The rule-making authority has the power to make rules with retrospective operation, and the interpretation of a statutory provision by a court of law cannot preclude the rule-making authority from amending the rule at a subsequent stage.

1. It is on a reference made by the learned single judge that this case has been placed before the Division Bench for preliminary hearing. The petitioners have in this writ petition challenged the Notification issued by the State Government dated 17th June, 1988 and published in the Gazette of the same date, in exercise of the powers conferred by S.109 read with sub-section (3) of S.80 of the Kerala Co-operative Societies Act, 1969, (hereinafter referred to as the Act), substituting new R.200 for R.200 of the Kerala Co-operative Societies Rules, 1969, for short the Rules. The challenge is on the ground that the State has sought to annul the decision of this court reported in 1987 (2) KLT. 903 between P. Bhaskaran & Others v. Additional Secretary and Others by substituting new R.200. For the purpose of understanding the crux of the contentions it is necessary to set out the facts in brief as follows:

2. The societies registered under the Act had framed bye-laws regulating the terms and conditions of service of its employees. Bye-laws of some of the societies prescribe 60 years as the age of superannuation. Sub-section (3) of S.80 of the Act empowers the Government to make rules regulating the conditions of service of employees of different co-operative societies specified in sub-section (1). Invoking this power the rules were amended and the same came into force on the Ist of January, 1974. The entire Chapter XV regulating the conditions of service of employees of the societies was introduced for the first time by the said Notification. R.183 in Chapter XV deals with the age limit and sub-rule (2) of R.183 provides that no employee shall be eligible to continue in the service of a society after be attains the age of 58 years. If R.183 (2) alone was there the employees of all the societies who were in service on the Ist of January, 1974 when the amended rules came into force would be required to retire on attaining the age of 58 years irrespective of any provision to the contrary contained in the respective bye-laws of the societies. But there was a saving clause added under R.200 of the rules, which reads as follows:

"Savings-Nothing in these rules or any rules made thereunder shall operate to debar from enjoyment of any person or employee of any right or privilege of emoluments to which he is entitled by the term of any contract or agreement or conditions of service subsisting between such person and a co-operative society on the date on which these rules shall come into force. Nothing in these rules shall be interpreted as disqualification for promotion to a higher post and benefits conferred by these rules to the existing employees' of any co-operative society."

The Registrar of Co-operative Societies, who is the head of the Department, on interpreting R.200 came to the conclusion that the saving clause does not in any way save the rights of those who were governed by bye-laws providing for age of superannuation higher than 58 years. He issued, a Circular clarifying the legal position as understood by him for the benefit of all the co-operative societies.

3. The employees of some of the Co-operative Societies which had bye-laws providing for higher age of superannuation of 60 years apprehending that they would be required to retire on attaining the age of 58 years, approached this Court with writ petitions under Art.226 of the Constitution of India. Those cases were referred by a single judge to the Division Bench and the Division Bench in turn referred them to the Full Bench. The Full Bench rendered its decision which has since been reported in 1987(2) KLT 903 between P. Bhaskaran & Others v. Additional Secretary & Others. The Full Bench after considering all the contentions recorded its conclusions as follows:

"25. In all these cases, the short question is whether the petitioners are entitled to continue till they attain the age of 60 years as provided in the bye-laws prior to 1-1-1974, or only till they attain the