1. These two writ appeals arise out of the common judgment dated 03.09.2003 passed by the learned Single Judge in a batch of writ petitions. W.A.No.6812/2003 is filed by the Indian Telephone Industries Limited, Bangalore (hereinafter referred to as ‘ITI’, for short), whereas W.A.No.2024/2004 is filed by the employees of ITI.

2. ITI is a public sector undertaking of the Central Government established during the year 1948 which is functioning under the administrative control of the Union Ministry of Communications and Information Technology. It is a company registered under the Mysore Companies Act, 1938. It has seven manufacturing units located at different parts of the country. Three of its units are located in Uttar Pradesh, Two in Karnataka, and One each in Kerala and Jammu & Kashmir. The company was initially producing electro-mechanical products i.e., strowger and crossbar telephone exchanges. It gradually switched over to manufacture of state of art electronic telecom equipment.

3. The company has its certified Standing Orders. As per Clause 17(7) of the Standing Orders, the age of superannuation of the employees and officials of the ITI is fixed at 58 years, with a condition that the company may require an employee to retire at any time after he attains the age of 55 years by giving three months’ notice. An employee may also voluntarily retire after giving three months’ notice after attaining the age of 55 years. Provision is made for continuing in service upto the age of 60 years, subject to medical fitness. It is useful to refer to Clause 17(7) of the Standing Orders, which reads as under:

“17(7) (i) The age of Superannuation shall be 58 years but the Company, however, may require an employee to retire at any time after he attains the age of 55 years on three months’ notice without assigning any reasons;

(ii) The employee may also at any time after attaining the age of 55 years voluntarily retire after giving three months’ notice to the Company;

(iii) The employee who attains the age of 58 years may be continued in service upto the age of 60 years subject to medical fitness at the end of each year.”

4. The Central Government decided to enhance the age of retirement for the below board level employees of the Central Public Sector Enterprises. The Government of India, Ministry of Industry, Department of Public Enterprises, issued an Office Memorandum dated 19.05.1998 raising the age of retirement of the employees from 58 to 60 years. By another Office Memorandum dated 30.05.1998, the age of retirement of board level appointees in Central Public Sector Enterprises also came to be raised from 58 years to 60 years. The Ministry of Industry, Department of Public Enterprises made it clear vide Office Memorandum dated 21.08.1998 that the decision to raise the age of retirement was applicable to all the Public Sector Undertakings and in case, any Administrative Ministry or Public Sector Undertaking did not want to increase the age of retirement of its employees, specific exemption from operation of the aforesaid decision would be necessary. This Office Memorandum is produced at Annexure-B2 along with the writ petition. As per this Office Memorandum dated 21.08.1998 exemption from increase of age of retirement was provided to only that category of Public Sector Undertakings which were categorized as sick/unviable public sector undertakings and who did not wish to increase the age of retirement of their employees. They were permitted to seek specific exemption from the operation of the Government’s decision.

5. The Board of Directors of the Company at its 302nd meeting held on 27.05.1998 approved the amendment and additions to ITI Conduct, Discipline and Appeal Rules, 1975, regarding the age of retirement. Rule 35 was accordingly amended fixing the age of superannuation for employees of the Company at 60 years.

6. Later on, the Government, as per Office Memorandum dated 22.08.2001 issued by the Department of Pub