CAT - ['Allahabad']

Running Allowance Percentage for Medically De-categorized Staff Applies to Basic Pay Fixation, Not Grade Pay Enhancement.

RAKESH KUMAR SRIVASTAVA vs General Manager, N E Rly

CAT - ['Allahabad']JUDGMENT: May 19, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The three applicants were initially appointed as Diesel Sahayaks and later promoted to Loco Pilots in the running cadre of North Eastern Railway

Source reference: p. 2

Between April and September 2012, all three were medically de-categorized and found fit only for stationary duties

Source reference: p. 2, para 3

They were subsequently absorbed as Crew Controllers in the stationary cadre, and their pay was fixed at a Grade Pay (GP) of ₹4200/-

Source reference: p. 2, para 2

While the respondents added 30% of the running allowance to their basic pay at the time of absorption, the applicants contended that this 30% benefit should also have been applied to determine their Grade Pay, which would have elevated them to a GP of ₹4600/-

Source reference: p. 2, para 3

The applicants challenged the rejection of their representations via a speaking order dated 23.08.2016, alleging discrimination compared to employees absorbed prior to 2011

Source reference: p. 3, para 3.2-3.3
02

Issues

1. Whether the applicants are entitled to the benefit of 30% running allowance for the purpose of elevating their Grade Pay from ₹4200/- to ₹4600/- upon medical de-categorization.

Source reference: p. 8, para 8-9

2. Whether the Railway Board circular dated 05.10.2011 and 30.04.2013 correctly govern the pay fixation of the applicants.

Source reference: p. 8, para 8-9
03

Law Applied

Paragraphs 1307 and 1308 of the Indian Railway Establishment Manual (IREM), Vol. 1, as revised on 29.04.1999, which dictate that for medically de-categorized running staff, the running allowance percentage should be added to the minimum and maximum of the pay scale to find a corresponding stationary scale

Source reference: p. 7, para 8(a)

Railway Board Letter dated 05.10.2011, which clarified pay fixation during the supernumerary period

Source reference: p. 8, para 8(b)

Railway Board Letter dated 30.04.2013, which explicitly stated that the pay element of running allowance is added to the "Pay in Pay Band" with "no change in the Grade Pay of substantive post"

Source reference: p. 8, para 8(c)
04

Reasoning

The Tribunal examined the relevant regulatory framework and found that while the rules provide for the addition of 30% running allowance to the basic pay (Pay in Pay Band) to protect the earnings of de-categorized staff, there is no provision for the enhancement of the Grade Pay itself

Source reference: p. 8, para 9

The Tribunal noted that the applicants were already in the GP of ₹4200/- before de-categorization and were placed in the same GP post-absorption

Source reference: p. 8, para 7

The court reasoned that the 2013 circular specifically clarified that the Grade Pay remains unchanged

Source reference: p. 8, para 8(c)

Regarding the applicants' claim of discrimination, the Tribunal observed that the instances cited by the applicants (where staff received GP ₹4600/-) related to the period before the 2011 circular and were thus on a different legal footing

Source reference: p. 8, para 9

The applicants failed to produce any rule or instruction mandating an upgrade in Grade Pay as a consequence of medical de-categorization

Source reference: p. 8, para 9
05

Holding

The Tribunal held that the respondents correctly fixed the applicants' pay by adding the 30% running allowance to their basic pay without altering the Grade Pay

The Original Application was dismissed as being devoid of merit, and no costs were awarded

Source reference: p. 9, para 10
CAT - ['Allahabad']

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RAKESH KUMAR SRIVASTAVAvsGeneral Manager, N E Rly

CAT - ['Allahabad'] · May 19, 2026

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