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2024 Supreme(Online)(CAT) 5956

CENTRAL ADMINISTRATIVE TRIBUNAL
Rajinder S Dogra, Judicial Member, Ram Mohan Johri, Administrative Member
Dr. Kulbhushan Singh Jamwal – Appellant
Versus
State of Jammu and Kashmir – Respondent
T.A. No. 1756/2020|SWP No. 70/2019



Advocates:
For the Appellants/Petitioners: Mr Tarun Jamwal
For the Respondents:Mr. Sudesh Magotra, Additional Advocate General, Mr. Dewakar Sharma, Deputy Advocate General, Mr. Sahil Koul, Mr. Sumant Sudan, Mr. Akshay Sadotra

Post-retirement recovery of advance increments for higher qualifications from pre-1992 in-service employees invalid absent fraud; limited to 24 months pre-retirement; quashed OM cannot justify deductions; refund with interest and retiral benefits restoration directed.

Headnote:(A) Jammu and Kashmir Civil Services (Revised Pay) Rules, 1982 - Rule 12; 1987 - Rule 11; 1992 - SRO 75; J&K CSR - Rule 242 - Advance increments for higher qualifications acquired by in-service employees appointed prior to 31-3-1992 - Finance Department OM dated 28-7-2006 directing recovery of excess payments w.e.f. 12-9-2001 from retired employees quashed by High Court in 2017 as erroneous in depriving benefits under 1992 Rules to pre-1992 appointees - Subsequent recovery post-retirement from pension/gratuity impermissible beyond 24 months preceding retirement absent fraud - No authority to revisit distant past pay fixation without misrepresentation - Refund of recoveries with interest and restoration of retiral benefits directed. (Paras 7, 15, 20, 21)

(B) Service Law - Recovery from retired employees - Equitable relief against hardship where excess payment due to employer error, not employee fault - Post-retirement reduction in pay/pension punitive and violative of natural justice - Pay fixation allowed for years cannot be disturbed after retirement. (Paras 16, 19)

Facts of the case:
Two retired Assistant Surgeons appointed in 1978 and 1979 acquired MD qualifications in 1997 and 1992 while in service. Advance increments granted continued till retirement in 2010 and 2011. Post-retirement, amounts of Rs.1,63,119/- and Rs.1,12,561/- recovered pursuant to quashed 2006 OM, leading to this transferred application challenging recoveries and seeking refund, pay refixation, and revised retiral benefits.

Findings of Court:
OM dated 28-7-2006 set aside; respondents directed to refund Rs.1,63,119/- and Rs.1,12,561/- with 7% interest p.a., refix last pay adding two advance increments, recalculate and release all retiral benefits; exercise within 8 weeks.

Issues: Legality of post-retirement recovery of advance increments based on quashed OM; permissibility of revisiting pay fixation beyond 24 months pre-retirement; entitlement to refund and revised retiral benefits.

Ratio Decidendi: Once pay fixed without fraud, employer cannot recover excess or reduce pay post-retirement; check of emoluments limited to 24 months pre-retirement per CSR instructions; 2006 OM erred in denying 1992 Rules benefits to pre-rules in-service higher qualifiers; equity bars recovery causing hardship.

Result: Transfer Application allowed.

Table of Content
1. factual background of advance increments recovery (Para 1 , 2 , 3 , 4 , 5)
2. applicants' challenge to quashed om recovery (Para 6 , 7 , 8)
3. respondents deny recovery responsibility (Para 9)
4. review of pay rules allowing in-service increments (Para 10 , 11 , 12)
5. 24-month limit on post-retirement emoluments check (Para 14 , 15)
6. precedents against post-retirement recovery (Para 16 , 17 , 18 , 19)
7. no recovery without fraud; order refund (Para 20 , 21 , 22)

ORDER (FINAL)

(Delivered by Hon’ble Mr. Rajinder Singh Dogra, Member-J)

1. Against the illegally recovered amount from the petitioners respectively on the basis of OM No. A/9 (81)-1-888 dated 28- 7-2006, applicants initially filed SWP No. 70/2019 before the Hon’ble High Court of J&K at Jammu, which on transfer to this Tribunal has been numbered as T.A. No. 1756/2020.

2. Brief of the case in nutshell taken by learned Counsel for the applicant reiterated in TA that the petitioner No. 1 was appointed as Assistant Surgeon in the Health and Medical Education Department on 19-9-1978. During his service, he acquired higher qualification (MD) in the year 1997 and petitioner No. 2 was appointed as Assistant Surgeon in the Health and Medical Education Department on 5-9-1979. He passed his MD in October, 1992 when he was in service. The Jammu and Kashmir, Civil Services (Revised Pay) Rules were framed and notified vide SRO 91 dated 22-3-1982. Rule 12 of the aforesaid Rules provides that the Advance Increment (s) on obtaining of Higher Qualification either while in service or at the time of initial appointment would continue to be allowed in the revised scales. Thereafter the Rules of 1982 were followed by the J&K Civil Services (Revised Pay) Rules, 1987 notified vide SRO 370 dated 17-7-1987 and the J&K civil Services (Revised Pay) Rules, 1992 which were notified vide SRO 75 dated 30-3-1992 by virtue of which the benefit of Advance Increment to the fresh recruits was temporarily withdrawn. Then the respondent No. 2 issued OM No. A/37 (92)-633 dated 15-9-1992 whereby it was clarified that the terms "Fresh Recruitments" "Fresh Appointments", "New Appointments", "Future Appointments", appearing in the Rules of 1992 should mean appointment as have been made or shall be made on or after 31-3- 1992. Further the Agricultural Production Department issued a communication dated 30-5- 2005 to the Director of Agriculture, Jammu in which it was clarified that Advance Increment for acquiring higher qualification by the in-service employees and fresh recruits made from 1-4-1992 was inoperative and the Director was asked to take further action in the matter. That apprehending the withdrawal of the benefit of the Advance Increment given to the in-service officers, who were appointed prior to the Rules of 1992 but obtained the higher qualification after that, all such officers represented to the Govt. The respondent No. 2 vide its OM dated 28-7-2006 rejected the representations of the officers and waived off the benefit of advance increments and it was further ordered that the fixation of their pay should be reviewed and regulated correctly and the excess payment made with effect from 12-9-2001 should be recovered.

3. Being aggrieved, the applicant has filed the present Transfer Application, seeking the following reliefs: -

i. To refund the amounts of Rs. 1,63,119/- and Rs. 1,12,561/- which have been illegally recovered from the petitioners respectively on the basis of OM No. A/9 (81)-1-888 dated 28-7-2006 which stands already quashed by this Hon'ble Court vide judgment and order dated 31-8-2017 with interest @ 18% P.A with effect from the date the same has been received by the respondents;

ii. To fix the last pay drawn of the petitioner by adding the benefit of two advance increments which have been illegally deducted by the respondents and thereafter, calculate afresh all the pensionary/retiral benefits admissible to the petitioners and pay the same to them alongwith arrears from their

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