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2021 Supreme(Gau) 98

IN THE HIGH COURT OF GAUHATI
Achintya Malla Bujor Barua, J.
Mahodar Kalita - Appellant
Versus
State Of Assam And Ors - Respondent
Writ Petition (Civil) No. 2873 of 2020
Decided On : 04-03-2021

Advocates Appeared:
N. Phukan, Advocate, P. Nayak, Advocate, S.R. Barua, Advocate, N. Barman, Advocate

Recovery from pension benefits cannot be made in respect of any salary that was paid to an employee during his service period for no fault of his own. If an excess salary is paid to an employee during his service tenure because of no fault of his, such excess payment cannot be recovered from the retirement benefits.

Headnote:

Recovery of Excess Salary - Pension Benefits - The court held that recovery from pension benefits cannot be made in respect of any salary that was paid to an employee during his service period for no fault of his own. The court emphasized that if an excess salary is paid to an employee during his service tenure because of no fault of his, such excess payment cannot be recovered from the retirement benefits. The court directed the authorities to assess whether there was any contribution on the part of the petitioner in receiving such excess salary and not to insist upon recovery if there was no such contribution. The authorities were also instructed to process the payment of pension as per law and consider the correct pay of the petitioner for the pension calculation.

Fact of the Case:

The petitioner, a Subject Teacher, retired from service and the Finance and Accounts Officer communicated that the petitioner was paid a salary higher than his actual scale during his service tenure, leading to a recovery sought from his pension benefits.

Finding of the Court:

The court found that the recovery sought from the petitioner's pension benefits was not sustainable in its present form as the excess salary was paid to the petitioner because of no fault of his own. The court directed the authorities to assess whether there was any contribution on the part of the petitioner in receiving such excess salary and not to insist upon recovery if there was no such contribution. The authorities were also instructed to process the payment of pension as per law and consider the correct pay of the petitioner for the pension calculation.

Issues: Recovery of excess salary from pension benefits, assessment of contribution by the petitioner in receiving excess salary, processing of pension payment, and submission of service regularization order for pension processing.

Ratio Decidendi: The court emphasized that recovery from pension benefits cannot be made in respect of any salary that was paid to an employee during his service period for no fault of his own. If an excess salary is paid to an employee during his service tenure because of no fault of his, such excess payment cannot be recovered from the retirement benefits.

Final Decision: The writ petition was disposed of, and the authorities were directed to assess whether there was any contribution on the part of the petitioner in receiving such excess salary and not to insist upon recovery if there was no such contribution. The authorities were also instructed to process the payment of pension as per law and consider the correct pay of the petitioner for the pension calculation within a specified period.

JUDGMENT

Achintya Malla Bujor Barua, J. - Heard Mr. N. Barman, learned counsel for the petitioner. Also heard Ms. N. Phukan, learned counsel for the respondents No. 1 & 4, Mr. P. Nayak, learned counsel for the respondents No. 2, 3, 5, 7, 8 and 9 and Mr. S.R. Barua, learned counsel for the respondent No.6.

2. The petitioner who was working as a Subject Teacher of Nehru Anchalik M.E. School in the district of Baksa, BTAD, Assam retired from service on attaining the age of superannuation on 31/07/2019. After his retirement, when the matter was processed for payment of his pensionery benefits, the communication dated 03.03.2020 of the Finance and Accounts Officer in the office of the Directorate of Pension, Assam was made addressed to the Inspector of Schools, Baksa, by which, it was provided that during his service tenure, the petitioner was paid a salary higher than his actual scale. Accordingly, by the said communication, the Inspector of Schools, Dhubri, Assam was required to do the needful.

3. The said communication has been assailed in this writ petition on the ground that as per the law laid down by the Hon'ble Supreme Court, recovery from the pensionery benefits cannot be made in respect of any salary that was paid to an employee during his service period for no fault of his own.

4. In the communication of 03.03.2020, it is noticed that there is no such conclusion of the Finance and Accounts Officer in the office of the Directorate of Pension, Assam that the excess salary was paid to the petitioner because of any fault of his or because of any overt act on his part, which had contributed to such payment of excess salary. In the absence of any such material, it cannot be concluded whether the excess salary was paid to the petitioner because of any fault of his.

5. The law in this respect has been settled by the Hon'ble Supreme Court in Shyam Babu Verma and others vs- Union of India and others, (1994) 2 SCC 521 and State of Punjab and Others vs- Rafiq Masih (White Washer) and others, (2015) 4 SCC 334, wherein it had been held that in the event an excess salary is paid to an employee during his/her service tenure because of no fault of his/her, such excess payment cannot be recovered from the retirement benefits.

6. The aforesaid provisions of law would squarely be applicable to the facts of this case and as such, the recovery sought to the made by the communication of 03.03.2020 would not sustainable in its present form. However, as no material has been produced before this Court as to whether the excess salary was paid to the petitioner because of any overt act of the petitioner, this Court deems it appropriate that the ends of justice would be met if the authorities in the Pension Department make an assessment as to whether there was any contribution on the part of the petitioner in receiving such excess salary during his service tenure. In the event, if it is found that there was no such contribution from the petitioner leading to such excess payment, the authorities shall not insist upon the recovery in view of the law laid down by the Hon'ble Supreme Court as indicated above.

7. Further, in the event, the authorities arrive at a situation where the excess payment can no longer be recovered from the pensionery benefits; the authorities shall consider and process the payment of pension to the petitioner as per law.

8. However, as submitted by Mr. P. Nayak, learned Standing Counsel for the Finance Department, it is provided that the correct pay of the petitioner would be Rs.525/- instead of Rs.537/- per month. Accordingly, the authorities shall proceed with the payment of pension by taking into account the correct pay that the petitioner ought to have received and not the incorrect higher pay that was paid to her.

9. The pension papers of the petitioner was also returned back for the reason that the service regularization order of the petitioner was required by Pension Department. In view of such requirement, the petitioner to prov

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