PSU Employees Nearing Superannuation Can't Seek To Continue In Service Until Govt Takes Formal Decision To Enhance Retirement Age: Kerala HC

The Division Bench of Justice Anil K.Narendran And Justice Muralee Krishna S. however did not interfere with the single judge's decision insofar as it ordered the State government to direct the Expert Committee to submit its report.

“A uniform approach with respect to the retirement age of the employees of different PSUs cannot be adopted by the expert committee as well as the Government. In such circumstances, the petitioners in the respective writ petitions are bound by the rules that are applicable to them as on the date of their respective dates of superannuation. An Employee cannot expect that the Government will take the decision in a particular manner, on the proposal made by the PSU concerned. It completely depends on the study report of the expert committee constituted and also several other socio economic aspects under consideration of the Government. An employee cannot claim the benefit of a decision that is not yet taken by the Government.”

Background

While disposing of the writ petition, the single judge allowed employees of various PSU's to continue in their posts, regardless of their retirement age, until the government made a decision based on the expert committee's report on raising the retirement age from 58 to 60 years. The single judge also directed expert committee constituted to study the feasibility of enhancement of the retirement age and to submit a report within four months. The Single judge permitted their continuation in service and permitted them to draw their current wages and clarified that their employment would depend on the expert committee report and the final decision of the government.

Aggrieved by the order in the writ petition, State moved the writ appeal.

The State contended that age of superannuation is a policy matter of the government and until government takes a decision, an employee cannot claim it as a matter of right. It was argued that the prevailing rule at the time of an employee's superannuation should apply, meaning they cannot claim the benefits of a future rule that would raise the retirement age to 60. It was further argued that constitution of an expert committee by the study to study the feasibility of retirement age of PSU employees by itself would not entitle the employees to file a writ petition.

The Court was also apprised that the government has decided to constitute an expert committee to study the enhancement of retirement age on a case by case basis of different PSU's. It was also stated that service condition of each PSU was different and there was no violation of Article 14.

The Court noted that the present retirement age of employees of the Kerala Livestock Development Board Feeds Ltd. is 58 years and they preferred a proposal to the government for enhancing it to 60 years. It noted that the government constituted an expert committee and decided to implement recommendations of the committee for enhancing the retirement age but kept it pending since another expert committee was constituted to conduct a case to case study of different PSU's like KSEBL, KSRTC, and KWA.

Relying upon various precedents, the Court observed that fixation of retirement age and its extension is a policy decision of the government.

“A scrupulous analysis of the decisions referred above would make it clear that the enhancement of the retirement age is a policy decision of the Government. By invoking extraordinary jurisdiction of this Court under Article 226 of the Constitution of India, as a matter of right an employee cannot seek a direction against the Government to take that policy decision in a particular manner. Similarly, the law which was in force on the date of retirement was applicable to the employees. Further, an employee in service cannot claim promotion as a matter of right.”

The Court observed that so far the government has not taken a decision for enhancing the retirement age. It observed that the government has only constituted an expert committee to study the feasibility of the recommendations on a case-to-case basis. As such, the Court concluded that until the government takes a final decision regarding the retirement age enhancement, PSUs cannot claim the benefit of proposals submitted by their Boards to the government.

As such, the Court allowed the writ appeals in part by setting aside the order of the writ petitions to the extent to which it permitted petitioners to continue in their service, regardless of their retirement age.

Case Title: State of Kerala v Dr Jyothish Kumar V& Connected Cases

Case No: WA NO. 1445 OF 2024 & Connected Cases

Citation: 2025 LiveLaw (Ker) 93

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