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2024 Supreme(Online)(CAT) 7578

CENTRAL ADMINISTRATIVE TRIBUNAL
Sanjiv Kumar, Member (A)
Sujit Kumar Singh – Appellant
Versus
Union of India – Respondent
Original Application No. 193 of 2020 | Original Application No. 190 of 2020 | Original Application No. 189 of 2020



Advocates:
For the Appellants/Petitioners: Shri Vipul Dubey
For the Respondents: Shri Vinod Mishra

Recovery of excess HRA impermissible from Class III/IV employees without fault, when paid per employer's order later cancelled; authorities responsible for erroneous disbursement cannot recover retrospectively.

Headnote:(A) Administrative Tribunals Act, 1985 - Section 19 - House Rent Allowance (HRA) - Recovery of excess HRA paid to Class III & IV civilian employees without 'no accommodation' certificate - DGQA order dated 13.06.2005 directed payment of HRA to employees not in possession of government accommodation till procedure finalized, held in abeyance vide SRO 31 provisions - Subsequent cancellation on 06.10.2008 and recovery orders from 07.03.2004 quashed - No fault, fraud or misrepresentation by employees - Authorities solely responsible for erroneous disbursement despite clarificatory orders - Recovery impermissible as per principles laid down for Class III/IV employees where excess payment due to employer's error. (Paras 10, 11, 15, 16)

(B) Principles of recovery of excess payments - No recovery permissible from Class-III and Class-IV employees when excess arises from employer's mistake without employee fault - Recovery also barred if payment spans over five years or causes undue hardship - Authorities cannot enforce retrospective recovery ignoring own contradictory circulars leading to continued disbursement. (Para 16)

Facts of the case:
Class III & IV civilian employees of defence quality assurance unit received HRA without 'no accommodation' certificate pursuant to DGQA order dated 13.06.2005 permitting such payment till procedure finalized. Order cancelled on 06.10.2008 enforcing SRO 31 from 07.03.2004, but disbursements continued till 2018 inquiries led to phased recovery orders impugned herein.

Findings of Court:
Impugned recovery orders set aside; restrained respondents from recovering HRA w.e.f. 07.03.2004; any recovery made to be refunded with 6% interest within three months.

Issues: Whether recovery of HRA paid without 'no accommodation' certificate permissible when disbursed per departmental order without employee fault; violation of natural justice; retrospectivity of recovery from 2004.

Ratio Decidendi: Employees not at fault as HRA paid per binding 2005 order later cancelled without implementation; employer's lapse in disbursement post-cancellation; recovery inequitable for lower cadre employees per established principles against harsh recoveries.

Result: Original Applications allowed.

Table of Content
1. oa challenges hra recovery orders retrospectively. (Para 1 , 2 , 3)
2. dgqa orders allowed hra without nac until 2008. (Para 4 , 10 , 11 , 12 , 13 , 14)
3. applicants faultless; recovery violates natural justice. (Para 5 , 8)
4. respondents justify phased recovery per sro 31. (Para 6 , 7)
5. no employee fault; recovery impermissible per rafiq masih. (Para 9 , 15 , 16 , 17)
6. oas allowed; impugned orders set aside. (Para 18 , 19)

ORDER

As the subject matter in all the connected O.As are one and the same and the relief/s sought by the applicants are similar, merely having different dates and events would not in any way disturb the ultimate finding to be given by this Tribunal. Therefore, as requested by the counsel for either sides, all the O.As have been heard together and decided by a common order. For ready reference the facts of the O.A No. 193/2020 are taken.

2. These original applications have been filed under section 19 of Administrative Tribunals Act 1985 seeking relief to set aside the Daily Order part -1 No. 20/AD dated 30.01.2020, Daily Order Part-I No. 18/AD-1 dated 31.01.2020 and Daily Order Part-I No. 17/AD dated 31.01.2020 respectively passed by the respondent no. 5 and to issue order restraining the respondents from taking coercive action and recovery of HRA from the applicants w.e.f. 07.03.2004. Prayer has also been to issue direction to the respondents to grant all consequential benefits to the applicants ignoring the orders dated 30.01.2020, 31.01.2020 and 31.01.2020 respectively.

3. The facts of the case, in brief, are that they are all class III and IV civilian employees in the office of the Controlletrate of Quality Assurance (General Stores), Kanpur which is one of the units of the Ministry of Defence and vide the aforesaid impugned orders, the respondents have proposed a recovery of non- entitled HRA as per directions of HQ DGQA in two phases. The contention of the applicants is that they have not committed any fraud or mistake or mischief and manipulated the disputed amount of so called non-entitled HRA. In support of their case, the applicants stated that in the department, there was rule that if the government accommodation is not provided to an employee and a certificate of non-accommodation is given, such employees were entitled for HRA but as procedures were not laid down hence, the Ministry of Defence, DGQA/ADM/RMD (CW) vide order dated 13.06.2005 No. 81397/DGQA/ADM/RMD (CW) had decided that till procedure for regulation of grant of “no accommodation” certificate is finalized, HRA shall be paid to all employees who are not in possession of government accommodation till further orders and those denied HRA in the intervening period from issue of the order till date of this clarification shall also be paid HRA denied on the ground of not submitting “no accommodation” certificate. As the applicants had not been provided any accommodation, therefore, in the light of the aforesaid order, without a “no-accommodation” certificate, they were granted HRA by the competent authority and they utilized the same for obtaining their private accommodation.

4. Subsequently, the respondents issued order no. 86710/DGQA/ADM/RMD (CW) dated 16.03.2018 providing guidelines relatable to allotment of entitled accommodation of grant of HRA to civilian employees in DGQA and also regarding issuance of “no accommodation” certificate etc. The respondents also issued another order No. A/97401/Complaint/JJ/DGQA (Vig. Cell)/PC dated 03.05.2018 whereby the authorities were asked for examining certain cases involving drawl of HRA by DGQA officers in contravention of the existing guidelines on the subject and to recover the HRA forthwith in such cases where same has been drawn wrongly. Thereafter, the respondents vide order dated 06.10.2008 bearing no. A/81397/DGQA/ADM/RMD (CW) cancelled the office note dated 13.06.2005 mentioning therein that the grant of HRA to DGQA civilian employees will be made in accordance with SRO 31

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