Recovery from Retired Employees and Disturbance of SRO 149 Benefits is Legally Impermissible

The applicant, a retired "In charge Welder" from the Jal Shakti (PHE) Department, retired on April 30, 2021.

He approached the Tribunal seeking a direction to the respondents to fix and release his pensionary benefits, including Gratuity (DCRG), based on his last pay drawn including the benefits of SRO 149 of 1973.

The applicant contended that the benefit of SRO 149, which links pay scales to specific qualifications (Matriculation with ITI Diploma), should be factored into his final pension settlement, which had been delayed or disturbed by the respondents.

1. Whether the respondents can legally effect recovery of alleged excess payments or withdraw benefits previously granted under SRO 149 from a retired Class-III employee.

2. Whether the applicant is entitled to the re-fixation and release of post-retirement benefits based on the last pay drawn including SRO 149 revisions.

The Tribunal primarily applied the precedent set by the Hon’ble High Court of J&K in Provincial Power Employees Union of India & Ors. vs. State of J&K & Ors. (2017), which held that the benefit of SRO 149 of 1973 is applicable to employees with ITI qualifications and that the State is estopped from withdrawing such benefits after long-standing application.

It further relied on the Supreme Court doctrine established in State of Punjab v. Rafiq Masih (White Washer), which prohibits recoveries from Class-III employees or retired personnel.

Additionally, the court invoked Article 14 of the Constitution of India to ensure parity among similarly situated employees across different government departments.

The Tribunal reasoned that the legal dispute regarding SRO 149 had been conclusively settled by the High Court, establishing that the State cannot arbitrarily withdraw pay benefits or initiate recoveries against retired Class-III staff.

The Tribunal noted that similarly situated employees in the Police and Geology & Mining departments had already been granted these benefits, and denying the same to the applicant would be "irrational, arbitrary and violative of Article 14".

By applying the principle of estoppel, the Tribunal found that the respondents could not take a contrary stand after the High Court had already quashed previous attempts to withdraw SRO 149 benefits.

Consequently, the Tribunal determined that the applicant's pay and pension must be protected based on the last pay drawn, and any attempt to re-fix it to his detriment was legally unsustainable.

The respondents were directed to forward all necessary documents and a revised Last Pay Certificate (LPC) to the Accountant General for the final settlement of retiral benefits, including gratuity, in accordance with the High Court's judgment within four weeks.

The Tribunal concluded that the benefits of SRO 149, once validly extended, cannot be disturbed or withdrawn from retired employees.