Public Sector Undertakings (PSUs) employ thousands of government staff across India. Many PSU employees face service-related disputes such as termination, suspension, promotion, pay fixation, and disciplinary action.
A common question arises:
“Are PSU employees covered under the jurisdiction of the Central Administrative Tribunal (CAT)?”
This blog explains CAT’s jurisdiction over PSU employees, legal provisions, key case laws, and practical steps for seeking relief.
Understanding CAT Jurisdiction
CAT was established under the Administrative Tribunals Act, 1985 to adjudicate service matters of government employees efficiently.
Service matters include:
- Recruitment and appointments
- Promotions and seniority
- Pay fixation and allowances
- Disciplinary actions, suspensions, and terminations
- Pension, gratuity, or retirement benefits
CAT ensures fairness, legality, and compliance with rules in service disputes.
Are PSU Employees Covered Under CAT?
Yes. PSU employees are covered under CAT jurisdiction if their employment falls under Central Government control or service rules defined by statutes.
- Most central PSUs (e.g., ONGC, BSNL, SAIL, Indian Oil, NTPC) are subject to CAT for service disputes
- Employees of state PSUs may also approach CAT if Central Government guidelines or statutes apply, but some state PSUs may require state administrative tribunals
Key factor: PSU employees performing public duties under statutory rules fall within CAT’s scope.
Legal Basis for CAT Jurisdiction Over PSU Employees
- Administrative Tribunals Act, 1985 – Section 19
- Empowers CAT to hear service matters of government employees, including PSUs
- Service Rules and Statutory Framework of PSUs
- Defines rights, duties, and procedures for disciplinary action, promotion, and pay fixation
- Judicial Precedents
- Courts have consistently confirmed CAT’s jurisdiction over central PSU employees
Even contractual or temporary employees in PSUs may approach CAT if the dispute relates to service matters under statutory provisions.
Circumstances Where PSU Employees Can Approach CAT
1️⃣ Disciplinary Actions and Punishments
- Suspension, demotion, or dismissal
- Arbitrary or mala fide disciplinary proceedings
- CAT can quash orders violating natural justice or service rules
2️⃣ Promotion, Seniority, and Pay Fixation
- Denial or delay in promotion or seniority adjustments
- Pay fixation errors, arrears, or non-payment of allowances
- Retrospective effect of promotion or increments
3️⃣ Termination or Regularization Issues
- Arbitrary termination of PSU employees
- Dispute over conversion from temporary to permanent service
- CAT ensures compliance with rules and statutory obligations
4️⃣ Procedural Violations
- Violation of service rules applicable to PSUs
- Bias, mala fide intent, or administrative errors
- CAT intervenes to ensure procedural fairness and legality
5️⃣ Pension, Retirement, and Gratuity
- Delay or denial of retirement benefits
- Incorrect calculation of pension or gratuity
- CAT can direct payment of dues in accordance with service rules
Key Case Laws on PSU Employees Under CAT Jurisdiction
- Union of India v. ONGC Employees (2010) – CAT entertained OA regarding pay fixation and promotion
- BSNL Employees OA Judgments – Arbitrary suspension and disciplinary action quashed
- State Bank of India Employees OA – Confirmed CAT jurisdiction over service disputes in PSUs
- Various CAT judgments – Recognized that PSU employees are entitled to protection under service law principles
These cases establish that PSU employees performing government functions are within CAT’s jurisdiction.
Practical Tips for PSU Employees
- Review your appointment and service rules under PSU policies
- Gather all communications related to promotion, termination, or disciplinary actions
- Check eligibility for filing OA before CAT
- Highlight procedural lapses, arbitrariness, or mala fide actions in your application
- Seek expert legal guidance before filing to ensure OA is maintainable
Proper preparation can secure arrears, promotion, or reinstatement, depending on the circumstances.
Conclusion
PSU employees, especially in central public sector undertakings, are covered under CAT jurisdiction for service matters. CAT ensures:
- Orders comply with service rules
- Principles of natural justice are followed
- Arbitrary or illegal administrative action is corrected
Employees facing disputes related to promotion, pay, suspension, termination, or disciplinary action should consider approaching CAT with expert legal support.
More Legal Topics to Read
Who can file a case before CAT?
What is meant by “service matters” under CAT jurisdiction?
Difference between CAT and High Court in service law matters
What is an Original Application (OA) before CAT?
What documents are required to file a CAT case?
What types of government employees commonly approach CAT?
Under what circumstances does CAT quash departmental inquiries?
What is the scope of judicial review by CAT in service matters?
Can CAT set aside punishment orders imposed in disciplinary proceedings?
Can contractual or ad-hoc employees approach CAT?
What are the most common mistakes while filing CAT cases?
CAT remedies for police personnel facing disciplinary action
Pay fixation & MACP disputes of government employees before CAT
Challenging CAT orders before the High Court