CAT - Delhi

Enhancement of subsistence allowance under FR 53(1)(ii)(a) is discretionary and not a matter of right.

Ruhi Arora vs CORPORATE AFFAIRS

CAT - DelhiJUDGMENT: April 01, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicant, a Senior Technical Assistant in the Ministry of Corporate Affairs, was arrested by the CBI on July 28, 2023, under the Prevention of Corruption Act, 1988.

Source reference: p.2

She was subsequently placed under deemed suspension effective from the date of arrest and granted a subsistence allowance at 50% of her pay.

Source reference: p.2-3

On October 25, 2023, the respondents extended her suspension for 180 days but maintained the subsistence allowance at 50% (status quo).

Source reference: p.3

The applicant submitted a representation on November 17, 2023, seeking an enhancement of the allowance to 75% pursuant to FR 53(1)(ii)(a), but filed the present Original Application (O.A.) on January 3, 2024, before the expiry of the statutory six-month waiting period for administrative responses.

Source reference: p.4

During the pendency of the O.A., the respondents reviewed the suspension on April 22, 2024, and enhanced the allowance to 75% effective from April 23, 2024.

Source reference: p.7
02

Issues

1. Whether the O.A. was maintainable under Section 21 of the Administrative Tribunals Act, 1985, given it was filed before the expiry of six months from the date of the applicant's representation.

Source reference: p.4

2. Whether the applicant was entitled to an enhancement of subsistence allowance from 50% to 75% for the period of extended suspension under Fundamental Rule 53(1)(ii)(a).

Source reference: p.3, p.6
03

Law Applied

Rule 10 of the CCS (CCA) Rules, 1965, governing deemed suspension and its review.

Source reference: p.2, 4

Fundamental Rule (FR) 53(1)(ii)(a), which stipulates that subsistence allowance may be increased by up to 50% (totaling 75% of pay) if the period of suspension has been prolonged for reasons not attributable to the Government servant.

Source reference: p.3, 7

Section 21 of the Administrative Tribunals Act, 1985, regarding the limitation period and exhaustion of remedies.

Source reference: p.4

Khem Chand v. Union of India (AIR 1963 SC 687) regarding the continued service status of a suspended employee.

Source reference: p.5
04

Reasoning

The Tribunal examined whether the enhancement under FR 53(1)(ii)(a) is a mandatory right and determined that such enhancement is not an automatic right but a discretionary power of the competent authority, which must be exercised based on the facts of each case and supported by logical reasons.

Source reference: p.7

The respondents initially maintained status quo at 50% due to the gravity of the corruption allegations and the ongoing investigation.

Source reference: p.4-5

The Tribunal observed that in a subsequent review dated April 22, 2024, the competent authority did exercise its discretion to increase the allowance to 75% effective from April 23, 2024.

Source reference: p.7

Since the respondents eventually granted the primary relief sought by the applicant during the litigation, the Tribunal found that the legal grievance regarding the rate of allowance no longer required judicial intervention.

Source reference: p.8
05

Holding

The Tribunal held that since the respondents had already enhanced the subsistence allowance to 75% w.e.f. April 23, 2024, the applicant's grievances were sufficiently addressed.

The Tribunal ruled that nothing survived for adjudication; the O.A. and all pending miscellaneous applications were disposed of with no order as to costs.

Source reference: p.8
CAT - Delhi

Original Court PDF

Ruhi AroravsCORPORATE AFFAIRS

CAT - Delhi · April 01, 2026

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment