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2025 Supreme(Online)(CAT) 3247
CENTRAL ADMINISTRATIVE TRIBUNAL
PATNA BENCH,
O.A. No. 050/00226
Order reserved on
Order pronounced on:
C O R A M
HON’BLE SHRI RAJVEER SINGH VERMA
Mithilesh Kumar Jha Son Of Sri Fekan Jha, Resident Of Adarsh
Lok Colony, Rambagh, Post-Ramna, Ps
Muzaffarpur, Ex Senior Technician/Electric (Meter Reader), East
Central Railway, Muzaffarpur-842002 (Bihar).
Versus
1. The Union Of India Through The General Manager, East Central
Railway, Hajipur, P.Ο. Digghi Kalan, P.S. Hajipur, District
Vaishali At Hajipur-844101 (Bihar).
2. The Divisional Railway Manager, East Central Railway, Sonpur,
District- Saran-841101 (Bihar).
3. The Senior Divisional Electrical Engineer, East Central Railway,
Sonpur, District Saran-841101 (Bihar).
4. The Senior Divisional Personnel Officer, East Central Railway,
Sonpur, District Saran-841101 (Bihar).
5. The Senior Divisional Financial M
Sonpur, District Saran-841101 (Bihar).
For Applicant:- Shri M.P. Dixit, Advocate
For Respondents:- Shri R.R. Singh,
O.A. No. 050/00226
CENTRAL ADMINISTRATIVE TRIBUNAL
PATNA BENCH,
226/2023
Order reserved on:-14.02.2025.
Order pronounced on:- 26.02.2025
C O R A M
RAJVEER SINGH VERMA, MEMBER (J)
Mithilesh Kumar Jha Son Of Sri Fekan Jha, Resident Of Adarsh
Ramna, Ps- Mithanpura, DistrictMuzaffarpur, Ex Senior Technician/Electric (Meter Reader), East
842002 (Bihar).
…….Applicant
Versus
1. The Union Of India Through The General Manager, East Central
Railway, Hajipur, P.Ο. Digghi Kalan, P.S. Hajipur, District
844101 (Bihar).
2. The Divisional Railway Manager, East Central Railway, Sonpur,
3. The Senior Divisional Electrical Engineer, East Central Railway,
841101 (Bihar).
4. The Senior Divisional Personnel Officer, East Central Railway,
841101 (Bihar).
5. The Senior Divisional Financial Manager, East Central Railway,
841101 (Bihar).
……..Respondents
, Advocate
Singh, Addl. CGSC
Shri M.P. Dixit, Advocate; Shri R.R. Singh, Addl. CGSC
Recovery of overpayment from pensioners without notice violates principles of natural justice and government policy.
Headnote:(A) Railway Services Pension Rules, 1993 - Recovery of overpayment - The applicant sought to quash the recovery of Rs.176,845/- from DCRG and to fix pensionary benefits at Rs.50,500/- after annual increment - The applicant's pay was erroneously fixed, leading to recovery without notice - The court emphasized the necessity of adhering to principles of natural justice in pay fixation and recovery processes. (Paras 1, 4, 18)
(B) Natural Justice - The court reiterated that no order affecting an employee's rights should be made without providing an opportunity to be heard, as established in Bhagwan Shukla Vs. Union of India. (Paras 15, 18)
(C) Government Policy - The court referenced the DoPT's OM dated 12.03.2016, which outlines situations where recovery from employees is impermissible, particularly for Class-III employees and retirees. (Paras 18)
Facts of the case:
The applicant superannuated on 31.07.2021 with a basic pay of Rs.49,000/-, which was reduced to Rs.47,600/- post-verification, leading to an overpayment recovery. The applicant contended that the recovery was made without notice or justification.
Findings of Court:
The court found the recovery order to be bad in law and against government policy, directing the refund of the recovered amount.
Issues: The main issues included the legality of the pay reduction and the recovery of overpayment without due process.
Ratio Decidendi: The court ruled that the recovery was unjustified as it violated principles of natural justice and government policy regarding overpayment recovery.
Result: OA partly allowed; recovery order set aside and refund directed.
ORDER
PER:-RAJVEER SINGH VERMA, MEMBER [J]
1. The present OA has been filed by the applicant seeking following reliefs:
“ 8.1 That your Lordships may graciously be pleased to quash and set aside the order dated 18.08.2021 issued for the respondent No.4 as contained in Annexure A/1 relating to recovery of Rs.176845/- overpayment. from DCRG against
8.2 That your Lordships may further be pleased to declare the Last Pay shown as Rs.47600/- at serial No.8 in Service Certificate issued on 01.09.2021 as contained in Annexure A/2 reducing the basic pay from Rs.49000/- as null, void, abinitio wrong.
8.3 That your Lordships may further be pleased respondents to direct/command the to fix the entire pensionnary benefits of applicant at the basic pay of Rs.50500/-after adding/granting annual increment due on 1st July 2021 or alternatively at the basic pay of Rs.49000/-.
8.4 That your Lordships may further be pleased to direct/command the respondents to refund the amount of Rs.176845/- recovered from DCRG with statutory interest without any delay.
8.5 That your Lordships may further be pleased to direct/command the respondents to revise the entire pensionnary benefits such as Pension, DCRG, Commuted Value of Pension, Leave encashment etc. at the basic pay of Rs.50500 or alternatively at the basic pay of Rs.49000/- alongwith any delay with arrears statutory interest without
8.6 Any other relief or reliefs including the cost of the proceeding may be allowed in favour of the Applicant.”
2. Brief facts of the case are that applicant superannuated from service on 31.07.2021 at the basic pay of Rs.49000/- while serving as Senior Technician/Electric (Meter Reader), East Central Railway, Muzaffarpur.
3. That applicant’s due date of annual increment is 1st July in the year and his basic pay to the post of Senior Technician/Electric (Meter Reader) was fixed at Rs.49000 as on 01.07.2020 and his next increment was due on 1st July 2021 and if his increment is added his basic pay will come to Rs.50500/-but the said increment for the year 2021 was not added.
4. Thereafter superannuation, applicant’s pensionnary benefits was fixed and paid at the basic pay of Rs.47600/- and recovery of Rs. 176845/- has been realized from his DCRG against overpayment on account of wrong fixation of pay many years ago but neither any order of such wrong fixation of pay nor any order reducing his basic pay nor any order of recovery of such overpayment has been served upon applicant nor even any show cause notice has been given to him.
5. That applicant submitted representation on 11.08.2021 for refund of said recovered amount referring Railway Board order dated 22.06.2016.
6. Thereafter, applicant received an order dated 18.08.2021 and a Service Certificate dated 01.09.2021 which shows that recovery of Rs.176845/- has been made from DCRG against overpayment and Last pay has been shown as Rs.47600/- at serial No.8 of Service Certificate instead Rs.49000/- / Rs.50500/- even without any show cause notice or giving any details in respect of any wrong fixation nor even any allegation of misrepresentation by applicant has been alleged, hence the impugned orders are bad in law, punitive, malicious, against the principle of natural justice and unsustainable in the eye of law.
7. Applicant has sent representations including dated 21.04.2022 for refund of said recovered amount and fixation of entire pensionary benefits at the basic pay of Rs.50500/- stating that impugned orders are bad in law and without any basis but no order has been passed.
Hence this OA.
8. Respondents have filed written statement and on the basis of averments made in written statement, opposed the contentions of applicant with a request to dismiss the OA.
9. That in reply to the statements made in paragraph no.4.2 of the O.A respondents have stated that the applicant was appointed on 27.04.1983 and superannuated on 31.07.2021 as Sr. Tech. (Meter Reader) but at the time of retirement his pay was checked during vetting of account w
