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PAMIDIGHANTAM SRI NARASIMHA, PRASHANT KUMAR MISHRA
Jogeswar Sahoo – Appellant
Versus
District Judge, Cuttack – Respondent
Key Points: - Appellants were Stenographers; financial benefit granted in 2017 based on Shetty Commission upgradation; recovery ordered in 2023; High Court dismissed writ petition; Supreme Court allowed appeal and set aside recovery orders. (!) (!) (!) (!) - Legal principle: recovery of excess payments not paid due to employer's wrong interpretation or without employee misrepresentation is not recoverable, as relief is in equity. (!) (!) (!) (!) - The court held that recovery is unsustainable where: (i) payment made to retired or superannuated employee; (ii) no opportunity of hearing; (iii) the employee held a ministerial/non-gazetted post at time of payment; (iv) payment occurred long after retirement (2017 payment vs 2023 recovery). (!) (!) (!) - Precedents cited include Sahib Ram v. State of Haryana, Shyam Babu Verma v. Union of India, Col. B.J. Akkara (Retd.), Syed Abdul Qadir v. State of Bihar, State of Punjab v. Rafiq Masih (White Washer). (!) (!) (!) (!) (!) - The Court enumerates hardship-based exceptions and circumstances where recovery is impermissible, particularly for lower-rung employees and retirees. (!) (!) (!) (!) (!) (!) - Outcome: Impugned orders directing recovery set aside; appeal allowed. (!)
JUDGMENT :
PRASHANT KUMAR MISHRA, J.
Leave granted.
2. This appeal is directed against the final judgment and order dated 09.11.2023 passed by the High Court of Orissa at Cuttack in WP (C) No. 33482 of 2023 whereunder the High Cout dismissed the appellants’ writ petition in which a challenge was made to the orders dated 12.09.2023 and 08.09.2023 passed by the Special Judge, Special Court, Cuttack and Registrar, Civil Courts, Cuttack, as the case may be, directing recovery of Rs 26,034/-, Rs.40713/-, Rs. 26539/-, Rs. 24683/- and Rs. 21,485/-.
3. At the relevant time, the appellants were working as Stenographer Grade-I and Personal Assistant in the establishment of District Judiciary, Cuttack, Orissa. They were granted financial benefit for a sum of Rs 26,034/-, Rs.40713/-, Rs. 26539/-, Rs. 24683/- and Rs. 21,485/- by way of credit to their account vide Office Order No. 63 dated 10.05.2017 passed by the District Judge, Cuttack granting promotion/appointment retrospectively w.e.f 01.04.2003 consequent upon upgradation of the Stenographers in three grades such as Stenographer Grade-I, Stenographer Grade-II and Stenographer Grade-III by relying upon the recommendations of the respondent no.
Recovery – If excess amount was not paid on account of any misrepresentation or fraud on part of employee, such excess payments of emoluments or allowances are not recoverable – Such relief against r....
Recovery of excess payments made without misrepresentation is impermissible, especially for retirees, emphasizing the need for equitable relief in judicial discretion.
Recoveries from retired employees due to employer's pay fixation errors are impermissible, and coercion negates voluntary consent.
Recovery of excess pay from Class VI retiree's gratuity/leave encashment impermissible if due to departmental error over 5+ years, no fraud by employee, beyond 24-month regulatory limit, causing hard....
Recovery of excess payments from employees must consider the impact on individuals, particularly retirees, and may be deemed iniquitous if it leads to hardship.
Recovery from retired employees is impermissible when excess payments were made without misrepresentation, as per established legal precedents.
Recovery of excess payments from retired employees is impermissible under certain conditions, particularly relating to Class III and IV service classifications and time limits for recovery.
The main legal point established in the judgment is that the recovery of an amount from a retired employee, in the absence of misrepresentation or fraud, and due to a misconception leading to the exc....
Recoveries from retired employees based on erroneous salary payments are impermissible, emphasizing equitable treatment and judicial discretion in enforcing employee rights.
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