Commercial organization

Respondents were employees of Insurance Corporation and their services were terminated on account of their poor performance, as they failed to achieve requisite targets of business

Service Tribunal allowed appeals filed by employees and reinstated them in service

Validity

Performance standard was in fact the condition prescribed under Regln.4(ii)(c)(1)(2) of State Life Employees' Service Regulations, 1973

Insurance Corporation was a 'commercial organization, therefore, its employees were bound to show performance, otherwise it would be difficult for the organization to continue its existence

Where commercial activity was the basis for running of the same, relevant rules/regulations were to be construed/applied and incorporated strictly

Judgment passed by Service Tribunal was set aside by Supreme Court

Appeal was allowed.