Supreme Court of India Chairman And Managing Director The ... vs General Secretary Fact Employees ... on 11 April, 2019 Equivalent citations: AIR 2019 SUPREME COURT 1870, 2019 (11) SCC 323, (2019) 161 FACLR 922, (2019) 2 CURCC 90, (2019) 2 CURLR 495, (2019) 2 ESC 332, (2019) 2 PAT LJR 269, (2019) 2 SCT 684, (2019) 2 SERVLJ 91, (2019) 3 LAB LN 17, 2019 (4) KCCR SN 241 (SC), (2019) 4 SERVLR 784, 2019 (6) ADJ 42 NOC, (2019) 6 SCALE 273, AIR 2019 SC (CIV) 1457, AIRONLINE 2019 SC 241 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL No. 3803 OF 2019 (Arising out of S.L.P.(C) No.99 of 2018) Chairman and Managing Director, The Fertilizers And Chemicals Tranvancore Ltd. & Anr. ….Appellant(s) VERSUS General Secretary FACT Employees Association & Ors. ….Respondent(s) WITH CIVIL APPEAL No. 3804 OF 2019 (Arising out of S.L.P.(C) No.100 of 2018) JUDGMENT Abhay Manohar Sapre, J. 1. Leave granted. Signature Not Verified 2. These appeals are directed against the final Digitally signed by ANITA MALHOTRA Date: 2019.04.11 17:17:57 IST Reason: judgment and order dated 25.01.2017 passed by the High Court of Kerala at Ernakulam in W.A. 1 Nos.1820 and 1824 of 2012 whereby the Division Bench of the High Court dismissed the writ appeals filed by the appellants herein and affirmed the judgment dated 21.08.2012 passed by the Single Judge of the High Court in W.P. Nos.33938/2008 and 2556 of 2009. 3. These appeals involve a short point as would be clear from the facts stated infra. 4. The appellants herein are the respondents and the respondents herein (respondent Nos.1­10) are the writ petitioners of the writ petitions, out of which these appeals arise. 5. Appellant No.1 is a Public Sector Undertaking and engaged in the business of manufacture and sale of various kinds of fertilizers and chemicals. It has a factory at Travancore in the State of Kerala. Respondent Nos.1 to 10 are the Trade Unions of the workers working in the manufacturing unit of appellant No.1 at the relevant time. 2 6. On 23.01.1978, a Memorandum of Settlement was executed between appellant No.1 (PSU) and respondent Nos.1 to 10, i.e., (Trade Unions) wherein it was inter alia agreed between the parties that the existing superannuation age of 60 years will remain unchanged in respect of all the workers working in the appellant's Undertaking at Udyogamandal Division, Head Office including those who are on the rolls of the Undertaking as on the date of settlement. 7. It was also agreed that those who are recruited on and after Memorandum of Settlement in question shall retire on attaining the age of 58 years. 8. On 19.05.1998, the Central Government issued a direction to all the Public Sector Undertakings of the Central Government and directed them to increase the age of superannuation upto below board­level employees from 58 years to 3 60 years. This was made compulsory to all the PSUs. Appellant No.1 accordingly ensured its compliance and made it applicable to their employees by a resolution dated 27.05.1998. 9. Since the financial condition of the appellant (PSU) was deteriorating day­by­day, it had become difficult for them to give effect to the aforesaid decision/direction. The appellant (PSU), therefore, brought this fact to the notice of the Central Government. By letters dated 02.09.1999 and 11.07.2001, the Central Government directed the appellant (PSU) to take several measures to improve their financial performance and also undertake the work of rationalization of their workers and bring it to a manageable level. This included lowering of the age of retirement of the employees. After extensive deliberations and making