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J U D G M E N T WITH CIVIL APPEAL NOS. 6029 OF 2002, 2357 OF 2003, 4463, 4620, 5470-71, 6820 OF 2003, 4313 OF 2004 & 1405 OF 2005 AND CIVIL APPEAL NOS.4558,4557 and 4559 OF 2005 [@ S.L.P. (CIVIL) NOS. 8230, 18958 OF 2003 & 48 OF 2005] S.B. SINHA, J :

Leave granted in S.L.Ps.
These appeals involving common questions of fact and law were taken up for hearing together and are being disposed of by this common judgment.
The basic fact of the matter is as under:
The Life Insurance Corporation (for short "the Corporation") was created under the Life Insurance Corporation Act, 1956 (for short "the Act"). It floated a "Salary Savings Scheme" which envisaged a life insurance policy for the salaried class employees a proposal wherefor was made to the concerned employers. Although the Scheme as such is not on records of the case, the same has been referred to at some detail in the judgment of this Court in Delhi Electric Supply Undertaking Vs. Basanti Devi and Another [(1999) 8 SCC 229] and we intend to refer thereto in extenso as it throws considerable light on the issue which falls for our determination.
"Dear Sir, Re: Salary Savings Scheme PA Code No. ...
In order to make the benefits of your Salary Savings Scheme available to our employees, we agree to make the payroll deductions authorised in writing by our employees, in amounts sufficient to pay the premiums included under your Salary Savings Scheme.

2. * * *

3. It is also understood that no form of individual premium due notice or receipt will be issued by you.

4. It is also understood that the employee policy- holders shall have the right to discontinue participation in the Scheme at any time. If an employee exercises this right or if he is terminated, we will notify you in writing at the office where the remittance is forwarded and thereafter will not be responsible for collecting his premiums.

(g) In order to bring the invoices up to date, it is desirable that the employer informs us of all the changes in the staff immediately as soon as they occur. The employer need not wait to incorporate those in the invoice. The changes communicated to us through invoice are received date (sic) and the names of employees continue to appear in the wrong invoice in the meanwhile."

The employer thereafter addressed a letter to each of the employee informing him of the Scheme stating:

"Realising that an adequate savings and protection scheme will mean so much to you and your family we have arranged for the benefits of the Salary Savings Scheme of the Life Insurance Corporation of India for all employees who desire its privilege. The premium will be automatically deducted from your salary once a month and remitted to the Life Insurance Corporation."

A circular titled "Salary Savings Scheme Endorsement" was also issued which is in the following terms:

"This policy having been issued under the Corporation's Salary Savings Scheme, it is hereby declared that the instalment premium shall be payable at the rate shown in the schedule of the policy so long only as the life assured continues to be an employee of his present employer, whose name is stated in proposal and premiums are collected by the said employer out of the salary of the employee and remitted to the Corporation without any charge. In the event of the life assured leaving the employment of the said employer or the premium ceasing to be so collected and/or remitted to the Corporation, the life assured must intimate the fact to the Corporation and in the event of the Salary Savings Scheme being withdrawn from the said employer, the Corporation shall intimate the fact to the life assured and all premiums falling due on and after the date of his leaving employment of the said employer, or cessation of collection of the premiums and remittance thereof in the manner aforesaid, or withdrawal of the Salary Savings Scheme as the case may be, shall stand increased by the imposition of the additional charges for the monthly payment that has been waived under the Salary Savings Scheme at 5% of the premium exclusive of any premium charged for double accident benefits or extended permanent disability benefits and any other extra premiums charged. During the period in which premium is remitted to the Corporation through the employer, the instalment premium will be deemed to fall due on the 20th day of each month instead of the due date within mentioned."