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2025 Supreme(Online)(CAT) 10684

CENTRAL ADMINISTRATIVE TRIBUNAL
Veena Kothavale, J, Sisir Kumar Ratho, A
P.Govindan Station Master, Salem Division, Southern Railway – Appellant
Versus
1. The General Manager, Southern Railway – Respondent
OA No. 310/00039 of 2023



Advocates:
For the Appellants/Petitioners: M/s. Ratio Legis
For the Respondents: Mr. M. Kishore Kumar, SPC

Recovery of overpayments made to government employees without misrepresentation is impermissible, affirming employees' rights to entitlements under MACP.

Headnote:(A) Railway Services (Revised Pay) Rules, 2008 - Modified Assured Career Progression Scheme - Recovery of overpayment - The Tribunal held that recovery of excess payment made without fault lies against employee’s interest is impermissible, as echoed in the precedent of the Supreme Court case concerning wrongful payment. (Paras 24-31)

(B) Promotions and Upgradations - The recommendations under VII Pay Commission regarding MACP were misapplied, as the applicant was entitled to promotions after 30 years of service, as per established guidelines. The impugned order denying benefits was quashed. (Paras 32-33)

Facts of the case:
The applicant contested the denial of benefits under the MACP scheme, asserting that his pay and promotions were mishandled due to wrongful orders and argued his entitlements based on service records. Due to erroneous fixation and undue recovery notices, he sought necessary benefits before the Tribunal.

Findings of Court:
The order issued for recovery of overpayment was not aligned with legal principles prohibiting such actions against group ‘C’ employees, reflecting negligence in applying MACP rules retrospectively, and the applicant was reinstated to rightful benefits.

Issues: The disputes revolved around wrongful recovery orders and the correct application of MACP benefits concerning pay scale mergers. The Tribunal examined whether prior promotions were correctly accounted for and addressed the legality of recovery under MACP guidelines.

Ratio Decidendi: The court ruled that past erroneous payments due to administrative mistakes should not hinder entitled employees' benefits under MACP, reinforcing employees’ rights against undue recovery actions. The recovery was deemed arbitrary, thus impermissible.

Result: OA allowed.

Table of Content
1. applicant's promotion and pay fixation details. (Para 2 , 3)
2. discussion on macp and its missed benefits. (Para 4 , 5)
3. outline of previous decisions and reasoning against recovery. (Para 6 , 7)
4. response from respondents regarding the applicant's entitlements. (Para 8 , 9 , 10)
5. court's observations on macp and financial entitlements. (Para 11 , 12 , 13 , 14 , 15)
6. clarification of financial upgradation principles. (Para 16 , 17 , 18)
7. code of conduct regarding recovery of overpayment. (Para 19 , 20 , 21)
8. legal rulings supporting applicant's claims and recovery issues. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31)
9. court's final order for repayment and reinstatement of benefits. (Para 32 , 33)

ORDER

(Hon'ble Ms. Veena Kothavale, Member(J)

This O.A. has been filed by the applicant seeking the following relief: -

"to call for the service records of the applicant and the impugned order SA/P.443/II/SMs dated 15-12-2022 issued by the 2nd respondent and quash the same and further direct the respondents to extend MACP first and second up gradations benefits with effect from 01.09.2008 and 13-03-2009 respectively and the III MACP from date on which the applicant has completed 30 years up to Rs.5400/- GP Level 9 with all attendant benefits, both service and pecuniary and to pass such other order/orders as this Hon'ble Tribunal may deem fit and proper and thus to render justice."

2. Briefly, the case of the applicant is that he was appointed as Assistant Station Master in Tiruchchirappalli division of Southern Railway on a stipend of Rs.330-560/- and on successful completion of the training, he was absorbed as Assistant Station Master in the year 1989. Subsequently, in the year 1991, the applicant was promoted as Station Master Grade III in the grade of Rs.425-640/-. This grade of Rs.425-640 was merged with the grade of Rs.455-700 and a common scale of pay of Rs.1400-2300 was recommended by the IV CPC with effect from 01-01-1986.

3. It is further submitted that the applicant he had sought for a request transfer to the same post in Southern Railway under rule 226 of IREC (Vol.I.). Though applicant's request was acceeded and he was transferred to Tiruchchirappalli division of Southern Railway duly protecting his last drawn pay, he was reverted to the lower grade in gross violation of the above referred rule. The applicant had joined post in the new unit on 12-04-1993. However, he was again promoted to the post of Station Master Gr. III, thereby regularising his promotion from the date of his actual promotion in Tiruchchirappalli division of Southern railway.

4. The applicant further submits that after the implementation of the recommendations by the VI Pay commission with effect from 1-1-2006, the pay scales of Rs.5000-8000, Rs.5500-9000 were merged and upgraded to Rs.6500-10500 and revised as the Pay Band of Rs.9300-34800 with grade pay of Rs.4200 and the grade of Rs.6500-10500 was upgraded to Rs.7450-11500 and revised as Pay Band -2 in the scale of Rs.9300-34800 with grade pay Rs.4600/-. Thus, the promotions earned after many years of service were distorted and the juniors and seniors were brought into a block of flock without any service benefits. Considering the plight of languishing seniors, the Pay Commission has recommended the scheme - Modified Assured Career Progression (MACP) with effect from 01-09-2008. The MACP in Grade Pay of Rs.4600/- was extended from 01-09-2008 and regularised by way of regular promotion in the year 2013. The post of Dy. Station Supdt. was upgraded to Rs.7450-11500 and revised as Rs.9300-34800 with grade pay of Rs.4600/- on the basis of the recommendations of VI Pay Commission.

5. It is further submitted that the upgradations bestowed on the applicant during the period from 1989 to 2018 were annulled due to merger of grades by the VI Pay Commission and brought under a common Pay Band of Rs.9300-34800 with Grade Pay of Rs.4200/- and the present Pay Band was also due to upward r

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