Narendra Singh v. The Chairman, the New India Assurance Co. Ltd. & Ors

ANISH DAYAL, J APRIL 13, 2026 "shailndra"

* IN THE HIGH COURT OF DELHI AT NEW DELHI + Date of Decision: 13.04.2026 % LPA 193/2026 & CM APPL. 21174/2026 NARENDRA SINGH .....Appellant Through: Mr. Yashvardhan Singh, Adv. with Mr.Jamnesh Kumar and Ms.Deepti Ahuja, Advs. versus THE CHAIRMAN, THE NEW INDIA ASSURANCE CO. LTD. & ORS. .....Respondents Through: Mr. Aditya Kumar, Adv. with Ms.Ila Nath, Advs CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE ANISH DAYAL CM APPL. 21174/2026 (for exemption) 1. Allowed, subject to all just exceptions. 2. The application stands disposed of. LPA 193/2026 & CM APPL. 21173/2026 3. Heard the learned counsel for the parties. 4. This intra-court appeal takes exception to the judgment and order dated 09.02.2026 passed by learned Single Judge, whereby W.P.(C) 1822/2026 instituted by the appellant, has been dismissed. We may note that by filing W.P.(C) 1822/2026, the appellant had challenged the notice of termination of services dated 09.09.2024 and the subsequent communication dated 12.08.2025, whereby it was directed that the appellant's services shall stand terminated with immediate effect. 5. The appellant was appointed on the post of the Development Officer Grade-II with the respondents on 09.08.1998. The appointment of the appellant was made under the provisions of the General Insurance (Rationalisation of Pay Scales and Other Conditions of Service of Development Staff) Scheme, 1976 (hereinafter referred to as the "Scheme"), which is framed under Section 16 (1)(g) of the General Insurance Business (Nationalisation) Act, 1972. The Scheme is, thus, statutory in nature. 6. On 20.01.1999, the services of the appellant were confirmed. Thereafter, he was promoted to the next higher post of Development Officer Grade-I on 01.04.2002. It appears that in the month of March, 2010, the appellant fell ill and could not achieve the target for the year 2010-11, which resulted in reduction of his pay under the aforesaid Scheme. 7. It may be noted that under the Scheme, the Development Officer employed by the respondents is governed by certain "cost control" measures in terms of Clause-11 of the said Scheme. According to which, every Development Officer is required to work with such cost as to maintain his cost ratio within the level stipulated in the Scheme itself. The Scheme further provides that in a situation, where in respect of a Development Officer of the respondents, the cost ratio exceeds the stipulated limits, then the same results in certain consequences such as reduction of non-core allowances payable to such an officer. If cost ratio exceeds the stipulated limited for the second performance year in succession the Development Officer may be issued a letter of warning and his non-core allowances may be continued to be reduced in the following year as well. As per the Scheme, if the cost ratio in respect of a Development Officer exceeds the stipulated limit for the third or the subsequent years in succession, the non- core allowances payable shall be reduced and decrements can also be effected as per the stipulation made in the Scheme. 8. The Scheme further provides that, in case a Development Officer continues to be beyond stipulated cost limits even after bringing down his basic pay to the minimum and is provided an opportunity of one year, the services are liable to be terminated if he still continues to exceed the stipulated cost limits. 9. Clause 11(6) of the Scheme provides that in such a situation, services of the Development Officer shall be terminated by an officer not below the rank of Assistant General Manager, after giving him a notice of 30 days. It further stipulates that the services of the Development Officer concerned shall be terminated unless he is given an opportunity to appeal to the Appellate Committee within 30 days from the date of serving of notice of termination. It further stipulates that on consideration of the appeal, if the Appellate Committee confirms that services of the concerned Development Officer are liab