1
* HIGH COURT OF ANDHRA PRADESH: AMARAVATI
HON’BLE MR. JUSTICE D.V.S.S. SOMAYAJULU
AND
HON’BLE SRI JUSTICE DUPPALA VENKATA RAMANA
+ W.A.Nos.441, 492, 496, 500, 502, 508, 510, 512, 514,
516, 523, 527, 533 and 541 of 2021
% 25.09.2023
W.A.No.441 of 2021
#The Vice Chairman and Managing Director,
Andhra Pradesh State Road Transport Corporation,
RTC House, Vijayawada, Krishna District.
… Appellants
Vs.
$Pragada Vasudevarao,
S/o Papayya, E456337, Aged about 58 years,
Occ: Retd Conductor, C/o Srikakulam Depot-II,
Srikakulam District and 22 others
… Respondents
! Counsel for the appellants : Sri M.Solmon Raju for learned Advocate
General
! Counsel for the Respondents : Sri N.Ashwani Kumar and
Sri G.V.Shivaji
< Gist:
> Head Note:
? Cases referred:
1
2017 (3) ALT 1
2
2023 SCC Online SC 1074
3
2021 SCC Online 466
4
(1983) 1 SCC 305
5
1992 (1) SCC 28
6 (1983) 1 SCC 305
2
HON’BLE SRI JUSTICE D.V.S.S.SOMAYAJULU
AND
HON’BLE SRI JUSTICE DUPPALA VENKATA RAMANA
W.A.Nos.441, 492, 496, 500, 502, 508, 510, 512, 514,
516, 523, 527, 533 and 541 of 2021
COMMON JUDGMENT : (per Hon’ble Sri Justice D.V.S.S.Somayajulu)
This batch of writ appeals is taken up for hearing with the
consent of all the learned counsels appearing for the respective
parties.
2. For the appellants, the Advocate General as instructed by Sri
M.Solmon Raju appeared. For the respondents/writ petitioners the
essential arguments were advanced by Sri N.Ashwani Kumar and Sri
G.V.Shivaji.
3. The writ appeals are filed against the common order passed in
W.P.No.2350 of 2020 and batch and in W.P.No.19075 of 2019 and
batch.
4. The writ petitioners have sought a direction in the nature of a
Mandamus declaring the action of the respondents in issuing a
notification No.PD-20/2019, dated 30.09.2019 by which the age of
superannuation was increased from 58 to 60 years with immediate
effect i.e., from September 2019 instead of with retrospective effect
3
from 02.06.2014. This was contested and the batch of writ petitions
were allowed. The learned single Judge held that the notification
No.PD-20/2019 dated 30.09.2019 shall be applicable retrospectively
from 02.06.2014 with all consequential benefits. Against the same,
the present appeals are filed and the matters were argued at length.
5. The facts are not in dispute. Both the parties have relied upon
tabulated statements field in the form of memos which are taken on
record. The case law and the written arguments are also taken on
record. The important dates and events which are pointed out are set
out in the form of tabulated statements, which are as under:
S.No. Date Description
1 27.06.2014 The State Government has amended the
A.P. Public Employment Regulation of
Age of Superannuation Act vide Act No.4
of 2014, wherein, the age of
superannuation was enhanced from 58 to
60 years
2 18.06.2016 G.O.Ms.No.112 was issued by the
Finance (HRM IV) Dept. clarifying that
the Act 4 of 2014 is only applicable to the
categories under section 2 (6) of the 1984
Act and that the enhanced age of
superannuation from 58 to 60 years is
not applicable to PSUs and institutions
listed in schedule IX and X of
Reorganization Act.
3 07.03.2017 WP order was given by the Composite
High Court of AP in W.P.No.18205 of
2016 and batch reported in (2017) 3 ALT
1 (DB), wherein, the GO Ms.No.112,
Dt.18.06.2016 was challenged and the
Hon‟ble Court held that the employees
working under the respective PSUs and
Institutions cannot claim any right to
continue service till attainment of age of
60 years and only upon the request of the
4
concerned PSU / Corporation / Society /
Institution and thereafter upon the
approval of the State Government, the
employees shall be eligible for
enhancement of superannuation.
4 09.08.2017 The Hon‟ble Apex Court has diposed of
the appeals (reported in (2019) 17 SCC
364) filed against W.P.No.18205 of 2016
and batch in light of the GO Ms.No.138,
Fin (HRM IV) Dept., Dt.08.08.2017.
5 22.08.2017 The Hon‟ble High Court of AP disposed
W.P.No.19707 of 201 and batch directing
APSRTC or the Appellant Corporation to
take a decision regarding the
enhancement of age of superann uation
within 3 months
6 19.06.2018 The Appellant Corporation vide its
Resolution No.64/2918 has decided not
to enhance the age of superannuation to
its employees from 58 to 60 years.
7 24.07.2018 The Hon‟ble Apex Court was not inclined
to interfere in the orders Dt.22.08.2017
passed by this Hon‟ble High Court in
W.P.No.19707 of 2017 and batch.
8 14.06.2019 GO Ms.29 was issued by the Transport
Dept., thereby an expert committee was
constituted to look into the merger of
APSRTC in to the Government of AP.
9 03.09.2019 The expert committee has given its report
on merger of APSRTC in to the
Government of AP.
10 30.09.2019 GO Ms.39 was issued by the Transport
Dept., wherein, the State Government
has agreed to enhance the age of
superannuation of the Appellant
Corporation employees from 58 to 60
years pending the formal merger with the
State Government.
11 30.09.2019 The Appellant Corporation has enhanced
the age of its employees from 58 to 60
years vide its Notification No.PD-20/19
12 16.12.2019 The State Government has introduced a
bill vide L.A. Bill No.53 of 2019 in the
A.P. Legislative Assembly pertaining to
the absorption of employees of the
Appellant Corporation into the service of
the State Government.
13 27.12.2019 The State Government has brought and
Act vide Act No.36/2019 into force
5
absorbing the employees of the Appellant
Corporation into the service of the State
Government.
14 31.12.2019 GO Ms.No.52 was issued by the
Transport Department, wherein, all the
employees of the Appellant Corporation
are absorbed into the Public Transport
Department created by the State
Government.
15 14.02.2020 W.P.No.4204 of 2020 was filed
challenging the notification of the
Appellant Corporation Dt.30.09.2019
pertaining to the enhancement of age of
superannuation.
6. Learned Advocate General took this Court through the series of
events and the documents filed which are mentioned above in the
tabulated statement. He also points out that the Judgment of the
Division Bench in the Case of G.Rama Mohan Rao v. Govt. of A.P.,
1
is conclusive and this Court has to follow the same. He also points out
that a subsequent Division Bench in Writ Appeal No.878 of 2022 and
batch has also followed the Judgment and passed orders. It is his
contention that the conclusions in the case of G.Rama Mohan Rao (1
supra) make it clear that the Board of Directors have to amend the
Corporation bye-laws, rules and regulations which have to be
approved by the State Government and after the rules, bye-laws and
regulations are amended in accordance with law, the employees would
be entitled to the enhanced age of superannuation. He also points out
that the Division Bench clearly pointed out that the decision has to be
taken based upon various parameters which are mentioned including
1
2017 (3) ALT 1
6
the financial capacity of the Corporation. Learned Advocate General
also pointed out that the employees of the Corporation have also filed
W.P.No.19707 of 2017 and batch which was disposed of on
22.08.2017 directing the respondents-Corporation to take a decision
whether or not to amend its statutory regulations within three (3)
months and further action with regard to the continuation or
otherwise of its employees would be taken pursuant to the decision of
the Board. After these writ petitions were allowed, the decision of the
Board was taken not to enhance the age to 60 years. Thereafter, a
committee was appointed to merge the APSRTC with the State
Government itself. After the merger was approved , the age of
retirement was enhanced by the Government itself to 60 years by
G.O.Ms.No.39 dated 30.09.2019. This was followed by notification
dated 30.09.2019 by which the age of superannuation was enhanced
to 60 years with effect from September, 2019. Learned Advocate
General submits that this decision was taken after reviewing of the
parameters in line with the Judgment of G.Rama Mohan Rao (1
supra) and after looking in to the report of an expert committee.
Thereafter, the merger was approved. He submits that these are all
matters of policy and that the Court should very lightly interfere in
matters of policy. It is his contention that whenever a “date” is decided
in matters like this, there will always be some employees who will be
losing out since a date has to be necessarily fixed as a cut-off. He
7
contends that if such a cut-off date is not fixed, it would be impossible
for a retirement date to be arrived at in the Corporation. He also
submits that the question of discrimination also does not arise in a
case like this and the submissions of the learned counsels for the
respondents and the conclusion by the learned Judge is wrong for the
reason that in matters of policy and with regard to the date of
retirement, the employees do not have a vested right to be considered
and that the employees who have already retired and those who are in
the service as on September, 2019 are a distinct class by themselves.
Therefore, the question of discrimination will not arise. He relies on a
judgment in the case of Dr.Prakasan M.P. and others v. State of
Kerala and another
2 which is also considered earlier judgment in
the case of New Okhla Industrial Development Authority (NOIDA)
v. B.D.Singhal
3.
7. In reply to this, Sri N.Ashwani Kumar argues that once the age
of superannuation was decided to be enha nced based upon the
merger, the benefit of the same should be given to the petitioners also.
He also points out that State Government had agreed to enhance the
retirement age from 58 to 60 based upon the recommendation of the
expert committee pending formal merger and did not impos e any
conditions or a prospective date. On the other hand, the appellant-
2
2023 SCC Online SC 1074
3
2021 SCC Online 466
8
Corporation had introduced the cut-off date as September, 2019. He
points out that by virtue of the judgment in earlier case of G.Rama
Mohan Rao (1 supra) that went upto the Hon‟ble Supreme Court, the
amendment was given retrospective effect. Therefore, it is his
contention that as per G.O.Ms.No.102, all the Corporations have to
amend their bye-laws and that in view of the language used, in para 5
of the said G.O., the orders should come into force and be made
applicable without any pre-conditions. The learned counsel contends
that the introduction of cut-off date amounts to discrimination. He
also argues at length about the decision of G.Rama Mohan Rao (1
supra) and the appeal before the Hon‟ble Supreme Court etc. He
submitted a brief note also.
8. Sri G.V.Shivaji, learned counsel also argued the matter and filed
a written note also. It is his contention also that the learned single
Judge rightly interpreted the mandatory nature of the directions
issued in G.O.Ms.No.102 and the word used in clause 5 “shall”.
Therefore, he submits that the Corporation was bound to amend its
regulations. Instead of doing so, they differed and later instead of
following the said direction fully, they have introduced a cut-off date
which is contrary to the earlier directions on the subject. He also
relies upon G.O.Ms.No.138 which gave retrospective effect to the dates
by amending G.O.Ms.No.102. He submits that by virtue of this G.O.
dated 08.08.2017, the orders have come into force with retrospective
9
effect and all the employees working in a Corporation included in
schedules 9 and 10 of the A.P.State Reorganization Act, like the RTC
are entitled to the benefit. He, therefore, submits that denial of the
benefit to the writ petitioners is contrary to law and is discriminatory.
He relies upon the well known judgment of D.S.Nakara and others v.
Union of India
4 to justify his case of unreasonable classification and
arbitrariness. Lastly, without prejudice to any of his conditions,
learned counsel also submits by relying upon Ashok Alias Somanna
Gowda and another v. State of Karnataka by its Chief Secretary
and others
5 that the relief can also be limited to the writ petitioners
and not to all other who are similarly placed.
9. In rejoinder, the learned Advocate General submits that the
prayer in the writ petition is against a policy decision and is
questioning the notification in PD-20/2019. Therefore, he submits
that if a declaration is given, it will be applicable to all and the request
of the learned counsel for the respondents made in the alternative that
it should be limited to the writ petitioners cannot be given. He points
out that the recent judgment of the Hon‟ble Supreme Court in New
Okhla Industrial Development Authority (NOIDA) (3 supra) and
Dr.Prakasan M.P., (2 supra) are an answer to the issue raised.
4
(1983) 1 SCC 305
5
1992 (1) SCC 28
10
10. COURT: It is an admitted fact that by the date the writ
petition was filed all the petitioners had retired. The lead case of
W.P.No.4204 of 2020 shows that the majority of writ petitioners had
retired in 2017 and some other retired in 2018 and 2019. The writ
was filed in February, 2020. The chequered history of the decision to
enhance the age of superannuation is set out in the tabular statement
mentioned above. In the previous round of litigation when the age was
enhanced from 58 to 60 years, a big batch of writ petitions were filed
which culminated in the decision of G.Rama Mohan Rao (1 supra).
The findings of this judgment of the Division Bench were not in any
way modified or altered by the Hon‟ble Supreme Court in the SLP‟s
filed. Since the Government decided to enhance the age and did not
contest the matter in this SLP‟s the Hon‟ble Supreme Court did not
pass any further orders. Therefore, in the opinion of this Bench, the
findings in the case of G.Rama Mohan Rao (1 supra) are still good
law. This Bench is bound by them. In para 163 of the judgment of
G.Rama Mohan Rao , the following was held in para 163:
163. Not to provide for an age of retirement at all would be
contrary to public interest, because the State or its
instrumentalities cannot afford the luxury of allowing its
employees to continue in service after they have passed their peak.
(Yeshwant Singh Kothari v. State Bank of Indore ; K.
Nagaraj v. State of A.P.). The proposition that there ought to be an
age of retirement in services is widely accepted as reasonable and
rational. The fact that the stipulation, as to the age of retirement,
11
is a common feature of all services establishes its necessity, no
less than its reasonableness. Public interest demands that there
ought to be an age of retirement in all services. A common scheme
of general application governing superannuation is evolved in the
light of experience regarding performance levels of employees, the
need to provide employment opportunities to the younger sections
of society, and the need to open up promotional opportunities to
employees at the lower levels early in their career. Inevitably, the
employer has to counter -balance conflicting claims while
determining the age of superannuation. On the one hand, services
under the State or its instrumentalities cannot be deprived of the
benefit of the mature experience of senior employees. On the other
hand, a sense of frustration and stagnation cannot be allowed to
generate in the minds of the junior members of the services, and
the younger sections of the society. The balancing of these
conflicting claims of different segments of society involves minute
questions of policy. These claims involve considerations of varying
vigour and applicability. Often, the Court has no satisfactory and
effective means to decide which alternative, out of the many
competing ones, is the best in the circumstances of a given case.
While resolving the validity of policy issues like the age of
retirement, it is not proper to put the conflicting claims in a
sensitive judicial scale, and decide the issue by finding out which
way the balance tilts. That is an exercise which the administrator
has to undertake. (K. Nagaraj111).
In paras 165 and 166, the following was held:
165. If a rule of retirement can be deemed to deprive a person
of his right to livelihood, it will be impermissible to provide for an
age of retirement at all. That will be contrary to public interest
because the State or its instrumentalities cannot afford the luxury
of allowing its employees to continue in service after they have
passed the point of peak performance. Rules of retirement do not
12
take away the right of a person to his livelihood : they limit his
right to hold office to a stated number of years. (K. Nagaraj111). A
government servant/employee of a public sector undertaking has
no right to continue in service beyond the age of superannuation
and, if he is retained beyond that age, it is only in exercise of the
discretion of the Government or the pub lic sector undertaking
concerned. (State of Assam v. Basanta Kumar Das). Once the age
of superannuation is fixed it may be open to the employer, for
special reasons, to continue in its employment an employee who
has passed that age; but it is inconceivable that when the age of
superannuation is fixed, it should be in the option of the employee
to continue in service thereafter. (Guest Keen Williams (P)
Ltd. v. P.J. Sterling).
166. Fixing an age of retirement does not amount to
termination of services. (N. Lakshmana Rao1). There is no
provision which takes away the power of the Government or the
public sector undertaking to increase or reduce the age of
superannuation. (Bishun Narain Mishra v. State of U.P.; N.
Lakshmana Rao1). Application of the legislative policy decision, to
increase the age of retirement of Government employees, to
employees of public sector enterprises also depends on many
factors that should be taken into account in the light of the
peculiar characteristics of each company or corporation or
department. It is for the concerned authority to make necessary
changes in the rules and regulations after taking into account all
relevant aspects. (Sureshchandra Singh112).
11. Ultimately, in conclusion, the Division Bench held that the
Corporations will have to take steps to secure the approval of the
Government for amendment of the bye-laws, regulations and only after
13
approval, the employees would get the benefit of enhanced age of
superannuation.
12. In the case on hand, after this decision was pronounced,
employees of the Corporation filed W.P.No.19707 of 2017 and batch.
The Division Bench by common order directed the respondent
Corporation to take a decision within three months from that date.
Thereafter, with a slight delay, on 19.06.2018, a decision was taken by
the Board to negative the request and not to enhance the retirement
age. The financial status of the Corporation and also the financial
impact of the retirement age enhanced with effect from 02.06.2014
were also considered by the Board of APSRTC. It was noted that if the
benefit is given and 02.06.2014 is considered for enhancing the
retirement age with retrospective effect, the burden would be Rs.878
crores and if the benefit of enhancement is given even on a notional
basis, the cost would be approximately Rs.382 crores. Other reasons
are also cited by the Board which resolved not to enhance the age.
Thereafter, the State decided to merge the Corporation into itself. A
committee was appointed to study the various aspects with regard to
the merger. The committee gave a report with some options. One out
of the two options was accepted by the Government and G.O.Ms.No.39
dated 30.09.2019 was issued agreeing to the recommendation of the
committee of the employees from 58 to 60 years pending formal
14
merger. Immediately thereafter, and on the same day, the impugned
order dated 30.09.2019 was issued.
13. It is therefore clear that the procedure stipulated in the case of
G.Rama Mohan Rao (1 supra) was also followed and that the decision
was not a spur of moment decision or a kneejerk reaction. For certain
reasons, the Board of the APSRTC decided not to enhance the age of
superannuation. Pursuant to the Governments decision of merger, a
committee was appointed to study the modalities and it is thereafter
only that the decision was taken to enhance the age from 58 to 60
years. This was made applicable from September, 2019.
14. In the opinion of this Court and as mentioned earlier, this is a
reasoned thought out decision and it is purely in realm of a „policy
decision‟. The judgment cited by the learned Advocate General in the
case of Dr.Prakasan M.P. is in the opinion of this Court an answer to
the argument advanced. In para 9 of this judgment, it is noticed that
all the G.Os issued were prospective in nature and the primary G.O.
dealt with enhancement of superannuation age. In para 12, the
Hon‟ble Supreme Court in this decision started its analysis by stating
that the age of retirement is purely a matter of policy which lies within
the domain of the State Government. In para 12 the following was
noticed:
15
12. In a somewhat comparable case on facts that arose
in New Okhla Industrial Development Authority v. B.D.
Singhal
12
, the appellant - Authority (NOIDA) had resolved to
recommend enhancement of the age of superannuation of its
employees from 58 to 60 years. The said proposal, when sent
to the State Government for prior approval, was turned
down. This led to the aggrieved employees filing a writ
petition before the High Court of Judicature at Allahabad
which was allowed and NOIDA was directed to consider the
matter afresh and forward its proposal to the State
Government for its approval. It was left open to the State
Government to consider giving effect to the increase in the
age of retirement from the date when NOIDA had resolved to
bear the financial burden for the increase of age or from
such date as it may consider expedient. This time, the State
Government acceded to the proposal received from NOIDA
for enhancing the age of retirement to 60 years, but made
the said decision prospective. Aggrieved by the refusal of the
State Government to make the decision retrospective, the
respondents amended the pending writ petition which was
allowed by the High Court that struck down the provision of
making the decision prospective and directed that such of
the respondents who had retired from service by then, would
be deemed to have worked till the extended age of retirement,
with all consequential benefits. Challenging the said
decision, the State of Uttar Pradesh filed a Petition for
Special Leave to Appeal under Article 136 of the Constitution
of India, which was allowed by this Court with the following
observations:
“22. Whether the age of superannuation should be
enhanced is a matter of policy. If a decision has been
taken to enhance the age of superannuation, the date
with effect from which the enhancement should be made
16
falls within the realm of policy. The High Court in ordering
that the decision of the State government to accept the
proposal to enhance the age of superannuation must date
back to 29 June 2002 has evidently lost sight of the above
factual background, more specifically (i) the rejection of the
original proposal on 22 September 2009; and ( ii) the
judgment of the Division Bench dated 17 January 2012
refusing to set aside the order rejecting the proposal on 22
September 2009 which has attained finality. But there is a
more fundamental objection to the basis of the decision of
the High Court. The infirmity in the judgment lies in the
fact that the High Court has trenched upon the realm of
policy making and has assumed to itself, jurisdiction
over a matter which lies in the domain of the executive.
Whether the age of superannuation should be inc reased
and if so, the date from which this should be effected is a
matter of policy into which the High Court ought not to
have entered.
xxxxxxxxx
24. Whether the decision to increase the age of
superannuation should date back to the resolution
passed by NOIDA or should be made effective from the
date of the approval by the State government was a
matter for the State government to decide. Ultimately,
in drawing every cut-off, some employees would stand on
one side of the line while the others would be positioned
otherwise. This element of hardship cannot be a ground
for the High Court to hold that the decision was
arbitrary. When the State government originally decided to
increase the age of superannuation of its own employees
from fifty-eight to sixty years on 28 November 2001, it had
left the public sector corporations to take a decision based
17
on the financial impact which would result if they were to
increase the age of superannuation for their own employees.
25. From time to time the authorities of the State took a
decision bearing upon the exigencies of service prevailing in
each organisation. ………. The State government had
evidently determined that it was for each organisation to
consider and determine the impact of the financial burden,
and based on that the organisation was to submit a proposal
for the approval of the government.
26. The High Court's observation that the Government
order on 30 September 2012 increasing the age of
superannuation prospectively is arbitrary seems to be
based on the premise that the respondent-employees
have a vested right to the increase in the age of
retirement on the passage of the resolution by NOIDA .
However, Section 19 of the Act stipulates that regulations -
which would include amendments as in this case - will
require the previous approval of the State Government. The
employees will have a vested right to the increased age of
superannuation only after the service regulations are
modified upon approval of the State Government, and from
such date as maybe prescribed by the Government. Para 1(ii)
of the government order issued on 30 September 2012
clearly and in unambiguous terms states that the order shall
come into force prospectively. The government order can
be given retrospective application only if expressly
stated or inferred through necessary implication.
Therefore, the respondent -employees could not have
claimed a vested right that the enhancement in the age
of retirement should be made effective from the date on
which NOIDA had resolved to submit a proposal for t he
approval of the government.”
(Emphasis added)
18
15. The Hon‟ble Supreme Court clearly held in para 1 7 of
Dr.Prakasan M.P. ( 2 supra) as follows:
17. Such a decision lies exclusively within the domain of the
Executive. It is for the State to take a call as to whether the
circumstances demand that a decision be taken to extend the age
of superannuation in respect of a set of employees or not. It must
be assumed that the State would have weighed all the pros and
cons before arriving at any decision to grant extension of age. As
for the aspect of retrospectivity of such a decision, let us not
forget, whatever may be the cut -off date fixed by the State
Government, some employees would always be left out in the cold.
But that alone would not make the decision bad; nor would it be a
ground for the Court to tread into matters of policy that are best
left for the State Government to decide. The appellants herein
cannot claim a vested right to apply the extended age of retirement
to them retrospectively and assume that by virtue of the
enhancement in age ordered by the State at a later date, they
would be entitled to all the benefits including the monetary
benefits flowing from G.O. dated 9
th April, 2012, on the ground of
legitimate expectation.
16. Similarly, if the New Okhla Industrial Development Authority
(NOIDA) (3 supra) case is seen, it is clear that a similar fact situation
with regard to enhancement of retirement age was the core issue. In
para 17, the following is found:
17. The High Court while striking down para 1(ii) of the
Government Order dated 30 September 2012 to enhance the
age of retirement with prospective effect (para 1(ii) of the
government order makes this position clear) has directed
that the enhancement of the age of retirement must date
19
back to 29 June 2002. This direction giving retrospective
effect to the enhancement in the age of retirement seems to
be based on the fact that the original resolution of the Board
of NOIDA to enhance the age of retirement was issued on 29
June 2002. In granting this relief, the High Court has
formulated two reasons in its judgment:
firstly, the government order dated 30 September 2012 is
arbitrary for having increased the age of retirement with
effect from the date of the order without giving the benefit to
employees who had retired prior to that date;and secondly,
there was no reason to refuse the benefit of an extension of
the age of superannuation retrospectively when the
resolution was received by the State government “more than
three years back”.
17. The Hon‟ble Supreme Court also held as follows in paras 24 and
26:
24. Whether the decision to increase the age of superannuation
should date back to the resolution passed by NOIDA or should be
made effective from the date of the approval by the State
government was a matter for the State government to decide.
Ultimately, in drawing every cut-off, some employees would stand
on one side of the line while the others would be positioned
otherwise. This element of hardship cannot be a ground for the
High Court to hold that the decision was arbitrary. When the State
government originally decided to increase the age of
superannuation of its own employees from fifty-eight to sixty years
on 28 November 2001, it had left the public sector corporations to
take a decision based on the financial impact which would result if
they were to increase the age of superannuation for their own
employees.
20
26. The High Court's observation that the Government order on 30
September 2012 increasing the age of superannuation
prospectively is arbitrary seems to be based on the premise that
the respondent-employees have a vested right to the increase in
the age of retirement on the passage of the resolution by NOIDA.
However, Section 19 of the Act stipulates that regulations - which
would include amendments as in this case - will require the
previous approval of the State Government. The employees will
have a vested right to the increased age of superannuation only
after the service regulations are modified upon approval of the
State Government, and from such date as maybe prescribed by the
Government. Para 1(ii) of the government order issued on 30
September 2012 clearly and in unambiguous terms states that the
order shall come into force prospectively. The government order
can be given retrospective application only if expressly stated or
inferred through necessary implication. Therefore, the respondent-
employees could not have claimed a vested right that the
enhancement in the age of retirement should be made effective
from the date on which NOIDA had resolved to submit a proposal
for the approval of the government.
18. In addition, the law on the matter of this Courts power to
interfere in matters of policy decision is well settled. This Court does
not have either the expertise or wherewithal to decide the issue. The
issue of financial implication of the decision is also a matter which the
Courts will have to keep in mind and cannot ignore.
19. Therefore, if the decision taken to implement the enhancement is
viewed against the above mentioned legal and factual backdrop, it is
21
clear that it is a reasoned decision. No ground is pleaded or proved to
set it aside.
20. As far as the other argument of discrimination based upon
D.A.Nakara and others v. Union of India
6 is concerned, this Court
notices that a similar issue was also considered and decided in para
17 of this very same judgment that some employees would be left out
in the cold. So is the finding in para 24 of New Okhla Industrial
Development Authority (NOIDA) (3 supra).
21. Therefore, this Court has to hold that in view of the fact situation
in this case and the law on the subject, it cannot be said that the
action of the appellants in fixing the date of superannuation from
September 2019 is contrary to law. In addition, the petitioners were
seeking a Mandamus. A Mandamus would only arise when there is a
right. As held by the Division Bench in G.Rama Mohan Rao (1
supra) and the Hon‟ble Supreme Court in the above mentioned case,
the petitioners do not have a vested right to claim the relief. The relief
cannot be limited to the writ petitioners as the prayer is against a
decision/policy decision that is applicable to all employees.
22. For this reason also, this Court agrees with the submissions of
the appellants and holds that the order of the learned single Judge
has to be set aside. The two recent judgments of the Hon‟ble Supreme
6
(1983) 1 SCC 305
22
Court have also settled the legal position. It is clear that in cases of
enhancement of age of superannuation the petitioners cannot claim it
must be from a retrospective date.
23. The writ appeals are therefore allowed. No order as to costs.
As a sequel, the miscellaneous petitions if any shall stand dismissed.
__________________________
D.V.S.S.SOMAYAJULU, J
__________________________________
DUPPALA VENKATA RAMANA, J
Date: .09.2023
Note: L.R.Copy be marked.
KLP
Legal Notes
Add a Note....