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2024 Supreme(Online)(CAT) 17676

CENTRAL ADMINISTRATIVE TRIBUNAL
SUNIL THOMAS, J, V.RAMA MATHEW, AM
Muraleedharan Pillai – Appellant
Versus
Union of India – Respondent
Original Application No.180/00337/2021



Advocates:
For the Appellants/Petitioners: Mr.S.Radhakrishnan
For the Respondents: Mr.V.A.Shaji, ACGSC

Financial protections must be upheld during unilateral transfers, prohibiting recovery actions that violate established laws and welfare principles.

Headnote:(A) Financial Upgradation - ACP Scheme - MACP - The applicant availed financial upgradations in accordance with the ACP and MACP Schemes; his pay was unilaterally reduced during transfer without proper justification, and recovery from terminal benefits was dismissed as unlawful. (Paras 1-11)

(B) Transfer Laws - It was held that the pay protection clause during transfer maintains entitlement to previously granted financial upgradations. The AAO's fixation was inconsistent with statutory guidelines and court precedents. (Paras 8-10)

Facts of the case:
The applicant contested the unilateral reduction of his grade pay in transfer and claimed payment due at retirement.

Findings of Court:
The Tribunal found that the applicant's pay grade had to be protected and the lack of proper justification for recovery led to the quashing of that decision.

Issues: Whether unilateral transfer without proper fixation allowed the recovery of excess payment.

Ratio Decidendi: The court highlighted that financial conditions under which transfers occur must be respected under the present government's guidelines, protecting an applicant’s financial rights.

Result: The O.A is allowed with directions on withheld payments.

Table of Content
1. financial upgradation entitlement based on prior service. (Para 1 , 2 , 3)
2. conditions of service impact recovery of entitlements. (Para 4 , 5)
3. dispute over recovery amounts raised by the applicant. (Para 6 , 7)
4. legal grounds for challenging pay fixation by aao. (Para 8 , 9)
5. receipt of benefits outlined under service transfer guidelines. (Para 10 , 11)
6. final ruling in favor of the applicant regarding pay issues. (Para 12)

ORDER

HON'BLE Ms.V.RAMA MATHEW, ADMINISTRATIVE MEMBER

Heard learned counsel both sides.

The factual facts are as under – The applicant joined the service as a Group D employee in the Ordnance Depot, Shakurbasti, Delhi on 06.05.1983. On 13.05.1985 he participated in the direct recruitment for the post of LDC and he was selected and appointed as LDC in Ordnance Depot. In August, 1994 the applicant was transferred to Ordnance Depot, Avadi on usual terms and conditions. On implementation of the recommendations of the 5th CPC the Government of India introduced the ACP Scheme with effect from 09.08.1999. The applicant was granted the 1st financial upgradation under the ACP Scheme in the scale of pay of Rs.4000-6000 with effect form 09.08.1999 by Order No.2607/Estt./NI Ordnance Depot, Avadi dated 16.06.2000, since he had not had any functional promotion in the grade of LDC for more than 12 years. On 01.01.2007 the applicant was functionally promoted as Upper Division Clerk in the Ordnance Depot, Avadi. Since the applicant was already in the scale of pay of Rs.4000-100-6000 by virtue of the ACP Scheme there was no pay fixation or monetary benefit to the applicant on his functional promotion to the post of UDC and the above event has been recorded in his service book and approved by the competent authority.

2. On 13.11.2006 the Integrated Headquarters, Ministry of Defence ordered unilateral transfer on compassionate ground to 39 persons including the applicant vide Order No.15984/Nov/1/2006/MP-4(Civ)(b) dated 13.11.2006, a copy of which has been produced as Annexure A-4. By this order the applicant who was working as UDC was reverted and posted as LDC in Southern Naval Command Headquarters. When the application was submitted for unilateral transfer he was a LDC at Ordnance Depot, Avadi. In fact, he was promoted as UDC in the interregnum. The movement order permitting the applicant to move to Headquarters SNC as LDC was issued on 30.04.2007 wherein it was clearly stated that the applicant was working as UDC and he joined as LDC at SNC on 01.05.2007. As per the last pay drawn certificate issued to the applicant from the Ordnance Depot he was drawing basic pay as on 30.04.2007 at Rs.4800/-. On joining as LDC the applicant’s pay was fixed at Rs.4800/- as basic pay ie., fixation to Rs.4100/- with effect from 09.08.1999 on ACP plus increments for 8 years.

3. On the introduction MACP Scheme on 01.09.2008 the applicant was granted 2nd financial upgradation in PB-1 with Grade Pay of Rs.2800/- (pre-revised scale Rs.4500-7000) with effect from 01.09.2008 and on completion of 30 years of regular service he was granted 3rd financial upgradation with effect from 13.06.2015 with Grade Pay of Rs.4200/- in PB-2 vide Civilian Establishment List No.32/2015 dated 10.07.2015. The applicant was promoted as regular UDC in the SNC on 01.05.2017 in Level 4 of 7th CPC Pay Matrix in the scale of pay of Rs.25500-81100 (pre-revised Pay Band 1 of Rs.5200-20200 with Grade Pay of Rs.2400/-). However, since the applicant with the benefit of 2nd MACP was already at Level 6 of 7th CPC, no fixation was done on his promotion. The applicant was due to superannuate on 30.11.2020, therefore, on 11.06.2020 the SNC submitted the data sheet and service details of the applicant for sanction of pension/gratuity together with all the service records. On 19.08.2020 the service details and records of the applicant were returned by the Area Accounts Office, Navy, a copy of which is produced as Annexure A-10, stating as under :

On scrutiny of the

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