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2026 Supreme(Online)(CAT) 2242

CENTRAL ADMINISTRATIVE TRIBUNAL
Ramesh Singh Thakur, Judicial Member, Anjali Bhawra, Administrative Member
Ramesh Chand Bhatia – Appellant
Versus
Union of India – Respondent
O.A. No. 60/252/2018



Advocates:
For the Appellants/Petitioners: Mr. Vinay Puri
For the Respondents: Ms. Komal Preet Chauhan

Recovery of excess pay from retired Group-C employee impermissible without misrepresentation, especially near retirement.

Headnote:Under Section 19 of the Administrative Tribunals Act 1985, applicant challenged recovery of excess pay and reduction in pension post-retirement due to erroneous MACP financial upgradation. Facts reveal grant of Grade Pay ₹4600/- under MACP Scheme per Railway Board letter dated 13.12.2012, later withdrawn citing next promotion carrying same ₹4200/- Grade Pay. Court found no misrepresentation by employee, recovery effected just before retirement impermissible. Issues framed around compliance with natural justice in reconsideration post prior Tribunal order, applicability of MACP clarifications limiting upgradation. Ratio: Recovery from Group-C retired employees impermissible if no misrepresentation and ordered near retirement; distinguished prior cases on timelines, affirmed principles against post-retirement recovery per Supreme Court precedents. Original Application allowed; impugned recovery order quashed, refund directed with GPF interest from retirement date.

Table of Content
1. erroneous macp grant and pre-retirement pay revision/recovery. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. prior tribunal proceedings and non-compliance with directions. (Para 8 , 9 , 10 , 11 , 12 , 15)
3. macp rules limit upgradation to promotional grade pay; opportunity given. (Para 13 , 14 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27)
4. admitted facts; correction before retirement but principles apply. (Para 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35)
5. no recovery from group-c retiree without misrepresentation; oa allowed. (Para 36 , 37 , 38 , 39)

O R D E R

Per: RAMESH SINGH THAKUR, MEMBER (J):

1. The applicant has approached this Tribunal by way of instant O.A, under Section 19 of the Administrative Tribunals Act 1985, seeking the following relief:

“i) That present application may kindly be allowed;

ii) That complete records pertaining to the case in hand may kindly be summoned in the interest of justice and equity;

ⅲ) That the impugned office order dated 01.11.2017 (Annexure A-12) affirming that the orders dated 7.11.2014 (Annexure A-3) whereby the pay of the applicant was revised thereby reducing his pay from retrospective period and the order of recovery from the DCRG (Annexure A-7) had been rightly passed may kindly be quashed and set aside being wholly illegal and against the settled law on the subject and passed in complete violation of principles of natural justice.

iv) That it may also be declared that the applicant is entitled to the refund of amounts by which his salary was reduced and also retiral benefits recovered from D.C.R.G along with interest @ 18% p.a. on the same which are due to the applicant from the dates, these have become due till the date of actual payments;

v) That this Hon'ble Tribunal may also pass any other order in favour of the applicant which it may deem fit and proper in the peculiar facts and circumstances of the case where a retired civil servant has been deprived of his dues against all canons of law and settled law;

vi) That cost of the application may also kindly be awarded in favour of the applicant.”

2. Brief facts of the case as submitted by the applicant are that the applicant was initially appointed in the respondent Railway Department on 13.11.1975 and retired on superannuation on 30.11.2014. At the time of retirement, he was working as S&T [R.E.] at Ambala under the West Central Railway. It is submitted that the applicant was granted financial upgradation under the MACP Scheme. In accordance with the instructions issued by the Railway Board vide letter No. PC.VI/2009/ACP/2 dated 13.12.2012 (Annexure A-1), the applicant was allowed financial upgradation to Pay Band ₹9300-34800 with Grade Pay ₹4600/- under MACP Scheme w.e.f. 01.08.2008.

3. It is further submitted that subsequently, the respondent authorities issued another circular/letter bearing No. E/Sig.457/1 dated 29.10.2014 (Annexure A-2), whereby the grant of Grade Pay ₹4600/- extended to the applicant under the MACP Scheme was ordered to be withdrawn on the ground that the same had been erroneously granted.

4. Consequent upon the aforesaid circular, the respondent authorities issued Office Order No. RE/UMB/100/2014 dated 07.11.2014 (Annexure A-3), whereby the pay of the applicant was revised downward, reducing his Grade Pay from ₹4600/- to ₹4200/- and Basic Pay from ₹24,660/- to ₹23,490/-.

5. The applicant submits he retired on superannuation on 30.11.2014, on completion of 39 years and 17 days of regular service, and a Service Certificate dated 30.11.2014 (Annexure A-4) was issued to him by the respondent department. It is further submitted that the respondent authorities processed the pension case of the applicant by taking into account the reduced pay and grade pay as revised vide Annexure A-3 and accordingly fixed his pension and other retiral benefits. The pension, DCRG and other admissible dues were sanctioned on the basis of Basic Pay ₹23,490/- with Grade Pay ₹4200/-, as reflected in the Particulars of Pension

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