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2026 Supreme(Online)(CAT) 4632

CENTRAL ADMINISTRATIVE TRIBUNAL
Narendra Kumar Johari, Judicial Member
Chitra Ketu Sinha – Appellant
Versus
Bharat Sanchar Nigam Limited – Respondent
O.A. No. 15/2017



Advocates:
For the Appellants/Petitioners: Shri M.P. Dixit
For the Respondents: Smt. Sarita Bajpai

Post-retirement correction of clerical error in promotion date allowing last pay refixation upheld despite Rule 59's 24-month limit; excess leave encashment adjustable from enhanced gratuity as government dues.

Headnote:(A) CCS (Pension) Rules, 1972 - Rules 33, 59, 70, 71, 73 - Correction of last basic pay and recovery from post-retirement benefits - Applicant retired with last basic pay shown as Rs.53,290/- in Last Pay Certificate, later corrected to Rs.49,620/- due to clerical error in promotion date (26.07.1997 instead of 01.01.1998); excess leave encashment of Rs.78,831/- adjusted from enhanced retirement gratuity (ceiling raised to Rs.20 lakhs w.e.f. 01.01.2016) - Rule 59(b)(v) limits verification of emoluments to 24 months preceding retirement, but does not bar correction of clerical errors in service book entries affecting last pay - Overpayment of leave salary as post-retirement benefit adjustable from gratuity under Rule 71(3)(b) even if noticed post-retirement within short period - No recovery demanded for pre-retirement excess salary paid over 18 years; adjustment of excess leave encashment upheld as public money wrongly paid cannot be retained. (Paras 14, 17-21)

(B) Pension - Fixation and revision - Head of Office verifies emoluments for last 10 months (extendable to 24 months prior to retirement) for average emoluments; statutory bar under Rule 59(b)(v) applies to verification periods, not rectification of clerical mistakes in earlier promotion orders copied into service book without scrutiny - Last pay cannot be refixed solely on re-examination beyond 24 months unless evident error like wrong promotion date. (Paras 14-16)

(C) Recovery of excess payments - Post-retirement benefits like leave encashment calculated on incorrect last pay; excess amount adjustable from unpaid enhanced gratuity under Rule 73(3) if noticed subsequently but outstanding at retirement - No undue hardship where correction timely (within one year) and no fraud by recipient; duty to refund public money wrongly received. (Paras 18-21)

Facts of the case:
Retired employee challenged refixation of last basic pay from Rs.53,290/- to Rs.49,620/- post-retirement due to erroneous promotion effect from 26.07.1997 (should be 01.01.1998), consequent pension revision, and adjustment of excess leave encashment Rs.78,831/- from enhanced DCRG (initially Rs.10 lakhs, enhanced to Rs.16,52,048/- post-adjustment).

Findings of Court:
Refixation of last pay and recovery from gratuity upheld; Rule 59 bar not applicable to clerical error correction; excess post-retirement payment recoverable as government dues.

Issues: Whether Rule 59(b)(v) bars post-retirement refixation of last pay based on promotion error from 1997-98; permissibility of adjusting excess leave encashment from enhanced gratuity.

Ratio Decidendi: Clerical mistake in promotion order (copied to service book) permitting timely post-retirement correction of last pay despite 24-month verification limit under Rule 59; excess leave encashment (post-retiral) adjustable from gratuity as government dues under Rule 71(3)(b), no vested right to retain wrongly paid public money.

Result: O.A. dismissed.

Table of Content
1. challenges to reduced basic pay and gratuity (Para 1 , 2 , 3)
2. justification for pay correction and recovery (Para 4 , 5)
3. applicability of pension verification rules (Para 6 , 7)
4. factual background of pay fixation and payments (Para 8 , 9 , 10 , 11 , 12)
5. limitations on emoluments verification under rule 59 (Para 13 , 14 , 16)
6. rules on recovery of government dues from gratuity (Para 15 , 17 , 18)
7. no bar to clerical mistake correction post-retirement (Para 19 , 20 , 21 , 22)

O R D E R

JUSTICE NARENDRA KUMAR JOHARI, MEMBER (J) :-

1.Learned counsel for applicant, on the basis of his case submitted that applicant was under employment of B.S.N.L. and retired on 31.07.2016, while serving as Divisional Engineer (Optical Fiber Cable), Eastern Telecom Region, B.S.N.L. Gaya. At the time of his retirement, his last basic pay was Rs.53,290/- as mentioned in his Last Pay Certificate dated 25.03.2017. But after his superannuation, the Opposite parties have calculated last basic pay of the applicant as Rs. 49,620/- which is absolutely wrong and without any basis. Before reducing the basic pay, the Opposite Parties have neither issued any adverse order not any show cause notice and without any reason, such reduction was made. It has also been mentioned that the reduction of aforesaid basic pay is in violation of the Rule 33 CCS (Pension), Rules 1972 and in contravention with the Para 5 (ii) of Government of India order (Department of Pension and Pension welfare) dated 02.09.2008. It was the liability of Head of the Office to verify the correctness of the emoluments drawn during last 10 months of the service in order to ensure that emoluments during the last 10 months of the service have correctly been shown in the service book. The Head of the Office has to verify the correctness of emoluments for the period of 24 months only, preceding date of retirement of government servant. Therefore the basic pay of the applicant cannot be reduced and accordingly the pensionery benefit can never be fixed on reduced basic pay.

2. According to Government of India order dated 16.03.2017, the employee/officer who retire/ superannuated on or after 01.01.2016 will get Rs.20 (Twenty) lakhs (maximum) towards retirement Gratuity whereas, the applicant who had superannuated after 01.01.2016 has been paid only Rs.10 (Ten) lakhs as retirement gratuity vide order dated 19.12.2016.

3. It has also been submitted by ld. Counsel that the applicant has submitted representation on 21.09.2017 and reminder on 02.11.2017 for further revision of entire pensionery benefit but no order has been passed by the authority concerned. Hence the applicant filed an O.A. No. 15/2017 before this Tribunal by challenging the reduction of his basic pay, which was disposed of by this Tribunal on 18.06.2018 with direction to the opposite parties to look into the grievance of the applicant with regard to the prayer sought for in this O.A. and to redress the same in accordance with law and in the light of Memo dated 17.05.2017. It has also been mentioned in the order that the decision of the Tribunal in O.A. 769/2012 as affirmed by the Hon’ble High Court in CWJC No. 17270/2013 and the appropriate reasoned and speaking order be issued within a period of two months from the date of receipt of copy of the order. Vide order dated 22.09.2018, the reasoned and speaking order was passed by the Sub Divisional Engineer (Admin.) Office of the GMM, ETR, Patna vide order dated 07.03.2018, the DCRG amount was calculated Rs.16,52,048/- instead of Rs.20 lakhs, and in furtherance of order dated 07.03.2018 a recovery of   Rs. 78,831/- has been done from the Leave Encashment amount which is unjust, unconstitutional, arbitrary, punitive and against the order passed by this Tribunal dated 18.06.2018. The re-fixation of basic pay and order of recovery also were contrary to Rule 33 and Rule 59 (1) (b) of CCS (Pension) Rule 1972 and DoPT OM dated 02.03.2016 based on the judgement of Hon’ble S

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