M.L.KAMRA vs CHAIRMAN-CUM-MANAGING DIRECTOR.NEW INDIA ASSURANCE CO. LTD.

The Supreme Court held that Rule 5 of the Orissa Insurance Co-operative Society Ltd. services Rules is not ultra vires Article 14 of the Constitution, as it allows the Board of Management to form an objective opinion based on relevant material regarding the necessity of a post. The Court emphasized the presumption of constitutionality of statutory rules unless they violate fundamental rights. However, the termination of the appellant's service was deemed illegal due to the failure to follow proper procedures for misconduct, leading to an award of Rs. 1,00,000 as compensation instead of reinstatement.