Central Administrative Tribunal Principal Bench, New Delhi Order reserved on: 04.02.2026 Order pronounced on: 20.02.2026 Hon’ble Dr. Chhabilendra Roul, Member (A)

Hon’ble Sh. Rajveer Singh Verma, Member (J)

Sh. Sunil Kumar Bhatnagar, s/o Late Sh. M.C.Bhatnagar, Ex SSP (P.Way), Aged about 60, H.No.88C, Ground Floor, Lane No.5, Shiv Nagar, Near Jail Road, New Delhi-110058.

....Applicant (By Advocate: Mr. B.C.Nagar)

Versus

1. Union of India through The General Manager, Northern Railway, Baroda House, New Delhi-110001.

2. DRM, DRM’s Office, State Entry Road, New Delhi-110006.

3. Sr. DFM, DRM’s Office, State Entry Road, New Delhi-110006.

... Respondents (By Advocate: Mr. Vivek Gupta)

ORDER By Dr. Chhabilendra Roul, Member (A)

Present OA has been filed by the applicant under Section 19 of the Administrative Tribunals Act, 1985 seeking the following relief:

“(i) to direct the Respondents to quash/set-aside impugned order passed reduction of pay and recovery dated 04.07.2023 (ii) to pay arrears of difference of DCRG, Leave encashment and full and final pension from the date it became due by revising the Pension of the Applicant with suitable and penal interest against the respondents.

(iii) any other relief, which this Hon’ble Tribunal may deem fit, just and proper in the circumstances of the case, may also be passed.

(iv) cost of the present case may be awarded in favor of the Applicant and against the respondents.”

2. Factual Matrix

2.1 The applicant was appointed as a Permanent Way Mistry (PWM) on 26.11.1989. He was posted at Bikaner Division and joined there on 09.12.1989, and retired as an SSE/PW/ROK on 30.06.2023.

2.2 During his career, he was granted three financial upgradations under the MACP scheme: the first in GP-4600 w.e.f. 01.09.2008, the second in GP-4800 w.e.f. 09.12.2009, and the third in GP-5400 w.e.f. 09.12.2019, leading to a final basic pay of ₹82,600. However, following his retirement on 30.06.2023, the respondents issued an order on 04.07.2023, reducing his Grade Pay from Rs.5400 to Rs.4800 and his basic pay from Rs.82,600/- to ₹75,600 w.e.f 01.07.2022 till his superannuation. Subsequently a recovery of Rs.3,16,143 was effected from his DCRG without providing a show-cause notice. The applicant contends that this action is illegal, arbitrary, and violates the "Law of Natural Justice," by citing Supreme Court decisions in State of Punjab and Ors. Versus Rafiq Masih (White Washer), (2015) 4 SCC 334 and Thomas Daniel v. State of Kerala, 2022 SCC OnLine SC 536 as well as Railway Board instructions (RBE No. 72/2016), which prohibit recoveries from retired employees when no fraud or misrepresentation was involved on their part.

3. Notices were issued to the respondents and they have filed their counter reply, to which the applicant has also filed his rejoinder.

4. Submissions by Learned Counsel for the Applicant

4.1 Learned counsel for the applicant states that the basic issue in the instant case is of upgradation from the post of Mistry/Supervisor to the post of Junior Engineer-II and the merger was took place in the year 1998. Learned counsel for the applicant refers to para 5 of the MACP scheme, which reads as under:-

"5. Promotion earned /upgradations granted under the ACP Scheme in the past to those grades which now carry the same Grade Pay due to merge of pay scales / upgradations of posts recommended by the Six Pay Commission shall be ignored for the purpose of granting upgradations under modified ACPS."

2. Accordingly, vide the aforementioned paragraph, a merger took place in the case of the present applicant and similarly placed employees around 1998, which should have been ignored when calculating MACP entitlement. The applicant was initially, and correctly, given the MACP scheme benefits with effect from 09.12.2019, and the subsequent withdrawal of this benefit is contrary to the MACP scheme guidelines and established legal precedent.

5. Submission by Learned Counsel for Respondents

5.1 Learned counsel for the respondents reiterat