INDIAN AIRLINES CORPORATION vs SUKHDEO RAI

The Supreme Court held that the relationship between a statutory corporation and its employees is that of master and servant, governed by the Air Corporation Act, 1953, specifically Sections 44 and 45. The Court ruled that the dismissal of an employee in breach of procedural safeguards outlined in the regulations was illegal; however, it clarified that a declaration of continued employment cannot be granted as a matter of course. The Court emphasized that the employment relationship does not confer an entitlement to specific performance of service, and the dismissal was valid despite the procedural breach, leading to the conclusion that the employee was only entitled to damages.