it2025_00537 — The Applicant, herein, a retiree of MTNL, having chosen to join MTNL from Department of Telecommunication (DoT) with effect from 1-10-2000 is entitled only for Special Allowance of ₹ 3,545 being the pay fixed as ₹ 27,712 (₹ 21,650 plus D.A. of 6,062) and not higher amount of ₹ 4,673 as demanded by him. However, the Special Allowance of ₹ 2,37,275 was paid to him belatedly by 50 days after his retirement. Hence, the Applicant is entitled to interest at 12% on fu

IT Rules

The Applicant, herein, a retiree of MTNL, having chosen to join MTNL from Department of Telecommunication (DoT) with effect from 1-10-2000 is entitled only for Special Allowance of ₹ 3,545 being the pay fixed as ₹ 27,712 (₹ 21,650 plus D.A. of 6,062) and not higher amount of ₹ 4,673 as demanded by him. However, the Special Allowance of ₹ 2,37,275 was paid to him belatedly by 50 days after his retirement. Hence, the Applicant is entitled to interest at 12% on full leave encashment amount of ₹ 4,29,749 before deducting income tax amount — This chunk pertains to the dispute between the applicant, a retiree from MTNL, and the Department of Telecommunication (DoT) over the fixation of his pay on joining MTNL and the improper calculation ... — Facts: The Applicant herein, was absorbed in MTNL, Mumbai as he agreed to join MTNL from DoT as per conditions of the absorption called for under Letter, dated 24-3-2005. The Applicant was absorbed in MTNL with effect from 1-10-2000 as per Terms and Conditions as called for in Letter, dated 24-3-2005. The condition stipulated regarding the pay fixation of optees to MTNL in the I.D.A. pay scale if the fixation is less than 25% over and above the emoluments (Pay plus D.A.) in the CDA scale, the difference will be paid as Special Allowance subject to a ceiling of ₹ 6,000 per month with effect from 1-10-2000 and this will be increased at the rate of 5% every year over the payment of Special Allowance paid in the previous year with effect from 1-10-2000. The Applicant's submission is that, he is entitled for an amount of ₹ 4,673 against which he received only ₹ 3,545. Hence he filed this OA for proper fixation of his pay on joining MTNL. He is aggrieved by the improper fixation of Special Allowance paid to him from his leave encashment amount at the time of his superannuation. The Tribunal heard both sides. "Calculation of Special Allowance on fixation from CDA to IDA scale as on 1-10-2000 is reproduced as per DoT Letter No. 1101311 of 2005, dated 13-8-2009". The Tribunal considered the Respondent's calculation which is reproduced below: "The Applicant was drawing Basic Pay of ₹ 17,100 as on 1-10-2000 in the CDA pay scale of ₹ 14,300-400-18,300 ( his pay as Chief Engineer in DoP&T). The mid-stage of the CDA pay scale of ₹ 14,300-18,300 comes to ₹ 16,300. Taking this mid-stage of pay as ₹ 16,300 of the CDA pay scale, the Applicant's emoluments work out to ₹ 22,983 (mid-stage of ₹ 16,300 plus 41% Dearness Allowance of ₹ 6,683). As per the Letter, dated 29-9-2008, it is required to be verified as to whether the pay in the IDA scale is less than 36% of this figure of ₹ 22,983 (CDA mid-stage plus DA). Thus after adding 36% to ₹ 22,983 one arrives at the figure of ₹ 31,257 ( ₹ 22,983 plus 8,274), the Applicant's IDA pay as on 1-10-2000 was ₹ 21,650 and his total emoluments in IDA scale as on 1-10-2000 were ₹ 27,712 (₹ 21,650 plus DA ₹ 6,062). Since this figure of ₹ 27,712 is less than the figure of ₹ 31,257, the difference of ₹ 3,545 becomes Special Allowance of the Applicant. Thus, the Applicant's Special Allowance is correctly fixed at ₹ 3,545 per month as on 1-10-2010". The encashment of Special Allowance has been provided in the relevant paragraphs of revised Annexure, dated 29-9-2008 which is reproduced in the judgment. An amount of ₹ 2,59,111 was recovered from his leave encashment and he was refunded ₹ 2,37,275 which he accepted. The Respondents have not given any satisfactory reason for recovery of ₹ 2,59,111 from the retirement benefits of the Applicant. As the Applicant had accepted ₹ 2,37,275 in his retirement benefits there is further need to go into this aspect. The leave encashment amount after deducting income tax should have been paid to the Applicant on the date of his superannuation but it was paid belatedly after a period of 50 days from 1-8-2010 to 20-9-2010. Hence the Applicant is entitled to an interest at 12% on the said delayed payment.

IT Rules

The Applicant, herein, a retiree of MTNL, having chosen to join MTNL from Department of Telecommunication (DoT) with effect from 1-10-2000 is entitled only for Special Allowance of ₹ 3,545 being the pay fixed as ₹ 27,712 (₹ 21,650 plus D.A. of 6,062) and not higher amount of ₹ 4,673 as demanded by him. However, the Special Allowance of ₹ 2,37,275 was paid to him belatedly by 50 days after his retirement. Hence, the Applicant is entitled to interest at 12% on full leave encashment amount of ₹ 4,29,749 before deducting income tax amount — This chunk pertains to the dispute between the applicant, a retiree from MTNL, and the Department of Telecommunication (DoT) over the fixation of his pay on joining MTNL and the improper calculation ... — Facts: The Applicant herein, was absorbed in MTNL, Mumbai as he agreed to join MTNL from DoT as per conditions of the absorption called for under Letter, dated 24-3-2005. The Applicant was absorbed in MTNL with effect from 1-10-2000 as per Terms and Conditions as called for in Letter, dated 24-3-2005. The condition stipulated regarding the pay fixation of optees to MTNL in the I.D.A. pay scale if the fixation is less than 25% over and above the emoluments (Pay plus D.A.) in the CDA scale, the difference will be paid as Special Allowance subject to a ceiling of ₹ 6,000 per month with effect from 1-10-2000 and this will be increased at the rate of 5% every year over the payment of Special Allowance paid in the previous year with effect from 1-10-2000. The Applicant's submission is that, he is entitled for an amount of ₹ 4,673 against which he received only ₹ 3,545. Hence he filed this OA for proper fixation of his pay on joining MTNL. He is aggrieved by the improper fixation of Special Allowance paid to him from his leave encashment amount at the time of his superannuation. The Tribunal heard both sides. "Calculation of Special Allowance on fixation from CDA to IDA scale as on 1-10-2000 is reproduced as per DoT Letter No. 1101311 of 2005, dated 13-8-2009". The Tribunal considered the Respondent's calculation which is reproduced below: "The Applicant was drawing Basic Pay of ₹ 17,100 as on 1-10-2000 in the CDA pay scale of ₹ 14,300-400-18,300 ( his pay as Chief Engineer in DoP&T). The mid-stage of the CDA pay scale of ₹ 14,300-18,300 comes to ₹ 16,300. Taking this mid-stage of pay as ₹ 16,300 of the CDA pay scale, the Applicant's emoluments work out to ₹ 22,983 (mid-stage of ₹ 16,300 plus 41% Dearness Allowance of ₹ 6,683). As per the Letter, dated 29-9-2008, it is required to be verified as to whether the pay in the IDA scale is less than 36% of this figure of ₹ 22,983 (CDA mid-stage plus DA). Thus after adding 36% to ₹ 22,983 one arrives at the figure of ₹ 31,257 ( ₹ 22,983 plus 8,274), the Applicant's IDA pay as on 1-10-2000 was ₹ 21,650 and his total emoluments in IDA scale as on 1-10-2000 were ₹ 27,712 (₹ 21,650 plus DA ₹ 6,062). Since this figure of ₹ 27,712 is less than the figure of ₹ 31,257, the difference of ₹ 3,545 becomes Special Allowance of the Applicant. Thus, the Applicant's Special Allowance is correctly fixed at ₹ 3,545 per month as on 1-10-2010". The encashment of Special Allowance has been provided in the relevant paragraphs of revised Annexure, dated 29-9-2008 which is reproduced in the judgment. An amount of ₹ 2,59,111 was recovered from his leave encashment and he was refunded ₹ 2,37,275 which he accepted. The Respondents have not given any satisfactory reason for recovery of ₹ 2,59,111 from the retirement benefits of the Applicant. As the Applicant had accepted ₹ 2,37,275 in his retirement benefits there is further need to go into this aspect. The leave encashment amount after deducting income tax should have been paid to the Applicant on the date of his superannuation but it was paid belatedly after a period of 50 days from 1-8-2010 to 20-9-2010. Hence the Applicant is entitled to an interest at 12% on the said delayed payment.

Original Rule Text

Original Rule Text