JUDGEMENT
UDAY UMESH LALIT.J. -
(1.) These contempt petitions allege violation of the judgment and order dated 09.08.2017 passed by this Court in appeals arising out of Special Leave Petition (Civil) No. 13623 of 2017 (A. Veerraju and others vs. State of Andhra Pradesh and others) and all connected matters. All the Contempt Petitions give rise to the same questions and are dealt with together. Since Contempt Petition Nos. 1045-1055 of 2018, K. Ananda Rao and Ors Shri S.S. Rawat, IAS, Principal Secretary to Government and Vice-Chairman (FAC) APTWREI Society and Others and Contempt Petition No. 1873-1891 of 2017 (K. Paul and ors. etc. vs Ajay Jain and others etc.) were taken as lead matters, the facts pertaining to these two contempt cases are mentioned in detail.
(2.) Contempt Petition No. 1045-1055 of 2018
2.1 The petitioners are employees of Andhra Pradesh Tribal Welfare Residential Educational Institution Society (Gurukulam), hereinafter referred to as the Society. Rule 17 of the Andhra Pradesh Tribal Welfare Resident Educational Institution Society Retirement Rules, 1999 ('1999 Rules' for short) inter alia provides for conditions of service of the employees of the Society and according to Rule 17(1) the age of retirement for all employees except Class IV employees is 58 years of age and that of Class IV employees is 60 years. The Society is an institution included in Schedule X of the Andhra Pradesh Reorganization Act, 2014, "2014 Act", for short.
2.2 The age of superannuation in respect of Government employees under Section 3 of the Andhra Pradesh Public Employment (Regulation of age of superannuation) Act, 1984 ('1984 Act' for short) was initially 58 years of age. Consequent upon bifurcation of the erstwhile State of Andhra Pradesh, the Government of Andhra Pradesh took a decision on 27.06.2014 to raise the age of superannuation from 58 years to 60 years. Section 3 of 1984 Act was accordingly amended and the age of superannuation was raised to 60 years. Section 3 of the Amending Act was as under:
"3. In the principal Act, after section 3 so amended, the following new section shall be inserted, namely:-
"Savings. 3A. subject to the provisions of section 3,-
(1) A Government employee belonging to the State Cadre/Multi-zonal Cadre and who by general or specific order of the Government of India under sub-section (1) of section 11 of the Andhra Pradesh Reorganisation Act, 2014, and serving provisionally in connection with the affairs of the State of Telangana, and if he is finally allotted to the State of Andhra Pradesh by the Government of India under sub-section (2) of section 11 of the said Act, 2014 shall be deemed to be continuously serving in the State of Andhra Pradesh.
(2) A Government employee belonging to the State Cadre/Multi-zonal Cadre falling in the territories of both the State of Andhra Pradesh and the State of Telangana, who by a general or a specific order of the Government of India under sub-section (1) of section 11 of the said Act, 2014, is serving provisionally and retires on attaining the age of fifty eight years and on his final allotment, subsequently to the State of Andhra Pradesh by the Government of India under sub-section (2) of section 11 of the said Act but before attaining the age of sixty years, shall be re-inducted into service/post with effect from the date of his final allotment to the State of Andhra Pradesh without break in service:
Provided that an employee who attained the age of sixty years before the final allotment to the State of Andhra Pradesh by the government of India, the service rendered in the State of Telangana till the date of his retirement shall be considered notionally as if, he has rendered service in the State of Andhra Pradesh for the purpose of calculation of his pensionary benefits.
(3) The service conditions of the employee of State Cadre/Multi-zonal Cadre working provisionally in the State of Andhra Pradesh and finally allotted by the Government of India under sub-section (2) of section 11 of the said Act, 2014 to the State of Telangana shall be governed by the relevant laws/rules of the State of Telangana on such final allotment."
2.3 On 02.07.2014 vide Memo No. 4179/14/HRM-IV/2014, Finance Department of the Government of Andhra Pradesh issued a Circular clarifying that the enhanced age of superannuation from 58 to 60 years would not be applicable to the State Public Enterprises and other autonomous Institutions and Training Centres included in the X Schedule of 2014 Act and non-teaching employees of the Universities. Around this time the Society had passed a Special Resolution in the 22nd Board of Governors' meeting for division of Gurukulam and allocation of teaching and non-teaching staff to newly formed States. By proceedings dated 04.07.2014 the Society issued a list of officers and staff provisionally allocated to the new State of Andhra Pradesh. Thereafter in the 23rd Meeting of the Board of Governors of the Society, a Resolution was passed agreeing in principle to enhance the age of superannuation from 58 years to 60 years on par with the Government employees.
2.4 Based on the aforesaid Resolution a letter was sent by the Society to the State requesting for such enhancement of age of superannuation. On 05.08.2015 GO MS No. 61 was issued by the Government of Andhra Pradesh, Tribal Welfare (EDN A2) Department raising the age of superannuation from 58 years to 60 years in respect of employees working in the Society. On 07.12.2015, the State Government again issued a Circular directing the managements of all Public Sector Undertakings and Institutions included in the IX and X Schedules of 2014 Act to submit the proposals regarding change in the age of superannuation. Thereafter by virtue of Resolution i.e. GO MS No. 112 issued by the Government of Andhra Pradesh Finance (HR IV - FR) Department on 18.06.2016, the Resolution dated 05.08.2015 was kept in abeyance. The Resolution dated 18.06.2016 was as under:
"5. Government having taken stock of all the above developments and after careful consideration hereby orders that the enhanced age of superannuation cannot be made applicable to the employees of the Public Sector undertakings and Institutions listed in Ninth and Tenth Schedules of A.P. Re-organization Act, 2014 until the matter of division of assets and liabilities of the institution between the state of Andhra Pradesh and Telangana is settled and the allotment of the employees between the two states is finalized for these Public Sector Undertakings/ Institutions. Government would be in a position to take policy decision on the matter only after such process is completed in all respects. Orders issued, if any, by any Department of Public Sector Undertakings/Institutions shall be kept in abeyance with immediate effect."
2.5 On 28.06.2016, Cir. Memo No. 92830/151/HR.IV/2016 was issued by the Government of Andhra Pradesh Finance (HR.IV) Department issuing following clarifications:-
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2.6 The Resolution dated 18.06.2016 was challenged by the employees of various institutions mentioned in Schedule IX and X of 2014 Act by filing Writ Petitions in the High Court of Judicature at Hyderabad for States of Telangana and Andhra Pradesh. The High Court by its judgment and order dated 07.03.2017 passed in G. Rama Mohan Rao and Anr. vs. Government of Andhra Pradesh and Ors. etc., 2017(3)ALT 1; 2017(6) ALD 103; (2017) 11 LLJ 535 AP and all connected matters disposed of the matters and concluded as under:
"The earlier G.O.s were issued by the Government of A.P. without these legal entities amending its rules regulations/bye-laws, governing the age of superannuation and without the prior approval of the sole/majority shareholder i.e., the State Government as required under the Articles of Association/ byelaws of these legal entities. As the Rules and Regulations, by which the petitioners are governed, stipulate 58 years as the age of retirement, these employees cannot claim any right to continue in service till they attain the age of 60 years. It is only if the request of these Companies /Corporations/Societies, for amendment of its byelaws/rules and regulations, are approved by the State Government, and the rules/byelaws/regulations are amended thereafter in accordance with law, would their employees then be governed by the enhanced age of superannuation prescribed under the Rules/bye-laws.
Since the Board of Directors/Managing Committees of these wholly or substantially government owned Companies/Corporations/ Societies have submitted proposals, the State Government is obligated to consider the request of each of these corporations/companies/societies separately, based on their financial position, genuineness of their need to enhance the age of superannuation etc., and then take a decision whether or not their request, to enhance the age of superannuation of their employees from 58 to 60 years, should be approved. Suffice it, if the Government of A.P. is directed to consider the proposals submitted by each of these corporation/societies/companies, for enhancement of the age of superannuation from 58 to 60 years in accordance with law, and take a decision thereupon at the earliest, in any event not later than four months from the date of receipt of a copy of this order.
All the Writ Petitions are, accordingly, disposed of. The miscellaneous petitions pending, if any, shall stand closed. No costs."
2.7 SLP (C)No. 13623 of 2017 was filed, therefore, by some of the employees of the Society challenging said decision dated 07.03.2017. It was submitted by them that a decision had already been taken by the Society for raising the age of superannuation and all that was required to be done was only a formal expression of the decision in the form of an appropriate legislation. While issuing notice on 27.04.2017 this Court passed following interim order:
"In the above circumstances, until further orders, the superannuation in the case of those teachers on attaining the age of 58 years in respondent No. 3/Society (Gurukulam) shall be deferred."
2.8 Special Leave Petition (Civil)Nos. 14033-14034 of 2017 preferred by the present contempt petitioners and other connected matters filed by similarly situated employees of the Society thereafter came-up before this Court on 05.05.2017. This Court noted that Special Leave Petition (Civil) No.13623 of 2017 seeking similar relief was already pending. While issuing notice, this Court directed:-
"Until further orders, the superannuation in the case of employees on attaining the age of 58 years in the respondent-institutions shall be deferred.
Needless to say that in case any employee has retired only on the ground of attaining the age of 58 years, such employees shall be reinstated and continued in service until further orders, but in no case, beyond 60 years.
We also make it clear that this order will apply to all similarly situated employees under the respondent-institutions whether they are the petitioners before this Court or not and, therefore, those similarly situated persons need not travel to this Court.
Tag with SLP (C) No. 13623 of 2017."
2.9 Later, one more similar matter i.e. Special Leave Petition (Civil)No. 14860 of 2017 came-up before this Court and while issuing notice on 09.05.2017 following order was passed by this Court:-
"The employees in the respondent-institutions shall not be superannuated only on the ground of attainment of 58 years of age. In case, any such has been superannuated on that ground, such employee shall be reinstated and continued upto the age of 60 years, subject to the result of the Special Leave Petition."
2.10 While the challenge was thus pending, G.O.Ms. No. 102 dated 27.06.2017 was issued by the Government of Andhra Pradesh, Finance (HR.IV-FR) Department. After considering the matters, the Government decided to give in-principle approval for enhancement of the age of superannuation. The relevant portion of the Order was as under:-
"4. Government after careful examination of the matter hereby accord to give in-principle approval to enhance the age of superannuation of employees working in the institutions listed in IX and X Schedule Institutions subject to the following conditions:
1. The specific decision to enhance the superannuation age from 58 to 60 years to their employees shall be taken by the Board of Directors/Managing Committees of these legal entities.
2. While doing so, these Institutions shall take into consideration their financial position and genuineness of their need to enhance the age of superannuation.
3. In case of Residential Education Societies, the decision should be based on the genuineness of their need and assessment of performance of these societies.
5. These orders shall come into force prospectively from the date of issue of the orders by competent authorities after amending the relevant regulations/bye-laws.
6. Any order issued by any department which is repugnant to this order shall be deemed to have been modified or superseded to the extent of repugnancy."
2.11 All the aforementioned matters, the lead matter being Special Leave Petition (Civil)No. 13623 of 2017, thereafter came-up before this Court on 31.07.2017. The State had prayed for time to file its affidavit-in-reply. This Court directed the State to respond to certain issues in the affidavit-in-reply and directed the matters to be listed on 09.08.2017. Relevant portion of the order reads as under:-
"In the counter affidavit it shall be mentioned as to why those who are similarly situated as those covered by the order dated 05.05.2017 have not been granted the same benefit. We also make it clear that in case the order dated 05.05.2017 has not been implemented, the benefits due to the beneficiaries covered by the said order shall be deemed to have been in service from the date of the order and those responsible for non-implementation shall be personally liable for the consequences."
(3.) Contempt Petition Nos. 1873-1891 of 2017
3.1 The petitioners had originally joined the services of the erstwhile Andhra Pradesh Electricity Board (APSEB) and their service conditions were regulated by the Andhra Pradesh State Electricity Board Service Regulations. APSEB was reorganized into Andhra Pradesh Transmission Corporation Ltd. (APTRANSCO), Andhra Pradesh Power Generation Corporation Ltd. (APGENCO), Andhra Pradesh Central Power Distribution Company Ltd. (APCPDCL), Andhra Pradesh Southern Power Distribution Company Ltd. (APSPDCL) and Andhra Pradesh Eastern Power Distribution Company Ltd. (APEPDCL), collectively referred to as the Power Utilities. The services of the petitioners were thereafter transferred to the Power Utilities. After Section 3 of 1984 Act was amended to raise the age of superannuation to 60 years as stated above, the Power Utilities had taken a decision on 29.06.2014 to implement the orders of the Government and continue the service of all employees who were to attain the age of 58 years as on 30.06.2014 upto 60 years.
3.2 On 23.12.2014 a letter was written by the State Government informing APGENCO, APEPDCL and APSPDCL that the Pay Revision Commission had agreed for enhancement of the age of superannuation from 58 years to 60 years on par with the employees of the State Government. On 28.10.2015 a letter was addressed by the State Government to APTRASCO, APGENCO, APEPDCL, APSPDCL that the proposal for enhancement of age of superannuation of the employees of Power Utilities would be considered after issuance of orders by the State Government on demerger of the respective corporations and after the process of final allocation of the employees was completed and after due examination of viability of the corporations.
3.3 Thereafter, on 26.11.2015 an Advisory Memo bearing no. 459/PE.II/A1/2015 was issued by the State Government to all the departments to keep the orders, if any, issued for enhancement of the age of superannuation of the employees of public undertakings in abeyance pending orders formulating the policy in that behalf. The relevant partition of the Memo was as under:
"4. In view of the facts and circumstances supra, the government has decided to examine the matter holistically and in its totality and thereafter adopt a uniform policy in the matter relating to the extension of the age of superannuation of the employees of the Public Sector Undertakings in the State of Andhra Pradesh.
1. Therefore, till the orders formulating the policy regarding the extension of the age of superannuation of the employees of the Public Sector Undertakings in the State of Andhra Pradesh are issued by the Government, all Secretariat, Departments, including the Water Resources Department, are advised to keep the orders, if any issued, of enhancement of the age of superannuation from 58 years to 60 years of the employees of Public Sector Undertakings under their administrative control, in abeyance with immediate effect."
3.4 After the disposal of Writ Petition Nos. 18205 of 2014 and all connected matters (G. Rama Mohan Rao and Anr. vs. Government of Andhra Pradesh etc.) on 07.03.2017 as stated above, writ petition filed by the petitioners namely W.P. (C) No. 25937 of 2015 and all connected matters were disposed of by the High Court on 21.03.2017. Thereafter the petitioners filed Special Leave Petition No. 21854 of 2017 on 28.07.2017, which was tagged with the matters which were to come up on 09.08.2017. ;