Recovery from Retirees Prohibited and SRO 149 Pay Scale Benefits Mandated for Similarly Situated Employees

The applicant, a 60-year-old retired employee, challenged a communication dated July 3, 2025, issued by the Accountant General (Respondent No. 2), which refused to process his pension case.

The respondent withheld his gratuity for recovery and directed a re-fixation of his pay after ignoring the benefits previously granted under SRO 149 of 1973.

The applicant approached the Tribunal seeking the release of withheld retiral benefits, a prohibition on recovery, and the inclusion of SRO 149 benefits in his final pension calculation.

1. Whether the respondents can legally effect recovery of alleged excess payments or re-fix pay to the detriment of a retired Class-III employee by ignoring benefits previously granted under SRO 149 of 1973.

2. Whether the applicant is entitled to the final settlement of pensionary benefits based on the last pay drawn including SRO 149 benefits.

The Tribunal applied the principles of parity and non-discrimination under Article 14 of the Constitution of India.

It relied heavily on the precedent set by the Hon’ble High Court of Jammu & Kashmir in Provincial Power Employees Union of India & Ors. v. State of J&K & Ors. (SWP No. 809/2021), which held that SRO 149 benefits extended to matriculates with ITI certificates cannot be arbitrarily withdrawn.

Furthermore, it applied the doctrine established by the Supreme Court in State of Punjab v. Rafiq Masih (White Washer), which prohibits recovery of excess payments from Class-III employees or retired personnel.

The Tribunal noted that the dispute regarding SRO 149 had been settled by the High Court, which ruled that the State is estopped from taking a contrary stand after granting such benefits to various departments.

The Court reasoned that since the benefit of SRO 149 was linked to qualifications (Matric + ITI), denying it to the applicant while granting it to others would be irrational and violative of Article 14.

Applying this to the facts, the Tribunal found that the applicant, being a retired employee, is protected against recovery under the Rafiq Masih ratio.

The Tribunal concluded that the action of the respondents in seeking to disturb settled benefits at the time of retirement was unsustainable, as re-fixation in such cases is legally impermissible.

It held that no recovery can be effected from the applicant, and any amount already recovered must be refunded.

The respondents were specifically directed to forward the applicant’s documents and a revised Last Pay Certificate (LPC)—inclusive of SRO 149 benefits—to the Accountant General for final settlement of all retiral benefits within four weeks.

No costs were awarded.