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2026 Supreme(Online)(CAT) 4934

CENTRAL ADMINISTRATIVE TRIBUNAL
Chhabilendra Roul, Member (A), Rajveer Singh Verma, Member (J)
Neelkanth – Appellant
Versus
Union of India – Respondent
O.A. No.3296/2017



Advocates:
For the Appellants/Petitioners: Shri A.K Bhakt
For the Respondents: Shri U.Srivastava

Administrative decisions resulting in adverse financial consequences or affecting vested rights (like pay and promotion) must adhere to the principles of natural justice, specifically requiring prior notice and a hearing. Retrospective re-fixation of pay without such procedure is illegal and arbitrary.

Headnote:The applicant, a retired railway employee, challenged the retrospective re-fixation of pay from 1992 performed in 2009, the alteration of his promotion date from 01.11.2003 to 01.05.2004, and the non-restoration of increments following the expiry of minor penalties. The court found that these actions were undertaken without issuing a show cause notice or providing an opportunity for a hearing. The core issues focused on whether the retrospective re-fixation of pay and modification of promotion dates without notice violated the principles of natural justice and whether the non-restoration of increments after the penalty period was legally sustainable. The court reasoned that any administrative decision causing serious civil consequences, such as loss of pay and retiral benefits, must conform to procedural fairness and that promotions once conferred create vested rights that cannot be disturbed arbitrarily. Accordingly, the impugned order dated 10.03.2016, along with all consequential actions affecting the pay fixation and retiral benefits of the applicant, is hereby quashed and set aside.

Table of Content
1. service history and previous litigation regarding pay re-fixation. (Para 1 , 2)
2. arguments regarding the legality of retrospective pay changes and limitations. (Para 3 , 4 , 5 , 6 , 7)
3. violation of natural justice in retrospective administrative actions. (Para 10 , 11 , 12)
4. entitlement to restoration of increments after penalty expiry. (Para 13)
5. recurring cause of action in pay disputes overrides limitation. (Para 14 , 15)
6. quashing of illegal pay orders and direction for fresh computation. (Para 18 , 19 , 20 , 21)

O R D E R

By Hon’ble Mr. Rajveer Singh Verma, Member (J) :-

The applicant was initially appointed in the Northern Railway on 22.06.1973 and continued in service until his retirement on 31.07.2012 as Shunting Driver/Loco Pilot. During his service, his pay and promotions were governed by various Pay Commissions and service rules. After implementation of the 6th Central Pay Commission, the respondents re-fixed his pay in the year 2009. However, this re-fixation was done retrospectively from 01.08.1992 only in the service records, without issuing any notice to the applicant and also revised his date of promotion from 01.11.2003 to 01.05.2004 in the higher grade and wrongly applied penalties relating to withholding of increments. These penalties were minor in nature and did not involve postponement of future increments, yet the respondents failed to restore the full increments after completion of the penalty period. As a result, the applicant suffered continuous financial loss in salary as well as in retirement benefits. When the applicant came to know about the incorrect pay fixation, he submitted a representation dated 19.01.2010, but no action was taken by the respondents. Being aggrieved, he filed O.A. No. 3105/2013 on 02.09.2013 before the Tribunal, which was disposed of on 05.01.2016, directing the respondents to re-examine the claim of the applicant regarding fixation of pay and to pass a reasoned order.

2. The applicant served the said order along with a representation dated 16.02.2016. Since no action was taken, the applicant preferred a Contempt Petition No. 246/2016. The respondents thereafter issued an order dated 03.10.2016 claiming compliance, however, the pay of the applicant was not fixed correctly. The said CP was closed on 12.05.2017, with liberty to the applicant to file a fresh application, if still aggrieved. Hence the present OA has been filed seeking the following relief(s) :-

(i) To quash and set aside the impugned Order dated 10.03.2016 and direct the respondents to re-fix the pay scale of the applicant properly and release the arrears of pay and retiral benefits of the applicant with reasonable interest as per law.

(ii) To direct the respondents to produce the service book and other relevant record before this Hon’ble Tribunal for proper adjudication.

(iii) To allow the OA with exemplary cost on the respondent for causing undue harassment to the applicant.

(iv) To pass other order or orders which this Hon’ble Tribunal may deem fit and proper in the facts and circumstances of the present case.

3. The contention of the learned counsel for the applicant is that refixation of the pay of the applicant in the year 2009 from the year 1992 and revising the date of promotion from 01.11.2003 to 01.05.2004 without putting the applicant to notice is not only illegal and arbitrary but against the principles of natural justice.

4. Pursuant to notice, the respondents filed their reply opposing the OA. Learned counsel for the respondents submitted that the Original Application is not maintainable in law and is liable to be dismissed in limine on account of suppression of material facts, absence of cause of action, and being barred by limitation. It is submitted that the applicant has deliberately concealed crucial facts relating to his service record, particularly with respect to pay fixation and the imposition of penalties during his service in the Railways. It is averred that t

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