2016 LAB. I. C. 1409 ::2016 (1) KLT SN 113 (KER) ::(2016) 4 Lab LN 433

Kerala High Court

Hon'ble Judge(s): Ashok Bhushan, C. J., A. M. Shaffique , JJ

(A) Constitution of India Art. 309 — Kerala Land Development Corporation Limited Service Rules, R 21 — Age of retirement — Fixed as 55 years — Govt Corporation passed resolution for enhancement of age of its employees from 55 to 60 years — Refusal by State Govt to approve said resolution — Held, was proper The decision of the Govt. Corporation to enhance the age of retirement from 55 to 60 years obviously shall put financial burden on the State and State is fully competent to take a decision regarding approval or disapproval of the resolution of the Board of Directors of the Corporation. Any decision of the Corporation to change the service conditions, i.e., Rule 21 of the Service Rules, requires prior approval. The State Government has refused to approve the said decision. One of the reasons mentioned in latter is that the Corporation is running on loss meaning thereby that the State was not ready to bear the financial burden. There was thus no illegality in the decision of the State Government refusing to approve the resolution of the Corporation requesting for enhancement of retirement age.

(B) Employees Provident Funds and Misclenous Provisions Act (19 of 1952) S. 6 A — Employees Pension Scheme 1995, R 12 — Superannuation pension — Entitlement — Merely because it is admissible on attainment of 58 years — Does not oblige employers to fix age of 58 years for retirement of its employees It is the common knowledge that retirement age in different establishment and organization are not uniform and the retirement age varies from 55, 56, 58 and 60 years. The plea that since the Statutory Scheme provides 58 years as superannuation age, there should be retirement of all employees of different organizations as 58 years, would not be tenable as the date of retirement fixed in various organisations shall become redundant. The purpose of the 1995 Scheme is to extend the benefit of a Scheme framed by the Central Government under the 1952 Act to its members. The benefit under the Scheme is admissible to its members, who retired at 55, 56, 58 and 60 years. The mere fact that superannuation pension is defined in the Act as a pension which is admissible on the attainment of 58 years does not oblige all the employers to fix the age of retirement at 58 years. The object of the 1952 Act is provided for the aforesaid benefits and the Act did not intend to regulate the age of superannuation of empl