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J. K. MAHESHWARI, VIJAY BISHNOI
Mukund K. Pai – Appellant
Versus
Punjab National Bank – Respondent
| Table of Content |
|---|
| 1. dispute over pay fixation after re-employment (Para 3 , 4 , 5) |
| 2. contention by appellants against pay reduction (Para 6 , 10) |
| 3. court's interpretation of guidelines on pay fixation (Para 7 , 8 , 9) |
| 4. importance of following the principle of natural justice (Para 21 , 22 , 24) |
| 5. court's directive on pay re-fixation and applications of principles (Para 25 , 26 , 27) |
ORDER :
2) The instant appeal has been preferred by the ex- servicemen, challenging the impugned order dated 07.02.20201[passed by Division Bench of Kerala High Court in W.A. No. 2094/2019.], whereby the writ appeal was allowed and the order dated 11.04.2019, 2[passed by Single Bench in WP (C) No. 26946 of 2018.] allowing the writ petition was set-aside.
4) The facts in brief are that, post-retirement from the Indian Navy, the appellants were re-employed with the respondent-Bank in between 2015-2017. On re-employment, appellants nos. 1-4 were initially allowed to draw a basic pay of Rs. 40,710/- and appellant No. 5 was of Rs. 34,160/-. Subsequently, the Indian Banks Association, vide letter dated 17.05.2018, (hereinafter, “IBA Clarification”), issued a clarification regarding ‘pay- fixation of ex-serviceme
Pay fixation for re-employed ex-servicemen must protect total emoluments rather than individual pay components, ensuring no injustice occurs due to varying pay structures.
The court established that re-fixation of pay for re-employed ex-servicemen must be prospective and prohibits recovery of previously overpaid amounts based on erroneous interpretations.
The court emphasized that retrospective deductions for re-fixation of pay are not permissible when based on erroneous salary calculations involving components like Military Service Pay.
The court affirmed that recovery of excess pay based on an erroneous inclusion of Military Service Pay is unjustified, emphasizing adherence to proper guidelines for pay fixation.
The court reaffirmed that pay fixation for re-employed ex-Army personnel must adhere to regulations effective at their time of re-employment, rejecting claims beyond the final emoluments drawn by the....
Employees cannot be required to refund salaries disbursed based on valid pay fixation, as it is not their fault if the Corporation later rationalizes pay.
The court established that pay fixation for Short Service Commissioned Officers must adhere to the specific circular applicable to their status, distinguishing it from that of Ex-Service men.
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