CAT - ['Lucknow']

Employee continued beyond superannuation due to clerical oversight must be treated as re-employed and entitled to salary.

Devesh Prakash Awasthi vs NORTHERN RAILWAY

CAT - ['Lucknow']JUDGMENT: May 15, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicant was appointed as a Khalasi on November 19, 1983.

Source reference: p. 2

Due to a clerical oversight by the respondents, he continued to work until November 30, 2023, despite reaching his superannuation age on January 31, 2023.

Source reference: p. 2

Following a previous Tribunal order (OA No. 58 of 2024), the respondents treated him as retired on his actual due date but subsequently deducted ₹9,27,517.00 from his retirement gratuity as recovery for salary paid during the overstay period (February–October 2023).

Source reference: p. 1-2

The applicant challenged this recovery and sought payment for his November 2023 salary along with interest on delayed settlement dues.

Source reference: p. 1-2
02

Issues

1. Whether the respondents were legally entitled to recover salary paid to the applicant for the period he worked beyond his superannuation date due to clerical error.

Source reference: p. 2-3

2. Whether the applicant is entitled to salary for the service rendered in November 2023 and interest on delayed retirement benefits.

Source reference: p. 2-3
03

Law Applied

The Tribunal applied the equitable principle that an employee should not be penalized for an employer’s administrative lapse (clerical oversight) where there was no misrepresentation or fraud by the employee.

Source reference: p. 2

The court also applied the doctrine of "re-employment" for unauthorized overstay in service to balance the scales of equity, ensuring the employee is compensated for work performed while the employer accounts for pension payments already disbursed.

Source reference: p. 3
04

Reasoning

The Tribunal noted that the applicant's overstay was not due to any misrepresentation on his part but was solely a "clerical oversight" by the respondents.

Source reference: p. 2

The Tribunal reasoned that the most equitable solution was to treat the overstay period as a "re-employment".

Source reference: p. 3

Under this framework, the applicant is entitled to the same salary he was drawing at the time of superannuation, but the respondents are permitted to deduct any pension and fixed allowances already paid to him during that same period to prevent double enrichment.

Source reference: p. 3-4

Regarding interest, the Tribunal found that since the delay in settlement was caused by the respondents' error, interest is payable from the date the applicant actually stopped working (November 30, 2023) until the date of payment.

Source reference: p. 3
05

Holding

The Tribunal allowed the OA in part. It held that the respondents cannot recover the salary for work performed and ordered that the period from February to November 2023 be treated as re-employment.

The respondents were directed to: (i) pay the applicant his salary for the overstay period at the rate drawn in January 2023, minus pension and fixed allowances already paid; and (ii) pay interest at the applicable bank rate on all delayed retirement dues, calculated from November 30, 2023, until the actual payment date.

Source reference: para 7.1, 7.2

Compliance was ordered within three months.

Source reference: para 7.3
CAT - ['Lucknow']

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Devesh Prakash AwasthivsNORTHERN RAILWAY

CAT - ['Lucknow'] · May 15, 2026

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