2018 Supreme(Gau) 1570
IN THE HIGH COURT OF GAUHATI, ITANAGAR BENCH
Rumi Kumari Phukan, J.
Tony Koyu – Appellant
Vs.
State of Arunachal Pradesh and Ors. – Respondents
WP(C) No. 156 (AP) of 2018
Decided On : 24-07-2018
For the Appellant :Tony Pertin, K. Saxena, U. Bori, R.L. Thungon, Y. Riram, H.K. Jamoh, M. Pertin and G. Taloh, Advocates
For the Respondent: S. Tapin, G.A.
Headnote:
Constitution of India, 1950 - Articles 226, 309, 311 and 14 - Companies Act - Sections 619 and 620 - Government Servants - Petitioner herein was appointed as a Assistant General Manager Arunachal Pradesh Industrial Development and Financial Corporation Ltd Govt of undertaking by Managing Director of APIDFC - Thereafter he was promoted as General Manager and also appointed as a Managing Director of Corporation on usual pay and scale as per rules - Appointment of Managing Director is regulated under relevant provision contained in Memorandum of Association and Articles of Association of APIDFC - Official date of birth of petitioner and as he has been appointed by Govt providing all service benefits hence according to petitioner he is a Govt servant for all purpose and in terms of government notification retirement age of every Govt servant has been fixed but petitioner has now been suddenly released by Commissioner Industries Govt by order from his service on attaining age of superannuation - Held, Legal position of government company is that its identity remains distinct from Government - government company is not identified with union but has been placed under a special system of control and conferred certain privileges by virtue of provisions contained - Merely because entire shareholding is owned by Central Government will not make incorporated company part of Central Government - It is also equally well settled that employees of government company are not civil servants and so are not entitled to protection afforded - Since employees of government companies are not government servants they have absolutely no legal right to claim that Government should pay their salary or that additional expenditure incurred on account of revision of their pay scale should be met by Government - Reiterating same position it has been held that merely because public sector undertakings are instrumentalities of State does not make its employees government servant - As employee of public sector undertaking and government servant constitute two different and distinct classes neither do conditions of service prescribed for government servants automatically apply to employees of public sector undertaking nor does plea of discrimination or violation - Writ petition stands dismissed accordingly.
Rumi Kumari Phukan, J.
1. Heard Mr. T. Pertin learned counsel appearing on behalf of the petitioner.
Also heard Mr. S. Tapin, learned Senior Govt. Advocate appearing on behalf of the State respondents No. 1 and 2 and Mr. N. Sharma, learned counsel appearing on behalf of the respondent No. 3.
2. The petitioner herein was appointed as a Assistant General Manager, Arunachal Pradesh Industrial Development and Financial Corporation Ltd. (in short APIDFC), Govt. of Arunachal Pradesh undertaking on 12.05.1993, by the Managing Director of APIDFC. Thereafter, he was promoted as General Manager in the year 2006 and also appointed as a Managing Director of the Corporation on usual pay and scale as per rules. The appointment of Managing Director is regulated under the relevant provision contained in Memorandum of Association and Articles of Association of APIDFC. The official date of birth of the petitioner is 18.3.1960 and as he has been appointed by the Govt. of Arunachal Pradesh providing all the service benefits, hence, according to the petitioner, he is a Govt. servant for all the purpose and in terms of the government notification, AR-68/2010, dated 28.10.2018, the retirement age of every Govt. servant under the Govt. of Arunachal Pradesh has been fixed as 60 years but the petitioner has now been suddenly released by the Commissioner, Industries, Govt., of Arunachal Pradesh, by order dated 29.03.2018 from his service w.e.f. 31.03.2018 on attaining the age of superannuation. Challenging the aforesaid order of the Commissioner, the present writ petition has been preferred under Article 226 of the Constitution for issuance of writ of certiorari and or mandamus for a direction to the authority to consider his date of superannuation as on 31.03.2020, at the age of 60 years in terms of the government notification AR-68/2010, dated 20.10.2017. Further contention that has been raised that he was not served with any prior notice of impending superannuation by the department to prepare his future course and he has been deprived of his legitimate right. Further it contends that the APIDFC is the corporation under the government of Arunachal Pradesh and is controlled and finance by the government. Although corporation was created as a separate entity under the Memorandum of Association and Articles of Association and incorporated under the Companies Act, there is no separate service and conduct rules governing the service condition of Director and the Managing Director of the Corporation. The Memorandum and Articles of Association of APIDFC is silent on the same and all the service rules of central government have been adapted by the State of Arunachal Pradesh like CCS (CCA) Rules 1965, CCS (conduct) Rules 1964. According to the petitioner as he, has been appointed as per Article 68 and 69 of the Memorandum of Association, APIDFC, by the Governor of Arunachal Pradesh and therefore, service conditions applicable to the government servants shall be equally applicable to him. The petitioner being appointed as Director is stated to be out of administrative control of the corporation and even if there is any separate service rule in the APIDFC, the same would not cover the petitioner. Referring to office note, dated 22.03.2018, with proposal for extending the benefit of retirement age in terms of the Government Notification No. AR-68/10, dated 20.10.2017, which was placed before the Managing Director, who has made an observation "as per government order"; it has been contended that the effect of aforesaid notification has been approved by the competent authority and therefore retirement age of 60 years will be applicable to the petitioner.
3. Both the State respondents as well as the Managing Direction, APIDFC in their affidavits took similar stand that the petitioner was a employee under the corporation and his salary etc. was given by the company and he was given appointment by the Governor of Arunachal Pradesh in terms of Article 68-69 of t