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SUPREME COURT OF INDIA
M.R. SHAH, B.V. NAGARATHNA, JJ.
M.P. Medical Officers Association – Appellant
Versus
The State of Madhya Pradesh and Others – Respondents
Civil Appeal No. 5527 of 2022
WITH
Dr. Ram Naresh Rajauria and Others – Appellants
Versus
The State of Madhya Pradesh and Others – Respondents
Civil Appeal No. 5528 of 2022
WITH
Dr. Sushil Kumar Khare and Others – Appellants
Versus
The State of Madhya Pradesh and Others – Respondents
Civil Appeal No. 5529 of 2022
WITH
Dr. Deepak Phanse and Others – Appellants
Versus
The State of Madhya Pradesh and Others – Respondents
Civil Appeal No. 5530 of 2022
Decided On : 26-08-2022

Advocates appeared:
For the Appellant(s) : Mr. Sanjay Sarin, Adv. Mr. Rohin Oza, Adv. Ms. Meghna Mittal, Adv. Ms. Gagandeep Kaur, Adv. Mr. Aditya Sarin, Adv. Mr. Pushkar Karni Sinha, Adv. Mr. Dinkar Kalra, AOR Mr. Prashant Shukla, Adv. Ms. Anushree Shukla, Adv. Mr. Ankit Tiwari, Adv. Ashu Bhindwar, Adv. Ms. Shubhi Bhardwaj, Adv. Mr. Abhinav Ramkrishna, AOR Mr. Prashant Shukla, Adv. Ms. Anushree Shukla, Adv. Ashu Bhindwar, Adv. Mr. Ankit Tiwari, Adv. Ms. Shubhi Bhardwaj, Adv. Mr. Divyesh Pratap Singh, AOR
For the Respondent(s): Mr. Saurabh Mishra, AAG Mrs. Mrinal Elker Mazumdar, AOR Mr. Rahul Kaushik, AOR Mr. Pashupathi Nath Razdan, AOR

Headnote:

Civil Services -- medical service -- members of appellant Association and other appellants were working as Specialists and Dental Specialists under M. P. Public Health and Family Welfare (Gazetted) Service Recruitment Rules, 1988 -- said Rules repealed by M. P. Public Health and Family Welfare (Gazetted) Service Recruitment Rules, 2007 -- State issued order on 26.8.2008 to grant higher pay-scale on completion of six years in four tier pay-scales -- later, circular dated 23.5.2009 issued that period from date of appointment shall be counted as notional appointment though benefit of scheme shall be granted from 26.8.2008 -- it was also provided that fourth tier pay-scale will be payable on completion of prescribed service period, but financial benefits shall be extended w.e.f. 26.8.2008 -- period between date of completion of prescribed period and 26.8.2008 shall be eligible for notional pay fixation -- circular dated 23.5.2009 was issued by authority who had no competence therefore it was withdrawn vide communication dated 30.5.2012 -- however, members of appellant association granted actual benefit flowing from circular dated 23.5.2009 till 30.5.2012 -- held -- since circular dated 23.5.2009 was issued without authority and/or competence and without approval and/or concurrence of Finance Department, no interference warranted in impugned judgment upholding communication dated 30.5.2012 withdrawing circular dated 23.5.2009 -- held further -- regarding benefits under circular dated 23.5.2009, there was neither any misrepresentation on part of concerned employees, nor can mistake be attributed to them -- State not justified in ordering recovery of excess amount paid along with interest -- more particularly when some members of association have retired and recovery shall be from their pension/pensionary benefits -- however, their pay fixation and pension shall be as per order dated 26.8.2008. (2015) 4 SCC 334 distinguished. [Paras 2, 4 to 5

JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court of Madhya Pradesh, Jabalpur in Writ Appeal No. 1073 of 2018 by which the High Court has allowed the said writ appeal preferred by the State of Madhya Pradesh and others and has quashed and set aside the judgment and order passed by the learned Single Judge passed in Writ Petition No. 6236 pf 2014, the original writ petitioners - M.P. Medical Officers Association and other individual members of the Association have filed the present appeals.

2. The members of the appellant Association and other appellants were working as Specialists and Dental Specialists respectively under the M.P. Public Health and Family Welfare (Gazetted) Service Recruitment Rules, 1988. The said Rules were repealed by the M.P. Public Health and Family Welfare (Gazetted) Service Recruitment Rules, 2007 published in the Gazette on 27.03.2008. The State issued an order on 26.08.2008 to grant higher pay-scale on completion of six years to the Medical Officers, Dental Surgeons and officers working in the Specialist cadre in a four tier pay-scales. Later, the circular dated 23.05.2009 was issued to the effect that the period from the date of appointment shall be counted as notional appointment though the benefit of the scheme shall be granted from the date of issuance of the order of the State Government dated 26.08.2008. In the circular dated 23.05.2009, it was also provided that the fourth tier pay-scale will be payable on completion of the prescribed service period, but the financial benefits shall be extended w.e.f. 26.8.2008. The period between the date of completion of the prescribed period and 26.08.2008 shall be eligible for notional pay fixation. Having found that the circular dated 23.05.2009 was wrongly issued and was issued without approval of the Finance Department and as the benefits flowing from the circular dated 23.05.2009 were having financial implications/burden and it was found that the said circular was issued by the authority, who had no competence and therefore vide communication dated 30.05.2012, the circular dated 23.05.2009 came to be withdrawn. However, the respective Medical Officers working as Specialists, Dental Specialists and the officers working in the specialist’s cadre - members of the appellant association were granted the actual benefit flowing from the circular dated 23.05.2009 till 30.05.2012, i.e. till the circular dated 23.05.2009 was withdrawn. As the benefits were wrongly paid under the circular dated 23.05.2009, which was subsequently withdrawn on 30.05.2012, the State Government ordered recovery of the excess amount paid alongwith the interest.

2.1 The communication dated 30.05.2012 withdrawing the circular dated 23.05.2009 and the recovery of the excess amount paid alongwith the interest were the subject matter of Writ Petition No. 6236 of 2014 preferred by the M.P. Medical Officers Association. Individual writ petitioners also filed their separate writ petitions, however, the Writ Petition No. 6236 of 2014 preferred by the Association was treated as the lead matter. By common judgment and order, the learned Single Judge allowed all the writ petitions and quashed the communication dated 30.05.2012 withdrawing the circular dated 23.05.2009. The learned Single Judge also quashed the orders of recovery of the excess amount paid alongwith the interest.

2.2 Feeling aggrieved and dissatisfied with the judgment and order passed by the learned Single Judge dated 20.12.2017 passed in Writ Petition No. 6236 of 2014, the State preferred Writ Appeal No. 1073 of 2018 before the Division Bench of the High Court. By the impugned judgment and order, the Division Bench of the High Court has allowed the aforesaid writ appeal and has quashed and set aside the judgment and order passed by the learned Single Judge quashing and setting aside the communication dated 30.05.2012 withdrawing the circular dated 23.05.2009 and

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