Compassionate transfer cannot reduce employee's previously acquired Grade Pay or pay scale.

The applicant, Sanalkumar S Kandhaswamy, commenced service as an MTS in NAD, Mumbai on 10.09.2007.

After completing 10 years of service, he was granted the 1st MACP on 14.09.2017, placing him in Level-2 (19900-63200) with a Grade Pay of Rs. 1900/-.

He was subsequently transferred to NAD Arakkonam, Chennai, and later, on compassionate grounds, to Headquarters, Southern Naval Command, Kochi, joining on 19.04.2023.

Despite his previous pay level, the 4th respondent issued Annexure A8 communication dated 26.09.2023, initiating steps to truncate his pay and allowances to Level 1 of the VII CPC Pay Matrix (Rs. 18000-56900) with zero seniority, citing an understanding that he accepted the transfer on these terms.

This action was based on the premise that his transfer was to a 'lower level of post' under FR 15(a).

The applicant filed the Original Application challenging this truncation.

Whether the respondents are empowered to truncate the applicant's pay and allowances, including his Grade Pay of Rs. 1900/-, acquired through the 1st MACP, upon his compassionate transfer to the Southern Naval Command?

Whether the undertaking given by the applicant to accept a lower pay level constitutes a valid basis for truncating his pay, given the circumstances of a compassionate transfer?

The court primarily applied the principle that in cases of transfer, including unilateral transfer on request, regular service rendered in the previous organization shall be counted for the purpose of granting MACP.

It also considered the rule that reversion to a lower post in unilateral transfers arises only if the employee had earned a functional promotion in the previous organization.

The court further referenced FR 15(a) regarding transfers, but distinguished the Official Memoranda relied upon by the respondents, stating they dealt with fixation of pay in cases of transfer to a lower post, which was not the applicant's situation.

The court found that the applicant had commenced and continued service as an MTS throughout, even after receiving the 1st MACP, which was a non-functional upgradation, not a functional promotion.

Therefore, his transfer to INS Venduruthy, albeit at bottom seniority, did not constitute a transfer to a "lower post" requiring pay truncation under FR 15(a) or the OMs cited by the respondents, as those OMs specifically addressed transfers to a lower level post.

The court emphasized that the respondents were bound to protect his pay, including the Grade Pay of Rs. 1900/-, which he acquired through MACP based on his 10 years of service without promotion.

The court also noted that the undertaking (Annexure R-4) obtained from the applicant lacked legal support and was likely given under compelling circumstances, thus not justifying the truncation.

Consequently, the respondents could not be allowed to diminish the Grade Pay secured by virtue of the 1st MACP.

The court held that the respondents cannot truncate the applicant's pay and allowances, including his Grade Pay of Rs. 1900/-, as he has consistently served as an MTS and acquired the Grade Pay through MACP without any functional promotion.

Annexure A8 was quashed, and the respondents were directed to restore the applicant's pay with the Grade Pay of Rs. 1900/-.

They were also restrained from reducing his pay and allowances based on Annexure A8.

If any amount had already been recovered pursuant to Annexure A8, it was deemed bad and ordered to be returned within 60 days.