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2017 Supreme(AP) 761
IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
V. RAMASUBRAMANIAN, M. GANGA RAO, JJ.
Lankapalli Chinna Reddappanaidu, S/o. L. Ramachandra Naidu - Appellant
Versus
State of A.P. rep. by its Special Chief Secretary, (Agriculture & Co-operation), A.P. Secretariat - Respondent
WRIT APPEAL No.1425 of 2016 And W.A.M.P.No.2659 of 2017
Decided On : 28-12-2017
For the Appellants : Mr. K.V. Simhadri
For the Respondent: Mr. V. Kishore S.C for APSCBL
Headnote:
Writ petition - Banking Regulation Act, 1949 - A.P. Cooperative Societies Act, 1964 - Andhra Pradesh Re-organisation Act, 2014 - Andhra Pradesh Public Employment Act, 1984 - Section 3(1) - Service - Persons, who were employed in the managerial cadre of the Andhra Pradesh State Cooperative Bank Limited filed a writ petition challenging a resolution of the Board of Directors of the Cooperative Bank by which the management of the Bank took a policy decision to retain the age of superannuation of the employees, other than subordinate staff, at 58 years - Held, Appellants retired on attaining 58 years of age or after the expiry of the interim orders - Decision to enhance the age of superannuation with prospective was taken - It will certainly not be financially viable for any institution of commercial nature, to take back into service, the employees who went out during the period - By its very nature, any decision either to enhance the age of superannuation or to reduce the age of superannuation cannot be passed with retrospective effect - Therefore, Court find nothing wrong in the action of the third respondent Bank in implementing the decision to enhance the age of retirement only prospectively - First of all, the appellants or any other employee would have no right to compel the employer to enhance the age of superannuation merely because it has been done in other organisations - Appellants will have to establish a right vested in them in law to seek such a mandamus - Since there is no such right, the learned single Judge was right in dismissing the writ petition - Petitions dismissed. (Para 42)
V. RAMASUBRAMANIAN, J.
1. Persons, who were employed in the managerial cadre of the Andhra Pradesh State Cooperative Bank Limited (the 3rd respondent herein), filed a writ petition in W.P.No.28014 of 2016, challenging a resolution of the Board of Directors of the Cooperative Bank dated 26.07.2016, by which the management of the Bank took a policy decision to retain the age of superannuation of the employees, other than subordinate staff, at 58 years. They also sought a declaration that they are entitled to continue up to the age of 60 years on par with similarly placed employees of all Public Sector Banks and other Financial institutions as well as the employees of the State Government of Andhra Pradesh. The writ petition was dismissed by the learned Judge, at the stage of admission, forcing the employees to come up with the above writ appeal.
2. Heard Mr. K. V. Simhadri, learned counsel for the petitioners, the learned Government pleader for Services (A.P) and Mr. V. Kishore, learned Standing Counsel for the Andhra Pradesh State Cooperative Bank.
3. The A.P. State Cooperative Bank Limited, was established by an Act of the State Legislature under the A.P. State Cooperative Bank (Formation) Act, 1963, by amalgamating two banks, viz., Andhra Pradesh State Cooperative Bank, Vijayawada and Hyderabad Cooperative Apex Bank Limited, Hyderabad. After the advent of the A.P. Cooperative Societies Act, 1964, the Bank is deemed to be a society registered under this Act as a Financing Bank and the provisions of the Banking Regulation Act, 1949 and the Banking Laws (Application to Cooperative Societies) Act, 1965, are applicable.
4. Upon the bifurcation of the composite State of Andhra Pradesh, w.e.f. 02.06.2014 under the Andhra Pradesh Re-organisation Act, 2014, the State of Andhra Pradesh issued Act No.4 of 2014, amending the Andhra Pradesh Public Employment (Regulation of Age of Superannuation) Act, 1984. Though the said Act No.4 of 2014 received the assent of the Governor on 27.06.2014 and it was published in the Government Gazette on 27.06.2014, the Act was given effect from 02.06.2014, the date of bifurcation.
5. Under Section 2 of Amending Act No.4 of 2014, Section 3(1) of the 1984 Act was substituted with a new provision providing that the age of retirement of every Government employee will be 60 years.
6. The moment the State Government enhanced the age of superannuation of the Andhra Pradesh State Government employees from 58 to 60 years, the employees of Public Sector Undertakings started making a demand. In fact, the Board of Directors of the 3rd respondent-Bank also made an attempt, in its meeting held on 28.06.2014, to consider the enhancement of the age of superannuation. But the same was dropped purportedly on the basis of Rule 28(6) of the A.P. Cooperative Societies Rules, 1964, which stipulates that notwithstanding anything contained in the Bye-laws/service regulations of the cooperative societies, every paid servant and officer other than those in the last grade service shall retire on attaining the age of 58 years. Therefore, the Board, in its meeting on 28.06.2014 dropped the proposal to enhance the age, on the ground that so long as Rule 28(6) read with Rule 28 (4) (c) was in force, it was not possible for the Board to take a decision.
7. It appears that steps were taken thereafter by the Registrar of Cooperative Societies to have the Rules amended. But the proposal to amend the Rule was turned down, on the short ground that Section 115-D (2) (iv) gave autonomy to cooperative societies in the matter of Personnel Policy, Staffing etc.
8. Therefore, the State directed the Registrar of Societies, by a Memo dated 23.05.2015 to take action in accordance with law.
9. In the meantime, de-merger of the erstwhile Andhra Pradesh State Cooperative Bank took place on account of the bifurcation of the State and a new Cooperative Bank known as Telangana State Cooperative Apex Bank Limited was formed w.e.f 02.04.2015. The A.P. State
