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K.C. SHARMA AND ORS. versus UNION OF INDIA

Citation: [1997] SUPP. 3 S.C.R. 87 · Decided: 25-07-1997 · Supreme Court of India · Bench: J.S. VERMA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

K.C. SHARMA AND ORS. 
v. 
UNION OF INDIA 
JULY 25, 1997 
[J.S. VERMA, CJ., M.M. PUNCHHI, S.C. AGRAWAL, 
DR. A.S. ANAND AND S.P. Bf0.RUCHA, JJ.] 
Service Law: 
A 
B 
Indian Railways Establishment L'ode-Rule 2544----Railway employees C 
retired between 1.1.73 and 5.12.88--Notifications amended Rule and reduced 
percentage limit of rnnning allowance while calculating average emoluments, 
by retrospective operatiort-Tribunal quashed notifications as they adversely 
affected employees-Application by similarly placed employees for same 
relief-Rejected by the Tribunal as time barred-Held, Tribunal should have 
~~~~~~~~. 
D 
Appellants had reti_red from Northern Railway after 1.1.73 but before 
5.12.88. They were aggrieved by notification dated 5.12.88 which amended 
Rule 2544 of the Indian Railway Establishment Code reducing the percent-
age limit of the running allowance, taken for calculation of pension, from E 
75% to 45% for the period between 1.1.73 to 31.3.79 and to 55% from the 
period, 1.4.79 onwards, i.e. retrospectively. 
Full Bench of the CAT quashed the said notification. The appellants, 
who were similarly placed, filed a repres2ntation before the Railway Ad-
ministration but were not successful. Later on, they filed an application F 
before the Tribunal seeking similar relief as had been given to the similarly 
placed employees. The application was dismissed on the ground that it was 
barred by limitation. Hence this appeal. 
Allowing the appeal, this Court 
HELD : 1.1. The correctness of the decision of the Full Bench of the 
Tribunal has already been affirmed by this Court. [89-C] 
1.2. Having regard to the facts and circumstances of the instant case, 
G 
the Tribunal should have condoned the delay and appellants should have H 
87 
88 
SUPREME COURT REPORTS [1997] SUPP. 3 S.C.R. 
A been given the relief as was granted by the Full Bench of the Tribunal. 
[89-D] 
1.3. The delay in filing the O.A. before the Tribunal is condoned and 
the application is allowed. The appellants would be entitled to the same 
relief in the matter of pension as had been granted by the Full Bench of 
B the Tribunal. [89-D] 
Chainnan, Railway Board & Ors. v. CR. Rangadhamiah & Ors., 
[1997] Supp. 3 SCR 63, relied on. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5082 of 
c 1997. 
D 
From the Judgment and Order dated 25.7.94 of the Central Ad-
ministrative Tribunal, New Delhi in O.A. No. 774 of 1994. 
J.M. Khanna Adv. for the Appellants. 
The Judgment of the Court was delivered by 
S.C. AGRAWAL, J. Delay in filing of the Special Leave Petition is 
condoned. 
E 
Special Leave granted. 
This appeal is directed against the judgment of the Principal Bench 
of the Central Administrative Tribunal (hereinafter referred to as 'the 
Tribunal') dated July 25, 1994 in O.A. No. 774 of 1994. The appellants were 
employed as guards in the Northern Railway and they retired as guards 
F during the period between 1980 and 1988. They felt aggrieved by the 
notifications dated December 5, 1988 whereby Rule 2544 of the Indian 
Railways Establishmem Code was amended and for the purpose of calcula-
tion of average emoluments the maximum limit in respect of Running 
Allowances was reduced from 75% to 45% in respect of period from 
G January 1, 1973 to March 31, 1979 and to 55% for the period from April 
1, 1979 onwards. 
The validity of the retrospective amendments introduced by the 
impugned notifications dated December 5, 1988 had been considered by 
the Full Bench of the Tribunal in its judgment dated December 16, 1993 
H in O.A. Nos. 395-403 of 1993 and connected matters and the said notifica-
-
KC.SHARMA v. U.O.I. [S.C.AGRAWAL,J.] 
89 
tions in so far as they gave retrospective effect to the amendments were A 
held to be invalid as being violative of Articles 14 and 16 of the Constitu-
tion. Since the appellants were adversely affected by the impugned amend-
ment~, they sought the benefit of the said decision of the Full Bench of the 
Tribunal by filing representations before the Railway Administration. Since 
they failed to obtain redress, they filed the application (O.A. No. 774 of B 
1994) seeking relief before the Tribunal in April 1994. The said application 
of the appellants was dismissed by the Tribunal by the impugned judgment 
on the view that the application was barred by limitation. The Tribunal 
refused to condone the delay in the filing of the said applications. 
The correctness of the decision of the Full Bench of the Tribunal C 
has b

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