SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(HP) 1449

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
RANJAN SHARMA, J.
Dev Raj - Petitioner
Versus
Himachal Road Transport Corporation And Another - Respondents
CWPOA No: 3907 of 2019
Decided On : 09-10-2025

Advocates Appeared:
For the Petitioner:Ms. Sunita Sharma, Senior Advocate with Mr. Dhananjay Sharma, Mr. Rahul, Ms. Sugandh Verma, Advocates.
For the Respondent:Mr. B.N. Sharma, Ms. Mamta K. Bhatwan, Advocates.

Post-superannuation pay reduction enforcing 29-year-old penalty without hearing violates natural justice and rules; acquiescence bars belated action; recovery from Class-III retiree’s benefits impermissible absent fraud or due process.

Headnote:(A) Service Law - CCS (CCA) Rules - Rules 11(v), (vi), 14; CCS (Pension) Rules - Rules 9, 70; CCS (Leave) Rules - Rule 39(3); Article 300-A - Post-superannuation reduction of promotional basic pay without notice, hearing or inquiry to enforce 29-year-old unenforced penalty violates natural justice, tantamount to major penalty requiring procedural safeguards - Pension, gratuity, leave encashment cannot be curtailed or refixed absent clerical error, fraud, pending proceedings or due process - Recovery from Class-III retiree’s retiral benefits impermissible if not attributable to employee’s misrepresentation. (Paras 7(ii), 7(iii), 7(v), 7(vi), 7(vii))

(B) Acquiescence, laches and waiver - Inaction over penalty order for 28-29 years bars its post-retirement invocation causing prejudice to retiree - Corporation’s lethargy cannot justify retrospective pay cut leading to reduced retiral benefits. (Para 7(iv))

Facts of the case:
Petitioner, retired from promotional post after daily wage engagement in 1977 and regularization in 1978, had pay fixed on promotion in 2008 at specified amount with increments till superannuation in 2011. Post-retirement, basic pay reduced retrospectively from promotion date based on 1982 penalty not earlier implemented, resulting in lower pension, gratuity, leave encashment and recovery of Rs.9000/- without hearing.

Findings of Court:
Impugned orders reducing pay and rejecting refixation quashed; basic pay restored from promotion with increments; revised retiral benefits including pension directed by specified date; recovery refunded; interest on delay; old penalty enforcement restrained.

Issues: Validity of retrospective post-retirement pay reduction enforcing old penalty; compliance with natural justice and statutory rules for pay/pension refixation/recovery; permissibility of recovery from Class-III retiree’s benefits.

Ratio Decidendi: Reduction in pay post-superannuation without opportunity of hearing visits civil consequences, violates natural justice; equates to penalty mandating inquiry; delayed enforcement after acquiescence inoperative; pension as property right protected under Article 300-A, not reducible without authority; recoveries from lower rung retirees harsh absent fault.

Result: Petition allowed.

Table of Content
1. petitioner's service, promotions, and pay grievances. (Para 1 , 3)
2. parties' contentions on penalties and acp. (Para 2 , 4 , 5)
3. orders quashed; benefits restored with directions. (Para 6 , 8 , 9)
4. review of pay fixation on promotion. (Para 7)

JUDGMENT :

Ranjan Sharma, J.

Petitioner-Dev Raj, a retired Yardmaster, from the service of Respondent-Corporation, has come up before this Court, seeking the following reliefs:-

“i) To quash the order of the authority where by some recoveries were done from the pensionary benefits, without giving opportunity of hearing to the petitioner vide Annexure P-5.

ii) That the respondent corporation may further be directed to grant the benefits of time bound promotional scale [3 ACP’s after completion of his 8, 16 and 24 service] as and when due to the petitioner in accordance with scheme the with all consequential benefits and pay be fixed accordingly.

iii). To grant the petitioner interest on delayed payments and also refund the Rs. 9 thousand with interest, which has been recovered from the pensionary benefit without informing the petitioner.

(iv). To re-regulate the pay of the petitioner after setting aside the penalties which were imposed upon the petitioner without giving show cause notice/without holding inquiries that to after retirement. That the respondents may very kindly be directed to produce the entire record pertaining to the case of the petitioner for the kind perusal of this Hon’ble Court.

(v). That the respondent No.1 may be directed to decide the representation of the petitioner dated 23.12.2012, Annexure P-7, in a time bound manner.”

2. At the very outset, Learned Senior Counsel, on Instructions of the petitioner, who is present in Court states that she does not intent to assail prayer (ii) whereby, the ACP benefits on completion of 8, 16 and 24 years of service were released to the petitioner in one go on 23.11.2007, [Annexure P-2] in view of the stand in reply-affidavit that these benefits were not released earlier due to pendency of disciplinary proceedings and the penalties imposed thereon and due to currency-operation of penalties and after the culmination of these penalties, the ACP benefits were released to the petitioner on 23.11.2007, [Annexure P-2].

FACTUAL MATRIX:

3. Grievance of the petitioner is that he was engaged as Driver, on daily wage basis, in the Respondent-Corporation in the year 1977. He was regularized as a Driver on 01.06.1978. It is averred that though he completed 8 years of service as Driver on 01.06.1986 and had completed 16 years of service on 01.06.1996 and had completed 24 years of service as a Driver on 01.06.2004 and on completion of 8, 16 and 24 years of service the ACP benefits become due but these benefits were given belatedly to the petitioner, in one go, on 23.11.2007, [Annexure P-2]. However, in terms of the Statement made by Learned Senior Counsel, on instructions of the petitioner, who is present in Court, the prayer of the petitioner for ACP from earlier due date(s) is not pressed, in these proceedings. 3(i). Another grievance is that the petitioner was promoted from the post of Driver to the post of Yard Master on 01.02.2008. Upon promotion as Yard Master, the petitioner joined on 14.02.2008 and in terms of pay fixation rules, the petitioner opted for pay fixation after receiving the annual increments in lower post of Driver and thereafter to get the promotional increment as Yard Master. Based on such option, the Regional Manager of Corporation at Shimla fixed the pay of petitioner, on promotion, as Yard Master at Rs. 18,950/- w.e.f. 01.12.2008, in terms of the Order dated 31.12.2009, [Annexure P-3]. Based on aforesaid pay fixation, the petitioner was granted annual increments due therefrom and the petitioner retired from service as Yard Master on 31.03.2011. After superannuation, the Regional Manager of Corporation issued an order on 11.07.2011,

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top