The circular, issued by the higher and technical education department, says that though the University Grants Commission (UGC) has said the retirement age of all teachers who come under UGC pay scales should be 62 years, the state has taken no policy decision on the issue so far.

But principals don't understand why they've been asked to decide, ``on the basis of merit,'' if a teacher over sixty should be allowed to continue till term end. ``If a principal does extend services of one teacher based on merit and terminates services of a less meritorious teacher, the decision can be called as biased and dictatorial. The government should state its point clearly, instead of coming out with vague circulars,'' said Principal M G Shirahatti of Lala Lajpatrai College, HajiAli.

Citing the example of an earlier state circular on appointment of vice-principals, once again based on ``merit,'' Shirahatti added: ``Many teachers have now filed litigations against their college managements for not considering them meritorious enough to be vice-principals. The present circular may also cause such problems.''

Following the recent agitation of degree college teachers, the UGC recommended the retirement age be increased to 62.

V Padmanabhan, principal of SIES college, Sion, however, sees no reason for uncertainty. ``Sooner or later, the state will have to come out with a government resolution and make things clear. For the time being, principals will have to follow the circular,'' he said. University senate member and member of the Bombay University College Teachers' Union (BUCTU), Prof Tapati Mukhopadhyay, said: ``Almost every day a handful of degree college teachers turn 60, but BUCTU is confident the state won't dilly-dally in raising the age limit to 62 years. The confusionover the circular is only temporary.''