G. Rama Mohan Rao vs Government of Andhra Pradesh, rep, by its Principal Secretary and Chairman, Agricultural, Marketing and Cooperative Department, Secretariat, Hyderabad

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2017 Supreme(AP) 64

IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
Ramesh Ranganathan and U. Durga Prasad Rao, JJ.
G. Rama Mohan Rao & Anr. - Petitioners
Vs.
The Government of Andhra Pradesh, rep, by its Principal Secretary and Chairman, Agricultural, Marketing and Cooperative Department, Secretariat, Hyderabad & Anr. - Respondents
Writ Petition Nos. 18205, 21660, 40864 of 2014; 10993, 15286, 16870, 17215, 17254, 17349, 18395, 18505, 18660, 18813, 19030, 19256, 20279, 22432, 22866, 24885, 24914, 24924, 25192, 25350, 26781, 27048, 27312, 27330, 33371, 39193, 41047, 41348, 41432, 42400 of 2015; 720, 727, 740, 796, 846, 918, 2292, 2828, 5071, 10476, 10620, 10670, 11120, 12468, 14344, 14668, 14679, 14750, 14916, 15204, 15361, 15518, 15548, 15717, 15741, 15893, 16313, 16453, 16774, 16821, 16834, 16925, 17422, 17426, 17489, 17845, 17847, 17852, 17865, 17876, 18057, 18138, 18525, 18539, 18627, 18640, 18706, 18736, 18757, 18789, 18791, 18792, 18798, 18815, 18817, 18945, 18993, 19161, 19162, 19172, 19239, 19246, 19320, 19983, 19990, 19993, 20038, 20045, 20060, 20077, 20228, 20275, 20379, 20381, 20452, 20495, 20814, 20815, 20836, 20845, 20849, 20876, 20898, 20989, 21127, 21132, 21135, 21287, 21315, 21437, 21584, 21638, 21675, 21678, 21757, 21808, 21826, 21833, 21836, 21847, 21875, 21890, 22054, 22112, 22174, 22206, 22282, 22449, 22505, 22544, 22587, 22590, 22634, 22891, 23376, 23380, 23503, 23505, 23515, 23540, 23602, 23684, 23780, 23808, 23861, 24029, 24062, 24122, 24142, 24210, 24213, 24363, 24661, 24703, 24722, 24754, 24786, 24916, 25192 and 25201 of 2016
Decided On : 07-03-2017

Advocates Appeared:
For the Petitioners: M. Surendra Rao, G. Vidyasagar and K.G Krishna Murthy, K. Lakshmi Narasimha, Vedula Srinivas, O. Manohar Reddy, J. Sudheer, Subrahmanyam Kurella, Srinivasa Rao Madiraju, C. Subodh, Smt. M. Shalini, A. Venkata Ramaiah, Dadi Radha Krishna, Ch. B.R.P Sekhar, G. Maloji Rao, Karri Suryanarayana, Kowturu Pavan Kumar, Karri Murali Krishna, M. Ramgopal Rao, N. Pramod, G. Vijaya Babu, K. Chidambaram, A. Bhaskara Chary, K. Jayasree, K. Vijayakumar Reddy, D. Linga Rao, K.S Murthy, Rama Rao Mavidi, K. Udaya Sri, K. Raghuveer Reddy, M.N Narasimha Reddy, P.C Aravinda Babu, Nayakawadi Ramesh, Challa Srinivasa Reddy, V. Padmanabha Rao, E.V.V.S Ravi Kumar, M. Subba Reddy, M.V Hanumantha Rao, Shaik Shakeel Ahmad, M. Karthik Pavan Kumar, K. Rammohan Mahadeva, M.V Raja Raam, A. Rajendra Babu, K.R Srinivas and V. Sudhakar Reddy
For the Respondents: B. Narayana Reddy, Soma Harinath Reddy, K. Satya Srinivasa Rao, M. Ravindranath Reddy, P. Sudhakar Reddy, T. Sudhakar Reddy, Nadakuditi Ravi Shankar, B. Prakasam, B. Thimothi, Banda Prasada Rao, K. Ramanuja Chari, A. Anasuya, Mummaneni Srinivasa Rao, A. Jayanthi, T. Venkta Raju, Uma Shankar Lokanadham, Kalamata R. Babu, K. Santhosh, P. Roy Reddy, Y. Sudhakar Reddy, A. Yadava Reddy, P.B Vijay Kumar, P.V.V Satyanarayana, M. Papa Reddy, Tadi Nageswara Rao, Jagarlamudi Koteswari Devi, N. Siva Reddy, N. Ravi Prasad, V.T.M Prasad, Akula Anil Srinivas, P. Subash, J.S Raju, Gangula Ashok Kumar Reddy, R. Radha Krishna Reddy, A.K Jaya Prakash Rao, K.R Raman, K.C Venkata Reddy, M. Siva Jyothi and K. Indra Reddy

Headnote:
Constitution of India - Articles 226, 309, 311, 12, 162, 371-D, 310, 312, 315, 191(1)(a), 233, 141, 154, 162, Articles 2 to 4, 261, 4(1), Articles 32 and 142 - Board of Directors/managing Committees are vested with the power to frame and have been framing rules/regulations regarding service conditions of employees working in their organisation - Boards have been following Government norms, in framing service conditions of these employees from time to time there are specific provisions in the Articles of Association of the PSUs, that any action or decision taken by the Directors in the exercise of the powers vested in them under the Articles of Association Memorandum of Association and the Companies Act shall prevail and the shareholders in their general meeting cannot annul such decision of the Directors Section 291(2) of the Companies Act, 1956 may be referred to in this regard though the Government as the shareholder of the respective PSUs, is vested with the power to issue any directive under the Articles of Association to the company in regard to any matter and, in such a case the Directors of the company are bound to implement such directives the Government is not entitled to invoke the said Article in the Articles of Association to alter modify or annul the resolution of the Board of Directors proposing enhancement of the age of superannuation from years to its employees having delegated powers to the Board of Directors, under the Articles of Association to frame service conditions for the employees working in the respective companies, the Government as a shareholder is not entitled to encroach and divest the Board of Directors of their power to frame service conditions of their employees; and, as the employees working in the PSUs are employees the Government is not entitled to curtail the benefit or deny the benefit to employees working in the PSUs while acting as the shareholder of the company - Department stated that the Government of Andhra Pradesh enhanced the age of superannuation of Government employees from years the Andhra Pradesh Public Employment Act was amended by the Andhra Pradesh Public Employment G.O.Ms dated issued by the Finance Department applies only to Government employees; Employees associations of certain public sector undertakings, and institutions listed in the Ninth and Tenth Schedules of the Central Act - Held, Legal entities amending its rules/regulations/bye-laws, governing the age of superannuation and without the prior approval of the sole/majority shareholder the State Government as required under the Articles of Association/byelaws of these legal entities - As the Rules and Regulations, by which the petitioners are governed stipulate years as the age of retirement these employees cannot claim any right to continue in service till they attain the age of years - It is only if the request of these Companies/Corporations/Societies for amendment of its byelaws/rules and regulations are approved by the State Government, and the rules/byelaws/regulations are amended thereafter in accordance with law would their employees then be governed by the enhanced age of superannuation prescribed under the Rules/bye-laws - Committees of these wholly or substantially government owned Companies/Corporations/Societies have submitted proposals the State Government is obligated to consider the request of each of these corporations/ companies/societies separately, based on their financial position genuineness of their need to enhance the age of superannuation and then take a decision whether or not their request to enhance the age of superannuation of their employees from years should be approved - Suffice it if the Government of A.P is directed to consider the proposals submitted by each of these corporations/societies/companies, for enhancement of the age of superannuation from 58 to 60 years in accordance with law and take a decision thereupon at the earliest in any event not later than four months from the date of receipt of a copy of this order - Petitions are accordingly disposed - Ordered Accordingly.

ORDER :

RAMESH RANGANATHAN, J.

In these batch of Writ Petitions the petitioners, who are all employees of Corporations/Companies/Societies/Institutions, listed in the IX and X Schedule of the A.P Reorganisation Act, 2014 (the 2014 Central Act for short), have invoked the jurisdiction of this Court, under Article 226 of the Constitution of India, to declare the orders issued by the Government of Andhra Pradesh, in G.O.Ms No. 112 dated 18.06.2016 keeping in abeyance the earlier orders issued by them, enhancing the age of superannuation of employees of public sector undertakings under the administrative control of the Government from 58 to 60 years, till formulation of a policy regarding extension of the age of superannuation of such employees, as arbitrary and illegal. The petitioners seek a declaration from this Court that they are entitled to continue in service till they attain the age of superannuation of 60 years.

2. The corporations/companies/societies, of which the petitioners are employees of, are categorized as (a) Corporations/Companies listed under the IX schedule; (b) Societies/ Cooperative Societies under the IX schedule; (c) other institutions in the IX schedule; (d) societies listed in the X schedule; and (e) other institutions listed in the X schedule.

(a) Companies and corporations listed under the IX schedule are:—

(1) A.P Seeds Development Corporation (entry 1 of the IX schedule).

(2) AP State Agro Industries Development Corporation (entry 2 of the IX schedule)

(3) AP State Warehousing Corporation (entry 3 of the IX schedule).

(4) AP State Civil Supplies Corporation (entry 4 of the IX schedule).

(5) AP TRANSCO/GENCO (entry 6 of the IX schedule).

(6) New and Renewable Energy Development Corporation of AP (entry 8 of the IX schedule).

(7) AP Forest Development Corporation (entry 9 of the IX schedule)

(8) AP State Police Housing Corporation (entry 12 of the IX schedule).

(9) AP State Housing Corporation (entry 13 of the IX schedule).

(10) AP Mineral Development Corporation (entry 16 of the IX schedule).

(11) AP Industrial Infrastructure Corporation (entry 17 of the IX schedule).

(12) AP State Finance Corporation (entry 19 of the IX schedule).

(13) AP Handicrafts Development Corporation (entry 21 of the IX schedule).

(14) AP Trade Promotion Corporation (entry 22 of the IX schedule).

(15) AP State Irrigation Development Corporation (entry 23 of the IX schedule).

(16) AP State Minority Welfare Finance Corporation (entry 24 of the IX schedule).

(17) AP State Beverages Corporation (entry 25 of the IX schedule).

(18) AP Education And Welfare Infrastructure Development Corporation (entry 77 of the IX schedule).

(b) Societies/Co-operative Societies listed under the IX schedule are:—

(19) AP Co-Op Oil Seeds Growers Federation (entry 45 of the IX schedule).

(20) AP Women Co-Op Finance Corporation (entry 59 of the IX schedule).

(21) AP Defirmity Abled Senior Citizen Assistance Corporation (entry 60 of the IX schedule).

(22) AP Society for Training and Employment Promotion (entry 66 of the IX schedule).

(23) AP Girijan Co-Op Corporation (entry 75 of the IX schedule).

(24) AP Schedule Caste Co-operative Finance Corporation (entry 78 of the IX schedule).

(25) AP Backward Classes Co-Operative Finance Corporation (entry 79 of the IX schedule).

(26) AP Khadi Village Industries Board (entry 51 of the IX schedule).

(d) Societies listed under the X Schedule are:

(27) AP State Co-Op. Union Limited (entry 1 of the X schedule).

(28) Society for Elimination of Rural Poverty (entry 37 of the X schedule).

(29) AP Residential Education Institution Society (entry 41 of the X schedule).

(30) AP Social Welfare Residential Education Institution Society (entry 42 of the X schedule).

(31) AP Backward Classes Residential Education Institution Society (entry 48 of the X schedule).

(32) AP Tribal Welfare Residential Education Institution Society.

(e) Other Institutions listed under the X Schedule are:—

(33) Board of Intermediate Ed

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