The petitioners complained that the 1st respondent (‘The CWE”) did in violation of their rights under Article 12(1) of the Constitution stopped extension of
their services beyond 55 years and purported to retire them from 31.7.2002,
by circular dated 21.6.2002(P6). The previous circular dated 14.11.1995(P5)
provided for granting of annual extension from 55 until 60 as in the case of the
public sector under Chapter V section 5 of the Establishments Code. The reasons given for the new policy decision were:
(a) Redundant labour force
(b) Heavy losses; and
(c) Reorganization of the CWE to make it a profit making organization
The applications of all petitioners except Nos. 19 and 20 were recommended
by the Service Extension Committee; and no application was sent to the
Ministry for decision. The previous practice was to grant annual extension up
to 60 years except where medical or disciplinary grounds existed.