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2001 Supreme(Ker) 490

Judges : K.S.RADHAKRISHNAN,K.BALAKRISHNAN NAIR
Sreedharan - Appellant
Versus
Union of India - Respondent
Case No : O.P.No.4349 of 2001
Decided On : 10/22/2001
Advocates Appeared :
G. Sasidharan Chempazhanthiyil & S. Vishnu For Petitioner S.C.G.S.C. (P.S. Sreedharan Pillai) For Respondents

Headnote:

Constitution of India –Article 14 –Issue on reduction Pay –The point put-forward for court decision in this Original Petition is the permissibility of reduction of pay of a Government servant long after his retirement with effect from a date long before his superannuation –The skeletal facts of the case are the following –The petitioner was an Inspector (Works) Grade I in the Railways under the second respondent – By way of punishment for misconduct, he was compulsorily retired from service –The said punishment has become final –While so, almost after three years of his retirement from service, his pay was reduced without notice or hearing to the applicant – Consequently, his pension was refixed and the alleged excess payment was recovered from the amounts due to him – The aggrieved petitioner approached the Central Administrative Tribunal, Ernakulam Bench by filing praying, inter alia, for a declaration that the “revision/reduction of the applicant’s pay after retirement is illegal and direct the respondents to regulate his salary accordingly –Held, A declaration is subject to the defect that it is not enforceable; in private law this is of course serious, but in public law the defect is insignificant, as no administrative agency can afford to be so irresponsible as to ignore an adverse decision of a High Court Judge – In view of the above legal position, the respondents are bound to respect the declaration made by the Tribunal and refund all amounts recovered from the petitioner’s terminal benefits – He is entitled to draw his monthly pension computed with reference to the unreduced pay and the same shall be paid to him with effect from the date his monthly pension was reduced – Accordingly, in modification of Ext.P1 order of the Tribunal, the following directions are issued – Pay the petitioner the amounts recovered from his gratuity and leave salary – Pay the petitioner, the monthly pension on the basis of his unreduced pay, including arrears of pension –The above directions shall be implemented by the respondents within two months from the date of receipt of a copy of this judgment –Petition allowed

Judgment :-

K. Balakrishnan Nair, J.

The point put-forward for our decision in this Original Petition is the permissibility of reduction of pay of a Government servant long after his retirement with effect from a date long before his superannuation.

2. The skeletal facts absolutely necessary for the disposal of the case are the following:

3. The petitioner was an Inspector (Works) Grade I in the Railways under the second respondent. By way of punishment for misconduct, he was compulsorily retired from service on 26.11.1990. The said punishment has become final. While so, on 24.9.1993 almost after three years of his retirement from service, his pay was reduced with effect from 1.11.1986 without notice or hearing to the applicant. Consequently, his pension was refixed and the alleged excess payment was 'recovered' from the amounts due to him. The aggrieved petitioner approached the Central Administrative Tribunal, Ernakulam Bench by filing O.A. No. 1021/97 praying, 'inter alia, for a declaration that the "revision/reduction of the applicant's pay after retirement is illegal and direct the respondents to regulate his salary accordingly." It was the 8th relief sought in the O.A. There Were other prayers also. The Tribunal has granted the said relief as sought for by the applicant in the following words:

after retirement as illegal being opposed to the principles of natural justice."

Certain other reliefs also were granted. The dissatisfied petitioner filed this Original Petition seeking various reliefs. At the time of final hearing of this Original Petition, the petitioner confined his arguments to reliefs:

1. to refund the amount recovered from his terminal benefits towards alleged excess payments made to him while in service.

2 'to compute his pensionary' benefits on the basis of the unreduced pay.

From Ext. P8 reply statement filed in O.A. No. 290/95, it is evident that an amount of Rs. 20,930/-, has been recovered from the, leave salary and gratuity. The amount recovered from the leave salary was Rs. 17,475/- and from the DCRG Rs. 3,455/-. Even though the Tribunal declared that the 'revision of pay after retirement with retrospective effect is invalid, it did not grant consequential relief to refund the entire amount recovered and also payment of terminal benefits taking into account his prerevised pay.. The petitioner pressed only these two matters in this Original Petition.

4. Counsel for the respondents at first attempted to contend that no amount has been recovered from the terminal benefits, but when confronted with the pleadings of the respondents in Ext. P8 at paras. 5 and 6, he did not further pursue the connection. Alternatively, it was contended that even if the recovery of arrears is set aside, the respondents should be permitted to implement the revision of pay notionally so that they can reduce his monthly pension accordingly. The Rules enabling such revision, if any mistake has occurred in the fixation of pay;' were also pressed into service.

5., This court as well as the Supreme Court has been consistently dissuading recovery of excess pay pursuant to discovery of error in the pay fixation. This is subject to the qualification that pay was fixed by the competent officer with out any misrepresentation from the employee. The decisions of the Supreme Court are in ShyamBabu Vanna v. Union of India (1994'(2) SCC 521) and Sahib Ram v. State of Haryana (1995 (Supp.) I SCC 1,8). The decisions of this court start from Aliyamma v. Deputy Director(1982 KLT SN 45) and end with Sathyapalan v. Deputy Director (1998 (I) KLT 399). There are'several unreported decisions also on this point.

6. In this context, the counsel for the respondents submitted that there is no bar against correcting the mistake and implementing the same prospectively. There may be power to correct mistake and regulate the pension prospectively in accordance therewith. But the exercise of power after several years of retirement of a Government servant cannot stand sc








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