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2026 Supreme(Gau) 484

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
Biyola Baruah, Wife Of Mr. Sri Maheswar Saikia – Petitioner 
Versus
The Union Of India Represented Through The Secretary, To The Government Of India, Ministry Of Health And Family Welfare And Ors. – Respondents 
WP(C)/3319 of 2022
Decided On : 06-02-2026

Advocates Appeared:
For the Petitioner:Ms. N. Dey, Advocate
For the Respondent: Mr. A. K. Dutta, Cgc

Recovery of excess salary from employees in Class-III service is impermissible if no fraud occurred and payment was based on wrong fixation, aligning with principles of equity.

Headnote:(A) Constitution of India - Principles of Equity - Recovery of excess salary for wrong fixation - The Court ruled that an Office Order for recovery of excess salary from the petitioner due to incorrect pay fixation is impermissible in law, particularly for employees in Class-III posts who were unaware of any salary overpayment. (Paras 4-12)

(B) The Apex Court's ruling in the case of Rafiq Masih (White Washer) cited, establishing that recovery after a significant time, particularly for Class-III employees, is not permitted if no fraud or misrepresentation is involved - Cases of recovery should be judged on the basis of equity and hardship, leading to judicial discretion against recovery. (Paras 5, 9-10)

Facts of the case:
The petitioner was subjected to recovery orders for receiving excess salary since 2006, based on incorrect pay fixation, which she was unaware of, prompting a challenge in the High Court against such recoveries.

Findings of Court:
The order for recovery is quashed as it is inequitable to enforce recovery of long-standing excess payment received without wrongdoing by the employee.

Issues: The main issue was whether the recovery of excess salary can be enforced when there is no evidence of wrongdoing by the employee and it arises from a long-standing miscalculation.

Ratio Decidendi: The court affirmed the legal principle that recovery of excess salary from Class-III employees, with excess payments made over an extended period, is unjust, emphasizing the hardships that recovery would impose.

Result: The impugned recovery orders were set aside and compensation directed to be refunded to the petitioner within four months.

Table of Content
1. petitioner's salary fixation issues. (Para 1 , 2 , 3)
2. judicial precedents on salary recovery. (Para 4 , 5)
3. limitations on recovery in employment. (Para 6 , 7 , 8 , 9 , 10 , 11)
4. past rulings impacting current case. (Para 12)
5. final judgment on salary recovery. (Para 13)

JUDGMENT :

DEVASHIS BARUAH, J.

Heard Ms N. Dey, the learned counsel appearing on behalf of the petitioner. Mr. A. K. Dutta, the learned counsel appears on behalf of the respondents Nos.1, 2 & 3.

2. The present writ petition has been filed challenging the Office Order dated 25.06.2021 as well as the Office Order dated 19.01.2022 and further seeking certain directions for pay fixation of the petitioner at Rs.13,860/-.

3. The grievance of the petitioner is that in view of the wrong fixation of pay made by the authorities since 01.01.2006, the petitioner was apparently given a higher salary than her entitlement which the petitioner was not aware of. However, the respondents issued the impugned Office Order dated 25.06.2021, wherein a decision had been taken to recover Rs.20,000/- from the monthly salary of the petitioner which would eventually offset the excess salary received by the petitioner. Accordingly, in terms with the Office Order dated 25.06.2021, Rs.20,000/- has been deducted from the salary of the petitioner and another additional sum of Rs.5,000/- per month from her salary w.e.f. January, 2022.

4. The learned counsel for the petitioner submitted that the petitioner is holding Grade-III posts and in terms of the judgment of the Apex Court in the case ofState of Punjab and others Vs. Rafiq Masih (White Washer) , reported in(2015) 4 SCC 334, the recovery of excess salary paid to the petitioners, due to a wrong fixation of pay made from 01.01.2006 by the respondents, cannot be permitted.

5. The learned counsel for the respondents fairly submitted that the present case is covered by the judgment of the Apex Court in the case of Rafiq Masih (White Washer) (supra) in as much as the wrong fixation of pay had been made from 01.01.2006 and there is nothing to show that the said wrong fixation of pay had been made, on the basis of any fraud or misrepresentation on the part of the petitioner. Further, the petitioner belongs to Class-III (Group-C) post, and as such, in terms with paragraph No.18 of the judgment of the Apex Court in the case of Rafiq Masih (White Washer) (supra), it would be impermissible to recover the excess salary paid to them.

6. I have heard the learned counsels for the parties.

7. In the case ofShyam Babu Verma & Others vs. Union of India & Others, reported in(1994) 2 SCC 521, the Apex Court was of the view that recovery after several years of paying the higher pay scale would not be just and proper, as the same was not due to the fault of the employee.

8. In the case ofCol. (Retd. ) B. J. Akkara vs Govt. of India & Others, reported in(2006) 11 SCC 709, the Apex Court has held that restraining recovery of excess payment is granted by courts, not because of any right in the employees, but in equity, in exercise of judicial discretion, to relieve the employees from the hardship that will be caused if recovery is implemented. It was further held that a Government servant in the lower rungs of service would spend whatever emoluments he receives for the upkeep of his family. If he receives an excess payment for a long period, he would spend it genuinely believing that he is entitled to it. Any subsequent action to recover the excess payment would cause undue hardship to him. The Apex Court further held that where the employee had knowledge that the payment received was in excess of what was due or wrongly paid, or where the error is detected or corrected within a short time of wrong payment, Courts will not grant relief against recovery. The Apex Court thus held that the matter being in the realm of judicial discretion, courts may on the facts and circumstances of any particular case refuse to grant such relief against recovery.

9. In

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