The Central Administrative Tribunal (CAT) Chandigarh Bench has stayed an order of the Postgraduate Institute of Medical Education and Research (PGI) regarding the recovery of already paid ad-hoc bonus from its employees. The stay was granted on an application filed by the PGI Employee Union (Non-Faculty) through Advocate Karan Singla.
Union Challenges Recovery Order
The union prayed for quashing of PGI's order to stop the benefit of Ad-hoc Bonus/Non-Productivity Linked Bonus and to initiate recovery of amounts already paid to the applicants and similarly situated employees. They argued that the order is illegal, arbitrary, discriminatory, and violates Article 14 of the Constitution of India.
The union also sought a declaration that Group-B and Group-C non-gazetted employees of PGIMER are entitled to the benefit of Ad-hoc Bonus/Non-Productivity Linked Bonus as per the long-standing policy and Regulation 40 of the PGIMER Regulations. Regulation 40 states that in matters not expressly provided in the regulations, the rules applicable to Central Government servants regarding pay, allowances and other service conditions shall apply to institute employees.
Historical Context of Bonus Payments
Since the financial year 1982-83, PGI has been granting Ad-hoc Bonus/Non-Productivity Linked Bonus to eligible Group-B and Group-C employees on the same pattern as Central Government employees. The grant of bonus does not impose any additional burden on the Central Government. For the financial years 2015-16, 2016-17 and 2017-18, the institute granted Ad-hoc Bonus after due approval from internal competent authorities.
CAT's Interim Order
Vide order dated June 2, 2026, the respondent decided to recover the bonus in 12 equal instalments for the period from financial year 2015-16 to 2022-23. After hearing arguments, the Bench noted that from the perusal of deliberation of agenda item No. 4 during the GB meeting held on July 17, 2019, and office order dated October 18, 2025, a prima facie case is made out. Therefore, in the interest of justice, the respondents are restrained from proceeding further with the recovery order until the next date of hearing fixed for July 20, 2026.
