Chhattisgarh High Court Bars Recovery of Excess Salary from Retired Class-III Employee

A Consent Letter Cannot Override Legal Protection

The Chhattisgarh High Court at Bilaspur has delivered a significant ruling shielding Class-III and Class-IV government employees from recovery of excess salary payments, holding that such recovery remains impermissible in law even when the employee has signed a consent letter agreeing to the deduction.

Justice Bibhu Datta Guru, hearing a writ petition filed by Tulsi Ram Bhardwaj, a retired Sub-Inspector, directed the State to refund ₹6,26,104 that had been recovered from the petitioner towards excess salary allegedly paid due to wrong pay fixation.

The Story Behind the Recovery

Tulsi Ram Bhardwaj retired from service on 28 February 2026 after serving in the Police Department. At the fag end of his career, the respondent authorities issued a letter demanding recovery of ₹6,26,104 — an amount allegedly paid in excess due to wrong fixation of pay.

According to the petitioner, he was compelled to give consent for the deduction after being threatened that his retiral dues would be withheld if he refused. Consequently, ₹26,404 was deducted from his February 2026 salary, and he deposited an additional ₹6,00,000 through a Treasury Challan in the name of the Superintendent of Police, Raipur.

The Legal Battle

Mr. Barun Kumar Chakrabarty, counsel for the petitioner, argued that the excess payment was not the result of any fraud, misrepresentation, or suppression of facts by the petitioner. He contended that recovery from Class-III employees after a long lapse of time is not permissible, placing reliance on the Supreme Court's decision in State of Punjab v. Rafiq Masih (White Washer) .

The State, represented by Deputy Government Advocate Mr. K.G. Yadav, opposed the petition, arguing that the deduction was made pursuant to the consent letter furnished by the petitioner and that there was no arbitrariness on the part of the respondents.

The Court's Reasoning

The Court noted that it was undisputed that the petitioner held a Class-III post and that the excess payment resulted solely from wrong pay fixation. Crucially, the respondents did not allege any fraud, misrepresentation, or suppression of facts on the petitioner's part.

Referring to the Supreme Court's landmark judgment in Rafiq Masih , the Court highlighted the situations where recovery would be impermissible, including recovery from Class-III and Class-IV employees, recovery from retired employees, and cases where excess payment was made more than five years before the recovery order was issued.

The Court also addressed the State's argument regarding the consent letter. It observed that the consent was obtained on 21 May 2025, and the petitioner's submission that he signed under pressure and threat could not be overlooked.

Key Observations

The Court made several pivotal observations:

"Even if undertaking is submitted by the employee, but he otherwise belongs to Class-III or Class-IV service, recovery of excess amount paid from him/her is impermissible."

"The submission of learned counsel for the petitioner that petitioner has submitted the consent letter and subsequently deposited the amount under the pressure and threat that he may not be paid retiral dues , cannot be overlooked."

"Petitioner cannot be compelled to return the amount which has been paid by the respondents on their own without any misrepresentation or fraud on the part of petitioner."

The Court also relied on the Division Bench decision of the Chhattisgarh High Court in State of CG v. Labha Ram Dhruv , which clarified that even when an undertaking is submitted by an employee belonging to Class-III or Class-IV service, the law declared in Rafiq Masih continues to hold the field. The Supreme Court's later judgment in High Court of Punjab and Haryana v. Jagdev Singh was noted as having clarified, but not overruled, the principles in Rafiq Masih .

The Verdict

Allowing the writ petition, the Court held that the respondents cannot be permitted to effect recovery from the petitioner of the amount paid in excess. The respondents were directed to refund the recovered amount within three months from the date of receipt of the order, failing which the amount would carry interest at 6% per annum.

This ruling reinforces the protective framework established by the Supreme Court for lower-ranking government employees, ensuring that administrative errors in pay fixation do not result in financial hardship for those who have served the state.