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2024 Supreme(Online)(CAT) 7576

CENTRAL ADMINISTRATIVE TRIBUNAL
Rajiv Joshi, Member (J)
Rashmi Devi – Appellant
Versus
Union of India – Respondent
Original Application No. 330/1319 of 2019



Advocates:
For the Appellants/Petitioners: Shri A.D. Singh
For the Respondents: Shri Pramod Kumar Rai

Recovery of excess pay from retired Group 'D' employee due to departmental error in MACP grant is impermissible without notice; refund directed, but lower pay fixation upheld as mistake rectifiable.

Headnote:(A) Central Administrative Tribunal Act, 1985 - Section 19 - Railway employment - Modified Assured Career Progression Scheme (MACP) - Erroneous grant of 3rd financial upgradation in higher grade pay (Rs.2400/- instead of Rs.2000/-) - Recovery of excess payment (Rs.2,11,121/-) from retiral benefits of retired Group 'D' employee without prior notice or opportunity - Employee not responsible for mistake - Recovery impermissible as per guidelines: (i) from Group 'D' employees, (ii) retired employees, (iii) no misrepresentation by employee - Refund of recovered amount directed with 6% interest on failure to pay within 4 months; pay fixation/pension in lower grade upheld as department entitled to rectify own mistake. (Paras 12, 13, 20, 23)

(B) Service Law - Recovery of excess payment - No estoppel against rectification of administrative mistake granting undue benefit - Withdrawal permissible even post-retirement if employee not at fault for error, though recovery barred in specified cases. (Paras 20, 21)

Facts of the case:
Casual labour granted temporary status, ad-hoc promotion, regularized in Group 'D', erroneously given 3rd MACP in higher grade pay till retirement; excess recovered from retiral benefits without notice.

Findings of Court:
Recovery impermissible; refund Rs.2,11,121/- to legal representatives within 4 months, with 6% interest thereafter; lower grade pay fixation upheld.

Issues: (1) Justifiability of recovery without notice from retired Group 'D' employee. (2) Validity of withdrawing erroneous higher grade pay under MACP.

Ratio Decidendi: Recovery from retired lower-grade employees for departmental error without employee fault or notice is iniquitous; department may rectify mistaken benefit grant but cannot recover from protected categories per Supreme Court guidelines.

Result: Original Application partly allowed.

Table of Content
1. applicant seeks amended pension and recovery refund. (Para 1 , 2)
2. employee's service history and erroneous macp grant. (Para 3 , 4 , 5 , 19)
3. parties' arguments on recovery without notice. (Para 8 , 9 , 10)
4. rafiq masih guidelines prohibit recovery from retirees. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
5. erroneous benefits can be withdrawn by administration. (Para 20 , 21 , 22)
6. partly allow oa; refund recovery with interest. (Para 23 , 24)

ORDER

1. The instant Original Application under Section 19 of the Central Administrative Tribunal Act, 1985 has been filed for the following reliefs :-

“(i) “Direct the respondents to issue fresh amended PPO and fixed the pension of the applicant on the last Pay Band of Rs. 5200-20200 Grade pay 2400/- on the post of Mason-II instead of Pay Band of Rs.5200-20200 Grade Pay 2000/- Khalasi and accordingly pay the differences of arrear of pension and also make settlement of retiral benefits on the said pay and pay the differences of arrear of retiral benefits with 18% interest per annum to the applicant from the date of entitlement to the date of actual payment is being made to the applicant.

(ii) Direct the respondents to refund the recovered amount of Rs.2,24,071/- which was illegally recovered from the DCRG etc. with 18% interest per annum from the date of recovery to the date of actual payment is being made to the applicant;

(iii) Grant any other relief, as the applicant might be found entitled to, on the facts and circumstances of the case;

(iv) Allow the original application with cost in favour of the applicant for involving in the litigation.”

2. The facts leading to this Original Application as apparent from the record that the original applicant, who died during the pendency of Original Application, was appointed on 06.01.1980 on the post of Mason-II on the pay-scale of Rs.5200-20,200/-+Grade Pay of Rs.2400/- and was superannuated from services on 31.03.2016 from the office of the Deputy Chief Signal & Telecom Engineer (Construction), North Eastern Railway Gorakhpur on the post of Helper Khalasi in Group ‘D’ category. Subsequently, a recovery amounting to Rs.2,24,071/- has been done from the pension of the original applicant, although his pension was fixed in the low pay band on the post of Khalasi in Group ‘D’ category i.e., Rs.5200-20,200+2000 Grade Pay instead of pay band of Mason-II i.e., Rs.5200-20,200+2400 Grade Pay.

3. On the other hand, counter-affidavit has been filed from the side of the respondents and resisted the claim of the applicant. In counter-affidavit, it is stated that the applicant was initially engaged as Casual Labour on 16.11.1980 in the employment of respondents and subsequently granted temporary status w.e.f. 01.01.1984. The applicant was further granted ad-hoc promotion to the post of Mason on 16.02.1985 in Group ‘C’ category and later on, his services were regularized in Group-D w.e.f. 31.12.1997 as per Railway Board Circular dated 03.09.1996 after qualifying the screening test.

4. It is further stated in the counter-affidavit that by virtue of the Circular of Railway Board being RBE No.101/2009 dated 10.06.2009 as clarified vide Circular dated 19.12.2011, financial upgradation under Modified Assured Carier Progression Scheme (hereinafter referred as ‘MACP’) are provided to the employees of Railway after completion of 10, 20 and 30 years of regular service in the grade respectively. The first MACP would be admissible on completion of 10 years of regular service from the date of joining of the post in the entry grade, 2nd MACP would be admissible on completion of 20 years of service from the date of initial appointment or 10 years from the date of 1st financial upgradation/promotion, whichever is earlier and 3rd MACP /financial upgradation would be admissible on completion of 30 years of service from the date of initial appointment or 10 years from the date of 2nd Financial upgradation /promotion, whichever is earlier. As per the extent rul

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