IN THE HIGH COURT OF JUDICATURE AT PATNA
HARISH KUMAR, J.
CWJC No.8623 of 2024
(26.3.2025)
Rajendra Prasad ... Petitioner
vs.
Chairman-cum-Managing Director, Bihar State Power Holding (Generation) Co. Ltd. Vidyut Bhawan, Bailey Road, Patna. & Ors. ... Respondents
Service Law – Recovery – When excess unauthorized payment is detected within a short period of time, it would be open for employer to recover the same – Conversely, if payment has been made for a long duration of time, it would be iniquitous to make any recovery – In a case where an employee has been accorded extra increment and same has been paid for a period of more than ten years or more, State cannot recover excess amount paid to employee – Impugned order quashed – Writ Petition allowed. (Paras 6, 8, 9, 10 and 12)
Harish Kumar, J. – Heard the parties.
2. The petitioner is aggrieved with the order as contained in Letter No. 587 dated 12.10.2021, issued by the respondent no. 6, the Administrative Officer, Bihar State Power Transmission Company Limited, whereby recovery of an amount to the tune of Rs. 41,782/- has been directed in consonance with the Office Order No. 21 dated 17.01.2020 and Memo No. 443 dated 04.11.2020 issued by the Under Secretary, Bihar State Power Holding (Generation) Company Limited.
3. Mr. Chandra Bhushan Upadhyay, learned Advocate for the petitioner adverting to the facts enumerated in the writ petition has contended that after rendering a long unblemished service, the petitioner superannuated from the post of Operator Technician (Grade-III) at Transmission Sub-Division, Wazirganj, Gaya on 01.12.2019. Upon superannuation of the petitioner, the petitioner has been accorded all the retiral benefits and other dues, as was admissible to the petitioner. However, all on a sudden, the impugned order came to be passed directing for recovery of an amount of Rs. 41,782/- on the premise that excess payment has been made to the petitioner, on account of wrongly extending the benefit of 3rd MACP with effect from 16.05.2012, instead of 16.05.2014.
4. While assailing the impugned order, learned Advocate for the petitioner vehemently contended that admittedly there is no misrepresentation or fraud and suppression of facts on the part of the petitioner, moreover, the petitioner was allowed to superannuate unconditionally on 01.12.2019 and the alleged excess amount is said to have been paid with effect from 16.05.2012, much prior to the superannuation. Hence, in any view of the matter, the same cannot be recovered from the retiral benefits of the petitioner. The action of the respondent authorities in the teeth of the mandate of the Hon’ble Apex Court in the case of State of Punjab and Ors. vs. Rafiq Masih (White Washer) and Ors., [(2015) 4 SCC 334], as also the decision rendered in the case of Thomas Daniel vs. State of Kerala and Ors., 2022 SCC Online SC 536, wherein the Court deprecated the recovery of any amount from the retiral benefits of Class-III and IV employees.
5. On the other hand, learned Advocate for the Bihar State Power Holding Company Limited dispelling the aforenoted contention of the petitioner has submitted that prior to the issuance of the impugned order, a proper show-cause notice was duly served upon the petitioner, the copy of which is marked as Annexure-1 to the writ petition. However, the petitioner knowingly did not respond to the show-cause. On being found no response on the part of the petitioner, the concerned authority proceeded in the matter and after verification, it has been found that excess amount to the tune of Rs. 41,782/- has been paid excess to the entitlement of the petitioner, on account of wrongly extending the benefit of 3rd MACP with effect from 16.05.2012 instead of 16.05.2014. Reliance has also been placed on a judgment of learned coordinate Bench of this Court in the case of Saryu Prasad vs. The Bihar State Electricity Board & Ors., CWJC No. 9658 of 2011.
6. The Apex Court in the case of Syed Abdul Qadir (supra) ruled that when the excess unauthorized payment is detected within a short period of time, it would be open for the employer to recover the same. Conversely, if the payment has been made for a long duration of time, it would be iniquitous to make any recovery. While holding so, the Hon’ble Supreme Court held as follows: –
“57. This Court, in a catena of decisions, has granted relief against recovery of excess payment of emoluments/allowances if (a) the excess amount was not paid on account of any misrepresentation or fraud on the part of the employee, and (b) if such excess payment was made by the employer by applying a wrong principle for calculating the pay/allowance or on the basis of a particular interpretation of rule/order, which is subsequently found to be erroneous.
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....
Recovery of excess salary cannot be enforced without prior hearing, especially when no fraud or misrepresentation by the employee is established.
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.
Recovery of excess payments from retired employees is impermissible and deemed iniquitous, especially when no misconduct is involved.
Point of Law : It is not possible to postulate all situations of hardship, where payments have mistakenly been made by the employer, yet in the following situations, recovery by the employer would be....
Recovery of excess payments from retired employees is impermissible without adherence to natural justice, especially when payments were made for an extended period without notice.
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