SHEELA Vs. THE STATE OF KERALA

JUDGEMENT

(1.) As the issue involved in all these writ petitions is the same, they are taken up together for consideration and disposed by this common judgment. For the sake of convenience, the reference to the facts and exhibits is from W.P.(C).No. 31222/2015.

(2.) The petitioners are employees of the Kerala Financial Corporation, which is a statutory corporation established in terms of the State Financial Corporations Act, 1951, [hereinafter referred to as the 'SFC Act']. Under Section 9 of the SFC Act, the general superintendence, direction and management of affairs and business of the Financial Corporation is to vest in a Board of Directors which is empowered to do all acts and things, as may be exercised or done by the Financial Corporation. Section 48 of the SFC Act enables the Board, in consultation with the Small Industries Development Bank of India, and with the previous sanction of the State Government, to make regulations to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of the Act. In exercise of the powers under Section 48 of the SFC Act, the respondent Corporation has framed the Kerala Financial Corporation Staff Regulations, 1966, providing for the terms and conditions of appointment and service of the staff of the Kerala Financial Corporation, and to provide for their duties, conduct and remuneration payable to them. As per Regulation 19 of the said Staff Regulations, 1966, every employee is to retire from the service of the Corporation on completion of 58 years of age, provided that in exceptional cases, the Board can consider the case of any particular employee for extension of service beyond the age of 58 years, or for re-employment thereafter, till he attains the age of 60 years. It would appear that, by Ext.P2 Board Resolution, dated 27.12.2014, the Board of Directors of the respondent Corporation, taking note of the enhancement of retirement age to 60 years in other Government companies and statutory Corporations, proposed an enhancement of the retirement age of permanent employees of the Kerala Financial Corporation also from 58 years to 60 years. The Resolution made it clear, however, that the decision therein was subject to approval from the Government. Thereafter, the respondent Corporation forwarded the proposal to the State Government, for its approval. By Ext.P4 communication dated 6.2.2015, the State Government rejected the request for enhancement of retirement age of employees, on the ground that the issue of enhancement of retirement age was a matter of policy, and the State Government had decided to continue the status quo with regard to the retirement age fixed for its employees under the Regulations. In the writ petitions, the aforesaid decision of the State Government is impugned inter alia on the ground that, in other Government companies and statutory Corporations, under the control of the State Government, the Government has chosen to enhance the retirement age of its employees to 60 years, and therefore, there ought not to be a disparity, in the age of retirement, when it comes to employees of the respondent Corporation alone. It is also pointed out that the decision of the Government in Ext.P4 was not based on a consideration of the relevant factors, and, hence, the said decision, even if stated to be a policy decision, is irrational, and liable to be set aside.

(3.) The writ petitions were admitted by this Court, and during the pendency of the writ petitions, pursuant to an interim direction issued from this Court, the State Government once again considered the matter of enhancement of retirement age of the employees of the respondent Corporation from 58 to 60 years, based on the proposal forwarded to them by the Board of Directors of the respondent Corporation. By an order dated 6.4.2016, produced as Ext.R2(b) along with the counter affidavit of the respondent Corporation, the Government, after considering all the relevant aspects, decided not to enhance the present retirement age of the employees of the Kerala Financial Corporation, and to maintain status quo with regard to the retirement age in the respondent Corporation, till further orders. Based on the said decision of the Government, the respondent Corporation, at its 583rd Board Meeting held on 28.6.2016, decided to revoke its earlier decision dated 27.12.2014 [Ext.P2], and maintain status quo in the matter of fixation of retirement age of employees under the respondent Board.