over its existence to the Air Corportaions Act of 1953. Therefore it is a statutory authority.Section 45(2)(b)-of that Act enables the Corporation by notification in the Official Gazette, to make regulations not inconsistent with the Act or the Rules made thereunder regarding the terms and conditions of service of its officers and other employees. The Regulation which deal with disciplinary proceedings have been framed under the said statutory power by the corporation. Therefore, the Officers and employees of the Corporation have a statutory status and for the violation of any of the statutory regulations, relief can be sought in writ jurisdiction by the aggrieved party. It is not, therefore, possible to treat the matter as one purely between master and servant so as to exclude the writ jurisdiction of High Court.95Law relating to master and servants.- The law relating to master and servant is well settled. Ordinarily a master is free to terminate his servant's employment but if the dismissal is in contravention of the contract of service, the master is liable to pay damages for breach of contract. Specific performance of a contract of service is not permissible under the law. The position is the same where instead of an individual statutory body is the master and the rights of the employer and the employee rest entirely on contract, If, however, there is any provision in the statute regulating the relation between the parties and their rights are not left entirely at the contractual level, the statutory provision must be observed. A statutory body has to act within the four corners of the statute that has brought it into existence, when it acts in excess of its authority or in disregard of its statutory obligations, the act is ultra vires and void and the Courts have certainly the power to declare it as such, though the declaration may have indirectly the effect of enforcing a contract of personal service.96
CHAPTER 08: CESSATION OF SERVICE
REGULATION 46: RETIRING AGE
- (i) Subject to the provisions of sub-regulation (ii) hereof, an employee shall retire from the service of the Corporation upon attaining the age of 58 years, except in the following cases when he/she shall retire earlier:-
(a) Any employee, upon becoming medically unfit for carrying out his/her duties:
(b) A member of the97[flight crew and cabin crew] upon his licence endorsement being cancelled or withdrawn;
98[(c) An Air Hostess, upon attaining the age of 35 years or on marriage if it takes place within four years of service or on first pregnancy, whichever occurs earlier.]
99[(d) A Receptionist recruited on or after the 15th July. 1970 upon attaining the age of 40 years.]
100[(ii) The Managing Director may require an employee to retire after he attains the age of 55 years on giving three months' notice in writing without assigning any reason. An employee may also, on giving three months' notice in writing, retire voluntarily after attaining the age of 55 years or, subject to approval in writing of the Managing Director, at any time on completion of a continuous service of not less than 25 years : Provided that the Managing Director, in writing, may direct that the employee who has given three months' notice in writing shall not cease to be in the employment of the Corporation and the notice given shall be kepi in abeyance under the following circumstances:-
(a) any disciplinary action is pending against the employee or any disciplinary proceedings are proposed to he taken against the employee by the appropriate authority; or
(b) any proceedings are pending or likely to be initiated against him for any offence involving moral turpitude or any action has been brought against the employee by the Customs Authorities under the Foreign Exchange Regulation Act, 1973-or the rules made thereunder.
NOTE.-For the purpose of this Regulation the term 'continuous service' shall include uninterrupted service rendered before joining the Corporation under Central Government, State Government, Defence Service, Public Sector Undertakings, owned or Controlled by Government, autnomous organisations and other Governmental agencies, provided that there is no break between the date of leaving the service in the above-mentioned organisations and the date of joining the service in the Corporation. For the purpose of this Regulation, if the intervening period between cessation of service under Government and other agencies mentioned above, and the date of joining the service in the Corporation docs not exceed the normal joining time admissible under the Central Government rules on transfer to join the duties of a new post, such intervening period shall not be treated as 'break'.]
101[(iii) Except as otherwise provided in this regulation, an employee shall retire from the service of the Corporation on the afternoon of the last day of the month in which the employee attains the age of superannuation or completes the age of retirement.]
102[(iv) The entitlement of retirement benefits to an Air-India employee, under the Air India Employee Service Regulations, Air India Employees Passage Regulations or any other regulation or/and rules, administrative orders in force from time to time, shall be determined on the outcome of the proceedings initialed under the proviso toRegulation 46(ii)-, if any,] Cadre-Meaning of.- What after all is a cadre? It is a framework, according to the Chambers Twentieth Century Dictionary. Within this framework exist different layers one below the other, but still in the frame103. Age of retirement of Chief Air Hostess-If 58.- In the instant case the petitioner attained the age of 43 years on 23rd january, 1987. On 11th June, 1986, she addressed Ex. H. to the Managing Director of Air India saying that as a person in the managerial cadre she expected being permitted to carry on till she attained the age of 58 years. It was pointed out that petitioner being governable byregulation 46(2)-(i)(c) read with 47, would retire on 31st January, 1987. This petition under Art. 226 of the Constitution is to avert the intimated impending retirement of the petitioner by the application ofregulation 46(i)(c)-, read with47-, of the Air-India Employees Service Regulations (hereinafter to he referred to as the "Regulations"). The cadre of AHs embraces all the advanced categories upto and inclusive of CAH. The maximum age for condition of service by this cadre is 45 years. Such is the prescription of regulation 45(i)(c)-read with47-of the Regulations. The prescription in relation to petitioner is not violative of her claim to the protection of Art. 14 Exs. I and J. are not liable to be struck down and she (petitioner) cannot seek a direction to respondents to allow her to continue working upto the attainment of the age of 58 years. The claim raised by her is barred by the decision of Ajay Hasia v. Khalid Mujib,104Air Hostesses-Historical background.- From time to time, the Corporation required and still requires ladies to work as Air Hostesses (AHs). The aspirants have to submit application in the prescribed form. Other conditions apart, the applicants have to be within the age group 19 to 25 extends upon 30 years in the case of SC/ST candidates. Regulation 46(i)(c)-read with47-lays down that an AH will retire from service upon attaining the age of 45 years. Initially, the cadre consisted of a uniform grade of AHs. This worked to the detriment of the females and to alleviate this as also to exercise a sort of supervision over them, two supervisory posts were created. That first was of an Asstt. Chief Air Hostess and the second that of a Chief Air Hostess. With the increase in the numbers, the enforced stagnation became more acute and gave rise to discontent, Air India bowed to the Legitimate demands of the employees and the cadre today has a hierarchy running into six sections, to wit-Air Hostesses, Air Hostesses, Check Air Hostesses, Senior Check Air Hostesses, Deputy Chief Air Hostesses, Addl. Chief Air Hostesses and Chid Air Hostess. While the A.H.'s pay ranges from Rs. 720 to Rs. 1300, the range of CA Hs salary is Rs. 1720 to Rs. 2180.105Retirement age of Air Hostesses.- The retirement age of Air Hostesses in KLM(Royal Dutch) and Ghana airlines is 50 years whereas in the case of Swiss airlines it is 57 and in the case of Malaysian airlines it is 45 years. In the case of Singapore airlines the retirement age of check stewardess is 45 years. Similarly, in other airlines like Austrian, German Air, Lufthansa and Nigeria Airways the retirement age of female Air Hostesses is 55 whereas in the case of Air International, U.T.A. (France) and Air France it is 50. In case of Sudan Airways and British Airways the retirement age is 60 whereas in Nordair (Canada) and Transair (Canada) Airlines the age is 65 years.106In this writ petition, filed by an Air India employee, who at the relevant time was Deputy Chief Air Hostess, notice was taken for the respondents when the matter came up for admission. The Supreme Court directed the respondents to file their Counter Affidavit. Accordingly, Counter Affidavit has been filed. The petitioner has filed her Rejoinder Affidavit also. Under the existing rules, namely,Regulation 46(1) (c)-of the Service Regulation, the petitioner was to retire on 28th February, 1987 and in fact she retired on that date. The prayer in the writ petition is to quash the letter sent to her retiring her on 28th February, 1987, to declareRegulation 46(1)(c)-ultra vires, to direct reconsideration of the decision in Air India v. Nargesh Meerza, , and to declare that the petitioner will retire only on her attaining the age of 58 years, Identical question were raised before Supreme Court in a few writ petitions earlier by some other employees of Air India and they were considered at length by a bench of three Judge in Air India v. Nargesh Meerza, and were considered in favour of Air India. The learned counsel for the petitioner submits that this decision need reconsideration and made a fervent appeal to refer the matter for that purpose. The Supreme Court did not feel persuaded to accept this request. The case that the petitioner is not an Air Hostess, but belongs to a separate class can also not be accepted. This case did not find favour with Supreme Court in the above decisioner either. The duties and. functions of Deputy Chief Air Hostess includes operation service as a regular line Air Hostess and she will be required to perform the same functions as that of other Air Hostess. The writ petition thus is devoid of any merit and hence is dismissed.107Provision as to retirement of the air hostess on first pregnancy.- Coming now to the second limb of the provisions according to which the services of Air Hostesses would stand terminated on first pregnancy, the Court finds itself in complete agreement with the argument of Mr. Setalvad that this is a most unreasonable and arbitrary provision which shocks the conscience of the Court. The Regulation does not prohibit marriage after four years and if an Air Hostess after having fulfilled the first condition becomes pregnant, there is no reason why pregnancy should stand in the way of her continuing in service. Having taken the Air Hostess in service and after having utilised her services for four years, to terminate her service by the management if she becomes pregnant amounts to compelling the poor Air Hostess not to have any children and thus interfere with and divert the ordinary course of human nature. It seems that the termination of the services of an Air Hostess under such circumstances is not only a callous and cruel act but an open insult to Indian womanhood-the most sacrosanct and cherished institution, the Courts are constrained to observe that such a course of action is extremely detestable and abhorrent to the notions of a civilised society. Apart from being grossly unethical, it smacks of a deep rooted sense of utter selfishness at the cost of all human values. Such a provision, therefore, is not only manifestly unreasonable and arbitrary but contains the quality of unfairness and exhibits naked despotism and is, therefore, clearly violative of Art. 14 of the Constitution. The Supreme Court held that by making pregnancy a bar to continuance in service of an Air Hostess the Corporation seems to have made an individualised approach to a woman's physical capacity to continue her employment even after pregnancy which undoubtedly is a most unreasonable approach.108If the Corporation has permitted the Air Hostess to marry after the expiry of four years then the decision to terminate the services on first, pregnancy seems to be wholly inconsistent and incongruous with the concession given to the Air Hostess by allowing them to marry. Moreover, the provision itself is so outrageous that it makes a mockery of doing justice to them on the imaginative plea that pregnancy will result in a number of complications which can easily be avoided. Pregnancy also is not a disability but one of the natural consequences of marriage and is an immutable characteristic of married life. Any distinction, therefore, made on the ground of pregnancy cannot but be helf to be extremely arbitrary. For the reasons given above, the Supreme Court strike down the last portion of regulation 46(i)(c)-and hold that the provision "or on first pregnancy whichever occurs earlier" is unconstitutional, void and is violalive of Art. 14 of the Constitution and will, therefore, stand deleted.109Air Hostesses and Assistant Flight Pursers if form separate class.- The Air Hostesses form an absolutely separate category from that of Assistant Flight Pursers in many respects having different grades, different promotional avenues and different service conditions. Having regard, therefore, to the various circumstances, incidents, service conditions, promotional avenues, etc. of the Assistant Flight Pursers and Air Hostesses, the inference is irresistible that Air Hostesses though members of the cabin crew are an entirely separate class governed by different set of rules, regulations and conditions of service.110Discrimination on the ground of sex.- Even otherwise, what Arts. 15(1) and 16(2) prohibit is that discrimination should not be made only and only on the ground of sex. These articles of the Constitution do not prohibit the State from making discrimination on the ground of sex coupled with other considerations. On this point, the matter is no longer resintegra but is covered by several authorities of this Court. In Yusuf Abdul Aziz v. State of Bombay and Husseinbhoy Laljee, sex was held to be a permissible classification.111Vice of excessive delegation of power.-Regulation 46(i)(c)-provides that Air hostesses would retire on attaining the age of 35 years or on marriage if it takes place within four years of service. The last limb of this provision relating to first pregnancy in the case of Air Hostesses has already been struck down and the remaining sub-clause (c) has to be read with regulation 17-.112
REGULATION 47: EXTENSION OF SERVICE
- Notwithstanding anything contained in Regulation 46-, the services of any employee, may, at the option of the113[Managing Director] but on the employee being found medically fit, be extended by one year at a time beyond the age of retirement for an aggregate period not exceeding two years,114except in the case of Air Hostesses and Receptionists where the period will be ten years and five years respectively.115[Note 1]: The amended Rules 46and47, will take effect from the 1st December, 1962. The employees who are on leave preparatory to retirement on the 1st December, 1962, will not be entitled to the benefit of the increased age of compulsory retirement unless they are permitted to resume duly after the Managing Director is satisfied that they are efficient and physically fit. Those employees who have already retired before the 1st December, 1962 or who are on refused leave on the 1st December, 1962, beyond the date of their compulsory retirement are not entitled to resume duty under the revised Rule 46 However, those who on 1st December, 1962 are on refused leave beyond the date of compulsory retirement may be reemployed, if fit. Persons on extension of service on 1st December, 1962 may be allowed to continue in service up to the age of 58 years.116Note 2: The Amendment relating to the Receptionists shall take effect from the 15th July, 1970.] Comment - Provisions as to extension of age of retirement of Air Hostesses suffering from the vice of excessive delegation of power.-Regulation 47-provides that the services of any employee may, at the option of the Managing Director, on the employee being found medically fit, be extended by one year beyond the age of retirement, the aggregate period not exceeding two years. This provision applies to employees who retire at the age of 58. So far as the Air Hostesses are concerned, under the Regulation the discretion is to be exercised by the Managing Director to extend the period up to ten years. In other words, the spirit of the Regulation is that an Air Hostess if medically fit is likely to continue upto the age of 45 by yearly extensions given by the Managing Director. Unfortunately, however, the real intention of the makers of the Regulation has not been carried out because the Managing Director has been given an uncontrolled, unguided and absolute discretion to extend or not to extend the period of retirement in the case of Air Hostesses after 35 years. The words "at the option" are wide enough to allow the Managing Director to exercise ,his discretion in favour of one Air Hostess and not in favour of the other which may result in discrimination. The Regulation does not provide any guidelines, rules, or principles which may govern the exercise of the discretion by the Managing Director. Similarly, there is also no provision in the Regulation requiring the authorities to give reason for refusing to extend the period of retirement of Air Hostesses. The provision does not, even give any right of appeal to higher authorities against the order passed by the Managing Director. Under the provision, as it stands the extension of the retirement of an Air Hostess is entirely at the mercy and sweet will of the Managing Director. The conferment of such a wide and uncontrolled power on the Managing Director is clearly violative of Art. 14, as the provision suffers from the vice of excessive delegation of powers. For these reasons, therefore, there is no alternative but to strike down as invalid that part of regulation 47-which gives option to the Managing Director to extend the service of an Air Hostess. The effect of striking down this provision would be that an Air Hostess, unless the provision is suitably amended to bring it in conformity with the provisions of Art. 14 would continue to retire at the age of 45 years and the Managing Director would be bound to grant yearly extensions as a matter of course, for a period of ten years if the Air Hostess is found to be medically fit. This will prevent the Managing Director from discriminating between one Air Hostess and another.117Identical age of retirement for Air India Air Hostesses and Indian Airlines Corporation Air hostesses.- As the case of Air India Air hostesses and Indian Airlines Corporation Air hostesses are identical, an extension upto the age of 45 in the case of one and 40 in the case of other, amounts to discrimination inter se in the same class of Air hostesses and must be struck down on that ground also. The result of striking down these provisions is that like Air India Air Hostesses, Indian Airlines Corporation Air Hostesses also would be entitled to their period of retirement being extended upto 45 years until a suitable amendment is made by the Management.118
REGULATION 48: TERMINATION
- (a) The services of a permanent employee may be terminated without assigning any reasons to him/her and without and prior notice but only on the following grounds not amounting to misconduct under Service Regulation 42-, namely:-
(i) if he/she is, in the opinion of the Corporation (the Board of Directors of Air-India) incompetent and unsuitable for continued employment with the Corporation and such incompetence and unsuitability is such as to make his/her continuance in employment detrimental to the interests of the Corporation; OR if his/her continuance in employment constitutes, in the opinion of the Corporation (the Board of Directors of Air-India), a grave security risk making his/her continuance in service detrimental to the interests of the Corporation; OR if in the opinion of the Corporation (the Board of Directors of Air- India), there is such a justifiable lack of confidence which, having regard to the nature of duties performed, would make it necessary, in the interest of the Corporation, to immediately terminate his/her services.
(b) The services of an employee on probation may be terminated without assigning any reason to him/her but on giving 30 days notice in writing or pay in lien thereof.
(c) The services of a temporary employee may be terminated without assigning any reasons to him/her but on giving 15 days notice in writing or pay in lieu thereof. Explanation-. For the purpose of this Regulation, the word 'pay' shall include all emoluments which would be admissible if he were on privilege leave.]
Comments - Scope.- The true position as it appears to be clear from the record of this case, is that the complainant's services were terminated under regulation 48-by paying his salary for 30 days, in lieu of notice. The order does not suggest any misconduct on the part of the complainant and indeed it is not possible to hold this order to be based on any conceivable misconduct. The form of this order is no doubt not decisive and attending circumstances are open for consideration, though motive for the order, if not mala fide is not open to question. Regulation 48- which has been set out earlier as its plain language shows does not lay down or contemplate any defined essential pre-requisite for invoking its operation. Action under this Regulation can be validly taken by the employer at his sweet will without assigning any reason. He is not bound to disclose why he does not want to continue in service the employee, concerned. It may be conceded that an employer must always have some reason for terminating the services of his employee. Such reasons apart from misconduct may, inter alia, be want of full satisfaction with his overall suitability in the job assigned to the employee concerned. The fact that the employer is not fully satisfied with the overall result of the performance of his duties by his employee does not necessarily imply misconduct on his part. The only thing that remains to be seen is if in this case the impugned order is mala fide. The record merely discloses that the appellant had suspicion about the complainant's suitability for the job in which he was employed and this led to loss of confidence in him with the result that his services were terminated under regulation 48-. Loss of confidence in such circumstances cannot be considered to be mala fide. The Courts are unable to conceive of any rational challenge to the bona fldes of the employer in making the impugned order in the above background. The complainant, it may be remembered had to deal with Air Hostesses in the performance of his duties and if the appellant was not fully satisfied beyond suspicion about his general conduct and behaviour while dealing with them it cannot be said that loss of confidence was not bona fide. Once bona fide loss of confidence is affirmed, the impugned order must be considered to be immune from challenge. The opinion formed by the employer about the suitability of his employee for the job assigned to him even though erroneous, if bona fide, is final and not subject to review by the industrial adjudication. Such opinion may legitimately induce the employer to terminate the employee's services, but such termination can on no rational grounds be considered to be for misconduct and must, therefore be held to be permissible and immune from challenge.120It is undisputed that what Art. 14 prohibits is hostile discrimination and not reasonable classification. In other words, if equals and unequals are differently treated, no discrimination at all occurs so as to amount to an infraction of Art. 14 of the Constitution. A fortiori it equals or persons similarly circumstanced are differently treated, discrimination results so as to attract the provisions of Art. 14. Therefore, the inescapable conclusion that follows is that if there are two separate and different classes having different conditions of service and different incidents, the question of discrimination does not arise. On the other hand, if among the members of the same class, discriminatory treatment is meted out to one against the other, Art. 14 is doubtless attracted. Without assigning any reason-Meaning.- The Regulation 48-permits termination "without assigning any reason." The word "assign" in this context means disclosure of the reason to the employee concerned. Now, assignment of reason is one thing and existence thereof is quite another. Thus regulation 48-merely dispenses with the disclosure of reasons under the three contemplated contingencies and not the existence thereof. Colourable exercise of power.- The services of the petitioners, even on going behind the order and analysing the note, are found to have been terminated for loss of confidence as to their suitability to hold the concerned posts. The only peal finding against the petitioners is that respondent 1 has lost confidence in the petitioner "to run their department and division efficiently and to give proper protection to the VIPs during their journeys abroad. Like probationers and temporary Government servants, employees of the Corporation also do not possess any security of tenure, their right to remain in service being defensible by the act of the Corporation permissible under regulation 48-thereof. If, therefore, the Corporation chooses to act under Regulation 48-, and the action is not mala fide, arbitrary or capricious, the question of its having acted in colourable exercise of the power cannot and does not arise. Termination simpliciter if permissible under the contract or service rules such as regulation 48-herein, is thus legal and is not vitiated merely because misconduct spurs it. Inadvisability of holding enquiry for any good reason by itself cannot make exercise of such power colourable or otherwise mala fide. Requirement to prove the existence of good reasons in the Court, if challenged, is held to be adequate safeguard against the abuse of such power.123In one of the most recent decisions in Workmen of Sadder Office, Cimamara v. Managanent the Court approvingly referred to two of its earlier decisions actually reproducing a passage from one of them. This is what was said in Sadder Office case: "It is needless to point out that it has been held by this Court in Chartered Bank, Bombay v. Chatered Bank Employees' Union that if the termination of service is a colourable exercise of the power vested in the management or as a result of victimisation or unfair labour practice, the Industrial Tribunal would have jurisdiction to intervene and set aside such a termination. In order to find out whether the order of termination is one of the termination simpliciter under the provisions of contract or of standing, orders, the Tribunal has ample jurisdiction to go into all the circumstances which led to the termination simpliciter. The form of the order of termination, is not conclusive of the true nature of the order, for it is possible that the form may be merely a camouflage for an order of dismissal for misconduct. It is, therefore, open to the Tribunal to go behind the form of the order and look at the substance. If the Tribunal comes to the conclusion that though in form the order amounts to termination simpliciter but in reality cloaks a dismissal for misconduct, it will be open to it to set aside the order as a colourable exercise of power by the management." Principles to the same effect have also been reiterated in the later decision of this Court in Tala Oil Mills Co. Ltd v. Workmen, where the Court observed as follows : "The true legal position about the Industrial Court's jurisdiction and authority in dealing with cases of this kind is no longer in doubt. It is true that in several cases, contract of employment or provisions in standing orders authorise an industrial employer to terminate the service of his employees after giving notice for one month or paying salary for one month in lieu of notice, and normally, an employer may, in a proper case, be entitled to exercise the said power. But where an order of discharge passed by an employer gives rise to an industrial disputes, the form of the order by which the employee's services are terminated would not be decisive; industrial adjudication would be entitled to examine the substance of the mailer and decide whether the termination is in fact discharge simpliciter or it amounts to dismissal which has put on the cloak of discharge simpliciter. If the Industrial Court is satisfied that the order of discharge is punitive, that it is malafide, or that it amounts to victimisation or unfair labour practice, it is competent to the Industrial Court to set aside the order and, in a proper case, direct the reinstatement of I he employee".124Exercise of power under-If uncanalised and unguided.- If regulation 48-is read in isolation, one is likely to get an impression as if the power to terminate can be used by the Corporation at the sweet will of the officers without being required to be guided by any relevant consideration. If, however, regulation 48-is read along with the functions as indicated inSec. 7-of the Air Corporation Act for the efficient carrying out of which employees are appointed in terms ofSec. 8-, thereof, and the object for achieving which the Regulations are framed under Sec. 45(2) (b)-of the said Act, it would at once be clear that the powers cannot be said to be so uncanalised and unguided.125Constitutional validity of Regulation 48(a)-.- By this petition the petitioner seeks to challenge the validity of the order, dated the 3rd September, 1957, terminating his services under regulation 48(a)-of the Air India Employees' Service Regulations. The relevant facts leading to the petition are as follows: "The petitioner joined the service of the 4th respondent-Air India Corporation as an Assistant Superintendent (Stores) in 1954. He was promoted as Deputy Superintendent (Purchase) in 1960. In 1964, he was given a further promotion as a Senior Deputy Superintendent (Purchase) and the last promotion he earned was in the year 1968 when he was posted as Purchase Manager. During this period, the petitioner also earned a cash award of Rs. 500 and was often associated with important decisions of technical nature. On the 30th December, 1974, respondent No. 3, the Controller of Stores and Purchases, wrote a letter to the petitioner staling that further to the discussion he had with the petitioner, he was happy to inform the petitioner that it was proposed to depute him as Supplies Manager at London in the First week of February, 1975. By the said letter, the petitioner was also informed that his posting at London would be for a period of 2/3 years and the petitioner was asked to treat the said letter as an advance information so that he could make his domestic arrangements. The letter ended with best wishes from the third respondent. On the 9th February, 1975, the petitioner was given the order of his posting at London which mentioned, among other things, that his period of posting at London was three years. In pursuance of this order, the petitioner resumed his post at London. However, within about four months of his resumption of the post an order dated the 11th June, 1975 signed by the third respondent was served upon him terminating the posting with immediate effect, and asking him to hand over the charge to the local official and to return to Bombay and report himself to the third respondent. On the expiry of his leave joining period, the petitioner returned to Bombay on the 22nd July, 1975 and went to resume his duty on the next day. i.e. 23rd July, 1975. However on that day he was handed over a letter signed by the third respondent asking him to go on forced privilege leave for four weeks with immediate effect. When the said period of forced leave was about to expire, another letter dated the 22nd August, 1975 was served on him and the forced leave was extended for a period of 15 days. On the event of the expiry of this extended leave, i.e. on the 4th September, 1975 the third respondent wrote a letter to the petitioner, asking him to see him at 9 a.m. on the next day, i.e. 5th September, 1975.On the 5th September, 1975, the third respondent informed him that the Managing Director had already passed an order on the 3rd September, 1975 terminating his services underregulation 48-of the Air India Employees' Service Regulations (hereinafter referred to as the Service Regulations), with immediate effect. He also informed the petitioner that if the petitioner tendered his resignation, the order of termination would be withdrawn. The petitioner expressed his unwilligness to tender resignation. The order passed by the Managing Director on the 3rd September, 1975 was, however, not handed over to the petitioner. Therefore, by letter dated the 15th September, 1975, the petitioner requested for the said order as well as the material, if any, on the basis of which the order was passed. On the 30th September, 1975 the third respondent sent to the petitioner the order dated the 3rd September, 1975 and also informed him that the termination of his service did not amount to punitive action, and, therefore, there was no question of giving him an opportunity to defend himself. The termination order which was sent to him read as follows :- "I hereby terminate the services of Mr. S.S. Muley, Purchase Manager, under regulation 48 of the Air India Employees' Service Regulations-. This order will be effective from the date of receipt of intimation hereof by him. He will be given 30 days' pay and allowances as admissible to him in lieu of notice". Against this order, the petitioner preferred a representation to the first respondent-Chairman of the Corporation making out a case that he had rendered a loyal and devoted service to the Corporation for about 20 years and had risen to his position as a Purchase Manager by dint of hard work, that he was responsible for making valuable suggestions which had resulted in substantial savings to the Corporation; that he had also earned commendation and an award for his services and that his service record was unblemished and to the entire satisfaction of his superiors. It was then stated there that hence he was surprised to find that for reasons unknown to him, his services were terminated abruptly after recalling him from his posting at London which was of a very recent date and after forcing him to go on leave. He, therefore, pleaded that the Chairman should interfere in the matter and thus set right an injustice done to him. The First respondent-Chairman by his letter dated the 27th October, 1975, replied to the petitioner as follows:- "I have carefully gone through the contents of your letter. I appreciate the efforts made by you during your service in the development of indigenous equipment for which the Management has also given you an award of Rs. 500. I find that your services have been terminated under regulation 48 of Air India Employees' Service Regulations and not by way of punitive action. In the circumstances, the question of my intervention does not arise and 1. therefore, regret my inability to intervene in the decision taken by the Managing Director." The petitioner, therefore filed the present petition on the 18th December, 1975. The termination of his service under Cl. (17) of the saidregulation 48-can however he brought about at any time without any enquiry and without assigning any reason. Clause (a) of the said Regulation states that the services of a permanent employee may be terminated without assigning any reason after giving 30 days' notice in writing or pay in lieu of such notice. There is neither qualifying age nor qualifying service nor qualifying circumstances for the exercise of the said powers. There are also no guidelines given to the authority exercising the said powers as to when the said powers should and should not be used. The power conferred under the said Regulation is in unconditional and absolute terms. The only distinguishing feature between the said termination of service and dismissal or removal from service is that the former is included in the Chapter dealing with "cessation of service", while the latter finds place in the Chapter on "conduct and discipline", and, therefore, the said termination of services can be said to be otherwise than on account of a misconduct of an employee. Since the exercise of the power is not circumscribed in any manner, the authority desirous of getting rid of an employee is at liberty to make use of this power in an unrestricted manner. Even if, for example, an employee can properly lie proceeded against by resorting to powers underregulations 43-and44-, the authority can instead take action under the impugned regulation, there being no guidance given anywhere as to the circumstances in which the said summary and extraordinary powers be exercised. The authorities have an uninhibited choice in that behalf and their action falls beyond the pale of challenge. Even an authority desiring to make use of its powers honestly has no guidance in the said regulations as to when a resort to one rather than to the other power be made, not to say of the abuse of the power. The consequence of placing this untrammelled power in the hands of the authorities is that an employee can be asked to go home for no reason whatsoever, and the tenure of the services of the employee is made dependent upon (he passing whims and vagaries of those in authority for the lime being. There is, therefore, no doubt that the power conferred, by cl. (a) of the impugned regulation, being unguided and uncanalised is capable of being used arbitrarily and also unreasonably. An employee in the 4th respondent-corporation has always this sword of Democles hanging over his head from the date he enters service, and he may be thrown out of the employment at any moment without his ever coming to know the reasons for the same. What is worse, he cannot even challenge it for want of knowledge of the reasons which led to his removal. Therefore the Bombay High Court held that in the absence of any guidelines, the provisions of Cl. (a) ofregulation 48-are patently arbitrary and discriminatory, and, therefore, violative of the provisions of Arts. 14 and 16 of the Constitution. Clause (a) ofregulation 48-of the said Regulations is hereby struck down being violative of Arts. 14 and 16 of the Constitution. The impugned order of termination of petitioner's service is struck down both because it is passed under the said invalid regulation as well as on the ground that it is arbitrary and, discriminatory and, therefore, violative of the petitioner's rights under the said articles.' Employees of the Corporation no better than probationers and temporary servants.- The employees of the Corporation cannot claim any security of tenure under the scheme of the Regulations and their services stand on no better footing than the service of the probationers and temporary servants.' Master's right to remove his servant.- Under the age old law of master and servant, a servant could be removed on loss of confidence in him without anything more. The modern complex life makes it necessary to ensure security of the tenure to the servants whose contribution to the production and services is recognised to be as important as the capital and management. It is not without reason that even while modifying the law of master and servant and protecting the servant by preventing his dismissal by way of punishment without enquiry and an opportunity to the delinquent to disprove the charge, the Legislature has not thought it proper to dispense with altogether the master's right of terminating the service after notice of a month or so. Such discharge without any finding of any misconduct enables the employee to turn a new page in his life and save the reputation of himself and the employer in suitable cases. Claim to security of 'tenure or claim of right to post.- Under the ordinary law of master and servant, no servant can claim any security of tenure. The provisions of the Industrial Disputes Act-do afford some protection to the workmen covered by the Act. Article 311 of the Constitution-also affords some such security to Government servants. The word "removal" was broadiy construed in Moti Ram Deka v. N.E. Frontier Rly. to include not only removal by punishment but also removal simpliciter contemplated under rules 148and149, Railway Servants Rules, referred to therein. This overriding provision enabled, the railway servant Moti Ram Deka to claim Rules 148and149to be ineffective against the constitutional guarantee of Art. 311 under the majority view and, therefore, claim to remain in service till the age of retirement. This ratio cannot apply to the present case in the absence of application of Art. 311 or analogous provision. Regulation 44-of the said Regulations, in the first instance is differently worded from Art. 311. Secondly,regulation 44-cannot have any overriding effection regulation 48 such as Art. 311 could have onrules 148and149 of the Railway Rules. Under the harmonious construction of the two Regulations, regulation 48-would be as effective as regulation 44-. Cases falling under regulation 48-, of termination simpliciter if otherwise valid, would remain unaffected by regulation 44. The fact that the employees of the Corporation enjoy some status does not enable them to have the protection of Art. 311. The petitioners are not even protected by the security afforded by the industrial jurisprudence. The petitioners, therefore, cannot claim any right to the post in the same manner in which any Government servant can claim. Contributional liability of regulation 48-.-Regulation 48-, shall have to be read with the preamble of the Air Corporation Act and Sees. 7, 8, 9 and 45(2) thereof under which the Regulations are framed. The question as to when and against which employees the powers underregulation 48-should be exercised and whether the case falls under regulation 42-and whether it justifies any departure from regulations 42-,43-&44-, and whether summary action under regulation 48-is called for, shall have to be decided by reference to the overall interests and needs of the Corporation, the exigencies of its administration and the capacity and deficiency of the personnel involved. Challenge to the impugned orders by reference to Art. 14 of the Constitution-must, therefore fail.
REGULATION 49: RESIGNATION
- (i) No employee shall resign from the service of the Corporation except bygiving such notice as he would have received under Regulation 48-if his services were to be terminated, or compensation in lieu of such notice, unless, at the request of the employee, the notice is waived or shorter notice accepted in writing by the competent authority. Such compensation shall be equivalent to the amount of the pay as defined in the Explanation to Regulation 48-, which the employee would have drawn during the period by which the notice falls short of the prescribed period, and shall be deemed to he a liability owed to the Corporation for the purpose of Regulation 22(2)-of the Air- India Employees' Provident Fund Regulations, 1954.
(ii) A resignation given under (i) above may be accepted with immediate effect or at any time before the expiry of the period of notice, in which case the employee shall be paid his salary in respect of the entire period of notice given by him.
(iii) In case a shorter period of notice is accepted at the request of the employee, he shall be entitled to receive his pay and allowances only for the actual number of day worked.
(iv) If an employee leaves the service of the Corporation without giving any notice or by giving inadequate notice, such resignation shall be liable to be construed as a misconduct and may entail any131[* * *] of the punishments prescribed under Regulation 43-.
(v) Notwithstanding anything contained in clauses (i) to (iii) above, an employee shall not be entitled to tender his resignation and any resignation tendered by him shall not be effective or operative against the Corporation, if, at the time when such resignation is tendered disciplinary action is pending against him or is intended or proposed to be taken against him by the appropriate authority.]
CHAPTER 08A: GRATUITY
REGULATION 49A: COMMENCEMENT AND SCOPE
(i) This Chapter shall be deemed to have come into force on the 1st April, 19601 and accordingly the benefits thereunder shall, subject to the other provisions of this Chapter, be admissible to employees who have ceased to be in service of the Corporation on or after that dale.
(ii)he provisions of this Chapter shall not apply, and the benefits thereunder, shall not be
admissible to or in relation to:
(a) temporary employees;
(b) employees on contract basis;
(c) employees appointed for a specific project;
(d) apprentices and trainees.
(iii)A person re-employed after retirement from the Corporation, or his beneficiary, shall not be entitled to claim any benefits under this Chapter in respect of any service put by such person after re-employment.
REGULATION 49B: CONDITIONS
-Subject to the conditions hereinafter mentioned, an employee or his beneficiary as the case may be, shall be eligible for gratuity upon the employees ceasing to be in the service of the Corporation in any of the following circumstances, namely:-
(i)
(a) retirement on or after attaining the age of superannuation, that is to say 30 years in the case of air hostesses and 58 years in other cases;
(b) on-
(1) retirement under regulation 46(ii)-;
(2) resignation, dismissal or removal from service, or
(3) termination of services (not being termination of services on medical grounds), after completion of continuous service of 5 years in the case of air hostesses and 15 years in other cases; excluding periods of leave without pay;
(c) death whilst in service or termination of services on the grounds of permanent incapacity due to bodily or mental infirmity;
(d) on termination of service on medical grounds other than those mentioned in sub-clause (c) or on abolition of post, provided a minimum of 5 year continuous service has been rendered.
(ii) In computing the period of service for the purpose of this Regulation, continuous service in the last preceding integrated airline will be treated as service in the Corporation, qualifying for Gratuity.
(iii) The gratuity payable under these Regulations is liable to be set off wholly or in part towards:
(a) any amount due under a liability incurred by an employee to the Corporation and remaining outstanding against him as at the date on which he ceases to lie in service; and-
(b) any loss caused to the Corporation by any misconduct of an employee for which he is removed or dismissed from service.
REGULATION 49C QUANTUM OF GRATUITY
- (i) The amount of Gratuity payable shall, subject to the provisions of sub-regulation (ii), be equal to one month's basic pay and Variable Dearness Allowance for every completed year of service, subject to a maximum of 15 months' basic pay and Variable Dearness Allowance or Rs. 50,000 whichever is less: Provided that in the case of employees where 'continuous service' as defined in the Note under SR 46(ii) is treated as service in the Corporation qualifying for gratuity, the amount of gratuity payable will be determined with reference to the actual completed years of service rendered by the concerned employee in the Corporation.
Explanation'.-(1) 'Basic Pay' for the purposes of this regulation means, the average rate of basic pay applicable in the case of an employee payable during the 12 months preceding the dale of cessation of service of the employee, excluding the periods of leave without pay availed of during this period.(2) For reckoning the average basic pay. any period of extraordinary leave or other absence without emoluments availed of by an employee during the last 12 months shall be omitted and the basic pay drawn during an equal period immediately preceding the 12 months shall be taken into account.
(ii) The amount of Gratuity payable in the event of death of an employee while in service shall not be less than:-
(a) 2 months' basic pay and Variable Dearness Allowance, if death occurs during the First year of service;
(b) 6 months' basic pay and Variable Dearness Allowance, if death occurs after one year but before completion of 5 years of service; and
(c) 12 months' basic pay and Variable Dearness Allowance, if death occurs after completion of 5 years of service.
REGULATION 49D: NOMINATION
- (i) Every employee shall, as soon as may be after appointment in the Corporation, make a nomination in such form as may be prescribed by the (Managing Director] conferring on one or more persons the right to receive any gratuity that may lie sanctioned under these Regulations, in the event of his death while in service or before it has been paid. Provided that if at the time of making the nomination, the employee has a family the nomination shall not be in favour of any person other than the members of his family.
(ii) If a member nominates more than one person under sub-regulation (i), he shall specify in the nomination the amount of share payable to each of the nominees in such manner as to cover the whole of the amount payable as Gratuity.
(iii) An employee may at any time cancel, or modify a nomination by notice in writing: Provided that the employee shall, along with such notice, send a fresh nomination made in accordance with the provisions of the regulations.
(iv) An employee may provide in the nomination.
(a) that in the event of any nominee predeceasing the employee, the right conferred upon that nominee shall pass to such other person or persons as maybe specified in the nomination;
(b) that the nomination shall become invalid on the happening of a contingency specified therein provided that if the time of making the nomination, the member has no family, the nomination shall automatically become invalid in the event of his subsequently acquiring a family.
137Explanation.-'Family' for the purposes of this regulation shall include the following:
(a) wife in the case of a male employee:
(b) husband in the case of a female employee:'
(c) sons;
(d) unmarried daughter including step children and adopted children;
(e) widowed daughters
(f) brother below the age of 18 years and including step brother and step unmarried and widowed sisters sisters;
(g) father;
(h) mother;
(i) married daughters; and
(j) children of a predeceased son.]
138[(v) if the employee dies without making a valid nomination or where the nomination has become invalid the gratuity payable on death shall the paid in the manner indicated below:
(a) firsty to one or more surviving members of the family as specified in clauses (a) to (d) of the
Explanation to sub-regulation (iv) in equal shares;
(b) secondly, if there is no surviving member as specified in clause (a) then to one or more surviving members of the family as specified in clauses (c) to (j) of the Explanation to sub-regulation,(iv) in equal shares].
CHAPTER 09: MISCELLANEOUS
REGULATION 50: UNIFORMS
- (i) Such categories of employees as may he specified from time to time shall, while on duty, wear uniforms supplied to them.
(ii) Employees who have been supplied with uniforms under Sub-Regulation (i) above shall exercise proper care in preserving them in good condition. Uniforms will, at all times, remain the properly of the Corporation and must be returned in the event of an employee, ceasing to be in its service.
REGULATION 51: RETURN OR CORPORATION'S PROPERTY
-An employee shall, on ceasing to be in the service of the Corporation. give proper account of all property of the Corporation in his possession, custody or charge. Failure to comply with this regulation will result in such amount, as may be decided by the competent authority, being deducted from the salary or any other sums of money due to him from the Corporation. The amount so determined is also liable to be treated as a liability owing by him to the Corporation for the purposes ofRegulation 22(2)-of the Air- India Employees' Provident Fund Regulations 1954.
REGULATION 52: INVENTIONS AND PATENTS
-No employee shall, without the previous consent in writing of the competent authority apply for a patent or exclusive privilege in respect of any invention under any enaciment, if such invention is made by him when in the service of the Corporation and he shall, in the event of a patent or exclusive privilege under any such enactment to make, sell and use such invention, or allow others to do so, being granted to him, grant to the Corporation the unqualified right to adopt and use the said invention without its being obliged to pay any royally or other consideration therefore. He shall not assign charge or transfer in any manner whatsoever his original or any extended patent or exclusive privilege in respect of the said invention, without the previous consent in writing of the competent authority and without providing for the unqualified use, free of charge to the Corporation, of the said invention and further he shall, on demand, execute in favour of the Corporation such letter of licence, or other deed or document for the purpose as it may advise: Provided always that the competent authority shall, at any time within six months of the receipt of an intimation from the employee that he has acquired such patent or exclusive privilege in India or abroad, have the right to require the employee to transfer and assign such patent or exclusive privilege to the Corporation for such consideration as the competent authority shall at its discretion fix and if such right be exercised, the employee shall execute all such deeds of assignment, grants and assurances and do all such acts, deeds and things for vesting in the Corporation and/or its nominee the ownership of the patent or exclusive privilege and the full benefit thereof as the competent authority shall require.
CHAPTER 10: SUSPENSION OF WORK
REGULATION 53: CLOSURE
- (i) In the event of a fire, catastrophe, breakdown of machinery, stoppage of supply of power or aviation spirit, epidemic, civil commotion or other cause beyond the control of the Corporation, the138[Managing Director] may, at any time without notice or compensation in lieu of notice, stop any machine, or close down any section or department, wholly or partially, or the whole or part of the establishment for such period as may be deemed necessary.
(ii) In the event, however, of the stoppage or cancellation of air services due to circumstances beyond the control of the Corporation, the138[Managing Director] may, at any time, close down any machine, section or department affected by such stoppage or cancellation. The fact of such stoppage or closure shall be notified on the Notice Board.
(iii) In the event of a stoppage under sub-regulation (i) or (ii) during working hours, the employees affected shall be notified as soon as practicable, when work will be resumed and whether they are to remain or leave the establishment. The period of detention in the establishment shall not ordinarily exceed one hour after the commencement of the stoppage. If the period of detention does not exceed one hour, employee so detained shall not be paid for such period. If the period of detention in the establishment exceeds one hour. employees so detained shall be entitled to receive wages for the whole of the time during which they are detained in the establishment as a result of the stoppage. Wherever practicable reasonable notice shall be given of the resumption of normal work and all such employees laid off under this Regulation, who present themselves for work, when work is resumed, shall be given preference for employment.
(iv) All notices required to be given under this Regulation shall be displayed on the notice boards at the time-keeper's office and at the main entrance to the establishment. Where a notice pertains to a particular department or departments only, it shall also be displayed in the department concerned.
REGULATION 54: LAY OFF
:-The138[Managing Director] may, due to the curtailment of services or of other work of the establishment lay off employees for a period not exceeding six days in the aggregate (excluding statutory holidays) in any month provided that seven days' notice is given. An employee laid off under this regulation for more than five days in a month may, on being laid-off, leave his employment on intimation of his intention to do so.
REGULATION 55: TREATMENT OF LAY OFF PERIOD
- (i) In cases where employees are laid off underRegulations 53-and54-, they shall be considered as temporarily unemployed and the period of such unemployment shall be treated as leave with pay to the extent such leave is admissible and leave without pay for the balance of the period. When, however, employees have to be laid off for an indefinite period exceeding two months, their services may be terminated after giving them due notice or pay in lieu thereof.
(ii) The services of employees who have been discharged in accordance with the foregoing Sub-Regulation (i) shall, on their re-employment, be treated for the purpose of calculating length of service, as continuous, provided that they are re-employed within six months from the date on which their services were terminated.
REGULATION 56: STRIKES
-In the event of a strike affecting either wholly or partially any section or department of the Corporation, the139[Managing Director] may close down, either wholly or partially, such section or department and any other sections or departments affected by such closure and for any period or periods without prior notice. The fact of such closure shall, as soon as practicable, be notified by notices displayed on the notice boards in the departments concerned and at the gate or gates appointed underRegulation 2-, or at or near the main entrance to the establishment and in the Time-keeper's office. The employees shall be notified as to when work will be resumed by notices displayed at the places mentioned above, not later than twentyfour hours before the actual resumption of work.
REGULATION 57: LAY OFF COMPENSATION
-Claims for lay-off compensations or retrenchment benefits underRegulations 53-,54-,55-&56-or termination benefits underRegulation 48-shall be decided in accordance with the provisions of the Industrial Disputes Act-where applicable.]
SCHEDULE 01: SCHEDULE
Disciplinary and Appellate Authorities (Seeregulations 43B-and45-) ______________________________________________________________________ Sr. Authority empowered Nature of Employees on whom Punishment Appeal No. Punishment can be imposed lies to under Regu- lation 43 (1) (2) (3) (4) (5) ____________________________________________________________________________ 1. COMMERCIAL DEPARTMENT: 1. Commercial Director Any or all To any employee not above the grade of Managing Establishment Officer or its equivalent. Director. (a) to (e) To any employee not above the grade of Managing Commercial/Regional Manager or its Director. equivalent.SCHEDULE - Contd. ____________________________________________________________________________________________________________________________ (1) (2) (3) (4) (5) _______________________________________________________________________________________________________________________________ (a) To any employee in a grade higher Managing than the grades specified above. Director. 2. (a) Deputy Commercial Any or all To any employee below the grade Commercial Director of Assistant Station Superintendent Director. or its equivalent. (a) to (e) To any employee not above the Commercial grade of Establishment Officer or Director. its equivalent. (b) Regional Director (a) to (e) To any employee not above the Commercial grade of Station Superintendent or Director. its equivalent. 3. (a) Commercial Any or all To any employee not above the Commercial Manager/Regional grade of Traffic Assistant or Director, Manager, India, its equivalent. (a) to (e) To any employee not above the Commercial grade of Assistant Station Superin- Director. tendent or its equivelent. (b) Regional Manager (a) to (e) To any employee not above the Commercial (foreign regions) grade of Assistant Stations Superin- Director tendent or its equivalent. 4. Station Heads. Any or all To any employee not above the Commercial grade of Traffic Assistant or its Director. equivalent. (a) to (e) To any employee not above the Commercial grade of Office Assistant or its Director. equivalent. II. ENGINEERING DEPARTMENT: 1. Director of Engineering Any or all To any employee not above the Managing grade of: Director. (i) Establishment Officer or its equivalent. (ii) Senior Technical Officer or its equivalent. (iii) Aircraft Maintenance Engineer I or its equivalent. (iv) Inspector 'A' or its equivalent. (a) to (e) To any employee not above the Managing grade of Deputy Engineering Manager Director. or its equivalent. (a) To any employee in a grade higher Managing than the grade specified above. Director. 2. Deputy Director of Any or all (i) To any employee above the Director Engineering grade of Junior Officer or of Engineering its equivalent. (ii) To any employee not above the grade of Chargehand or its equivalent. (a) to (e) To any employee not above the Director grade of: of Engineering (i) Establishment Officer or its equivalent. (ii)Senior Technical Officer or its equivalent. (iii) Aircraft Maintenance Engineering I or its equivalent. 3. Engineering Manager (a) to (e) To any employee not above the Director of grade of: Engineering. (i) Junior Officer or its equivalent. (ii) Aircraft Maintenance Engineering III or its equivalent. (iii)Junior Technical Officer or its equivalent. (iv) Inspector or its equivalent. III. FINANCE AND ACCOUNTS DEPARTMENT: 1. Financial Controller Any or all To any employee not above the Managing grade of Accounts Officer or Director. its equivalent. (a) to (e) To any employee not above the Managing grade of Deputy Financial ControDirector. ller or its equivalent. (a) To any employee in a grade higher Managing than the grades specified above. Director. 2. Senior Deputy Financial Any or all Categories below the Financial Controller grade of Accountant or Controller. its equivalent. (a) to (e) To any employee not above the grade of Financial Accounts Officer or its equivalent. Controller. 3. Deputy Controller Any or all To any employee not above the Financial (Finance) grade of clerks or its Controller. equivalent. (a) to (e) To any employee not above the Financial grade of Accountant or its Controller. equivalent. IV. OPERATIONS DEPARTMENT: 1. Director of Operations Any or all To any employee not above the Managing grade of: Director. (i) Establishment Officer or its equivalent. (ii) Senior Flight Operations Officer or its equivalent. (iii)Senior Technical Officer or its equivalent. (iv) Chief Flight Radio Telephone Officer or its equivalent. (a) to (e) To any employee not above the Managing grade of: Director (i) Personal Manager (Operations) or its equivalent.[* * *] (ii)Manager-Navigation, Manager- Navigation Training, Manager- Flight Engineering, Manager- Technical Training, Manager- Flight Dispatch or their equivalent. (iii) Deputy Operations Manager or its equivalent. (a) To any employee in the grade of Managing higher than the grades specified Director. above. 2. Deputy Director of Any or all (i) Categories below the grade of Director of Operations Junior Officer or its Operations. equivalent. (ii) Chargehand or its equivalent. (a) to (e) To any employee not above the Director of grade of: Operations. (i) Establishment Officer or its equivalent. (ii) Sr. Technical Officer or its equivalent. 3. Operations Manager (a) to (e) To any employee not above the Director of grade of: Operations. (i) Junior Officer or its equivalent. (ii)Junior Technical Officer or its equivalent. V. PERSONNEL DEPARTMENT:[1. Director of Personnel Any or all To any employee not above the Managing and Industrial Relations grade of Establishment Officer Director. or its equivalent. (a) to (e) To. Any employee not above the Managing grade of Personnel Manager or Director. its equivalent. (a) To any employee in a grade higher Managing than the grades specified above. Director.) [2. Chief Personal Any or all To any employee not above the [Director of Manager grade of Personal Officer Personnel & or its equivalent. Industrial Relations.] ____(a) to (e) To any employee not above the Director of grade of Personnel & Deputy Personnel Manager/Deputy Industrial Industrial Relations Manager or Relations. its equivalent. (a) To any employee in grade higher Director of than the grades specified above. Personnel & Industrial Relations.] [3. Personnel Manager/ Any or all To any employee not Chief Industrial Relations above the grade of clerks Personnel Manager or its equivalent. Manager. (a) to (e) To any employee not above Chief the grade of Office Assistant Personnel or its equivalent. Manager. VI. PLANNING (TECHNICAL)[4. Director of Technical Any or all To any employee not above the Managing grade of: Planning (i) Establishment Officer or its Director. equivalent. (ii) Senior Technical Officer or its equivalent. (a) to (e) To any employee not above the grade Managing of Deputy Engineering Manager or Director. Its equivalent. (a) To any employee in a grade higher Managing than the grades specified above Director. VII. STORES AND PURCHASES DEPARTMENT: 1. Controller of Stores Any or all To any employee not above the grade Managing and Purchases of Deputy Stores/Purchase Manager Director. or its equivalent. (a) to (e) To any employee not above the Managing grade of Assistant Controller of Director Stores and Purchases or its equivalent. (a) To any employee in a grade higher Managing than the grades of specified above. Director. 2. Dy. Controller of Any or all To any employee not above the Controller of Stores and Purchases grades of Clerks/Storekeeper Stores and or its equivalent. Purchases. (a) to (c) To any employee not above the Controller of grade of Section Storekeeper/Office Stores &SCHEDULE -Contd. (1) (2) (3) (4) (5)[VIII. CIVIL WORKS AND PROPERTIES DEPARTMENT: Controller of Civil Any or all To any employee not above the Managing Works and Properties grade of Technical Officer. Director. (a) to (e) To any employee not above the Managing grade of Assistant Engineering Director. Manager (a) To any employee above the grade of Managing Assistant Engineering Manager. Director.][IX. PLANNING AND INTER- NATIONAL RELATIONS: Director of Planning and Any or all To any employee not above Managing International the grade of Station Superintendent Director. Relations or its equivalent. (a) to (e) To any employee not above the Managing grade of Station Manager or Director. its equivalent. (a) To any employee in a grade higher Managing than the grades specified above. Director.][X. GROUND HANDLING : 1. Controller-Ground Any or all To any employee not above the Managing Handling grade of Technical Officer or Director. its equivalent. (a) to (e) To any employee not above the Managing grade of Assistant Engineering Director. Manager or its equivalent. (a) To any employee in a grade higher Managing than the grades specified above. Director. 2. Sr. Deputy Any or all To any employee not above Controller- Controller-Ground the grade of Clerk or its Ground Handling equivalent. Handlings. (a) to (e) To any employee not above the Controller grade of Office Assistant/ Ground- Sr. Technicians or their Handling.] equivalent.[XI. COMMUNICATIONS DEPARTMENT: 1. Controller or Any or all To any employee not above the Deputy Communications grade of Signals Officer or Managing its equivalent. DirectorSCHEDULE -Contd. (1) (2) (3) (4) (5) (a) to (e) To any employee not above the Deputy grade of Deputy Communications Managing Manager or its equivalent. Director. (a) To any employee in a grade higher Deputy than the grades specified above. Managing Director. 2. Communications Any or all To any employee not above the Controller Manager grade of Clerk/ Teleprinter/ of cummuni- Telephone operator or its cations. equivalent. (a) to (e) To any employee not above the Controller grade of Chief Telephone/ of Communi- Teleprinter Operator or its cations. equivalent.[XII. INFLIGHT SERVICE DEPARTMENT: 1. Dy. Director In- Any or all To any employee not above the Deputy flight Service grade of Station Superintendent/ Managing Chief Air Hostess or its Director equivalent. (a) to (e) To any employee not above the Deputy grade of Station Manager or Managing its equivalent. Director. (a) TO any employee in a grade Deputy higher then the grades Managing specified above. Director. 2. Manager-In- Any or alt To any employee not above Dy. Director- flight Service the grade of Clerk/Asst. Flight Inflight Purser or its equivalent. Services. (a) to (e) To any employee not above Dy. Director- the grade of Office Asst./Flight Inflight Purser or its equivalent. Services.][XIII. MANAGEMENT INFOR- MATION AND ADVISORY SERVICE DEPARTMENT: Deputy Director Any or all To any employee not above the Deputy Management Services grade of Sr. Analyst/ Managing Sr. Programmer or Director its equivalent. (a) to (e) To any employee not above Deputy the grade of Computer/Operations Managing Manager/Systems Manager or its Director equivalent.SCHEDULE-Contd. (1) (2) (3) (4) (5) (a) To any employee in a grade higher Deputy than the grades specified above. Managing Director.][XIV. HEADQUARTERS AND ATTACHED DIVISIONS: 1. Chief Administrative Any or all To any employee below the grade of Deputy Manager Junior Officer or its equivalent. Managing Director.[* * *] Secretary, Chief Any or all To any employee not above the Deputy Vigilance and Security grade of Clerk or its equivalent. Managing Manager, Principal Director. Medical Officer, (a) to (e) To any employee not above the Deputy Public Relations grade of Office Assistant or Managing Manager, its equivalent. Director. 2. Security Manager Any or all To any employee not above the Chief grade of Chowkidar or Vigilance & its equivalent. Security Manager. (a) to (e) To any employee not above the Chief grade of Office Assistant or Vigilance & its equivalent. Security Manager.][XV. DEPUTY MANAGING Any or all To any employee not above the Managing DIRECTOR: grade of: Director (i) Station Manager or its equivalent. (ii) Assistant Superintendent (Engg.) or its equivalent. (iii) Captain or its equivalent. (iv) Chief Navigator/Chief Flight Engineer or its equivalent (a) to (e) To any employee not above the Managing grade of: Director. (i) Commercial Manager or its equivalent. (ii) Deputy Engineering Manager or its equivalent. (iii) Deputy Operations Manager or its equivalent. (a) To any employee in a grade higher Managing than the grades specified above. Director.][XVI. MANAGING Any or all To any employee other than Chairman. DIRECTOR Head of Department and Secretary.SCHEDULE -Contd. (1) (2) (3) (4) (5) (a) to (e) To any Head of Department and Chairman.] Secretary.[XVII. CHAIRMAN Any or all To any employee. Corporation.l
SCHEDULE 02: PROCEDURE FOR DISCIPLINARY ACTION
[SeeReg. 44(i)-] Where disciplinary action is to be taken against an employee under Regulation 44, the following procedure shall be followed.
01A: COMPETENT AUTHORITY
: For the purposes of this Schedule, 'Competent Authority' in relation to any employee specified in column 4 of Schedule I, means the authority or authorities specified in the corresponding entry in column 2 of the said Schedule I.]I.INVESTIGATION
02 02
When the competent authority receives any information or a report indicating that an employee has committed a misconduct, he may cause an investigation to be carried out to ascertain whether there is a case for further action, unless he is satisfied that a prima facie case exists against the employee concerned in which case, the competent authority may dispense with such investigation and proceed to issue or authorise the issuance of a charge-sheet to the employee concerned (para 4).
03 03
The investigation when conducted should be brief and should conclude as soon as it is clear that there is a prima facie case or that the allegation is groundless. If during such investigation the person admils guilt or default on his part such admission should be recorded in the presence of and signed by the employee concerned.II.CHARGE SHEET
04 04
If the competent authority is satisfied on receiving information or report as mentioned in para 2 above or a report of investigation as mentioned in para 3 that a prima facie case exists for taking disciplinary action against the employee, the latter should be served with a written chargesheet clearly and specifically setting forth the alleged mis-conduct. The employee charged should be given a reasonable time (not less than 48 hours) to submit his written explanation and asked whether he desires to be heard in person.III.ENQUIRY
05 05
(i) Should be employee so charged ask to be heard in person or should his written explanation be considered not satisfactory or should his written explanationdisclose other facts which require an enquiry, the[Competent Authority] shall appoint an Enquiry Committee for the purpose of enquiring into the charges.
(ii) If, however, the employee admits in writing the misconduct alleged against him, the Enquiry Committee may not be constituted and the Authority competent to impose punishment underRegulation 43B-may proceed to pass an order of punishment underRegulation 43-.
06 06
The Enquiry Committee may comprise of one or more officers, one of whom must be representative of the Department to which the charged employee belongs. The Enquiry Committee must be constituted in writing in such a manner that the member/members appointed to hold the enquiry is/are always in a grade higher than that of the person charged. In cases where the Committee consists of more than one person, it should be indicated in the order as to who will be its convener.
07 07
The employee charged should be informed in writing of the date and time when the enquiry will be held and be asked to attend, and futher informed that if he fails to attend the enqiry or attending it refuses to take part in it the enquiry will proceed ex parte. He should also be informed that at such enquiry he shall be entitled to be defended by an employee of the Department in which he works, except in the case of Outstations where he may be defended by any employee of the Corporation employed at that Outstation.
08 08
The employee charged, along with the person permitted to defend him, will be entitled to be present during the hearing of witnesses. Should the person charged fail to attend the enquiry or attending it refuses to take part in it, the enquiry should proceed ex parte.
09 09
When the Enquiry Committee commences its work, the person charged will be asked to state if he has anything further to say beyond what has been already submitted in his written explanation. Any such statement should be recorded in writing and signed by the person charged.
10 Witnesses
-The following witnesses shall thereafter be examined or cross-examined, as the case may be, by the committee:
(a) Those upon whose testimony, the charge was based;
(b) Those whom the charged employee may bring forward as witnesses in his defence. The person charged will be required to indicate the points on which such witnesses will give evidence and it is open to the Enquiry Committee, on scrutinising the list, where it appears to be vexatious or frivolous, to restrict the number of witnesses only to those whose evidence is relevant and material to the points of enquiry;
(c) Any other persons whose evidence being relevant the Committee considers it necessary to record.
11 11
The statement made by each witness shall be succinctly recorded by the Committee and will be signed by the witness and countersigned by the person charged. It is not necessary to write down questions and answers except where absolutely necessary on a crucial point, where the admission or denial must be recorded verbatim. If the person upon whose evidence the charge was based happens to be a member of the Enquiry Committee, the person charged will be entitled to cross-examine him as witness and the enquiry proceedings shall not be called inquestion because of the fact that a member or the said Committee is so cross-examined.
12 12
When a witness comes before the Enquiry Committee, he should be asked to make a statement of facts within his knowledge relating to the charge. The person charged shall be entitled to cross-examine such a witness, but the witness will not be permitted to cross-examine the person charged. The person charged can be examined only by the Enquiry Committee. If on the evidence given by a witness, the Enquiry Committee wishes to examine the person charged, this may be done but not in the presence of the witness who has made the statements. That witness can be recalled later, if necessary. The person charged will also be given an opportunity to examine his witness in his defence.
13 Final Statement
-After all the evidence which is necessary and relevant for the purposes of enquiry has been recorded, the person charged shall be given further opportunity of making a final statement in his defence should he desire to do so. This statement should be recorded in writing and signed by the person charged. In case the person charged or any wilness refuses to sign his statement or deposition, that fact should be recorded in the enquiry proceedings.
14 Report of She Enquiry Committee
- The Committee of Enquiry should formulate its report in the following order :
(i) charges contained in the charge sheet
(ii) summary of the evidence recorded
(iii) analysis of evidence and Enquiry Committee's observations thereon
(iv) findings in respect of each of the charges and reasons for arriving at these Findings.
IV.ORDER BY COMPETENT AUTHORITY
15 15
The competent authority on receiving the report of the Enquiry Committee shall satisfy itself as to the correctness of the findings by giving its independent attention to the weightage of evidence both for and against the charges. Where the[competent authority] agrees with the findings of the Enquiry Committee, it is not necessary for it to give reasons for the acceptance of the report, but where it disagrees it shall record the reasons for such disagreement. The Competent Authority shall thereafter issue an order of punishment. In awarding punishment, the[competent authority] shall take into consideration the extent and gravity of the misconduct, previous service record of the person charged and any extenuating or aggravating circumstances of the case. Comments Applicability of para 15 of Seh. II.-In so far as para 15 controls the power to issue an order of punishment, it is conditioned upon acceptance or nonacceptance of the report of the Enquiry Committee. But the entire requirement of para 15 is dispensed with in certain cases byregulation 44(ii)-and the last para of 15 cannot be separated from the earlier part of that para. Para 15, therefore, has to be read as a whole and isolating the last part of para 15, namely, that in awarding the punishment, the Competent Authority must taken into consideration the extent and gravity of misconduct, previous service record of the person charged and any extenuating oraggravating circumstances of the case, would be impermissible. That part does not, seem to be attracted in a case where an employee is found guilty of misconduct consisting of conduct which has resulted in conviction for an offence involving moral turpitude or guilty of the activity which is covered by Cl. xxiv ofregulation 42-The effect ofregulation 44(ii)-is that if an employee is involved in any of the activities which are referred to in Cl. xxiv such as smuggling, aiding or being concerned in any way in smuggling, and these activities specifically amount to misconduct, and in case any penal action has been brought against the employee by the appropriate authorities under the Acts or Rules specified inregulation 44(ii)-, then it is not necessary for the Competent Authority to follow the procedure prescribed in para 15 of Sch. II.V.GENERAL
16 16
In a case where an appeal lies and the person charged requests for a copy of the Enquiry Committee's Report and/or enquiry proceedings to enable him to prefer an appeal, the Competent Authority shall supply him with a copy of the Enquiry Committee's report and/or with a copy of the enquiry proceedings. Similarly, at a request of the person charged, the Enquiry Committee shall during the course of the enquiry also supply him with a copy of the enquiry proceedings i.e., statements recorded before the Enquiry Committee.
17 17
It is important that an investigation and/or enquiry into an irregularity or misconduct be completed within the shortest possible time.
6. Subs. by Notification dated 12th June, 1965, for the word of "temporary".
7. Subs. by Notification dated 25th May. 1974, for the words "General Manager".
8. Subs. by Notification dated 25th May 1974, for the words "General Manager".
9. Ins. by Notification dated 12th June, 1965.
10. Subs. by Notification dated 1st November, 1975. for the words "Assistant Managing Director".
11. Ins. by Notification dated 25th May, 1974.
12. Ins. by Notification dated 1st November. 1975.
13. Ins. by Notification dated 1st November. 1975.
14. Subs. by Notification dated 25th May. 1974, for the words "Personnel Manager".
15. Added by Notification dated 12th June, 1965.
16. Subs. by Notification dated 25th May 1974, for the words "Operating Crew".
17. Subs. by Notification dated 25th May 1974, tor "Flight Crew".
18. Added by Notification dated 12th June. 1965.
19. Tata Engineering and Locomotive Co. Ltd. Jamshedpur State of Bihar A.I.R. 1989 Pat. 23 at p. 30.
21. Tata Engineering and Locomotive Co. Ltd.. Jamshedpur v. State of Bihar, A.I.R. 1989 Pat. 23 at p.30.
22. Subs. by Notification dated 25th May, 1974. for the words "General Manager".
24. Harish Chandra Kapoor v. Air India. 1988 Bom. C.R. 669 at p. 687.
25. Subs. by Notification dated 25th May, 1974, for the words "Flight Crew"
27. Subs. by Notification dated 25th May 1974, for the-words "General Manager".
28. Deleted by Notification dated 16th February, 1980.
29. Deleted by Notification dated 13th June, 1970.
30. Ammal Chandra Dutt v. Second Additional District Judge, (1989) S.C.C. 1 at p. 7.
32. Subs. by Notification dated 25th May 1974. for the words "General Manager".
36. Subs. by Notification dated 25th May 1974, for the words "General Manager".
37. Subs. by Notification dated 12th June. 1965.
38. Subs. by Notification dated 25th May. 1974.
40. Subs. by Notification dated 25th May, 1974. for the figures and words "90 days".
43. Subs. by Notification dated 25th May, 1974, for the words "Flight Crew".
44. See Gazette of India. 1987 Part III S. 4 p. 2514.
45. Subs. by Notification dated 25th May, 1974. for the words "Operating Crew".
46. Subs. by Notification dated 14th March. 1981.
47. Subs. by Notification dated 25th May, 1974. for the words "Operating Crew"
48. Subs. by Notification dated 25th May, 1974, for. "General Manager".
49. Subs. by Notification dated 12th ,January, 1980, for "90 days".
50. Subs. by Notification dated 25th May 1974, for the words "General Manager"
52. Added by Notification dated 12th June. 1965.
53. Subs. by Notification dated 25th May, 1974 for the words "General Manager".
54. Subs. by Notification dated 25th May, 1974.
55. Ins. by Notification dated 1st November, 1975.
58. Subs. by Notification dated 25th May 1974, for the wolds "General Manager"
59. State of Punjab v. Kailash Nath, 1989(1) C.L.R. 60 at p.64 (SC).
62. Subs. by Notification dated 25th May, 1974, for the words "General Manager"
64. The words "on the premises of the establishment or at the work place" added by Notification dated 12th June, 1965.
65. Subs. by Notification dated 25th May, 1974. for the words "General Manager".
66. The words "involving moral turpitude" added by Notification dated 12th June, 1965.
74. Subs. by Notification dated 7th May, 1977.
77. Corrected by Notification dated 9th November, l974. for the word "punishment".
78. Corrected by lbid the word "an "
79. Subs by Nolification dated 13th June. 1965.
80. See now Customs Act, 1962 as the said Act hat been repealed.
81. See now Foreign Exchange Regulation Act. 1973. as the said Act stands repealed.
82. Subs. by Notification dated 25th May, 1974. tor the word and figures "Rule 42".
83. Air India, a Corporation v. Richaid Rashid Khan. 1982 Lab I C 1542 at p 1554 (Bom)
84. Air India, a Corporation v. Richaid Rashid Khan. 1982 Lab I C 1542 at p 1554 (Bom)
85. Air India, a Corporation v. Richaid Rashid Khan. 1982 Lab I C 1542 at p 1554 (Bom)
86. Air India Corporation v. Richard Rashid Khan. 1983 (l) L L J 125 at p 135 (Bom)
87. Air India, a Corporation v. Richaid Rashid Khan. 1982 Lab I C 1542 at p 1554 (Bom) ., 1982 Lab IC 1542 at p 1555 (Bom)
88. Air India, a Corporation v. Richaid Rashid Khan. 1982 Lab I C 1542 at p 1554 (Bom).
90. Air India Corporation v. Richard Rashid Khan, 1983 (1) L.L.J. 125 at p. 137 (Bom), 1983(1) L.L.J. 125 at pp. 148, 149, 150 (Bom).
94. Indian Airlines Corporation v. Sukdeo Rai, (1968) 1 L.L.J. 519 at p. 525 (Cal.).
95. W.B. Correya v. Deputy Managing Director (Tech) Indian Airlines, New Delhi, 1977 Lab I.C 1449 at p. 1450 (Mad.).
96. Indian Airlines Corporation v. Sukdeo Rai, (1968) 1 L.L.J. 519 at p. 521 (Cal.).
97. Subs. by Notification dated 25th .May. 197-4, for the words "flight crew"
98. Subs. by Notification dated 10th March. 1979.
99. Ins. by Notification dated 15th May, 1971.
100. Subs. by Notification dated 14th November, 1987.
101. Ins. by Notification dated 14th july. 1979.
102. Added by Notification dated 14th Novemher. 1987.
103. Acquillia Coelho Mohan Mrs. v. Dy. Director. Air India. 1987 (55) F.L.R. 12 at p. 17.
104. Acquillia Coelho Mohan Mrs. v. Dy. Director. Air India. 1987 (55) F.L.R. 12 at p. 17., at p. 13. 17. 121 (Bom.).
105. Acquilia Coetho Mohan Mrs. v. Dy. Director. Air India. 1987(55) F.L.R. 12 at p. 13(Bom.).
107. Lena Khan Miss v. Union of India. 1987 (54) F.L.R. 522 at pp. 522, 523 (S.C.)
106. Kamal Chopra Miss v. Indian Air Lines Corporation 1981 (2) S.LJ. 349 at p. 392 (S.C.); See Air India v. Nargesh Meerza. A.I.R. 1981 S.C. 1829 at p. 1857: 1981 Lab. I.C. 1313 at p. 134 (S.C.
108. Air India v. Nargesh Meerza, AIR 1981 S.C. 1829 at pp. 1850, 1853 : 1981 Lab. I.C. 1313 at pp 13.34,1335 (S.C.).
109. Kamal Chopra Miss v. Indian Airlines Corporation, 1981 (2) S.I..J. .3.19 at pp. 384, 385, 386, 389 (S.C.).
110. Air India v. Nargesh Meerza, 1981 Lab I.C. 1313 at pp. 1328, 1329 (S.C.): A.I.R. 1981 S.C. 1829 at p. 1844.
111. Air India v. Nargesh Meerza, 1981 Lab I.C. 1313 at pp. 1328, 1329 (S.C.): A.I.R. 1981 S.C. 1829 at p. 1844.
112. Air India v. Nargesh Meerza, 1981 Lab I.C. 1313 at p. 1343 (S.C.): 1981 (2) S.L.J. .3.19 at pp. 395, 396 (S.C.): AIR 1981 S.C. 1829.
113. Subs. by Notification dated 25th May. 197-1. lor lhc words "General Manager".
114. Subs. by Notification dated 15th May, 1971. for the words and figures "except in the case of Air Hostesses where the period will be 10 years."
115. Renumbered by Notification dated 15th May, 1971.
116. Ins. by Nolificalion dated 1-4111 July. 1979.
117. Air India v. Nargesh Meerza, A.I. R. 1981 S.C. 1829 at p. 1859
118. Kamal Chopra Miss r. Indian Airlines Corporation. 1981(2) S.L.J. 3-19 at p. 398 (S.C.).
120. Air India Corporation, Bombay v. V.A. Rebellow, (1972) 3 S.C.R. 606 at pp. 620,621 (S.C.): (1972) 1. S.C.C. 814 at p. 825.
123. Manohar P. Kharkar v. Reghu Raj. 1983 Lab. I.C. 350 at p. 357 (Bom). at pp. 352. 353.357 (Bom.).
124. Air India Corporation, Bombay v. V.A. Rebellow, (1972) 3 S.C.R. 606 at pp. 618-619 (SC).
125. Manohar P. Kharkar v. Reghu Raj. 1983 Lab I.C. 350 at pp. 351.358 (Bom.).
131. The words "or all" deleted by Notification dated 12th June. 1965.
137. Subs. by Notification 11th July, 1970.
138. Subs. by Notification dated 25th May. 1974. for the words "General Manager
139. Subs. by Notification dated 25th May, 1974, for the words "General Manager".
INDIAN AIRLINES CANCELLATION AND REFUND REGULATIONS, 1985
No. HO-LGL/117/85 1the 28th May 1985.- In exercise of the powers conferred by Sec. 45of the Air Corporations Act, 1953 (27 of 1953), Indian Airlines hereby makes the following Regulations, namely:-
REGULATION 01:
(i) These Regulations may be called the Indian Airlines Cancellation and Refund Regulations, 1985.
(ii) These Regulations came into force from 15th September 1984.
REGULATION 02:
Cancellation will be acted upon only when the ticket is actually tendered at the booking office for cancellation except in the case of passengers residing outside the Station of emplanement, who may cancel their bookings by letter or telegram but not by telephone. In respect of bookings outside the station of emplanement, confirmation to the requesting station, agent or airline by the station of emplanement shall be deemed to be conformation of passage to the passenger for purposes of calculating the cencellation charges. COMMENT Cancellation of ticket is permissible by presentation of the ticket or by letter or telegram but not by telephone.
REGULATION 03:
Time for calculating cancellation charges shall be the time at which the ticket, letter, or telegram is received by the Airline's Office.
REGULATION 04:
The Value of the ticket less Rs. 20.00 service charge will be refunded on tickets cancelled 48 hours or more before the scheduled time of departure.
REGULATION 05:
The value of the ticket less 10 per cent of the single fare, subject to a minimum of Rs. 20.00 (Rupees twenty), shall be refunded if the ticket is cancelled less than 48 hours, but 24 hours or more before the scheduled time of departure.
REGULATION 06:
The value of the ticket less 25 per cent of single fare, subject to a minimum of Rs. 20.00 (Rupees twenty) shall be refunded if the ticket is cancelled less than 24 hours but one hour or more before the scheduled time of departure.
REGULATION 07:
No refund of fare will be made for a cancellation effected less than one hour before the scheduled time of departure of the service.
Comment - There shall be no refund if the cancellation is effected less than one hour before the scheduled time of departure.
REGULATION 08:
Refund will be made only against documents surrendered and no claim will be entertained against lost documents.
REGULATION 09:
Any fare which is less than 20.00 (Rupees-twenty) will be totally forfeited where the ticket attracts the minimum service charge.
Commemt - There shall be no refund in that case also where the fare is less than rupees twenty.
REGULATION 10:
"No-show/Gate-no-Show" passengers shall not be entitled to any refund. For the purpose of this Regulations, a "No-show" passenger is the one who fails to report at the airport 30 minutes before the scheduled time of departure in the case of internal and 45 minutes in the case of international services. A "Gale-no-show" passenger is the one who after checking-in for the particular flight fails to board the aircraft at the time of departure.
REGULATION 11:
There shall not be any cancellation/service charges on wait-listed/requested tickets cancelled due to any reason whatsoever.
REGULATION 12:
Cancellation/service charges for open tickets shall be Rs. 20.00 (Rupees twenty) except on open tickets of reutrn or multiple journey where at least one sector has been utilised in which case no cancellation/service charges will apply.
REGULATION 13: POSTPONEMENT OF ANY JOURNEY TO A LATER FLIGHT SHALL BE DEEMED TO BE CANCELLATION AND NORMAL CANCELLATION/REFUND RULES SHALL APPLY.
Comment - Postponement of any journey to a later flight shall be deemed to be cancellation.
REGULATION 14:
Transfer of reservation to an earlier flight shall be done free of charge.
REGULATION 15:
In case of missed connection by air, no cancellation charges shall be levied.
REGULATION 16:
A reservation will not be regarded as definite until the full fare is paid.
REGULATION 17:
Normal cancellation Regulations would apply on all tickets issued for domestic transportation applying Rupee fare.
REGULATION 18:
No cancellation service charegs shall be levied on:
(i) Tickets issued for international or domestic-cum-international journeys.
(ii) Tickets issued against our Dollar tariff for travel on domestic sectors and also 'Discover-Indian Youth Fare' etc,
(iii) Tickets issued for infants.
REGULATION 19:
CancelSadon/No-show charges shall not be levied against fuel surcharge/additional fuel surcharges.
REGULATION 20:
Indian Airlines will make refunds of the due amount within a period of two years only from the date of issue of the original documents.
Comment - The period of limitation for refund is two years.
REGULATION 21:
These Regulations supersede and cancel all previous Rules and Regulations issued by Indian Airlines in this regard.
INDIAN AIRLINES DISPOSAL OF UNCLAIMED GOODS REGULATIONS, 1977
No. HCD/8R/1076.- In exercise of tSie powers conferred by sub-section (1) and Clause (f) of subsection (2) of Sec. 45 of the Air Corporations (Amendment) Act, 1971 and in amendment of S.R.O. 2464 published in Regulation III in the Gazette of India, Extraordinary Part, III, Sec. 3(No. 166) dated Thursday, July 29, 1954 Indian Airlines hereby makes the following regulations namely:-
REGULATION 01: SHORT TITLE
- (a) These regulations may be called the "Indian Airlines Disposal of Unclaimed Goods Regulations, 1977.
(b) It shall come into force from First day of March, 1977.
REGULATION 02: DEFINITIONS
- In these Regulations unless the context otherwise requires:-
(a) "Corporation" means the Indian Airlines.
(b) "Unclaimed Goods" means articles, packages or any other consignments booked for an Indian Airlines aircraft but not taken delivery of by the owners concerned at the destination.
REGULATION 03: DEPOSIT OF UNCLAIMED GOODS AT SUITABLE PLACES
- Corporations shall not be responsible for any article, package, luggage, or any other consignments booked for carriage in an aircraft but not taken delivery of by the owners concerned at the destination. Such articles, packages, luggage or other equipments shall be deposited by the staff of the Corporation at a place appointed for the purpose and shall be returned to the owner on an established claim being made in writing by the officer authorised to receive such claims or disposed of in the manner specified inregulation 4-on the expiry of the period mentioned inregulation 5-
REGULATION 04: METHOD OF DISPOSAL OF UNCLAIMED GOODS
-
(i) Any unclaimed goods in the custody of the Corporation may on the expiry of the period specified inRegulation 5-be sold by public auction and, after deducting from the sale proceeds of such goods the expenses on account of the sale and any amount which is due to the Corporation by way of freight, storage and other charges, the Corporation shall, on an established claim being made in writing by the owner of such goods or his legal representative, pay to him the surplus, if any, of the sale proceeds: Provided that-
(a) The Corporation shall have the right to realise from the owner or his legal representative, any balance left outstanding against him on account of the freight and storage or other charges after such sale;
(b) The goods which are of a perishable nature or which are or may become dangerous or offensive may be disposed of or destroyed immediately without notice to the owner and in such manner as may be determined by the Officer duly authorised in this behalf;
(c) The consignments declared as document printed matter, advertisement material, commercial trade samples etc. for which the shipper has not declared any value and or which do not have resale value or have very little re-sale value may be disposed of in part or in whole in without public auction and in any manner as may be convenient to the corporation.
(ii) The price at which the Corporation sells the consignment or part thereof, as declared and described in the provisos (b) and (c) ofRegulation 4-(;) above, shall be final and shall not be subject to verification, scrutiny, review of question by the owner of the goods, his legal representatives or any other party claiming under him: Provided that- Any amount that is recovered and obtained by the Corporation in respect of and as a result of such disposal of consignments as has been provided under provisos (b) and (c) ofRegulation 4-(c) shall be adjusted against any expenses incurred by the Corporation and in the manner outlined in clause 4 (i) of the Regulation read with proviso (a) thereto.]
Comment - The unclaimed goods are liable for sale by public auction The unclaimed goods of perishable or dangerous or perishable nature are liable for immediate disposal or destruction. There is no need of sale by public auction as to the goods which do not have re-sale value or have very little resale value.
REGULATION 05: PERIOD AFTER THE EXPIRY OF WHICH UNCLAIMED GOODS MAY BE DISPOSED
- A sale by public auction in pursuance ofregulation 4-may be held:-
(i) In the case of a live animal at any time after the expiry of seven days from the date on which such live animal has been in the custody of the Corporation; and
(ii) In the case of any other goods at any time after the expiry of thirty days from the date on which such goods have been in the custody of the Corporation.
INDIAN AIRLINES EMPLOYEES' (MISCELLANEOUS LOANS) REGULATIONS, 1966
In exercise of the powers conferred by Sec. 45of the Air Corporations Act, 1953 (27 of 1953), Indian Airlines hereby makes the following Regulations known as the Indian Airlines Employees' (Miscellaneous Loans) Regulations, 1966 as amended upto 1979.
REGULATION 01: SHORT TITLE AND APPLICATION
-
(i) These regulations may be called the Indian Airlines Employees' (Miscellaneous Loans) Regulations, 1966 as amended upto 1979.
(ii) They shall apply to all employees of the Corporation in India and abroad.
REGULATION 02: DEFINITIONS
- In these Regulations unless the context otherwise requires:
(a) "Corporation" means Indian Airlines.
(b)
(i) 'Managing Director' and 'Deputy Managing Director' means Managing Director and Deputy Managing Director of the Corporation.
(ii) "Competent Authority" means in relation to the exercise of any power the 'Corporation' or any other authority specified in that behalf by the Corporation in the Instrument of Delegation of Administrative and Financial powers.
(c) "Employee" means a person in the service of the Corporation but does not include a person employed on a part time or casual basis.
REGULATION 03: GENERAL CONDITIONS
- (i) The grant of loans under these Regulations shall be solely at the discretion of the competent authority and no employee shall be entitled to claim any benefit under these Regulations as a condition of service or as a matter of right.
(ii) Not more than one loan shall be granted for the same purpose. However, in respect of the following purpose Managing Director/Dy. Managing Director in consultation with Director, Finance may grant a second loan having regard to the merits of the case and subject to the following conditions:
(a) to meet heavy expenditure on prolonged medical treatment of the employee or any member/members of his family.
(b) for purchase of vehicle:
(i) in the case of a Car, second loan will be admissible afterexpiry of 5 years from the date of grant of first loan; in the case of motor- cycle/scooter after expiry of two years from the date of grant of first loan.
(ii) The quantum of the second loan shall be determined after deducting the sale proceeds, if any, of the old vehicle.
(c) the grant of second loan in respect of the above purpose shall be subject to the conditions specified inRegulations 6-&8-.
(d) second loan in respect of the above purposes shall be admissible only after first loan with interest thereon has been fully repaid/adjusted.
(iii) In sanctioning any loans under these Regulations the Sanctioning authority shall take into account the capacity of the employee to repay the loan having regard to his monthly emoluments and his liability to repay any other outstanding loans that may have been taken from the Provident Fund or other source.
(iv) If any loan under these Regulations is not utilised for the purpose for which it is sanctioned within the specified period or within such period as may be laid down by the Sanctioning Authority the outstanding amount with interest shall be repaid immediately failing which it may be recovered by that authority in such manner as may deem fit.
Comment - No employee can claim entitlement to loan as a matter of right. Normally there shall be only one loan for one purpose. Of course one of the exceptions is where the loan is taken for meeting heavy expenditure on prolonged medical treatment.
REGULATION 04: ADMINISTRATIVE ORDERS
- The Managing Director may issue such general or special orders, not inconsistent with these regulations as he may consider necessary or desirable for the full and proper administration of these regulations.
REGULATION 05: LIABILITY UNDER THE PROVIDENT FUND REGULATIONS
- Any loan granted under these regulations to an employee or any part of such loan and any interest thereon outstanding when the sum standing to that employees credit in his Provident Fund accounts becomes payable on cessation of his membership shall be deemed to be a liability incurred by the employee to the Corporation within the meaning and for the purpose of sub-Regulation (3) of theRegulation 23 of the Indian Airlines Employees'Provident Fund Regulations
REGULATION 06: LOANS FOR MEETING MEDICAL EXPENSES
- (i) The Managing Director/ Deputy Managing Director with the concurrence of Director, Finance may sanction a loan to an employee in such amount as may be deemed reasonable, but not exceeding Rs. 10,000 for the purpose of enabling him to meet heavy expenditure on medical treatment for himself or any member or members of his family, if he is satisfied that the circumstances justify the grant of such loan. Similarly Regional Directors and Secretary with the concurrence of the Finance Manager in the Region and Dy. Director, Finance in HQrs. for a like purpose may grant loan not exceeding Rs. 3,000.
(ii) The rate of interest on such loans shall be 3% per annum on the balance outstanding every month unless having due regard to the circumstances of any case the Managing Director/Dy. Managing Director permits a lower rate or waives interest altogether.
(iii) The principal with interest (if any) shall be repaid in monthly instalments not exceeding sixty and each such instalments shall be deducted from the employee's salary commencing from the month following the month in which the loan is paid. Provided that in exceptional circumstances, the Managing Director/Dy. Managing Director or as the case may be, may per such repayment to be made in a larger number of instalments or to commence after a specified period.
(iv) An employee who is granted such a loan shall furnish the guarantee of another permanent employee to the performance of the relevant terms and conditions of the loan, and shall, if so required by the authority granting the loan, furnish security for the full amount of the loan in such one or more of the following forms as that authority may direct, namely:-
(a) Execution of a demand promissory note for the amount in favour of the Corporation;
(b) Any other security which the authority may consider necessary or desirable.
Comment - The maximum loan for medical treatment is Rs. 10,000 bearing interest at 3 per cent per annum and payable in 60 instalments.
REGULATION 07: OTHER PERSONAL LOANS
- (i) The Managing Director/Dy. Managing Director with the concurrence of Director, Finance may grant an employee a loan in such amount as may be deemed reasonable, but not exceeding Rs. 15,000 in any of the following circumstances:
(a) to meet Financial obligations arising out of any unforeseen circumstances which merit the grant of a loan;
(b)
(i) to repair residential accommodation or to make obligatory payments like payment of advance rental charges in regard to the acquisition of residential accommodation;
(ii) to pay registration money in respect of Government Housing Schemes like Delhi Development Authority, Bombay Housing and Area Development Board, etc.
(c) to meet expenses in connection with technical or professional courses of study in respect of himself or his dependents;
(d) to meet expenditure of a nature which is commercially in the interest of the Corporation;
(e) to meet expenditure in other contingencies where the grant of such Financial assistance is according to the local law, customs or practice;
(f) to meet expenditure on account of major repairs such as engine overhaul change of engine, arising out of normal wear and tear (not on account of accident, Fire, etc. covered under vehicle insurance policy) in respect of motor car owned by the employee provided (i) the car has been in use by the employee for more than five years; (ii) vehicle loan if availed earlier by the employee is fully paid together with interest.
(ii) The competent authority with the concurrence of the Finance Manager in the Regions and Dy. Director, Finance in HQrs. may grant loan in any circumstances specified in sub-regulation (i) (a), (b) (i), (c), (d), (e) and (f) upto Rs. 5,000 and in respect of circumstances speciFied in sub-regulation (i) (b) (ii) upto Rs. 15,000.
(iii) Every loan granted under this Regulation shall carry simple interest of 4 1/2% per annum on the reducing balances provided, however, that a loan granted in pursuance of Cl. (b)(i) & (ii) and (f) of sub-regulation (i) shall carry simple interest on the following rates:
(a) under clause (b) (i) of sub-regulation (i) at the rate of 5 1/2% per annum.
(b) under Cl. (b) (ii) of sub-regulation (i) at the rate at which DDA or Bombay Housing and Area Development Board, etc. pay interest on initial registration money or 5 1/2% per annum whichever is higher.
(c) under Cl. (f) of sub-regulation (i) at the rate of 6 1/2% per annum.
(iv)
(a) Loan granted under Regulation shall be repayable with interest In such number of monthly instalments as the authority granting the loan may permit as under:- (i) not exceeding 60 in respect of loan under sub-regulation (i) of this regulation.
(b) Recovery of loan in appropriate instalments shall commence from the month following the month in which the loan is paid.
(v) An employee who is granted such a loan shall furnish the guarantee of another permanent employee to the performance of the relevant terms and conditions of the loan and shall, if so required by the authority granting the loan, furnish security for the full amount of the loan in such one or more of the following forms as that authority may direct, namely:-
(a) execution of a demand promissory note for the amount in favour of the Corporation.
(b) any other security which the competent authority may consider necessary or desirable.
Comment - The maximum limit for loan for other purpose is Rs. 15,000.
REGULATION 08.4: 8.4
(i) An employee who is granted such a loan under this regulation for purchase of a vehicle shall if so required by the competent authority furnish security for the full amount of the loan is in such one or more of the following forms as that authority may direct, namely:-
(a) execution of a demand promissory note for the amount in favour of the Corporation.
(b) the guarantee of another permanent employee to the performance of the relevant terms and conditions of the loan;
(c) execution of an agreement in the form of Indemnity Bond;
(d) execution of Mortgage Bond for hypothecating motor-car or motor-cycle scooter in favour of the Corporation, on purchase within a stipulated time.
(e) to insure motor car or motor-cycle/scooter at his cost against Fire, theft or accident on purchase to cover the full amount of vehicle loan and to notify to the Insurance Co. of the Corporation interest in the Insurance Policy of Vehicle.
(f) Any other security which the competent authority may consider necessary or desirable.
(ii) If the employee who avails the loan does not fulfil any or more of the above requirements, he and/or his surety shall be liable to refund forthwith to the Corporation the entire amount of loan together with interest thereon except when he has furnished proper explanation acceptable to the competent authority for not fulfilling any of the requirements.
Comment - The maximum loan for purchase of new cars is 20 months basic pay or Rs. 40,000 as the estimated cost of the car whichever is less. It shall bear interest at 6 1/2 per cent per annum. For the purchase of motor cycle or scooter the maximum loan will be 10 months' basic pay or Rs. 6,000 or the estimated cost of the motor cycle or scooter whichever is less bearing interest at Wi per cent per annum and payable in 60 instalments.
REGULATION 08.4 8.4
(i) An employee who is granted such a loan under this regulation for purchase of a vehicle shall if so required by the competent authority furnish security for the full amount of the loan is in such one or more of the following forms as that authority may direct, namely:-
(a) execution of a demand promissory note for the amount in favour of the Corporation.
(b) the guarantee of another permanent employee to the performance of the relevant terms and conditions of the loan;
(c) execution of an agreement in the form of Indemnity Bond;
(d) execution of Mortgage Bond for hypothecating motor-car or motor-cycle scooter in favour of the Corporation, on purchase within a stipulated time.
(e) to insure motor car or motor-cycle/scooter at his cost against Fire, theft or accident on purchase to cover the full amount of vehicle loan and to notify to the Insurance Co. of the Corporation interest in the Insurance Policy of Vehicle.
(f) Any other security which the competent authority may consider necessary or desirable.
(ii) If the employee who avails the loan does not fulfil any or more of the above requirements, he and/or his surety shall be liable to refund forthwith to the Corporation the entire amount of loan together with interest thereon except when he has furnished proper explanation acceptable to the competent authority for not fulfilling any of the requirements.
Comment - The maximum loan for purchase of new cars is 20 months basic pay or Rs. 40,000 as the estimated cost of the car whichever is less. It shall bear interest at 6 1/2 per cent per annum. For the purchase of motor cycle or scooter the maximum loan will be 10 months' basic pay or Rs. 6,000 or the estimated cost of the motor cycle or scooter whichever is less bearing interest at Wi per cent per annum and payable in 60 instalments.
REGULATION 08.4 8.4
(i) An employee who is granted such a loan under this regulation for purchase of a vehicle shall if so required by the competent authority furnish security for the full amount of the loan is in such one or more of the following forms as that authority may direct, namely:-
(a) execution of a demand promissory note for the amount in favour of the Corporation.
(b) the guarantee of another permanent employee to the performance of the relevant terms and conditions of the loan;
(c) execution of an agreement in the form of Indemnity Bond;
(d) execution of Mortgage Bond for hypothecating motor-car or motor-cycle scooter in favour of the Corporation, on purchase within a stipulated time.
(e) to insure motor car or motor-cycle/scooter at his cost against Fire, theft or accident on purchase to cover the full amount of vehicle loan and to notify to the Insurance Co. of the Corporation interest in the Insurance Policy of Vehicle.
(f) Any other security which the competent authority may consider necessary or desirable.
(ii) If the employee who avails the loan does not fulfil any or more of the above requirements, he and/or his surety shall be liable to refund forthwith to the Corporation the entire amount of loan together with interest thereon except when he has furnished proper explanation acceptable to the competent authority for not fulfilling any of the requirements.
Comment - The maximum loan for purchase of new cars is 20 months basic pay or Rs. 40,000 as the estimated cost of the car whichever is less. It shall bear interest at 6 1/2 per cent per annum. For the purchase of motor cycle or scooter the maximum loan will be 10 months' basic pay or Rs. 6,000 or the estimated cost of the motor cycle or scooter whichever is less bearing interest at Wi per cent per annum and payable in 60 instalments.
REGULATION 08.4 8.4
(i) An employee who is granted such a loan under this regulation for purchase of a vehicle shall if so required by the competent authority furnish security for the full amount of the loan is in such one or more of the following forms as that authority may direct, namely:-
(a) execution of a demand promissory note for the amount in favour of the Corporation.
(b) the guarantee of another permanent employee to the performance of the relevant terms and conditions of the loan;
(c) execution of an agreement in the form of Indemnity Bond;
(d) execution of Mortgage Bond for hypothecating motor-car or motor-cycle scooter in favour of the Corporation, on purchase within a stipulated time.
(e) to insure motor car or motor-cycle/scooter at his cost against Fire, theft or accident on purchase to cover the full amount of vehicle loan and to notify to the Insurance Co. of the Corporation interest in the Insurance Policy of Vehicle.
(f) Any other security which the competent authority may consider necessary or desirable.
(ii) If the employee who avails the loan does not fulfil any or more of the above requirements, he and/or his surety shall be liable to refund forthwith to the Corporation the entire amount of loan together with interest thereon except when he has furnished proper explanation acceptable to the competent authority for not fulfilling any of the requirements.
Comment - The maximum loan for purchase of new cars is 20 months basic pay or Rs. 40,000 as the estimated cost of the car whichever is less. It shall bear interest at 6 1/2 per cent per annum. For the purchase of motor cycle or scooter the maximum loan will be 10 months' basic pay or Rs. 6,000 or the estimated cost of the motor cycle or scooter whichever is less bearing interest at Wi per cent per annum and payable in 60 instalments.
INDIAN AIRLINES EMPLOYEES PASSAGE REGULATIONS, 1975
In exercise of the powers conferred under Sec. 45(2) (c)of the Air Corporations' Act, 1953, the Corporation hereby makes the following Regulations for issue of passes to its officers and other employees either free of cost or at concessional rates for travel on its air services. These Regulations will take effect from 1st August, 1975.
REGULATION 01:
In cases where both the husband and the wife are the employees of IA, while the aggregate number of passages admissible to both in any one passage year would not exceed five, the scale of concessions would be that which is more favourable in a combination of the two sets separately admissible.
Comment - Even a temporary employee completing one year service becomes entitled to free concessional air passage.
REGULATION 02:
The grant of passages will be subject to the following general conditions:
(a) The return passage comprises of two single tickets for a journey between the same two points performed by the same person and the splitting up of such a passage into two separate single passages is not permissible.
(b)Air passages will normally be granted by the shortest and the cheapest route. Where two places are connected by a non-stop service as well as a stopping service, air passages may be granted by either. Journeys between two points may also be permitted on the common rated routes as applicable to the fare paying passengers. It may also be ensured that the coupons are utilised strictly in their serial order.
(c) An infant in arms, though not provided with a seat, will be counted against the employee's free/concessional passages.
(d) The concessional staff passage will be computed on the value of the two single journey fares.
(e) An employee retiring from service of the Corporation may be permitted to utilise the passages (free/concessional) that may be due to him on the date of retirement. Where an employee dies while in service his family may be permitted to avail of the passages (free/concession), that may be due to employee on the date of his demise. The above concession will be available only for a period of one year from the date of retirement/death.
Comment - An infant in arm. though not provided with a seat will be counted against the employee's free/concessional passages.
REGULATION 03:
The passages will be allowed subject to accommodation being available after all paying traffic is accommodated.
Note: The term 'subject to accommodation being available' mentioned in the above regulation shall be interpreted to mean that an employee shall be accommodated only when through passage is available on a service after making due provision for fare paying priority passengers. In other words the load factor shall be taken into account at the point of embarkation and care taken to ascertain that the required space would be available throughout before embarkation is permitted. When, however, an employee is willing to take a chance at intermediate stations and requests, in writing, for being given a passage which may involve his being off loaded at one or more stations en-route a passage may be granted to him on that basis, at his own risk.
REGULATION 04: FAMILY
- "Family means the employee, his/her spouse, children and parents wholly dependent on the employee, and such other relatives of the employee whom the Managing Director may in each individual case, include on compassionate grounds."
REGULATION 05:
The passages are ordinarily non-cumulative. The Managing Director may, under special circumstances, allow the accumulation of air passages. Air passage will be valid for commencement of journey as follows:-
(i) Outward journey:- Within three months from the date of issue of the ticket, or by the 31st of July, whichever is earlier.
2[
(iii) Return journey:- Within one year from the date of issue of the ticket for outward journey in respect of domestic as well as international sectors ].
Note: If an employee surrenders a ticket within its validity period, the authority that issued the RA. Form may, if satisfied with the circumstances under which the cancellation is sought allow the passage account to be amended. This concession will not apply where the outward journey has been performed.
REGULATION 06:
Air passages will not be claimed as of right but will be sanctioned at the discretion of the Corporation.
Note: Non-availability of accommodation in the aircraft will not be accepted as an excuse for an employee not reporting for duty on the due date.
Comment - Sanction of free/concessional air passage is discretionary and cannot be claimed as a matter of right.
REGULATION 07:
Any unauthorised use of the free or concessional passages granted to an employee will constitute as misconduct and may also entail permanent forfeiture of the privilege.
Comment - Any unauthorised use of free/concessional air passages amounts to misconduct.
REGULATION 08:
An employee or the member of his family or dependent parent travelling in the aircraft on free/concessional air passages will do so at his own risk and will be governed by the terms and conditions subject to which air ticket is issued to a fare paying passenger.
REGULATION 09:
Free air passages may in addition be granted by the competent authority at its discretion to an employee who has been invited to attend a meeting, conference or seminar organised by a learned society or professional body in India.
REGULATION 10: FREE/CONCESSIONAL AIR PASSAGES TO RETIRED EMPLOYEES
3(i) An Employee who has retired from the service of the Corporation after completion of a minimum of 20 year's continuous service may be granted (a) one free passage every calendar year or two free passages every alternate calendar year and (b) two 90 per cent rebated passages every calendar year .]
(ii) The facility at (i) above will also be granted to retired employees, who may not have put in 20 years of continuous service in the Corporation by virtue of the fact that they may have been seconded from Government/Government Undertakings, provided at the time of retirement the period of continuous service put in by them in the Government/Government Undertakings plus their tenure in the Corporation is not less than 20 years.
(iii) Air Hostesses, Receptionists, Instructresses and employees retired due to medical unfitness may also be granted free/concessional air passages on the following basis :-
___________________________________________________________________________ Categories Service Scales of Period upto which Qualifications concessions concessions would be available
___________________________________________________________________________ Air Hostesses After rendering One free Only for 5 years a minimum passage every from the date of service of 10 calendar year or retirement. years but less two free passages than 15 years. Every alternate year and one 75% rebated passage every calendar year or two every alternate year. Instructresses, After rendering One free passage Only for 10 years Lady Recep- a minimum every calendar from the date of tionists, Air service of year or two free retirement. Hostesses, and 15 years. passages every employees alternate year retiring and one 75% permanently rebated passage due every calendar to medical year or two every unfitness, alternate year.
___________________________________________________________________________ provisions contained in Keguiation rsos. 2 to 8 snail apply mutatis mutancus in the case of a retired employee.
REGULATION 11:
Employees retiring from stations other than their home stations may be granted free air passages on subject to load basis on lA's own services for self and family as defined in these Regulations from the station of retirement to the Airport nearest to the Home Town. In such a case in the event of death of an employee while in the service of the Corporations at an outstation, this benefit will be admissible to the family of a deceased employee. This facility can be availed within a period of six months.
REGULATION 12: EMPLOYEES UNDER SUSPENSION
- An employee under suspension may be granted free/concessional passages as admissible to regular employees.
REGULATION 13: AIR PASSAGES TO MEDICAL OFFICERS
- (i) Part-time Medical Officers.- Part-time Medical Officers of the Corporation may be granted two free return air passages during each alternate passage year subject to the terms and conditions as laid down in the Regulations.
(ii) Part-time Medical Officers appointed on 'Per Case' basis.- Part-time Medical Officers of the Corporation appointed on 'per case' basis be allowed one free air passage once in two passage years. These passages are not transferable.
