CAT - Delhi

Mandatory grant and periodic review of subsistence allowance during suspension as per FR 53.

NITIN KUMAR GUPTA vs EMPLOYEES STATE INSURANCE CORPORATION (ESIC)

CAT - DelhiJUDGMENT: April 09, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Applicant, an Assistant Engineer (Civil) at ESIC, was placed under suspension on December 15, 2025

Source reference: p. 2

The suspension order initially included a change of headquarters, which was stayed by the Tribunal in a previous proceeding (OA No. 4920/2025)

Source reference: p. 2

Despite being under suspension for over three months and the suspension being continued for 180 days, the Respondents failed to release any subsistence allowance or decide on the Applicant’s multiple representations, the latest being dated February 7, 2026

Source reference: p. 3

The Applicant approached the Tribunal seeking directions for the release of subsistence allowance from the date of suspension and a 50% increase in the allowance effective from March 13, 2026, as per statutory rules

Source reference: p. 2
02

Issues

1. Whether the Respondents are legally obligated to release and periodically review the subsistence allowance of a suspended employee under the applicable service rules

Source reference: p. 2-3

2. Whether the Applicant’s representation for the grant and enhancement of subsistence allowance warrants a time-bound disposal in light of DoPT guidelines

Source reference: p. 4
03

Law Applied

The court primarily relied on Fundamental Rule (FR) 53(1)(ii)(a), which mandates the payment of subsistence allowance to a government servant under suspension

Source reference: p. 2, 4

Department of Personnel and Training (DoPT) Office Memorandum (OM) dated November 4, 2022, titled "Pay and allowances during the suspension period," which stipulates that if suspension exceeds three months, the competent authority must review and may increase the subsistence allowance by up to 50% if the delay is not attributable to the employee

Source reference: p. 3-4
04

Reasoning

The Tribunal noted that the Applicant had been under suspension since December 15, 2025, and had crossed the three-month threshold without receiving the mandatory subsistence allowance

Source reference: p. 2-3

The court observed that the Respondents had neither released the payments nor disposed of the Applicant’s representation dated February 7, 2026, which constitutes a failure to follow the governing rules under FR 53 and the DoPT OM dated November 4, 2022

Source reference: p. 3

Since the Respondents’ counsel expressed no objection to disposing of the pending representation, the Tribunal found it appropriate to issue a consent order to ensure administrative compliance with the prescribed financial safeguards for suspended employees

Source reference: p. 4
05

Holding

The Tribunal disposed of the OA at the admission stage without delving into the merits

It directed the Respondents to dispose of the Applicant’s representation dated February 7, 2026, within four weeks of receiving the order

Source reference: p. 4

The Respondents were ordered to pass a reasoned and speaking order in strict accordance with the DoPT guidelines/instructions dated November 4, 2022, regarding the release and variation of subsistence allowance

Source reference: p. 4

MA 1706/2026 for exemption was also allowed

Source reference: p. 2
CAT - Delhi

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NITIN KUMAR GUPTAvsEMPLOYEES STATE INSURANCE CORPORATION (ESIC)

CAT - Delhi · April 09, 2026

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