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2026 Supreme(Online)(CAT) 5032

CENTRAL ADMINISTRATIVE TRIBUNAL
S. Sujatha, Member (J), Sanjiv Kumar, Member (A)
M. Mahadevaswamy – Appellant
Versus
Union of India – Respondent
ORIGINAL APPLICATION NO.170/00472/2024



Advocates:
For the Appellants/Petitioners: P. Kamalesan
For the Respondents: N. Amaresh

Recovery of excess salary or allowances from Group 'C' and Group 'D' employees, including Gramin Dak Sevaks, is impermissible under law where the payment was made due to an administrative error without any misrepresentation or fraud by the employee.

Headnote:(A) Recovery of excess payment - Gramin Dak Sevak employees - Whether Group 'C' employees - Whether recovery of excess payment permissible - Held, GDS employees fall within the ambit of Group 'C' employees - Recovery from Group 'C' employees in the absence of misrepresentation or fraud is impermissible as per the law laid down in Rafiq Masih case - Full Bench answered that satisfaction of any one of the clauses in Para 18 of the Apex Court judgment is sufficient to bar recovery - Respondents directed to refund the recovered amount. (Paras 6, 8, 9)

Facts of the case:
The applicant, working as Gramin Dak Sevak (GDS) Branch Post Master, challenged the recovery action initiated by the postal department for refund of 'Combined Duty Allowance' that was allegedly paid in excess due to misinterpretation of rules. The recovery was initiated following a different order by a coordinate Bench of the Tribunal, which the applicant challenged by relying on Supreme Court precedents regarding recovery from vulnerable classes of employees.

Findings of Court:
The Full Bench of the Tribunal clarified that GDS employees are considered as Group 'C' employees and are covered under the protection against recovery as outlined in the landmark Supreme Court judgment, which posits that recovery from Class III/IV or Group C/D employees is impermissible in the absence of fraud or misrepresentation. The Bench held that the condition in the referred judgment requires satisfaction of any one, not all, of the listed situations to bar recovery.

Issues: Whether GDS employees are categorized as Group 'C' employees for the purpose of protection against recovery of excess payments and whether the previous interpretation of the Rafiq Masih judgment by the Ernakulam Bench was correct.

Ratio Decidendi: Recovery of excess payments from Group 'C' (GDS) employees is impermissible where such payments were made due to a mistake by the department and not due to fraud or misrepresentation by the employee, and the criteria for such protection are satisfied by fulfilling any one of the conditions listed by the Supreme Court.

Result: The application is allowed, and respondents are directed to refund the recovered amount to the applicant.

O R D E R (ORAL)

PER: JUSTICE S. SUJATHA, MEMBER (J)

The applicant has challenged the orders issued by the Department on the subject of Combined Duty Allowance to Gramin Dak Sevak (GDS) based on the CAT, Ernakulam Bench orders inter alia the recovery action initiated against the applicant seeking refund of the recovered amount. However, the relief is now confined to the refund of the recovered amount.

The facts in brief as narrated by the applicant are that the applicant is working as BPM at Jannur BO, Nanjangud Postal Division. OM dated 25.06.2018 was issued by the Respondent No.1 regarding implementation of recommendation of one man committee, on wages and allowances of Gramin Dak Sevaks (GDS). Pursuant to which Respondent No.2 issued instructions regarding the grant of Time Related Continuity Allowance (TRCA) – clarification to Regions vide letter dated 12.05.2022, according to which BPMs working in double handed Branch Offices and handling Mail delivery work along with BPM work, are eligible for Combined Duty Allowance. Subsequently, Respondent No.1 issued instructions dated 31.07.2023 to recover excess payment of Combined Duty Allowance from GDS concerned in three instalments. Accordingly, Respondent No.2 issued instructions dated 08.08.2023 for immediate stoppage of drawal of Combined Duty Allowance and to recover the excess payment of Combined Duty Allowance, whereby Superintendent of Post Offices of respective Divisions have intimated the concerned BPM Offices to stop the Combined Duty Allowance and recover the excess payment of Combined Duty Allowance in nine equal instalments from the Gramin Dak Sevaks referred to therein. Being aggrieved with the recovery action initiated by the respondents against Gramin Dak Sevaks, who are ‘C’ Group employees, placing reliance on the judgments of Hon’ble Apex Court in State of Punjab and others vs. Rafiq Masih (White Washer) reported in (2015) 4 SCC 334 and Thomas Daniel vs. State of Kerala and others in Civil Appeal No.7115/2010 dated 02.05.2022, the applicant is before this Tribunal.

Learned counsel for the applicant has argued that the entire process of recovery has begun pursuant to the order passed by the Ernakulam Bench of this Tribunal in OA No. 391/2021 and connected cases [(DD: 07.06.2023) Sheela K.K. and others. Vs. Union of India and others]. Learned counsel has thus argued that the said view expressed by the Ernakulam Bench inasmuch as the interpretation of the law laid down in Rafiq Masih, supra, with respect to Group ‘C’ employees is not in consonance with the decision of the Hon’ble Apex Court in Rafiq Masih, supra, as well as Thomas Daniel, supra.

Per contra, learned counsel Shri N. Amaresh representing the respondents placing reliance on the order passed by the Ernakulam Bench of this Tribunal in Sheela K.K. and connected matters, supra, had justified the recovery action initiated against the applicants based on the impugned Annexures regarding the withdrawal of Combined Duty Allowance payable to Gramin Dak Sevaks. Hence, had argued that the judgment of Rafiq Masih and Thomas Daniel supra are not applicable to the facts of the present case.

Recording the challenge being confined to recovery proceedings initiated against the applicant and considering the arguments of the learned counsel for the parties, this Bench passed the common order dated 27.10.2025 in the present OA and OA No. 668/2024 involving identical issue, the relevant portion of which reads thus:

“6. The fulcrum of dispute relates to recovery action initiated by the respondents claiming to be the excess payment made towards Combined Duty Allowance. This Combined Duty Allowance was extended to Branch Post Master who were working at single handed Branch Post Offices vide Memorandum dated 01.02.2022 issued by the Ministry of Communications, Department of Posts, Establishment Division (GDS Section), consequent upon the decision of Department of Expenditure, Ministry of Finance agreein

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