Amended absorption policy cannot apply retrospectively to medically decategorized railway staff.

The 40 applicants were initially employed as Running Staff (Loco Pilots/Drivers/Guards and allied categories) under the Northern Railway, Delhi Division.

All applicants were medically decategorised for running duties prior to 30.04.2013 and subsequently absorbed into alternative stationary posts.

The applicants contended they were not absorbed into equivalent stationary posts as per the Railway Board's policy and circulars dated 01.10.1999 (Annexure-A/5) and 25.04.2011 (Annexure-A/7), which mandated absorption in equivalent stationary posts carrying corresponding Grade Pay.

The Railway Board issued a circular dated 30.04.2013 (Annexure-A/3) amending Para 1307 of the Indian Railway Establishment Manual (IREM) Vol.-I, stipulating that only the pay element would be adjusted on absorption, with no change in Grade Pay.

The applicants argued this amendment was prospective and should not apply to their cases, as their medical decategorisation occurred before 30.04.2013.

A clarification from the Railway Board dated 17.05.2016 (Annexure-A/2) affirmed that circulars generally have prospective effect unless otherwise specified.

Following the clarification, the Central Administrative Tribunal (CAT) in an earlier O.A. (No. 3759/2009) directed the respondents to decide the applicants' claim in light of this clarification via an order dated 13.07.2016 (Annexure-A/9).

However, the Divisional Railway Manager (DRM), New Delhi, subsequently rejected the applicants' claim for absorption in equivalent Grade Pay posts via an order dated 08.02.2018 (Annexure-A/1), applying the amended Para 1307 retroactively.

The applicants filed the present O.A., asserting that the DRM's action constituted contempt of the Tribunal's earlier order and was discriminatory.

Whether the applicants, who were medically decategorised prior to 30.04.2013, are entitled to absorption in equivalent stationary posts as per the unamended Para 1307 of IREM and Railway Board circulars dated 01.10.1999 and 25.04.2011.

Whether the respondent's application of the amended Para 1307 of IREM Vol.-I (Circular dated 30.04.2013) to cases where medical decategorisation occurred prior to its effective date is valid, despite the Railway Board's clarification of prospective application.

The Tribunal primarily applied the principles of prospective application of amendments, stating that circulars issued by the Railway Board operate prospectively unless specifically provided otherwise.

It referenced the unamended Para 1307 of Chapter XIII of the Indian Railway Establishment Manual Volume I (Revised Edition, 1989), which provided for the reckoning of running allowance to determine the "equivalent existing scale of pay" upon absorption of medically decategorised running staff.

The Tribunal also considered Section 47 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, which mandates that an employee acquiring disability during service shall not be dispensed with or reduced in rank and shall be shifted to another post with the same pay scale and service benefits, emphasizing its overriding and liberal construction in favor of disabled employees.

Furthermore, the Tribunal relied on Railway Board circulars dated 01.10.1999 (Annexure-A/5) and 25.04.2011 (Annexure-A/7), which prescribed and reaffirmed the equivalence between running and stationary categories for absorption purposes.

The Tribunal found that the Railway Board's clarification dated 17.05.2016 explicitly stated that circulars operate prospectively unless otherwise specified, and the 30.04.2013 amendment to Para 1307 did not include retrospective application.

Therefore, employees medically decategorised before 30.04.2013 were governed by the unamended provisions.

The respondent's application of the amended Para 1307 to the applicants' cases, despite the CAT's earlier direction to consider the clarification, was deemed contrary to the Railway Board's own stance and inconsistent with judicial directions.

The unamended Para 1307 required the element of running allowance to be added to determine equivalence and mandated replacement by an "equivalent existing scale of pay" if the initially arrived scale was not identical.

The Tribunal noted that the Railway Board circulars of 01.10.1999 and 25.04.2011 provided specific equivalences between running and stationary posts for absorption, which the respondents failed to consider adequately.

Denying such equivalent grade pay, particularly given the legislative intent of Section 47 of the Persons with Disabilities Act, 1995 to prevent reduction in rank or benefits, would amount to a substantive reduction in rank.

The Tribunal also observed that the respondents' admission of "erroneous" absorptions of similarly situated employees in higher/equivalent grade pay established a precedent, and denying the same to the applicants without rational basis violated principles of Article 14 against hostile discrimination.

The impugned order failed to meaningfully examine the equivalence under the relevant circulars in the context of the unamended Para 1307.

It held that the impugned order dated 08.02.2018 is quashed and set aside.

The respondents are directed to absorb the applicants, who were medically decategorised prior to 30.04.2013, for alternative equivalent stationary posts as per Para 1307 of the Circular dated 01.10.1999, with all consequential benefits.

This exercise is to be completed within 4 weeks from the receipt of the certified copy of the order.

There was no order as to cost.