2018 (1) TMI 1729 - HC - Indian Laws

Enhancement of retirement age of its employees to 60 years in a Board meeting - HELD THAT - The Government Order dated 30.9.2012 was arbitrary inasmuch as it increased the age of retirement from 58 to 60 with effect from 30.9.2012 and did not increase the age of retirement for such employees who had retired before 30.9.2012. In the first place, the Government should have acted instantly when the resolutions were received by it from the Noida Authorities and secondly we see no reason why it had refused to give the advantage of extension in age retrospectively when the Resolution was received by it more than three years back. Definitely clause 1(2) of the Government Order dated 30.9.2012 appears to be absolutely arbitrary inasmuch as it has prospectively applied the order dated 30.9.2012 by which it had allowed the Noida Authorities to extend the age of retirement. There are no reason why the clause 1(2) of the Government Order dated 30.9.2012 should be retained. Clause 1(2) of the Government Order dated 30.9.2012 is struck down and the Government Order dated 30.9.2012 shall apply retrospectively i.e. from the date the Resolution dated 29.6.2002 was passed. The petitioners shall be deemed to have worked with the Noida Authorities till the age of 60 years. They shall be given their arrears of salary which shall be calculated deeming that they had worked till the age of 60 years. Retirement benefit shall also be accordingly calculated. The writ petition is allowed.

Summary

Issues:
1. Enhancement of retirement age by Noida Authorities.
2. Delay in formal approval by State Government.
3. Legality of Government Order dated 30.9.2012.
4. Retrospective application of retirement age increase.

Issue 1: Enhancement of retirement age by Noida Authorities
The Noida Authorities, in line with various State agencies, raised the retirement age of its employees to 60 years in a Board meeting. The State Government had earlier amended the fundamental Rule 56(a) to enhance the retirement age from 58 to 60 for government servants. Despite initial considerations in 2002 and subsequent reminders in 2005 and 2009, the State Government did not provide formal approval. The matter was addressed in Writ Petition No. 48162 of 2010, directing Noida to reevaluate and refer the decision to the State Government for approval.

Issue 2: Delay in formal approval by State Government
The State Government delayed approving the retirement age increase from 58 to 60 for Noida Authority employees, despite resolutions passed by Noida Authorities since 2002. The State Government's inaction led to the petitioners seeking court intervention. The court directed the State Government to expedite the decision-making process, emphasizing the importance of considering Noida Authority's resolutions.

Issue 3: Legality of Government Order dated 30.9.2012
The Government Order dated 30.9.2012 raised the retirement age to 60 but applied it prospectively, excluding benefits for those who had retired earlier. The petitioners challenged clause 1(2) of the order, arguing that the retrospective application was necessary due to the State Government's delay in approval. The State Government defended the delay, citing its workload as a reason.

Issue 4: Retrospective application of retirement age increase
The court found the Government Order dated 30.9.2012 arbitrary in its prospective application and failure to provide benefits to employees who had retired before the order's effective date. The court deemed the clause 1(2) of the order as arbitrary and struck it down. The order was to apply retrospectively from the date of the initial resolution in 2002, ensuring that petitioners receive arrears of salary and retirement benefits as if they had worked until the age of 60 years. Ultimately, the writ petition was allowed in favor of the petitioners.