2025 INSC 565
Supreme Court of India
Judges: *Dipankar Datta, J., Rajesh Bindal, J.
Civil Appeal No. /2025 (Arising out of SLP(C) No. 6289/2019)
Decided on: April 24, 2025
The Chief Executive Officer & Others v. S. Lalitha & Others
Issues
- Limitation under Administrative Tribunals Act, 1985 – Whether the Original Application (O.A.) filed by the respondent before the Central Administrative Tribunal (CAT) was time-barred under Sections 20 and 21.
- Maintainability of Belated Representations – Whether a non-statutory, belated representation can extend the limitation period for filing an O.A. challenging financial upgradations under the Assured Career Progression (ACP) and Modified Assured Career Progression (MACP) Schemes.
- Judicial Precedents on Delay and Laches – Applicability of decisions such as C. Jacob v. Director of Geology and Mining and Union of India v. M.K. Sarkar to service disputes involving stale claims.
- Exercise of Article 142 Powers – Whether the Court can refrain from ordering recovery of financial benefits paid to a retired employee despite ruling the O.A. as time-barred.
Facts
- The respondent, a Library & Information Assistant at Doordarshan Kendra, Bangalore, received financial upgradations under the ACP Scheme (1999) and MACP Scheme (2009).
- She challenged the grant of second and third financial upgradations under the MACP Scheme via a representation in 2016, seeking benefits under the ACP Scheme, which was rejected.
- The CAT allowed her O.A. in 2017, upheld by the Karnataka High Court in 2018, relying on B.D. Kadam v. Union of India.
- The appellants contended that the O.A. was time-barred and cited subsequent judicial developments, including Union of India v. N.M. Raut.
Held
- Limitation and Maintainability:
- The O.A. was time-barred under Section 21 of the Administrative Tribunals Act, 1985, as the respondent’s representation in 2016, made seven years after the second financial upgradation (2009) and one year after the third (2015), was non-statutory and could not defer the cause of action.
- Relying on C. Jacob, M.K. Sarkar, and other precedents, the Court held that belated representations raising stale claims do not extend limitation periods. The cause of action arises when the right is affected, not upon rejection of a delayed representation.
- The CAT and High Court erred by not addressing the maintainability objection, focusing solely on B.D. Kadam without examining limitation.
- Statutory vs. Non-Statutory Remedies:
- Section 20 of the 1985 Act requires exhaustion of statutory remedies under service rules. Non-statutory representations do not extend limitation unless exceptional circumstances exist.
- In cases of inaction by the employer (e.g., failure to grant due benefits), a representation is necessary but must be made expeditiously to avoid being deemed a stale claim.
- Distinction from N.M. Raut:
- The decision in Union of India v. N.M. Raut (2024) was distinguished, as it involved employees receiving non-functional upgradations, unlike the respondent who claimed delayed ACP benefits affected by the MACP Scheme’s introduction.
- Exercise of Article 142:
- Despite ruling the O.A. time-barred, the Court exercised its powers under Article 142, considering the respondent’s retirement in 2018 and her need for financial support in old age, as guided by Articles 15(3) and 41 of the Constitution.
- No recovery of surplus benefits paid to the respondent was ordered, treating the case as exceptional.
Disposition
- The appeal was disposed of without interfering with the impugned order, but the Court clarified that the O.A. was time-barred and should not have been entertained by the CAT or upheld by the High Court.
- No refund of financial benefits was directed due to the respondent’s retirement and constitutional considerations.
Precedents
- C. Jacob v. Director of Geology and Mining, (2008) 10 SCC 115
- Union of India v. M.K. Sarkar, (2010) 2 SCC 59
- State of Uttaranchal v. Shiv Charan Singh Bhandari, (2013) 12 SCC 179
- Union of India v. Chaman Rana, (2018) 5 SCC 798
- S.S. Rathore v. State of Madhya Pradesh, (1989) 4 SCC 582
- Union of India v. Tarsem Singh, (2008) 8 SCC 648