DR.DHANANJAYA Y.CHANDRACHUD, J. - (1.) On 30 September 2012, the Government of Uttar Pradesh acceded to a proposal of the Appellant to enhance the age of superannuation of its employees from fifty-eight to sixty years, prospectively. A Division Bench of the High Court of Judicature at Allahabad set aside the decision of the State government to give prospective effect to the enhancement in the age of superannuation and in the exercise of its power of judicial review under Article 226 of the Constitution directed that retrospective effect be given to the Government Order from 29 September 2002. The appeals by New Okhia Industrial Development Authority[1] and the State of Uttar Pradesh question the correctness of this determination. Simply put, the appeals raise the issue as to whether the High Court has transcended the limits of its power of judicial review. [1] "NOIDA". I. The Facts
(2.) The New Okhia Industrial Development Authority is constituted under the provisions of the UP Industrial Area Development Act 1976[2]. The object was to constitute an authority for the development of certain areas of the State notified under Section 3 of the Act, into industrial and urban townships. The legislation provides for the constitution of the authority, its functions, powers, and for the appointment of the staff members. While the administrative head is appointed by the State government, Section 5 of the Act provides for the appointment of the staff: "5. Staff of the Authority. - (1) Subject to such control and restrictions as may be determined by general or special orders of the State Government, the Authority may appoint such number of officers and employees, as may be necessary for the performance of its functions, and may determine their grades and designations. (2) Subject as aforesaid the officers and other employees of the Authority shall be entitled to receive from the funds of the Authority, such salaries and allowances and shall be governed by such other conditions of service as may be agreed upon with the Authority." [2] "the Act". Section 19 enables the authority, with the previous approval of the State government to frame regulations for the administration of the affairs of the authority. Section 19 reads as follows: "19. Power to make regulations. - (1) The Authority may, with the previous approval of the State Government, make regulation not inconsistent with the provisions of this Act or the rules made thereunder for the administration of the affairs of the Authority. (2) In particular, and without prejudice to the generality of the foregoing power, such regulation may provide for all or any of the following matters, namely,- (a) the summoning and holding of meetings of the Authority, the time and place where such meetings are to be held, the conduct of business at such meetings, and the number of members necessary to form a quorum thereat; (b) the powers and duties of the Chief Executive Officer; (c) the form of register of application for permission to erect a building; (d) the management of properties of the Authority ; (e) fees to be levied in the discharge of its functions; (f) such other matters as are to be provided for in regulation." In pursuance of its power under Section 9 of the Act, the Authority framed the New Okhla Industrial Development Authority Service Regulations, 1981[3] governing recruitment, appointment, pay, and other service conditions of the staff. Regulation 25 of the Noida Regulations, 1981 states that the age of superannuation of the employees is fifty eight. It reads as follows: "Retirement 25. An employee shall retire at the age of fifty-eight years." [3] "NOIDA Regulations, 1981".
(3.) On 28 November 2001, the State government issued a notification[4] enhancing the age of retirement of 'Government servants' from fifty-eight to sixty years. Pursuant to this, Fundamental Rule 56A was amended on 27 June 2002 enhancing the age of superannuation of government servants to sixty years with effect from 28 November 2001. [4] No. 1098/Pers-1/2001 ;