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2013 Supreme(Cal) 572

HIGH COURT OF JUDICATURE AT CALCUTTA
PRANAB KUMAR CHATTOPADHYAY & MURARI PRASAD SRIVASTAVA, JJ.

State of West Bengal & Others
Versus
Asis Das Gupta
W.P.S.T. No. 216 of 2013 (Appellate Side)
Decided on: 09-09-2013

Advocate Appeared:
For the Petitioners:Bimal Kr. Chatterjee, Ld. Advocate General, Joyotosh Mazumdar, Arindam Mandal, Advocates.

Excess payments made to pensioners due to a mistake on the part of the government cannot be recovered, unless the excess payment was made after a clarificatory circular was issued and the pensioners were put on notice.

Headnote:

RECOVERY OF EXCESS PAYMENT - RETIRED GOVERNMENT SERVANT - WEST BENGAL SERVICES (DEATH-CUM-RETIREMENT BENEFIT) RULES, 1971, RULE 140 - APPLICABILITY - EXCESS PAYMENT RECOVERED FROM RETIRAL BENEFIT - REFUND - SUPREME COURT DECISION IN SHYAM BABU VERMA & ORS. VS. UNION OF INDIA & ORS. FOLLOWED.

Fact of the Case:

The State of West Bengal and senior officers of the State Government challenged a judgment and order of the West Bengal Administrative Tribunal directing them to refund Rs. 41,244/- to a retired government employee, which was recovered from his retiral benefit on the ground of excess payment.

Finding of the Court:

The court held that Rule 140 of the West Bengal Services (Death-cum-Retirement Benefit) Rules, 1971, which provides for the recovery of government dues from a retiring government servant, was not applicable in the present case since the employee concerned had retired before the excess payment was determined.

Issues: Whether Rule 140 of the West Bengal Services (Death-cum-Retirement Benefit) Rules, 1971, is applicable to the recovery of excess payment from a retired government employee.

Ratio Decidendi: The court relied on the Supreme Court decision in Shyam Babu Verma & Ors. vs. Union of India & Ors., which held that pensioners cannot be forced to refund excess payments made to them due to a mistake on the part of the government, unless the excess payment was made after a clarificatory circular was issued and the pensioners were put on notice.

Final Decision: The court dismissed the writ petition filed by the State of West Bengal and senior officers of the State Government, upholding the decision of the West Bengal Administrative Tribunal and directing the respondent authorities to comply with the order passed by the Tribunal within four weeks.

JUDGMENT

Pranab Kumar Chattopadhyay, J.

This writ petition has been filed by the State of West Bengal and the senior officers of the State Government challenging the judgment and order dated 22nd February, 2012 whereby the West Bengal Administrative Tribunal finally disposed of application filed by the respondent herein by directing the authorities concerned namely, the petitioners herein to make arrangement for refund of Rs. 41,244/- to the respondent herein since the said amount was recovered from the retiral benefit on the ground of excess payment.

Despite service of notice none appears on behalf of the respondent. The learned Tribunal following the decision of the Supreme Court in the case of Shyam Babu Verma & Ors. Vs. Union of India & Ors., reported in (1994)2 SCC 521 held that the aforesaid amount of Rs. 41,244/- cannot be recovered from the retiral benefit of the employee concerned namely, the respondent herein and therefore, directed the petitioners herein to refund the said amount of Rs. 41,244/- to the employee concerned.

The learned Advocate General appearing on behalf of the petitioners submitted that the learned Tribunal committed an error by not considering Rule 140 of the West Bengal Services (Death-cum-Retirement Benefit) Rules, 1971 which, according to the learned Advocate General, specifically provides for recovery of government dues from retiring government servant. The learned Advocate General also relied upon the following decisions in support of his arguments :-

1. “Comptroller & Auditor General of India & Ors. Vs. Farid Sattar, reported in (2000) 4 SCC 13.

2. Union of India & Ors. Vs. Sujatha Vedachalam (Smt)& Anr., reported in (2000)9 SCC 187.

3. Col. B.J. Akkara (Retd.) Vs. Government of India & Ors., reported in (2006) 11 SCC 709.

4. Videsh Sanchar Nigam Ltd. & Anr. Vs. Ajit Kumar Kar & Ors., reported in (2008) 11 SCC 591.

5. Union of India Vs. S. R. Dhingra & Ors., reported in (2008) 2 SCC 229.

6. Chandi Prasad Uniyal & Ors. Vs. State of Uttarakhand & Ors., reported in (2012)8 SCC 417

7. State of Haryana & Ors. Vs. Vijay Singh & Ors., reported in (2012)8 SCC 633.

8. The Calcutta Municipal Corporation & Ors. Vs. Rukhsana Anjum, reported in 2008(2)CLJ(Cal)887.

9. Fibrosa Spolka Akcyjna Vs. Fairbairn Lawson Combe Barbour, Ltd., reported in [1942] 2 All E.R. 122.”

Let us now consider whether the Rule 140 of the West Bengal Services (Death-cum-Retirement Benefit) Rules, 1971 is at all applicable in the facts of the present case. The said Rule 140 is set out hereunder :-

“Recovery of Government dues.- (1) It shall be the duty of every retiring Government servant to clear all Government dues before the date of his retirement.

Compiler’s Note : *Power of Audit Officer under this sub-rule has been restricted consequent on issue of F.D. Memo, No. 10000 dated 13.9.82 under which concurrence of Finance Deptt, is required in case of continuance of Provisional pension be 12 months. Compare with Compiler’s Note at page 88.

(2) where a retiring Government servant does not clear Government dues and these are ascertainable an equivalent cash deposit may be taken from him, or, out of the gratuity payable to him an amount equal to that recoverable on account of ascertainable Government dues, such as, balance of House Building or Conveyance Advance, arrears of rent and other charges pertaining to occupation of Government accommodation, overpayment of pay and allowance and arrears of income-tax deductible at source under the Income Tax Act,1961 (43 of 1961) shall be deducted there from”.

In terms of Rule 140 (1) it shall be the duty of every retiring government servant to clear all government dues before the date of his retirement.

In the present case, the employee concerned retired from service on attaining the age of superannuation on 31/01/2007. The petitioner no. 4 issued a letter on 22nd March, 2007 to the Principal Accountant General (A & E) West Bengal revising and refixing the pay of the respondent at Rs. 7200/- w
























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