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High Court Of Rajasthan
Judgename : M.B.Sharma
G.P.MISHRA - Appellant
Versus
STATE OF RAJASTHAN - Respondent
S. B. Civil Writ Petition 2609 Of 1989
Decided On : 05/26/1992
RETIREMENT AGE - CENTRAL CO-OPERATIVE BANK - PREMATURE RETIREMENT - AGE OF RETIREMENT IS 58 YEARS - PREMATURE RETIREMENT CAN BE MADE ONLY IN EXTRAORDINARY CIRCUMSTANCES AND IN PUBLIC INTEREST - POWER TO RETIRE PREMATURELY IS ANALOGOUS TO THE POWER OF COMPULSORY RETIREMENT OF GOVERNMENT EMPLOYEES AS CONTAINED IN RULE 244 (2) OF RSR - PREMATURE RETIREMENT CAN BE MADE ONLY AFTER OBTAINING THE APPROVAL OF THE REGISTRAR - ORDER OF PREMATURE RETIREMENT WITHOUT THE APPROVAL OF THE REGISTRAR IS INVALID.
Fact of the Case:
The petitioners, employees of Central Co-operative Banks, were prematurely retired before reaching the age of 58 years, the retirement age for employees of Central Co-operative Banks. The petitioners challenged their premature retirements on the grounds that they were made without jurisdiction, were not in the interest of the Banks, and were arbitrary and malafide.
Finding of the Court:
The Court held that the age of retirement for employees of Central Co-operative Banks is 58 years, but an employee could be retired prematurely after attaining the age of 55 years only in extraordinary circumstances and in public interest. The Court further held that the power to retire prematurely is analogous to the power of compulsory retirement of government employees as contained in Rule 244 (2) of RSR, which power can be exercised in public interest. The Court also held that premature retirement can be made only after obtaining the approval of the Registrar, and that an order of premature retirement without the approval of the Registrar is invalid.
Issues: 1. Whether the age of retirement for employees of Central Co-operative Banks is 58 years? 2. Whether an employee of a Central Co-operative Bank can be retired prematurely before reaching the age of 58 years? 3. If so, in what circumstances can an employee be retired prematurely? 4. Whether the power to retire prematurely is analogous to the power of compulsory retirement of government employees as contained in Rule 244 (2) of RSR? 5. Whether premature retirement can be made only after obtaining the approval of the Registrar? 6. Whether an order of premature retirement without the approval of the Registrar is invalid?
Ratio Decidendi: 1. The age of retirement for employees of Central Co-operative Banks is 58 years. 2. An employee of a Central Co-operative Bank can be retired prematurely before reaching the age of 58 years only in extraordinary circumstances and in public interest. 3. The power to retire prematurely is analogous to the power of compulsory retirement of government employees as contained in Rule 244 (2) of RSR, which power can be exercised in public interest. 4. Premature retirement can be made only after obtaining the approval of the Registrar. 5. An order of premature retirement without the approval of the Registrar is invalid.
Final Decision: The Court allowed both writ petitions and set aside the orders of premature retirement of the petitioners. The Court directed the respondents to pay the petitioners their salaries and other allowances and benefits upto the age of 58 years.
M. B. SHARMA, J.
( 1 ) IT will be proper to dispose of the above noted two writ petitions by this common order as the legal point involved in both the writ petitions is the same and is in respec! of pre-mature retirment in a Central Co- operative bank. The point is also as to what is the age of retirement in a central Co-operative Bank.
( 2 ) FIRST I will refer to the relevant rules in respect of power of the management to retire prematurely its employees and then I will refer to the facts of each case.
( 3 ) AJMER Central Co-operative- Bank Ltd. Ajmer as well as Bharatpur central Co-operative Bank Ltd. Bharatpur are co-opertive societies registered under the Rajasthan Co-operative Societies Act, 1965 (for short, the Act) and they have their respective bye-laws, A bipartite settlement took place on July 31, 1980 in between the management of the Apex Co-operative Bank, Jaipur and the Officers Association and according to cluse 9 of the aforesaid settlement/agreement so far at the age of retirement is concerned, it was agreed that the age of retirement shall be 58 years. The said clause reads as under : it is not disputed that the said settlement/agreement was arrived at In accordance with clause 13 (2) of the said agreement/settlement, it was also agreed that in case of dispute on interpretation the decision of the Administrator/chairman of the Apex Bank will be final. A question in respect of retirement age was referred to the Chairman of the Rajasthan State Co-operative Bank ltd. Jaipur which is the Apex Body of the Co-operative Banks in Rajasthan and the Chairman took a decision on March 7, 1983. The Chairman in para 2 of the aforesaid decision which was to be final, referred to the relevant clauses of bipartite settlement/agreement dated July 31, 1980 and in para 3 of its decision said that it will not be proper to have the recourse to the aforesaid cluase 9 and 10 retire an employee after attaining the age of 55 years after giving three months notice in normal circumstances, and the recourse to the aforesaid clause regarding premature retirement in extraordinary circumstances. The relevant clause 3 of the decision of the Chairman is as under : there were subsequent bipartite settlements between the Administrator of the apex Co-operative Bank and the Officers Association and one of the said settlements took place on August 11, 1987 in which it was agreed upon that the other facilities will be provided to the Members of the Association and other employees of the Bank in the same manner as poovided earlier meaning thereby that the age of retirement shall continue to be the same as 58 years. A similar bipartite agreement is said to have been arrived at on July 12, 1991 but so far as age of retirement is concerned, again the rule/order of the bipartite settlement dated July 31, 1980 contiuned to be in force.
( 4 ) SO far as Ajmer Central Co-operative Bank is concerned, it is also the case that the Regulations have been framed and under Regulation 15 (e)which is regarding the age of retirment of the employees a similar provision is made. The said Regulation has been reproduced at para 8 of the reply to the writ petition (No. 2609/89 -G. P. Mishra v. State of Rajasthan and others ). It reads as under ;"15 (e) Every employee shall retire on attaining the age of 58 years. An employee may however be called upon by the Bank to retire earlier if he considered medically unfit to continue in service. The services of an employee who acquires the age of 55 years-shall be terminable at a notice of 3 months on either side, where it appears desirable in the interest of the Bank the Board shall have the discretion to re-employ a person who retire under this rule for such period but not beyond the age of 60 years and on such terms and conditions as the Board may determine in each case".
( 5 ) THE Industrial Tribunal, Jaipur gave Award dated December 11, 1962 and April 28, 1965 in respect of Rajasthan State Co-operative Bank Ltd an
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