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2024 Supreme(Online)(CAT) 12198

CENTRAL ADMINISTRATIVE TRIBUNAL
Om Prakash VII, Member (J), Mohan Pyare, Member (A)
Ajay Kumar Singh – Appellant
Versus
Union of India – Respondent
Original Application No. 475 of 2020|CP No. 130 of 2024



Advocates:
For the Appellants/Petitioners: Shri Rakesh Kumar Dixit
For the Respondents: Shri Krishna Kumar Ojha

Revision of retired Group C employee's service benefits without show cause notice or hearing violates natural justice; recovery of excess payments impermissible absent fraud.

Headnote:(A) Principles of Natural Justice - Violation - Revision of service regularization dates, entry in cadre, and financial benefits (TBOP/MACP) for retired Group C employee - Done without show cause notice or opportunity of hearing - Action held illegal and arbitrary. (Paras 14, 15)

(B) Recovery of excess payments - Impermissible - From retired Group C employees without fraud or misrepresentation - Benefits granted by competent authority earlier - Ratio: Recoveries barred in cases of Class-III/IV service employees, retired employees, excess payments over five years. (Para 14, quoting Supreme Court judgment)

Facts of the case:
Retired postal employee challenged order revising his cadre entry date from earlier regularization of RTP period (1983-1987) to actual absorption date (1987), revising promotion/MACP dates, causing financial loss through recoveries. Earlier regularization approved by authorities; revision by screening committee without hearing.

Findings of Court:
Impugned order quashed for violating natural justice. Recovered amount refunded with 6% interest within three months. Future revision permitted only after show cause notice and hearing; no recovery allowed.

Issues: Whether revision of service benefits without notice/hearing valid; permissibility of recovery from retired Group C employee.

Ratio Decidendi: Refixation of pay/benefits for retired employees requires adherence to natural justice; no recovery from Group C retirees absent fraud, per summarized equitable principles.

Result: Original Application allowed.

Table of Content
1. applicant's challenge to impugned order revising service entry date. (Para 1 , 2 , 3 , 4)
2. history of rtp regularization and subsequent promotions. (Para 6 , 7 , 8)
3. rtp service not countable per supreme court precedent. (Para 9 , 10 , 11)
4. summary of rival contentions on date revisions. (Para 12 , 13)
5. violation of natural justice; no recovery from group c retiree. (Para 14 , 15)
6. quash order, refund recovery with interest. (Para 16 , 17)

ORDER

(Delivered by Hon’ble Mr. Justice Om Prakash VII, Member (J)

Shri Rakesh Kumar Dixit, learned counsel for the applicant and Shri Krishna Kumar Ojha, learned counsel for the respondents, are present at the time of hearing in the instant OA which was listed along with CP No. 130 of 2024.

2. The instant original application has been filed by the applicant seeking following relief:

“i. to issue, an order or direction in nature of certiorari quashing / set aside the impugned order dated 24.08.2020 passed by the respondent no. 5 (Annexure No. A-1 to this original application with compilation no. I) accordingly.

ii. to issue, an order or direction commanding the respondents to give all consequential benefits to the applicant as and when due upon him.

iii. Any other relief, which this Hon’ble Court may deem fit and proper in the facts and circumstances of present case.

iv. Award cost of the original application in favour of the applicants.”

Further, following prayer was made by the applicant by way of interim relief:

“In view of the facts and circumstances of the case, it is necessary and expedient in the interest of justice that this Hon’ble Court may graciously be pleased to stay the effect and operation of the impugned order dated 24.08.2020 passed by the Superintendent of Post Offices Ballia Division Ballia (respondent no. 5) during the pendency of the present original application, otherwise applicant will suffer an irreparable loss and injury.”

3. At the outset, it is pertinent to record that vide order dated, 05.04.2021, the prayer for interim relief was allowed by this Tribunal and the effect and operation of the order dated 24.08.2020 was stayed till further orders.

4. A synopsis of the controversy prevailing in the instant case is that the applicant is aggrieved by the impugned order dated 24.08.2020 passed by the Superintendent of Post Offices, Ballia Division, Ballia by which the said authority informed to the applicant that his date of entry in P.A. cadre has been revised from 16.07.1983 to 16.09.1987 and accordingly the date from which MACP(s) were granted to him were also revised. Applicant claims that due to the above illegal act of the respondents, he has suffered serious financial loss and injury. Applicant has also alleged that the impugned order was passed without affording the applicant an opportunity of hearing and also without issuing any show cause notice. By way of the instant OA, applicant seeks quashing of the impugned order thereby directing the respondents to give all consequential benefits to the applicant as and when due upon him.

5. We have heard the learned counsels for the parties and gone through the records.

6. Disclosing a brief history of the case, learned counsel for the applicant submitted that the applicant, who has retired now, was a permanent employee in the respondents department. On 11.02.2001, the respondent no. 5 sent a letter to the Postmaster General Gorakhpur Region Gorakhpur for the approval of the regularization of the period from 16.07.1983 to 15.09.1987 and in this regard, a letter dated 05.02.2001 was also issued. The Superintendent of Post Offices, Ballia Division, Ballia sent a letter to the Director, Postal Services, Gorakhpur Division, Gorakhpur about the regularization of the period of RTP of the applicant. It was also written in this letter that the applicant was working regularly against the vacant post and he has also been regularized vide order dated 15.09.1987, therefore, the applicant has also submitted his application

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