The Calcutta School of Tropical medicine with its attached hospital, hereinafter referred to as "the institution", was prior to 1st May 1949, financed and controlled by the State Government while a large number of its research departments were financed and controlled by funds administered by a Committee created under the Charitable Endowments Act, 1980 (VI of 1890). On and from 1st May 1949 the institution and its research departments were brought under the management of a single Governing Body under the control of the State Government. After twenty years of management by the Governing Body it has been found that there has arisen disparity in the service conditions of the three groups of the employees of the institutions, viz. (a) the employees who are Government servants and are on deputation to the Governing Body (b) the employees who have been appointed by the governing Body and (c) the employees of the Committee created under the charitable Endowment Act, hereinafter referred to as "Endowment Fund" employees. While the Government employees and the Endowment Fund Employees do not enjoy those benefits.

In view of the existing different patterns in the service conditions of these categories of staff working in the institution and the difficulties arising there from the Governing Body at their meeting held on the 19th December 1969 resolved unanimously that the Government be requested to resume the entire management of the institution as existing to ensure a homogeneous character of the service conditions of the staff and efficient functioning of the institution.