The State Government has the discretion to accept or modify the U.G.C. Scheme, and teachers can only receive benefits from the Scheme to the extent it is accepted by the State Government and concerned Universities.

1. The Judgment of the Court was delivered by Pasayat, C. J.-These appeals are directed against Judgment of learned Single Judge holding that the Scheme adopted by the State Government was applicable to the petitioners in the Original Petitions who are Professors in various private colleges and fixation of their age of retirement at par with the employees of the State Government is in order to their case. The dispute is whether Scheme adopted by University Grants Commission (in short 'U.G.C'. is applicable so far as age of retirement is concerned. Reliance was placed on a decision of the apex Court in George v. State of Kerala (1) to hold so.

2. According to learned counsel for appellants, learned Single Judge did not notice the distinguishing features available in the present ease. According to him, the decision in George's case (1) supra, relates to the University Grants Commission Scheme, 1986 (hereinafter referred to as 'Scheme of 1986'). It is submitted that so far as the present case is concerned, the same is not in conformity with the Scheme contemplated by U.G.C. Strong reliance is placed on a letter of the U.G.C. addressed to the State Government, wherein it was specified as to the areas where there is scope for departure.

3. The following portion of the letter dated 24th December 1998 addressed to the Vice Chancellor of all the Universities and Education Secretaries of all the States/Union Territories was emphasised upon:

"5.0 The University Grants Commission expects that the entire scheme of revision of pay scales, together with all the conditions attached to it, would be implemented by the State Governments as a composite scheme without any modifications, except the date of implementation and the scales of pay as indicated in Government of India notification, No. F. 1-22/97-U.L dated 27th July 1998, 22nd September 1998 and 6th November 1998. It shall be necessary for the Universities and the management of Colleges to make the necessary changes in their statutes, ordinances, rules, regulations, etc. to incorporate the provisions of this scheme."

By way of elaboration it was stated that the only aspect where the State Government could have a role to play would be the date of implementation and the scales of pay and nothing beyond it.

4. Learned counsel for the State referred to several portions of the Scheme introduced by State which according to him brings out the essence of the scheme and the position vis a vis the U.G.C. Scheme itself.

5. In Clause.13. 1. of State's Scheme age of retirement is dealt with and it is stated therein that retirement age will continue to be as per the existing rules in the State Government. Retirement benefits and leave Rules are also dealt with in Clause.13. 2 and 14. 1 respectively. The retirement benefits as per the said scheme is applicable to College/University teachers including Physical Education teachers as per the existing pension rules under the State Government and Leave Rules in Kerala Service Rules, 1959 (in short 'K.S.R.') will be applicable to the teachers, etc. The order of the Government dated 21st December 1999, inter alia, indicated as follows:

"Government of India in their letter fourth cited have informed that the Central Government have decided to continue to provide financial assistance to the State Governments who wish to adopt and implement the U.G.C. scheme 1998 including revision of pay scales to College/University teachers/Physical Education teachers/Librarians in the State subject to the following terms and conditions.

(a) The Central Government will provide financial assistance to the State Governments which have opted for these revised pay scales to the extent of 80 per cent of the additional expenditure involved in the implementation of the revision.

(b) The State Governments will meet the remaining 20 per cent of the expenditure from their own sources.

(c) The financial assistances indicated above, would be provided for the period from 1st January 1996 to 31st Mar

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