Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(Ker) 152

IN THE HIGH COURT OF KERALA AT ERNAKULAM
S.V.BHATTI, BASANT BALAJI, JJ.
Kerala State Beverages (Manufacturing And Marketing Corporation Limited) – Appellant
Versus
Jayan John – Respondent
WA Nos.1481 of 2015, CO 136, 180 of 2015, WA 1480 of 2015, WA 1515 of 2015, WA 1538 of 2015
Decided on : 27-02-2023

Advocates:
Advocate Appeared:
For the Appellant : SRI.P.GOPINATH (SR.), SRI.NAVEEN.T., adv
For the Respondent: SRI.SAJI VARGHESE

Point of Law: Denial or declaratory relief to only one segment of employees would be a violation of Article 14 of Constitution of India.

Headnote:
Companies Act 1956 - Kerala State Beverages (M&M) Corporation Ltd. Employees Service Rules 1986 - Rule 43 - Constitution of India, 1950 - Article 14 - Retirement of employees - Pay all monetary benefits – Enhancement of Retirement age - Declare that petitioners are entitled to all monetary benefits of pay and allowances - Direct respondents to pay all monetary and benefits to petitioners – Retirement orders do not stand scrutiny of law to deny back wages to retired employees. (Para 7.2.1.)
Finding of the Court :
On principle of law, retirement of employees is contrary to declaratory relief and illegal - Retirement orders do not stand scrutiny of law to deny back wages to retired employees - Cross Objections claim balance of 50% back wages as compensation from Beverages Corporation - In exercising discretionary jurisdiction of a Writ Court, learned Single Judge examined each of circumstances to mould relief – Court may hasten to add that while agreeing with retired employees' main argument, all relevant circumstances are noted in judgment under appeal - For limiting compensation to 50% of back wages, same approach is adopted by learned Single Judge - Having accepted consideration on first limb of judgment, Court accept second limb restricting compensation to 50% of back wages and confirm findings.
Result: Appeals dismissed.

JUDGMENT :

S.V. Bhatti, J.

The appellant is Kerala State Beverages (Manufacturing & Marketing) Corporation Limited, represented by its Managing Director/respondent no.2 in the batch of writ petitions. The appeals arise from the common judgment dated 10.04.2015 in W.P.(C) Nos.12990/2012, 627/2013, 16602/2013 and 22555/2013. The party respondents in the writ appeal were the employees of the appellant and were retired from service on attaining the age of 55 years. For convenience and consistency, the parties are referred to as Beverages Corporation, State Government and (retired) employees.

2. The parties admit the circumstances preceding the present litigation. The current round of litigation is a sequel to the earlier litigation involving the Beverages Corporation, the State Government, and the Employees of the Corporation. Therefore, it is helpful to refer to the following circumstances leading to the filing of W.P.(C) Nos.12990/2012, 627/2013, 16602/2013 and 22555/2013 in this Court by the employees claiming continuation in service till attaining the age of superannuation of 58 years as per the Resolution of the Board dated 27.05.2005 of the Beverages Corporation.

2.1 The Beverages Corporation is a company incorporated under the Companies Act 1956 and has the character and status of a fully owned government company. The Beverages Corporation is the sole licensee for the purchasing and selling of liquor and beverages in the State of Kerala. The Beverages Corporation, for the purpose of governing service conditions of employees, has ‘Kerala State Beverages (M&M) Corporation Ltd. Employees Service Rules 1986’ (for short, the Rules). Rule 43 deals with the age of retirement. As of 27.05.2005, Rule 43 reads as follows:

“43. Superannuation;

All employees shall retire from the service of the Corporation on the last day of the month in which he completes 55 years of age.”

2.2 On 27.05.2005, the Board of Directors of Beverages Corporation resolved to amend Rule 43 of the Rules and enhance the age of superannuation from 55 to 58. The Resolution of the Board reads thus:

“Item No: 1867(B): Retirement age of Employees in the Corporation.

The Board noted that the retirement age in the KSBC Service Rules is 55 years, while the retirement for employees in most of the Public Sector is 58 years. It is also noted that the full benefit of EPF pension will be available to the employees of KSBC only if contributions are made till the age of 58 years, for which a person has to remain in service till the age of 58 years. In due consideration to the representations made and the recommendations put forth in the Board, it was decided to recommend: raising the retirement age of the employee in the Corporation from 55 years to 58 years. The following resolution was passed.

"Resolved to recommend to Government the raising of retirement age in the Corporation from 55 years to 58 years as is followed in Public Sector Companies and place proposals before the government.”

As per the requirement of a Regulation or Understanding between the Beverages Corporation and the State Government, the Beverages Corporation, by letter dated 01.06.2005, requested the State Government to accept/approve the Resolution dated 27.05.2005, and facilitate suitable amendment to Rule 43.

2.3 The State Government, by G.O.(Rt) No.409/2005/TD dated 02.07.2005, rejected the proposal of the Beverages Corporation for enhancing the age of superannuation from 55 to 58 years for the employees working in the Beverages Corporation. The employees of the Beverages Corporation filed W.P.(C) No.36864/2003 and batch, and for convenience, we refer to the writ prayer, which reads as follows:

“a) issue a writ of certiorari or other appropriate writ order or direction to quash Ext.P6 issued by the 3rd respondent.

b) to issue a writ of mandamus or other appropriate writ order or direction directing respondents 2 to 4 to take steps for the implementation of the decision of the Board of Directors dated 27.3.2003 to