High Court of KeralaDivision BenchThe petitions are disposed of in terms: pay fix...

OP (CAT) Nos. 79/2015 & 72/2016

Case / Petition Number:OP(CAT) Nos. 79/2015 & 72/2016

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • A. Muhamed Mustaque
  • Shoba Annamma Eapen
Judgment Date
2024-04-02
Court Decision / Holding
Recovered amounts to be released within two months; pension and all other benefits to be calculated in accordance with the refixed pay.
Final Disposition
The petitions are disposed of in terms: pay fixation by reference to refixed pay is upheld; recovered amounts to be refunded within two months; pension and benefits adjusted accordingly.

Parties to the Case

Appellants / Petitioners

  • M.L. George
  • P.C. Williams
  • K.V. Haridasan
  • N.D. Gopi
  • Lathika V.K
  • Meera G.
  • Meenu G.

Respondents

  • Bharat Sanchar Nigam Ltd (BSNL) represented by Chairman & Managing Director
  • The Chief General Manager Telecom, BSNL Kerala Circle
  • The Principal General Manager Telecom, BSNL, Ernakulam SSA
  • Union of India (Secretary, Department of Communications)
  • The Accounts Officer (Estt), BSNL Ernakulam
  • The Controller of Communication Accounts, Thiruvananthapuram

Legal Representation & Advocates

Counsels for Petitioners

  • • Adv. R. Sreeraj

Counsels for Respondents

  • • Adv. Sri. T. Sanjay, Senior Counsel (BSNL)
  • • Adv. Sri. P.J. Philip, Senior Counsel (BSNL)

Case Synopsis & Summary

These petitions concern pay fixation and recovery issues arising from BSNL employees absorbed from the Department of Telecom in 2000 under the Biennial Cadre Review (BCR) regime and subsequently re-fixation under BSNL regulations (2008). The petitioners, retired telecom mechanics who were promoted and fixed under FR-22 options, alleged that their pay was not correctly rectified under the 2006 OM and that recoveries effected from pension papers were improper. The Central Administrative Tribunal had found that the pay fixation followed the 2008 BSNL regulations, and it directed that recoveries from pension papers be interfered with. The Kerala High Court, while declining to disturb the pay fixation on account of the 2008-regulation framework, invoked the recovery guidelines laid down by the Supreme Court in State of Punjab v. Rafiq Masih (AIR 2015 SC 696) to hold that recoveries were unsustainable when effected within one year of retirement. Accordingly, the court ordered the recovery to be refunded to the petitioners within two months, with pension and other benefits to be calculated based on the refixed pay. In short, pay fixation under the 2008 BSNL regulations was upheld; however, the recoveries were ordered to be reversed in light of Rafiq Masih guidelines. The petitions are disposed of accordingly.

Provisions of Law Cited

FR-22Office Memorandum No.2-29/2000-REGTG (30-09-2000)Office Memorandum No.I-I(I)/06-PAT (17-12-2008)Office Memorandum No.I-I(I)/06-PAT (12-09-2006)Circular No.32 (27-09-2012)

Legal Doctrines & Maxims

  • Recovery guidelines from State of Punjab v. Rafiq Masih (AIR 2015 SC 696) - guidelines against recovery from pension when done within one year of retirement; principle that pensionary benefits should be preserved when pay fixation is in accordance with legal framework.

Submissions & Arguments

Contentions of Appellants / Petitioners

Applicants contended that pay fixation was governed by BSNL regulations (2008) and that the option exercised under FR-22 could not be overshadowed by the 2006 OM; they argued that the recoveries from pension papers were contrary to the law and the Rafiq Masih guidelines, and that pension should be recalculated on the basis of refixed pay with refunds of recovered amounts within a reasonable period.

Contentions of Respondents

Respondents contended that pay fixation followed the 2008 BSNL regulations and that there was no need to disturb the fixation; recoveries, being a matter of compliance with statutory/regulatory orders, were to be examined per the applicable OMs, though they acknowledged the necessity to review recoveries in light of Supreme Court guidelines.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
State of Punjab v. Rafiq MasihAIR 2015 SC 696PositiveSupreme Court guidelines on recovery from pension were invoked to hold that recoveries made within one year of retirement are unsustainable; the court ordered refund of recovered amounts to petitioners.

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Extracted Judgment Text

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**OP(CAT) Nos. 79/2015 & 72/2016** **-:1:-** ``` IN THE HIGH COURT OF KERALA AT ERNAKULAM ``` ## **`PRESENT`** ``` THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE ``` ``` & ``` ``` THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN ``` ``` TUESDAY, THE 2[ND] DAY OF APRIL 2024 / 13TH CHAITHRA, 1946 ``` ``` OP (CAT) NO.79OF 2015 ``` ``` AGAINST THE ORDER/JUDGMENT DATED 17.09.2014 IN OA NO.800 OF 2013 OF CENTRAL ADMINISTRATIVE TRIBUNAL,ERNAKULAM BENCH ``` ## **`PETITIONER/S:`** ``` 1M.L.GEORGE, AGED 61 YEARS AGED 61 YEARS, RETIRED TELECOM MACHANIC, O/O. SDE EXTERNAL, BSNL, NARAKKAL, MANGATT HOUSE, 13/409 A, KARTHEDAM CHURCH ROAD, MALIPURAM P.O.-682511. 2P.C. WILLIAMS SO. LATE P.E.CHEEKU, AGED 61 YEARS, RETIRED TELECOM MECHANIC, CSR EXCHANGE, BSNL, KOCHI, PUNNASSERY HOUSE, SREEKRISHNA TEMPLE ROAD, EDAYAKUNNAM, SOUTH CHITTOOR P.O., KOCHI- 682027. ``` ``` 3K.V.HARIDASAN SO. LATE K.K.VELAYUDHAN, AGED 61 YEARS, RETIRED TELECOM MECHANIC, O/O.AE EXTERNAL, BSNL, TELEPHONE EXCHANGE, VYTTILA, ``` ``` KALATHUMPURATHU HOUSE, AKG ROAD, THYKOODAM, VYTTILA P.O., KOCHI-682019. BY ADV R.SREERAJ ``` **OP(CAT) Nos. 79/2015 & 72/2016** ## **-:2:-** ## **`RESPONDENT/S:`** - **`1 BHARAT SANCHAR NIGAM LTD, REPRESENTED BY ITS CHAIRMAN CUM MANAGING DIRECTOR, SANCHAR BHAVAN, NEW DELHI- 110001.`** - **`2 THE CHIEF GENERAL MANAGER TELECOM, BHARAT SANCHAR NIGAM LTD., KERALA CIRCLE, TRIVANDRUM-695001.`** - **`3 THE PRINCIPAL GENERAL MANAGER TELECOM, BHARAT SANCHAR NIGAM LTD, ERNAKULAM SSA, ERNAKULAM682016.`** - **`4 UNION OF INDIA, REPRESENTED BY ITS SECRETARY TO GOVERNMENT OF INDIA, DEPARTMENT OF COMMUNICATIONS, NEW DELHI- 110001.`** - **`5 THE ACCOUNTS OFFICER (ESTT), O/O. THE PRINCIPAL GENERAL MANAGER, BHARAT SANCHAR NIGAM LTD., ERNAKULAM- 682016.`** - **`6 THE CONTROLLER OF COMMUNICATION ACCOUNTS, DOOR SANCHAR BHAVAN, THIRUVANANTHAPURAM-695001. BY ADV SRI.T.SANJAY, SC, BSNL`** ## **`THIS OP (CAT) HAVING BEEN FINALLY HEARD ON 4/3/2024,`** ``` ALONG WITH OP (CAT).72/2016, THE COURT ON 2/4/2024 DELIVERED THE FOLLOWING: ``` **OP(CAT) Nos. 79/2015 & 72/2016** ## **-:3:-** # **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** # **`PRESENT`** ``` THE HONOURABLE MR. JUSTICE A.MUHAMED MUSTAQUE ``` ``` & ``` ## **`THE HONOURABLE MRS. JUSTICE SHOBA ANNAMMA EAPEN`** ``` TUESDAY, THE 2[ND] DAY OF APRIL 2024 / 13TH CHAITHRA, 1946 ``` ## **`OP (CAT) NO. 72 OF 2016`** ``` AGAINST THE ORDER/JUDGMENT DATED 17.09.2014 IN OA NO.458 OF 2013 OF CENTRAL ADMINISTRATIVE TRIBUNAL,ERNAKULAM BENCH ``` ## **`PETITIONER/S:`** ``` 1N.D.GOPI TELECOM MECHANIC (RETIRED), O/O.SUB DIVISIONAL ENGINEER, TELEPHONE EXCHANGE, RAVIPURAM, KOCHI - 682 016, RESIDING AT 'NANGAPILLIL THUNDIYIL' HOUSE, THYCOODAM, VYTTILA PO,KOCHI - 682 019. *ADDITIONAL PETITIONERS 2 TO 4 ARE IMPLEADED. 2ADDL.P2:LATHIKA.V.K, AGED 66 YEARS AGED 66 YEARS,W/O.LATE N.D.GOPI,RESIDING AT 'NANGAPILLIL THUNDIYI'L HOUSE,THYCOODAM,VYTTILA P.O..KOCHI-682019. 3ADDL.P3:MEERA G., AGED 36 YEARS,D/O.LATE N.D.GOPI, RESIDING AT NANGAPILLIL HUNDIYIL HOUSE,THYCOODAM,VYTTILA P.O.,KOCHI-682019. ``` **OP(CAT) Nos. 79/2015 & 72/2016** **-:4:-** ``` 4ADDL.P4:MEENU G., AGED 29 YEARS,D/O.LATE N.D.GOPI, RESIDING AT NANGAPILLIL HUNDIYIL HOUSE,THYCOODAM,VYTTILA P.O.,KOCHI-682019. *ADDITIONAL PETITIONERS 2 TO 4 ARE IMPLEADED AS PER ORDER DATED 17/3/21 IN IA NO.1/2020 IN OP (CAT) 2016. BY ADV R.SREERAJ ``` ## **`RESPONDENT/S:`** - **`1 BHARAT SANCHAR NIGM LIMITED REPRESENTED BY ITS CHAIRMAN CUM MANAGING DIRECTOR,SANCHAR BHAVAN, NEW DELHI - 110 001.`** - **`2 CHIEF GENERAL MANAGER TELECOM, BHARAT SANCHAR NIGAM LTD, KERALA CIRCLE, TRIVANDRUM - 695 001.`** - **`3 PRINCIPAL GENERAL MANAGER TELECOMMUNICATION, BHARAT SANCHAR NIGAM LTD, ERNAKULAM SSA ERNAKULAM - 682 016.`** - **`4 UNION OF INDIA REPRESENTED BY THE SECRETARY TO GOVERNMENT OF INDIA, DEPARTMENT OF COMMUNICATIONS, NEW DELHI -110 001.`** - **`5 THE ACCOUNTS OFFICER ESTT OFFICE OF THE PRINCIPAL GENERAL MANAGER, BHARAT SANCHAR NIGAM LTD, ERNAKULAM - 682 016.`** - **`6 THE CONTROLLER OF COMMUNICATION ACCOUNTS DOOR SANCHAR BHAVAN, THIRUVANANTHAPURAM - 695 001. BY ADV SRI.P.J.PHILIP,SC,BSNL(BHARAT SANCHAR N`** ``` THIS OP (CAT) HAVING BEEN FINALLY HEARD ON 4/3/2024, ``` ``` ALONG WITH OP (CAT).79/2015, THE COURT 2/4/2024 DELIVERED THE FOLLOWING: ``` **OP(CAT) Nos. 79/2015 & 72/2016** ## **-:5:-** ## **`A.MUHAMED MUSTAQUE & SHOBA ANNAMMA EAPEN, JJ.`** ``` ------------------------------------------------ ``` ``` O.P.(CAT).Nos.79/2015 and 72/2016 ``` ``` ------------------------------------------------ ``` ``` Dated this the 2[nd] day of April, 2024 ``` ## **`J U D G M E N T`** ## **`A.Muhamed Mustaque, J.`** ``` These matters pertain to recovery consequent upon refixation of pay. The petitioners were the applicants before the Tribunal. They were originally working in the Department of Telecom and they were absorbed in BSNL with effect from 1/10/2000. The original pay fixation was based on Biennial Cadre Review (BCR). Accordingly, promotion was given based on BCR on 1/7/2000. The petitioner in O.P (CAT) 72/2016 joined the ``` **OP(CAT) Nos. 79/2015 & 72/2016** ## **-:6:-** ``` department of telecom as lineman in the year 1974 and on completion of 26 years of service he was granted Grade III under ``` ``` BCR scheme w.e.f. 01.07.2000. All the other petitioners were promoted as Lineman on 1/7/2000 and all of them opted for fixation of pay from the date of their next increment in lower scale of pay as provided in FR-22. The petitioners in O.P.(CAT).No.79/2015 retired on the following dates: ``` ``` First applicant: Shri M.L.George : 28/2/2013 ``` ``` Second applicant: Shri P.C.Williams: 31/10/2012 Third applicant: Shri K.V.Haridas : 30/11/2012 ``` ## **`The issue that has arisen in this case:`** ``` 2. Method of fixation of pay has undergone a change which has to be regulated in accordance with the regulations of BSNL. The pay has to be refixed in accordance with the regulation issued in the year 2008 and, therefore, the option exercised by the petitioners is in no way based on FR-22. Admittedly, the fixation of pay was not rectified based on Office Memorandum (OM) issued in the year 2006. This was attempted to be rectified only when their pension papers were processed. ``` **OP(CAT) Nos. 79/2015 & 72/2016** ## **-:7:-** ## **`The attempt made by the petitioners.`** `3. An attempt was made by the petitioners to ensure that all officers and staff were transferred along with their posts on existing terms and conditions. The Tribunal found that there is no such condition existing. We may not need to interfere in this matter in as much as that the fixation of pay was logically following the Office Memorandum governing the matter. However, according to us the recovery effected from pension papers will have to be interfered with. The Apex Court in` **`State of Punjab v Rafiq Masih [` AIR 2015 SC 696],** `issued guidelines regarding recovery. The recovery according to us is unsustainable in the light of clause 2 of Rafiq Masih’s case (` _`supra`_ `) guidelines as the recovery was effected within one year before they were due to retire. Therefore, we order that the recovered amount be released to the petitioners. However, pension and all other benefits will be in accordance with the refixed pay. The recovered amount shall be released within 2 months.` **OP(CAT) Nos. 79/2015 & 72/2016** **-:8:-** ``` The original petitions are disposed of as above. ``` ``` Sd/- ``` ``` A.MUHAMED MUSTAQUE, JUDGE ``` ``` Sd/- ``` ``` SHOBA ANNAMMA EAPEN, JUDGE ``` ## **`ms`** **OP(CAT) Nos. 79/2015 & 72/2016** **-:9:-** ## **`APPENDIX OF OP (CAT) 72/2016`** ``` PETITIONER ANNEXURES ANNEXURE A1TRUE COPY OF THE REVISED PAY FIXATION MEMO NO.ESTT/EQ/3537008/44 DATED 5.1.2013 ANNEXURE A2TRUE COPY OF THE ORDER NO.ST/EK- 250/4(a)/SSA/II/62 DATED 5.4.2001 ANNEXURE A3TRUE COPY OF THE ORDER NO.ST/EK- 250/4(a)/SSA/II/46 DATED 3.10.2001 ANNEXURE A4TRUE COPY OF THE PAY FIXATION MEMO DATED 16.10.2001 ANNEXURE A5TRUE COPY OF THE OFFICE MEMORANDUM NO.2-29 /2000-RESTG DATED 30.9.2000 ANNEXURE A6TRUE COPY OF THE LETTER NO.1-35/ESTT-2002 DATED 7.8.2002 ANNEXURE A7TRUE COPY OF THE OM NO.I-I(I)06-PAT DATED 17.12.2008 ANNEXURE A8TRUE COPY OF THE CIRCULAR NO.32 DATED 27.9.2012 ANNEXURE A9TRUE COPY OF THE OM NO.I-I(I)/06-PAT DATED 12.9.2006 ANNEXURE A 10TRUE COPY OF THE REPRESENTATION DATED 21.1.2013 SUBMITTED BY THE APPLICANT EXHIBIT P1TRUE COPY OF THE FINAL ORDER DATED 17.9.2014 IN OA 458/2013 HON'BLE CAT ERNAKULAM BENCH. EXHIBIT P2TRUE COPY OF THE ORIGINAL APPLICATION 458/2013 ON THE FILE OF CAT ERNAKULAM BENCH. EXHIBIT P3TRUE COPY OF THE REPLY STATEMENT FILED BY THE RESPONDENTS 1,2,3 & 5 IN OA 458/2013 ON THE FILE OF THE HON'BLE CAT, ERNAKULAM BENCH. EXHIBIT P4TRUE COPY OF THE REPLY STATEMENT FILED BY THE RESPONDENTS 4 & 6 IN OA 458/2013 ON THE FILE OF THE HON'BLE CAT, ERNAKULAM BENCH. EXHIBIT P5TRUE COPY OF THE REJOINDER IN OA 458/2013 ON THE FILE OF THE HON'BLE CAT ERNAKULAM BENCH. ``` **OP(CAT) Nos. 79/2015 & 72/2016** **-:10:-** ## **`APPENDIX OF OP (CAT) 79/2015`** ``` PETITIONER ANNEXURES ANNEXURE A-4TRUE COPY OF THE REVISED PAY FIXATION MEMO NO. E III/3312008/29 DATED 20.03.2013. ANNEXURE A-5TRUE COPY OF THE REVISED PAY FIXATION MEMO NO. Q3584/53 DATED 03-12-2012. ANNEXURE A-6TRUE COPY OF THE REVISED PAY FIXATION MEMO NO. EIII3014008/32 DATED 12-03-2013. ANNEXURE A-7TRUE COPY OF THE REVISED PAY FIXATION MEMO NO. Q3574/47 DATED 23-03-2013. ANNEXURE A-8TRUE COPY OF THE LETTER NO.ESTT/ENK/2012- 13/PAY FIXATION/20 DATED 22-05-2013. ANNEXURE A-9TRUE COPY OF THE LETTER NO. ESTT/ENK/2012- 13/PAY FIXATION/17 DATED 22-05-2013 ANNEXURE A-10TRUE COPY OF THE LETTER NO. ESTT/ENK/2012- 13/PAY FIXATION/19 DATED 22-05-2013. ANNEXURE A-11TRUE COPY OF THE LETTER NO. ESTT/ENK/2012- 13/PAY FIXATION/18 DATED 22-05-2013 ANNEXURE A-1TRUE COPY OF THE OFFICE MEMORANDUM NO. 2- 29-2000-REGTG DATED 30-09-2000. ANNEXURE A-2TRUE COPY OF THE LETTER NO.1-35/ESTT-2002 DATED 07-08-2002. ANNEXURE A-3TRUE COPY OF THE REPRESENTATION DATED 24- 04-2013. ANNEXURE A-12TRUE COPY OF THE OM NO. I-I(I)/06-PAT DATED 17-12-2008. ANNEXURE A-13TRUE COPY OF THE CIRCULAR NO. 32 DATED 27- 09-2012. ANNEXURE A-14TRUE COY OF THE OM NO. I-I(I)/06-PAT DATED 12-09-2006. ANNEXURE R-1(a)1 TO TRUE COPY FO THE LETTER FORWARDED TO CCA, 4DOT, TRIVANDUM. ANNEXURE R-1(b)1 TO TRUE COPY OF THE REVISED PAY FIXATION MEMO 3OF THE APPLICANTS 1,3, AND 4. ANNEXURE R-1(c)1 TO TRUE COPY OF THE REFIXATION MEMO OF 2ND 2APPLICANT. ``` **OP(CAT) Nos. 79/2015 & 72/2016** ## **-:11:-** |**`ANNEXURE R-1(d)`**|**`TRUE COPY OF THE DOT LETTER NO.1-`**| |---|---| ||**`1(06)/2006 PAT DATED 05-08-2012.`**| |**`ANNEXURE R-1(e)`**|**`TRUE COPY OF THE SAMPLE PAY FIXATION OF`**| ||**`SHRI. K.N.JAYAN.`**| |**`ANNEXURE R-1(f)`**|**`TRUE COPY OF THE SAMPLE PAY FIXATION OF`**| ||**`SHRI.P.K.MOHANAN.`**| |**`ANNEXURE R-1(g)`**|**`TRUE COPY OF THE BSNL CORPORATE OFFICE`**| ||**`LETTER NO.1-5/2004-PAT(BSNL)PT.V. DATED`**| ||**`03-05-2013.`**| |**`ANNEXURE R-1`**|**`PHOTOCOPY OF UO NOTE OF THE MINISTRY.`**| |**`ANNEXURE R-2`**|**`PHOTOCOPY OF THE OM DATED 17-12-2008.`**| |**`EXHIBIT P-1`**|**`TRUE COPY OF THE OA 800/2013 ON THE FILE`**| ||**`OF THE HON'BLE CENTRAL ADMINISTRATIVE`**| ||**`TRIBUNAL, ERNAKULAM BENCH`**| |**`EXHIBIT P-2`**|**`TRUE COPY OF THE REPLY STATEMENT FILED`**| ||**`FILED BY RESPONDENTS 1 TO 3 AND 5 IN OA`**| ||**`800/2013 ON THE FILE OF THE HON'BLE`**| ||**`CENTRAL ADMINISTRATIVE TRIBUNAL, ERNAKULAM`**| ||**`BENCH`**| |**`EXHIBIT P-3`**|**`TRUE COPY OF THE REPLY STATEMENT FILED`**| ||**`FILED BY RESPONDENTS 4 & 6 IN OA 800/2013`**| ||**`ON THE FILE OF THE HON'BLE CENTRAL`**| ||**`ADMINISTRATIVE TRIBUNAL, ERNAKULAM BENCH`**| |**`EXHIBIT P-4`**|**`TRUE COPY OF THE REJOINDER FILED BY THE`**| ||**`APPLICANTS IN OA 800/2013 ON THE FILE OF`**| ||**`THE HON'BLE CENTRAL ADMINISTRATIVE`**| ||**`TRIBUNAL, ERNAKULAM BENCH`**| |**`EXHIBIT P-5`**|**`TRUE COPY OF THE FINAL ORDER DATED`**| ||**`17/9/2014 IN OA 800/2013 ON THE FILE OF`**| ||**`THE HON'BLE CENTRAL ADMINISTRATIVE`**| ||**`TRIBUNAL, ERNAKULAM BENCH`**| |**`RESPONDENT EXHIBITS`**|| |**`EXHIBIT R3(a)`**|**`ORDER DATED 30-09-2000.`**| |**`EXHIBIT R3(b)`**|**`ORDER DATED 07-08-2002.`**| |**`EXHIBIT R3(c)`**|**`COPY OF DOCUMENT FORWARDING THE PENSION`**| ||**`PAPER.`**| |**`EXHIBIT R3(d)`**|**`COPY OF DOCUMENT FORWARDING THE PENSION`**| ||**`PAPER.`**| |**`EXHIBIT R3(e)`**|**`COPY OF DOCUMENT FORWARDING THE PENSION`**| ||**`PAPER.`**| **OP(CAT) Nos. 79/2015 & 72/2016** ## **-:12:-** ``` EXHIBIT R3(f)COPY OF DOCUMENT FORWARDING THE PENSION PAPER OF 1ST PETITIONER. EXHIBIT R3(g)COPY OF DOCUMENT FORWARDING THE PENSION PAPER OF 2ND PETITIONER. EXHIBIT R3(h)COPY OF DOCUMENT FORWARDING THE PENSION PAPER OF 3RD PETITIONER. ```