Recovery of excess payments from retired or Class III employees and withdrawal of SRO 149 benefits are legally impermissible.

The applicant, Madan Lal, a 62-year-old retired employee of the Mechanical Irrigation Division (RTIC), challenged PPO No. 1122172449 dated 18/11/2022

The applicant alleged that his pension was fixed at a rate lower than his last pay drawn and that the respondents withheld his gratuity while attempting to effect recoveries of alleged excess payments

The dispute centers on the entitlement to benefits under SRO 149 of 1973, which had been granted to the applicant during his service but was subsequently disregarded or withdrawn during the fixation of his retiral benefits

1. Whether the respondents can legally effect recoveries from a retired Class-III employee on account of alleged excess payments made under SRO 149

2. Whether the applicant is entitled to the re-fixation of pensionary benefits based on his last pay drawn by including the benefits of SRO 149

The Tribunal applied the principles of Article 14 of the Constitution of India regarding parity and non-arbitrariness

It relied heavily on 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 SRO 149 benefits cannot be selectively denied

Furthermore, it applied the doctrine established by the Supreme Court in State of Punjab v. Rafiq Masih (White Washer) and Thomas Daniel, which prohibits recoveries from retired employees or Class-III employees where such recovery would be iniquitous

It also referenced Rule 242 of the Civil Services Regulations of 1956

The Tribunal noted that the legal dispute regarding SRO 149 was already settled by the High Court, which established that the state is estopped from taking a different stand after widely granting the benefit to similarly situated employees in other departments

The Tribunal reasoned that since the applicant was a retired personnel (formerly Class-III), any attempt to recover "excess" pay is barred by the Rafiq Masih ratio

The Tribunal further observed that withdrawing SRO 149 benefits at the time of retirement is arbitrary and irrational, as it violates the principle of parity under Article 14

Consequently, the pension must be fixed based on the last pay drawn, inclusive of the SRO 149 benefits, as re-fixation to the detriment of the retiree is impermissible once the benefit was validly extended

The Tribunal held that: (i) no recovery can be made from the applicant; (ii) any amount already recovered must be refunded; and (iii) the respondents must forward a revised Last Pay Certificate (LPC) to the Accountant General to settle all retiral benefits based on the last pay drawn within four weeks

No costs were awarded