High Court Rejects Retirement Age Increase in Govt Undertakings

KEY TAKEAWAYS:

High Court refused to order retirement age increase in government undertakings and corporations.
Retirement age changes require amendments to official service rules by the government.
Petitions seeking retirement age hike from 60 to 62 years were dismissed.

Vijayawada: The High Court retirement age increase government undertakings issue was clarified on Friday, as the court ruled that it cannot issue directions to raise the retirement age in government corporations, societies, and undertakings.

The division bench stated that retirement age matters fall strictly under government policy and cannot be altered through court intervention.

High Court Rejects Retirement Age Increase Government Undertakings Depends on Service Rules

A division bench comprising Justice Battu Devanand and Justice Avadhanam Hariharanath Sharma emphasized that retirement age is governed entirely by service rules.

The judges made it clear that any increase can only take effect if the government formally amends these rules.

Until such amendments are made, the existing retirement age provisions will remain valid.

Ministerial Committee Does Not Guarantee Retirement Age Revision

The bench observed that the government forming a committee of ministers to study the issue does not give employees the right to demand court-ordered retirement age enhancement.

It stressed that examination by a committee is only part of policy consideration, not a binding decision.

The court also noted that even if governing boards of corporations pass resolutions seeking retirement age hikes, such resolutions cannot be implemented unless approved by the state government. Without official approval, the resolutions hold no legal enforceability.

Petitions Seeking Retirement Age Hike From 60 to 62 Years Dismissed

Upholding the earlier order passed by a single judge, the High Court dismissed petitions demanding retirement age extension from 60 to 62 years.

The bench stated that there were no errors in the single judge’s ruling and found no grounds to interfere.

Appeals Filed by Employees of State Corporations

The petitions were filed separately by employees including V Wilson Raju of the AP Cooperative Oil Growers Federation and D Madhava Rao of the State Warehousing Corporation.

They argued that despite board recommendations for retirement age extension, the government had failed to act.

They also cited a Government Order issued on August 22 last year, which formed a ministerial committee to examine retirement age enhancement for employees under Schedules 9 and 10 of the AP Reorganisation Act.

Court Reaffirms Retirement Age Cannot Change Without Amendments

The bench reiterated that the petitioners were not state government employees but employees governed by specific service regulations.

Therefore, without government approval and proper amendment of service rules, retirement age cannot be revised.

The High Court concluded that the single judge’s decision was legally sound and confirmed that courts cannot intervene in such policy-driven service matters.