RECOVERY FROM RETIRED CLASS-III EMPLOYEES AND WITHDRAWAL OF VESTED SRO 149 BENEFITS IS IMPERMISSIBLE.

The applicant, a 64-year-old retired employee of the Public Health Engineering Department, challenged PPO No. 1124190614 dated 16/08/2024.

He alleged that his pension was fixed at a rate lower than his last pay drawn and that the respondents withheld his gratuity and sought to effect recoveries.

The applicant sought the inclusion of benefits under SRO 149 of 1973 and the re-fixation of his pensionary benefits based on his last pay at superannuation.

The case was heard through video conferencing and decided on May 8, 2026.

1. Whether the respondents are permitted to effect recoveries from a retired Class-III employee regarding alleged excess payments under SRO 149.

2. Whether the applicant is entitled to the benefit of SRO 149 and subsequent pay revisions for the calculation of retiral benefits.

The Tribunal primarily applied the principles established by the Hon’ble Supreme Court in State of Punjab v. Rafiq Masih (White Washer), which prohibits recoveries from Class-III employees or retired personnel.

It heavily relied on the J&K High Court precedent in Provincial Power Employees Union of India & Ors. vs. State of J&K & Ors. (SWP No. 809/2021), which held that employees with ITI diplomas/certificates are entitled to SRO 149 benefits to ensure parity under Article 14 of the Constitution of India.

The court applied Rule 242 of the Civil Services Regulations of 1956 regarding pension fixation.

The Tribunal noted that the dispute regarding SRO 149 had already been settled by the High Court, which ruled that the State is estopped from withdrawing such benefits after granting them to similarly situated employees in other departments like Police and Mining.

Applying the Rafiq Masih doctrine, the Tribunal reasoned that since the applicant is a retired employee (formerly Class-III), any recovery of alleged excess pay is impermissible in law.

The Tribunal found the respondents' action of diminishing the pension rate and withholding gratuity to be arbitrary and violative of Article 14, as the benefit of SRO 149, once validly extended and affirmed by judicial pronouncements, cannot be disturbed to the prejudice of the employee.

The respondents were directed not to effect any recovery from the applicant and to refund any amount already recovered. The respondents were further ordered to forward the revised Last Pay Certificate (LPC) and relevant documents to the Accountant General for the final settlement of retiral benefits based on the last pay drawn, within four weeks.