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As per case facts, petitioners, initially Secondary Grade Teachers and later Primary School Headmasters, were granted selection grade pay. Subsequently, they were promoted to Headmaster Middle School. An audit query
...led to a Government letter dated 15.12.2023, directing refixation of selection grade pay to lower scales and recovery of alleged excess payments. Petitioners challenged this, arguing that the benefit granted over a decade ago cannot be withdrawn retrospectively, especially after retirement, and that existing rules (FR 22-B) protect their pay. The question arose whether the Government can retrospectively refix selection grade pay and recover payments, violating statutory rules and principles of natural justice, and if the Education Department can unilaterally modify benefits granted by the Finance Department after a significant delay. Finally, the Court set aside the recovery orders for amounts already paid to both in-service and retired petitioners. It directed prospective refixation of pay for in-service employees after FR 22-B amendment and pension re-computation for retirees based on their last drawn higher pay, with arrears, until FR 22-B is amended. Petitioners are also entitled to selection grade in HM-MS after 10 years.
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