Central Administrative Tribunal - Ernakulam
K Babu And Another vs Southern Railway on 11 April, 2025
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CENTRAL ADMINISTRATIVE TRIBUNAL
ERNAKULAM BENCH
Original Application No.180/00072/2023
Friday this the 11th day of April 2025
CO RAM :
HON'BLE Mr.JUSTICE SUNIL THOMAS, JUDICIAL MEMBER
HON'BLE Ms.V.RAMA MATHEW, ADMINISTRATIVE MEMBER
1. K.Babu,
S/o.M.K.Velu,
Aged 46 years,
Senior Assistant Loco Pilot,
Southern Railway, Palakkad - 678 002.
Residing at Kizhakke Purackal House,
Cheruthuruthy P.O., Thrissur - 679 531.
2. Sunilkumar.K.V.,
S/o.Narayanan.K.,
Aged 44 years,
Senior Assistant Loco Pilot, Southern Railway,
Mangalore Central, Palakkad Division.
Permanent Address - Muthiyalam, P.O.Koram,
Payyannur, Kannur - 670 307. ...Applicants
(By Advocates M/s.T.C.Govindaswamy, Kala.T.Gopi, Renuka.M.R &
Sudhir Kumar B)
versus
1. Union of India represented by the General Manager,
Southern Railway, Headquarters Office,
Park Town P.O., Chennai - 600 003.
2. The Principal Chief Personnel Officer,
Southern Railway, Headquarters Office,
Park Town P.O., Chennai - 600 003.
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3. The Senior Divisional Personnel Officer,
Southern Railway, Palakkad Division,
Palakkad - 678 002.
4. The Senior Divisional Personnel Officer,
South Western Railway, Hubli Division,
Hubballi, Dharwar District, Karnataka - 580 020.
5. The Senior Divisional Personnel Officer,
South Western Railway, Mysore Division,
Mysuru, Karnataka - 570 001. ...Respondents
(By Advocate Mr.Sreejith.N)
This application having been heard on 1st April, 2025 the Tribunal
on 11th April 2025 delivered the following :
ORDER
HON'BLE Ms.V.RAMA MATHEW, ADMINISTRATIVE MEMBER Briefly stated the facts are as under -
The applicants are presently working as Senior Assistant Loco Pilots in Level 4 of the Pay Matrix in the Palakkad Division of Southern Railway. They are aggrieved by the denial of consideration and grant of the 1st financial upgradation under the MACP Scheme upon their joining the Palakkad Division of Southern Railway on transfer from South Western Railway resulting in substantial reduction in their pay. The applicants prior to their transfer and posting in Palakkad Division of Southern Railway were working in South Western Railway - the A S PEETHAMBARAN 2025.04.11 16:16:02+05'30' -3- 1st applicant in Mysore Division and 2 nd applicant in Hubli Division. The 1st applicant commenced his service in Mysore Division on 12.06.2001 as Assistant Loco Pilot and upon grant of promotions was working as Loco Pilot (Mail) in Level 6 of the Pay Matrix at the time of his transfer to Palakkad Division by Office Order No.RNG/24/2020 dated 28.07.2020, produced as Annexure A-1. He was relieved on 19.08.2020 and joined Palakkad Division on 24.08.2020 but asked to come back after completion of period of 14 days quarantine and accordingly he reported again on 08.09.2020. As on the date of the relieve he was drawing a basic pay of Rs.76500/- in Level 6 of the Pay Matrix. The applicant's posting was to the direct recruitment grade of Assistant Loco Pilot in Level 2 of the Pay Matrix ie., Rs.19990-63200. Upon the applicant's posting as Assistant Loco Pilot his pay was fixed at the maximum of the Level 2 of the Pay Matrix, which is Rs.63200/- without protecting the difference in pay as personal pay as is required to be done and as has been done in the Trivandrum Division of the Southern Railway to identically situated persons. The Memorandum issued by the 3rd respondent fixing the 1st applicant's pay is produced as Annexure A-2.
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2. The 2nd applicant commenced his service in the Hubli Division on 04.12.2000 as Assistant Loco Pilot and was transferred to Palakkad Division by order dated 26/27.03.2019. He was also working in Level 6 of the Pay Matrix at the time of his transfer, produced as Annexure A-3. He was relieved on 03.04.2019 and joined Palakkad Division on 05.04.2019. At the time of relieve from Hubli Division, the 2 nd applicant was drawing a basic pay of Rs.68000/- and in his case also the pay was fixed as Rs.63200/-, a true copy of the order fixing the pay is produced as Annexure A-4. In Annexure A-4 the 2 nd applicant's pay was seen fixed as Rs.63200/- + Rs.2800/- personal pay. The applicant has represented against this order which is produced as Annexure A-5 dated 31.03.2021. Against this representation a corrigendum dated 22.04.2021 was issued wherein the personal pay was taken away and the pay was fixed at Rs.63200/-. This is produced as Annexure A-6. The Annexure A-7 representation dated 30.09.2021 was submitted by the applicant which has also been rejected by Annexure A-8.
3. Similarly the 1st applicant also submitted a representation dated 27.10.2021 produced as Annexure A-9 which was rejected by Annexure A-10. In both Annexure A-8 and Annexure A-10 there is a reference to a Railway Board Order No.32/2017 dated 26.04.2017 which is produced as A S PEETHAMBARAN 2025.04.11 16:16:02+05'30' -5- Annexure A-11. In terms of Annexure A-11 the pay of the Government servant under the circumstances and the present case of being transfer to a lower post will be fixed in the revised pay structure at the stage equal to the pay drawn by him/her in the higher level of the post held regularly. If no such stage is available the pay will be fixed at the stage next below in the lower level with respect to the pay drawn by him/her in the higher level of the post held regularly and the difference in the pay may be granted as personal pay to be absorbed in the future increment. If the maximum of the vertical range of pay progression at the lower level in which he/she is appointed, happens to be less than the pay drawn by him/her in the higher level, his pay/her pay may be restricted to that maximum under FR 22 (I)(a)(3). The applicants also alleges that upon joining the Palakkad Division of Southern Railway the respondents are bound to ignore the promotions granted to them and grant them the benefit of two financial upgradations in Level 3 and Level 4. They had submitted representations dated 16.03.2022 and 25.03.2022 respectively to the 3rd respondent, a true copy of which is produced as Annexure A-12 and Annexure A-13 respectively as also the MACP Scheme as introduced by the Railways as per RBE No.101/2009 dated 10.06.2009, produced as Annexure A-14. Paragraph 24 of Annexure A-14 initially held that "in case an employee after getting promotion/ACP seeks unilateral transfer A S PEETHAMBARAN 2025.04.11 16:16:02+05'30' -6- on lower post or lower scale, he will be entitled only for 2 nd and 3rd financial upgradations on completion of 20/30 years of regular service under MACP Scheme as the case may be from the date of his initial appointment to the post in the new organization." However, this paragraph 24 was amended by the Railway Board by its RBE No.188/2010 dated 28.12.2010, produced as Annexure A-15 wherein it has been held that "in case of transfer including unilateral transfer on request, the regular service rendered in the previous organization/office shall be counted along with the regular service in the new organization/office for the purpose of getting financial upgradation under the MACP Scheme."
4. It is submitted by the applicants that in the light of Annexure A-14 read with Annexure A-15 orders the respondents were bound to reckon the applicant's previous service and grant them the benefit of 1 st financial upgradation in Level 3 of the Pay Matrix from the date they joined the Palakkad Division. Thereafter on completion of 20 years from the date of their initial appointment the applicants also ought to have been granted the benefits of the 2 nd financial upgradation in the Level 4 of the Pay Matrix. This identical question was considered by this Tribunal in O.A.No.138/2009 vide its order dated 20.01.2010, produced as Annexure A S PEETHAMBARAN 2025.04.11 16:16:02+05'30' -7- A-16 which was upheld by the Hon'ble High Court of Kerala in W.P.(C) No.17795/2010 dated 20.03.2012, produced as Annexure A-17, which is also confirmed by the Hon'ble Supreme Court in S.L.P.(C) No.5415- 5420 of 2013 dated 24.01.2013, produced as Annexure A-18. In the light of the settled position the respondents were bound to grant the applicants the benefit of 1 st and 2nd financial upgradations. Denial of consequential fixation of pay on that basis is arbitrary and unconstitituonal. The applicants who have been working under the respondents for the last over 22 years are subjected to substantial prejudice, irreparable injury and monthly recurring losses. Accordingly the applicants seeks the following relief :
(i) Declare that the applicants are entitled to be granted the benefit of first financial upgradation under the MACP Scheme in Level 3 of the Pay Matrix from the date they joined Palghat Division of Southern Railway and direct the respondents accordingly.
(ii) Declare that the applicants are entitled to be granted the benefit of the second financial upgradation in Level 4 of the Pay Matrix with effect from 12.06.2021 and 04.12.2020 respectively with all consequential benefits arising therefrom.
(iii) Call for the records leading to the issue of Annexure A-8 and Annexure A-10 and quash the same to the extent they fix the applicants' pay at the level of Rs.63200/- in Level 2 of the Pay Matrix and direct the respondents to grant first financial upgradations in Level 3 of the Pay Matrix from the date they joined the Palghat Division of A S PEETHAMBARAN 2025.04.11 16:16:02+05'30' -8- Southern Railway duly reckoning the service rendered by them in the previous Division and direct further to grant all consequential benefits including fixation of pay on that basis.
(iv) Direct the respondents to grant the applicants the benefit of second financial upgradation on completion of 20 years of service from the date of their initial appointment ie., with effect from 12.06.2021 and 04.12.2020 respectively and to grant all consequential benefits including arrears of pay and allowances arising therefrom.
(v) Award costs of and incidental to this application.
(vi) Pass such other orders or direction as deemed just, fit and necessary in the facts and circumstances of the case.
5. The respondents in their reply statement have produced a tabular statement about the promotions earned by the 1 st applicant which is reproduced here -
Date Promotion Post Pay scale & Pay
11.02.2005 1 promotion
st
Loco Pilot/Goods Grade Rs.5000-8000 &
- II (By selection) Pay at Rs.5000/-.
19.11.2007 2nd promotion Loco Pilot/Goods Grade Rs.5500-9000 &
- I (By seniority-cum- Pay at Rs.5500/-
suitability) (Rs.9300-34800
with GP
Rs.4200/-)
07.04.2011 3rd promotion Loco Pilot/Passenger Rs.9300-34800
with GP Rs.4200/-
& Pay Rs.17170/-.
09.09.2017 4th promotion Loco Pilot/Mail Pay Matrix Level
6 & Pay
Rs.68000/-.
A S PEETHAMBARAN 2025.04.11 16:16:02+05'30' -9- The promotions earned by the 2 nd applicant which is reproduced here -
Date Promotion Post Pay Scale
31.08.2005 1 promotion
st
Loco Pilot/Goods Pay fixed at Rs.5000/-
Grade - II in pay scale Rs.5000-
8000.
13.03.2018 2nd promotion Loco Rs.9300-34800 with
Pilot/Passenger GP Rs.4200/- (Pay
Matrix Level - 6 &
Pay Rs.66000/-.
6. They also produced in tabular format the entire service details of both the applicants, which is reproduced below -
Details Applicant No.1 Applicant No.2
Date of Appointment 12.06.2001 04.12.2000
Initial appointment Diesel Assistant/ Diesel Assistant/
as/at 25.04.2002 in scale 08.05.2001 in scale
Rs.3050-4590/- and pay Rs.3050-4590/- and pay
at Rs.3050/- (in 5th CPC) at Rs.3050 (in 5th CPC)
Promotion to the post Loco Pilot (Goods)/Gr.II Loco Pilot(Goods)/Gr.II
& effect from on 11.02.2005 and pay on 31.08.2005 and pay
fixed at Rs.5000/- in scale fixed at Rs.5000/- in
Rs.5000-8000. scale Rs.5000-8000.
-do- Loco Pilot (Goods)/Gr.I Loco Pilot (Passenger)
on 19.11.2007 and pay on 13.03.2018 and pay
fixed at Rs.5500/- in scale fixed at Rs.66000/- Pay
Rs.5500-9000. Matrix Level 6 Pay
Band Rs.9300-34800 in
7th CPC.
-do- Loco Pilot (Passenger) on -
07.04.2011 and pay fixed
at Rs.17170/- in scale
Rs.9300-34800 + GP
Rs.4200/- (6th CPC)
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-do- Loco Pilot (Mail) on -
09.09.2017 and pay fixed at Rs.68000/- Pay Matrix Level 6 Pay Band Rs.9300-34800 in 7th CPC.
Date of transfer and Relieved from MYS Relieved from HUB
joining PGT Division on 20.08.2020 Division on 03.04.2019
Division on IRT and reported at PGT and reported at PGT
Division on 24.08.2020 as Division on 05.04.2019
ALP in PML-2 protecting as ALP in PML-2
his pay at Rs.63200/- protecting his pay at
which is the maximum in Rs.63200/- which is the
PML-2. maximum in PML-2.
Further promotion in Senior Assistant Loco Senior Assistant Loco
PGT Division Pilot with effect from Pilot with effect from
26.08.2022 in Pay Matrix 17.09.2021 in Pay
Level 4 and pay fixed at Matrix Level 4 and pay
Rs.64000/-. fixed at Rs.64000/-.
7. The respondents further submitted that the applicants were granted 4/2 promotions in the previous units and their pay was protected on unilateral transfer to the extent possible as per rules. The instructions contained in Annexure A-15 Railway Board's Circular RBE No.188/2010 dated 28.12.2010 states as follows -
" .....in case of transfer including 'unilateral transfer on request', regular service rendered in previous organization/office shall be counted along with the regular service in the new organization/office for the purpose of getting financial upgradations under the MACP Scheme. However, financial upgradation under the MACP Scheme shall be allowed in the immediate next higher grade pay in the hierarchy of the revised Pay Bands as given in the Railway Services (Revised Pay) Rules, 2008......"
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8. Further clarification as per Railway Board Circular RBE No.08/2013 dated 31.01.2013 states as follows -
" ............it is now further clarified that wherever an official in accordance with terms and conditions of transfer on own volition to a lower post, is reverted to the lower post grade from the promoted post/grade before being relieved for the new organization/office, such past promotion in the previous organization/office will be ignored for the purpose of MACP Scheme in the new organization/office. In respect of those cases where benefit of pay protection have been allowed at the time of unilateral transfer to other organization/unit and thus the employee had carried the financial benefit of promotion, the promotion earned in previous organisation has to be reckoned for the purpose of MACP Scheme....."
The aforesaid RBE Circular is produced as Annexure R-1(A). Further the Railway Board Circular RBE No.32/2017 dated 06.04.2017 states as follows -
" In case of transfer to a lower level of post in the Pay Matrix under FR 15(a) on his/her own request with effect from 01.01.2016, the pay of the Government servant holding a post on regular basis will be fixed in the revised pay structure at the stage equal to the pay drawn by him/her in the higher level of post held regularly. If no such stage is available, the pay will be fixed at the stage next below in the lower level with respect to the pay drawn by him/her in the higher level of post held regularly and the difference in the pay may be granted as personal pay to be absorbed in future increment(s). If maximum of the vertical range of pay progression at the lower level in which he/she is appointed, happens to be less than the pay drawn by him/her in the higher level, his/her pay may be restricted to that maximum under FR 22(I) (a)(3)."
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9. It is clarified that accordingly pay fixation memorandum has been issued as per Annexure A-2 and the applicants have been absorbed and posted in the Palakkad Division as Assistant Loco Pilots in Pay Matrix Level 2 on inter-Railway transfer at their request in the maximum of the vertical stage in Pay Matrix Level 2 ie., Rs.63200/-. It is also stated that at the time the two applicants were relieved and posted as Assistant Loco Pilots the pay was fixed at Rs.63200/- + Rs.2800/- with effect from 05.04.2019 (Annexure A-4). Later it was noticed that the pay fixation of the 2nd applicant issued as per O.M dated 18.03.2021 (Annexure A-4) was wrong and a Corrigendum was issued and the pay was fixed at Rs.63200/- only ie., the maximum of the vertical stage in the Pay Matrix Level 2. Likewise this happens in the case of both the applicants.
10. Let us examine this facts with reference to the rules and the relief sought. The applicants have sought for quashing the orders fixing the pay at Rs.63200/- at Level 2 and direct the respondents to grant 1 st financial upgradation in Level 3 of the Pay Matrix from the date they joined the Palakkad Division of Southern Railway duly reckoning the service rendered by them in the previous Division and direct further the grant of consequential benefits including fixation of pay on that basis. As also the 2nd upgradation on the completion of 20 years of service from A S PEETHAMBARAN 2025.04.11 16:16:02+05'30' -13- the date of their initial appointment respectively and to grant them all consequential benefits including arrears of pay and allowances arising therefrom.
11. In so far as the fixation of pay itself is concerned, a plain reading of FR 15 (1)(a) and FR 22 (I) (a)(c) read with the Railway Board Circulars RBE No.08/2013 and RBE No.32/2017 the pay fixation on a inter-Railway transfer on voluntary basis to a lower post would result in the fixation of pay restricted to the maximum of the grade to which they are moving where the pay drawn in the previous scale was higher than the maximum of the scale. This restriction is as per the rules and to that extent the fixation of pay is correct. Therefore, we do not propose to interfere with that particular pay fixation and the prayer for striking down Annexure A-8 and Annexure A-10 is denied. However, the restriction for the purpose of grant of MACPS where pay protection has been granted to the extent of previous scale which is the ground taken for denial of 1 st financial upgradation under the MACP Scheme benefit on joining over here by taking note of the service rendered in the previous Division, we have to take clear note of the fact that the applicants were drawing the pay at Level 6 in their previous tenure and were drawing actual pay of Rs.76500/- in the case of the 1 st applicant and Rs.68000/- in the case of A S PEETHAMBARAN 2025.04.11 16:16:02+05'30' -14- the 2nd applicant. On refixation, although it is strictly as per the rules, the pay has been restricted to the maximum of the pay scale in the lower grade ie., to the extent of Rs.63200/-, which is the maximum of the pay in Level 2 in the Pay Matrix. Hence, in so far as the applicants themselves are concerned, in effect, the pay protection granted by effect of this rule position is illusory as they suffer a substantial monetary loss by virtue of this manner of pay fixation, which is strictly as per the rules and therefore, to apply this clause that 'in respect of those cases where benefit of pay protection has been allowed at the time of unilateral transfer to other organization/unit and thus employee carried the financial benefit of promotion, the promotion earned in the previous organization has to be reckoned for the purpose of MACP Scheme' cannot strictly be stated to be applicable because the full financial benefits of promotion is not seen to be carried into the new organization and, therefore, the previous clause ie., such past promotion in the previous organization/office will be ignored for the purpose of MACP Scheme in the new post in the new organization/office when an officer comes on transfer on his own volition to a lower post, is reverted to the lower post/grade from the promoted post/grade before being relieved to the new organization/office, would be the clause which would be applicable. A S PEETHAMBARAN 2025.04.11 16:16:02+05'30' -15-
12. This being the legal position, however, when applied to the facts of the present case, it is seen that the applicants have had 4 and 2 promotions respectively prior to the inter-Railway transfer and have, subsequent to their movement to Palakkad Division earned another promotion and hence do not meet the primary criteria for pay fixation under the MACP Scheme.
13. Hence, the O.A fails and is dismissed. No order as to costs.
(Dated this the 11th day of April, 2025)
V.RAMA MATHEW JUSTICE SUNIL THOMAS
ADMINISTRATIVE MEMBER JUDICIAL MEMBER
asp
A S PEETHAMBARAN 2025.04.11 16:16:02+05'30' -16- List of Annexures in O.A.No.180/00072/2023
1. Annexure A-1 - A copy of the Office Order bearing No.RNG/24/2020 dated 28.07.2020 issued by the 5 th respondent - Divisional Personnel Officer, Mysore.
2. Annexure A-2 - A copy of the Memorandum bearing No.J/P.524/V/PR/MEch Running/Vol.V dated 15.09.2021 issued by the 3rd respondent.
3. Annexure A-3 - A copy of the Office Order No.8/MECH/RNG/2019 dated 26/27.03.2019 issued by the 4 th respondent.
4. Annexure A-4 - A copy of the Memorandum bearing No.J/P.524/V/PR/Mech Running/Vol.IV dated 18.03.2021 issued by the 3rd respondent.
5. Annexure A-5 - A copy of the representation submitted by the 2 nd applicant dated 31.03.2021 addressed to the 3 rd respondent.
6. Annexure A-6 - A copy of the Corrigendum bearing No.J/P.524/V/PR/Mech Running/Vol.IV dated 22.04.2021 issued by the 3rd respondent.
7. Annexure A-7 - A copy of the representation submitted by the 2 nd applicant dated 30.09.2021.
8. Annexure A-8 - A copy of the letter bearing No.J/P.721/V/PR/Vol.II dated 16.02.2022 issued by the 3rd respondent.
9. Annexure A-9 - A copy of the representation submitted by the 1 st applicant dated 27.10.2021 addressed to the 3 rd respondent.
10. Annexure A-10 - A copy of the letter bearing No.J/P.721/V/PR/Vol.II dated 16.02.2022 issued by the 3rd respondent.
11. Annexure A-11 - A copy of the Railway Board Order bearing No.32/2017 dated 26.04.2017.
12. Annexure A-12 - A copy of the representation submitted by the 1 st applicant dated 16.03.2022 addressed to the 3 rd respondent. A S PEETHAMBARAN 2025.04.11 16:16:02+05'30' -17-
13. Annexure A-13 - A copy of the representation submitted by the 2 nd applicant dated 25.03.2022 addressed to the 3 rd respondent.
14. Annexure A-14 - A copy of the Railway Board Order RBE No.101/2009 dated 10.06.2009.
15. Annexure A-15 - A copy of the Railway Board Order RBE No.188/2010 dated 28.12.2010.
16. Annexure A-16 - A copy of the order of this Tribunal in O.A.No.138/2009 (C.Nataraja Moorthy vs. Union of India & Others) dated 20.01.2010.
17. Annexure A-17 - A copy of the judgment of Hon'ble High Court of Kerala in W.P.(C) No.17795/2010 dated 20.03.2012.
18. Annexure A-18 - A copy of the judgment of the Hon'ble Apex Court in SLP (C) No.5415-5420 of 2013 dated 24.01.2013.
19. Annexure R-1(A) - A copy of the Railway Board Circular RBE No.08/2013 dated 31.01.2013.
20. Annexure R-1(B) - A copy of the Railway Board Circular RBE No.147/2015 dated 23.11.2015.
21. Annexure R-1(C) - A copy of the Clarification Letter No.PC- V/2009/MCP/9/SR dated 18.04.2016 of Railway Board.
22. Annexure R-1(D) - A copy of the Railway Board Circular RBE No.81/2020 dated 18.09.2020.
23. Annexure R-1(E) - A copy of the Seventh CPC Pay Matrix from Level 1 to Level 6.
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