IMPORTANT POINTS
(1) Recovery – Any decision taken by State Government to reduce an employee’s pay scale and recover excess amount cannot be applied retrospectively and that too after a long time gap.
(2) Any step of reduction in pay scale and recovery from a Government employee would tantamount to a punitive action because same has drastic civil as well as evil consequences.

JUDGMENT

Mehta, J.

1. Heard.

2. This appeal by special leave is directed against the final judgment dated 27th August, 2012 passed by the Division Bench of the High Court of Judicature at Patna in Letters Patent Appeal No. 1254 of 2011, whereby the said appeal preferred by the appellant herein was dismissed and the judgment dated 23rd February, 2010 passed by the learned Single Judge of the High Court in Civil Writ Jurisdiction Case(CWJC) No. 18542 of 2009 and so also the judgment dated 23rd March, 2011 passed by the learned Single Judge in Civil Review No. 82 of 2010 were upheld.

3. Facts in a nutshell are that the appellant herein was appointed to the post of Supply Inspector in the Government of Bihar in the year 1966. After serving for 15 years, he received his first time bound promotion as Marketing Officer and was put in Junior Selection Grade w.e.f. 1st April, 1981. Upon completing 25 years in service, the appellant was further promoted to the post of Senior Selection Grade, Marketing Officer-cum-Assistant District Supply Officer(in short ‘ADSO’) w.e.f. 10th, March 1991 in the pay scale of Rs.2000-3800.

4. The Government of Bihar issued a Resolution dated 8th February, 1999 revising the pay scale of Marketing Officer from Rs.1640-2900 to Rs.5500-9000 and that of ADSO, from Rs.2000- 3800 to Rs.6500-10500 w.e.f. 1st January, 1996. Since the appellant had been promoted as ADSO w.e.f. 10th March, 1991, his pay scale was revised to Rs.6500-10500 in accordance with the Resolution dated 8th February, 1999 which is quoted below for ready reference: -

"11. The State Government have decided to abolish the existing facilities of Time Bound Promotions and Selection Grades, discussed in paras 10 and 12 of F.D. Resolution No.6021 dated 18th December, 1989 and they shall cease to be applicable with effect from 1st January, 1996 and thereafter in the existing pay scales. If any such promotion, however, is due under the Rules before 1st January, 1996, it shall be given and the payment of arrears in the existing scale shall be made only upto 31st December, 1995 after which the promotion would be deemed to have been automatically terminated. While fixing pay in the revised scales, such promotions given after 31st December, 1995 will not be taken into consideration. If such promotions have been given after 31st December, 1995 then the question of adjustment of such additional emoluments obtained in the process, will be decided after the Fitment Committee submits its recommendations on promotion Policy. Promotion to any vacancy of a post identified as need based post would be admissible. The procedure for identification of such need based posts has been set out in paragraph 12."

(emphasis supplied)

5. The appellant superannuated from the post of ADSO on 31st January, 2001. At the time of retirement, the last pay drawn by the appellant was Rs.10500 in the pay scale of Rs.6500-10500 with admissible emoluments. As per the Bihar Pension Rules of 1950, his pension was calculated at 50% of the average emoluments and was quantified at Rs.5247 per month. Accordingly, the pension as above was disbursed to the appellant from the date of his retirement.

6. It seems that the Accountant General, State of Bihar, raised an objection dated 28th January, 2003, regarding the promotion accorded to the appellant on 10th March, 1991 with a further remark that the promotion given to the appellant on 10th March, 1991 would become ineffective after 1st January, 1996 in view of the Government Resolution dated 8th February, 1999 and, thus, the pay scale of the appellant would have to be revised and reduced to match that of the lower post, i.e., the Marketing Officer.

7. After more than eight years from his retirement, the appellant received a letter dated 15th April, 2009 from the Government of Bihar conveying that an error had been committed in his pay fixation and, therefore, a sum of Rs.63,765/- had to be recovered from him as the same had been paid in excess beyond his e