Siri Jagan, J.

This original petition is filed by the Managing Director of the Kerala State Civil Supplies Corporation Limited, challenging Ext.P8 order of the Kerala Lok Ayukta by which the Lok Ayukta held that the action of the Corporation in not allowing the 2nd respondent to continue in service as a Helper till he attains the age of 60 years amounts to mal-administration as defined under the Kerala Lok Ayukta Act and directing the petitioner to reinstate the 2nd respondent forthwith.

2. Before dealing with the issue involved, we must note the fact that in this original petition, there was an order of stay and, therefore, the order of the Lok Ayukta was not complied with. In the meantime, the 2nd respondent completed the age of 60 years and, therefore, the order is incapable of being complied with at this point of time. However, we further note that in C.M.P.No.47814 of 2001 filed by the 2nd respondent for vacating the interim order of stay, this court had made it clear that if the writ petitioner fails at the final hearing, the petitioner shall be liable to pay all benefits to the 2nd respondent for the period during which the stay operated. In the circumstances, it has become necessary to dispose of the original petition on merits. The facts necessary for disposal of this original petition are as follows:

3. The 2nd respondent was a Class IV employee of the petitioner-Corporation which is a fully Government owned Company registered under the Companies Act, 1956. At one point of time, considering his qualifications, the 2nd respondent was appointed as Driver in the Corporation with effect from 1-8-1996, in which post he was to undergo probation for a period of two years within a continuous period of three years. Since the performance of the 2nd respondent during the period of probation, even after the same was extended for a further period of six months, was not satisfactory, his probation was terminated and he was reverted to the post of Helper with effect from 15-3-1999. The normal retirement age in the Corporation was 58 years. The 2nd respondent was due to attain the age of superannuation on 31-12-1999. However, being an ex-serviceman, he claimed that he is entitled to continue in service till he attains the age of 60 years on the strength of a Government Order, namely, G.O.(P).535/90/Fin dated 25-10-1990, which stipulated that ex-servicemen who were in armed forces prior to 7-4-1970 and who has been appointed as last grade employees in the last grade service in the State after 7-4-1970 would be eligible for the benefit of a rule providing for continuation in service up to the age of 60 years, provided they continue to be in the last grade service. The petitioner-Corporation entertained a doubt as to whether this benefit would be applicable to the 2nd respondent in so far as for a brief period, he was actually working as Driver, which did not come in the last grade service. Therefore, by Ext.P2 letter, the Corporation sought the opinion of the Principal Secretary to Government in the matter. By Ext.P3 clarification, the Government informed the Corporation that they have examined the matter in detail and agreed to the proposal to extend the service of the 2nd respondent till he attains the age of 60 years as a special case in relaxation of the Rules. However, in spite of the said clarification, the 2nd respondent was not allowed to continue in service beyond 31-12-1999 when the second respondent attained the age of 58 years.

4. The 2nd respondent thereupon filed a complaint before the Lok Ayukta complaining of mal-administration in the matter of non-compliance of the directions of the Government by the petitioner Corporation. Accepting the case of the 2nd respondent, the Lok Ayukta found that the refusal of the Corporation to obey Ext.P3 order of the Government and ordering retirement of the 2nd respondent before attaining the age of 60 years constitute mal-administration as defined under the Lok Ayukta Act and