The court held that a Premature Retirement Scheme for unionized employees is illegal and violates principles of natural justice, as it only applies to officers and not workers under the Industrial Employment Act.

JUDGMENT :

Shampa Dutt (Paul), J.

1. The writ application has been preferred challenging the orders of the Certifying Officer and the Appellate Authority under the Industrial Employment (Standing Orders) Act, 1946 and set aside the G.R.S.E. Ltd. notice dated 12^th April, 2025 with regard to Premature Retirement Scheme for unionized employees and order dated 28^th June, 2018 passed by the Certifying Officer and an order dated 14th July, 2022 passed by the Appellate Authority and the Premature Retirement Scheme for unionized employees.

2. It is the case of the petitioner that on the basis of a purported approval of the Board of Directors, the company had applied on 18^th August, 2017 for modification of its Certified Standing Orders towards implementation of Premature Retirement Scheme in respect of workmen in lying with F.R. 56(1) of CCS (Pension) Rules, 1972.

3. The company had made the application for modification/amendment of the Certified Standing Orders with reference to decision of Government of India for Central Government employees who are beneficiaries of CCS (Pension) Rules, 1972 and are subject to fundamental Rules. The Union had filed its objection to the proposed amendment.

4. The Certifying Officer passed an order on 28^th June, 2018, inter alia, allowing the amendment/modification for Premature Retirement Scheme in respect of workmen/employees of G.R.S.E. Ltd.

5. The petitioner preferred an appeal before the Appellate Authority.

6. After hearing, the Appellate Authority had reserved the appeal for orders on 8th November, 2019. The petitioner/Union had complained against the officer to the Ministry of Labour & Employment for his conduct.

7. On 12^th April, 2025, a notice was flashed out by G.R.S.E. Ltd. disclosing a Premature Retirement Scheme for unionized employees. The petitioner through its office bearers thereafter contacted the HR Department of the company and they were handed over a copy of an order dated 14th July, 2022 passed by Dr. T.K. Panda. The petitioner made a representation dated 16^th April, 2025 against such Premature Retirement Scheme.

8. Being aggrieved with the said amendment/modification of Certified Standing Orders of G.R.S.E. Ltd. with regard to the Premature Retirement Scheme of the workers, the writ application has been preferred on the ground that the order under challenge has been passed in a non- transparent and biased manner and the same manifests total abdication of duty by the Appellate Authority under the Industrial Employment (Standing Orders) Act, 1946 in deciding an appeal.

9. The question of invoking the provision in lying with Fundamental Rules or CCS (Pension) Rules cannot arise since the service of the workmen of G.R.S.E. Ltd. are governed by statutorily laid down condition of service and industrial settlements which form parts of contract of employment.

10. The workmen of a public sector undertaking do not hold their office under the pleasure of the President and hence the concept of compulsory retirement cannot apply to their case.

11. The Certifying Officer and the Appellate Authority under the Industrial Employment (Standing Orders) Act, 1946 have both exceeded their jurisdiction.

12. It is the case of the learned senior counsel, Mr. Majumder, appearing for the petitioner that Section 3 provides for draft Standing Orders.

13. It is the further case of the petitioner, that vide an order dated 12.04.2025, a Premature Retirement Scheme-Unionized Employees, was issued/notified by the respondent company. The appellate authority in its order dated 14^th July, 2022, considered the prayer of the petitioner herein, who h