Retrospective pay refixation to enforce non-cumulative punishments permissible; recovery of excess from retiral benefits upheld absent fraud.

O R D E R

PER: - MR. KUMAR RAJESH CHANDRA, MEMBER [A]

1.The applicant has approached this Tribunal under Section 19 of the Administrative Tribunals Act, 1985 praying for the following relief:

“8.1 That your Lordships may graciously be pleased to quash and set aside the orders dated 13.02.2024, 23.04.2024 and Settlement Calculation Sheet issued by the respondents as contained in Annexure A/1, A/2 and A/3 whereby basic pay has been reduced from Rs. 95800/- to Rs. 93000/- and recovery of Rs. 467448/- has been realized from DCRG against overpayment.

8.2 That your Lordships may graciously be pleased to direct/ command the respondents to refund the amount of Rs. 467448/- recovered from DCRG against overpayment with statutory interest without any delay.

8.3 That your Lordships may graciously be pleased to direct/ command the respondents to revise/ fix the entire pensionary benefits at the basic pay of Rs. 95800/- instead of Rs. 93000/- and pay the arrears along with statutory interest henceforth.

8.4 Any other relief or reliefs including the cost of the proceeding may be allowed in favour of the applicant.”

2. For the sake of clarity, facts in the case as stated by the applicant in his OA, are delineated and discussed herein under :-

The applicant was appointed in the service of the Railways on 26.12.1986 and superannuated on 29.02.2024 while serving as Chief Controller, East Central Railway, Dhanbad. At the time of his retirement, he was drawing a last basic pay of Rs. 95,800/-. No departmental or criminal proceeding was pending against him on the date of superannuation.

During his service career, the applicant was imposed with minor penalties of stoppage of increments on three occasions, namely: Stoppage of increment for three years with effect from 01.06.1991, Stoppage of increment for one year with effect from 01.07.1994, and Stoppage of increment for six months with effect from 01.07.1997. All these punishments were imposed without cumulative effect. It is the case of the applicant that in terms of the Railway Servant (Disciplinary & Appeal) Rules, 1968, stoppage of increment without cumulative effect entails that the employee suffers loss of pay only during the currency of the punishment and after expiry of the punishment period, pay is restored as if no punishment had been imposed. The applicant contends that accordingly, after completion of each punishment period, his increments were restored and his pay was fixed as per rules.

The applicant further submits that his pay was revised from time to time upon promotions as well as upon implementation of the 5th, 6th and 7th Central Pay Commissions and at no point during his entire service tenure was any objection raised regarding incorrect fixation of pay. Consequently, his last basic pay stood at Rs. 95,800/- at the time of retirement in February, 2024.

It is stated that just 9–10 days prior to his superannuation, the applicant received an order dated 13.02.2024 (served on 19.02.2024), whereby his pay was re-fixed retrospectively with effect from 01.08.1996 by reducing it from Rs. 5,450/- to Rs. 5,300/-. As a consequence of such retrospective refixation, his last basic pay was reduced from Rs. 95,800/- to Rs. 93,000/-. The applicant submits that the said order was issued without any show cause notice or opportunity of hearing and on the alleged ground of wrong fixation of pay in connection with earlier punishments. Immediately upon receipt of the said order, the applicant submitted a representation dated 20.02.2024.

The applicant superannuated on 29.02.2024. Thereafter, he re