Recovery of excess pay from Group C employees impermissible if due to employer's error without employee's fault, per Rafiq Masih.

O R D E R (ORAL)

Per : Hon’ble Kumar Rajesh Chandra, Administrative Member

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

“(i) For quashing the order dated 04.09.2023 (wrongly typed as 04.09.2022) by which Order of Recovery of a sum of Rs. 487348/- has been passed as contained in Annexure 1 and further to refund all the recovered amount of Rs. 25,650/- which has been deducted from the salary of the applicant since September 2023 onwards as shown in Annexure-2 (i.e. pay slips).

(ii) Any other relief/ reliefs may be granted to the applicant for which he is entitled due to amended pay fixation and as your Lordships may deem fit and proper in the ends of justice.”

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

The applicant is presently working as a Train Manager (Mail/Express) (Group-C) and is posted at Patna Junction under the Danapur Division of East Central Railway.

The applicant was initially appointed as Guard in the year 2002 after successfully qualifying the departmental examination. Thereafter, he was granted financial upgradation under the MACP Scheme in the year 2013 by the respondents.

Subsequently, an Office Order dated 04.09.2023 (wrongly typed as 04.09.2022) was issued by Respondent No. 3 stating that the financial upgradation under MACP to Grade Pay Rs. 4200/- had been inadvertently granted w.e.f. 01.09.2008 instead of 12.10.2012. On that basis, the pay of the applicant was recast and recovery of an alleged excess amount of Rs. 4,87,348/- was directed. The said order further required the applicant to submit a representation within 10 days, failing which the same would be treated as final.

The applicant submitted a representation dated 22.09.2023 seeking relevant documents and details regarding the alleged excess payment; however, no documents were furnished to him. Thereafter, the respondents arbitrarily started recovery of Rs. 25,650/- per month from the salary of the applicant from September, 2023.

The applicant submitted further detailed representations dated 03.11.2023, 11.01.2024, 07.03.2024, and 07.06.2024 and also approached the authorities personally on several occasions, but no relief was granted and the recovery continued. Despite repeated representations, no reasoned or speaking order has been passed by the respondents till date. Being aggrieved with the same, the applicant has filed this original application.

3.1 Learned Counsel for the applicant submits that the impugned action of the respondents in ordering recovery of Rs. 4,87,348/- is wholly arbitrary, illegal, and unsustainable in law. It is submitted by Learned Counsel for the applicant that the applicant had no role in the grant of MACP benefit or fixation of pay, and therefore he cannot be penalized for any alleged mistake committed by the department. Learned Counsel further submits that the financial upgradation was granted after due scrutiny by the competent Screening Committee, and thus, the subsequent recasting of pay is unjustified.

3.2 Learned Counsel for the applicant has relied upon the judgment in State of Punjab & Ors vs. Rafiq Masih (White Washer), Civil Appeal No. 11527 of 2014, wherein it has been held that no recovery shall be made from employees for payments made without misrepresentation or fraud and in light of which the applicant was granted interim relief on 03.10.2024 vide which this Tribunal had directed that, “no further recovery will be made till the final outcome of this OA.” It is further submitted by Learned Counsel for the applicant that the applicant is a Group ‘C’ employee and the alleged excess payment pertains to a period extending beyond five years; hence, the case of the applicant is squarely covered by the aforesaid judgment.

3.3 Learned Counsel also submits that the Railway Board Circular R.B.