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2024 Supreme(Gau) 1843

IN THE HIGH COURT OF GAUHATI (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Michael Zothankhum, J.
The Union Of India Rep. By The Secretary To The Govt. Of India, Ministry Of Health And Family Welfare, New Delhi And Ors. – Petitioners
Versus
Laxmi Devi @ Lakhimi Devi W/O Late Bul Barthakur And Ors. – Respondents
Review.Pet. 172 of 2022
Decided On : 20-09-2024

Advocates Appeared:
For the Petitioner: Mr. A K Dutta
For the Respondent: SC, AG, Ms. U Nanda Mr. F A Hassan, Mr B D Das, Mr. S C Biswas, Mrs R Deka, Ms. J Ghosh, Mr. S C Biswas

Recovery of excess salary after 15 years is impermissible under Rafiq Masih's third proposition; an undertaking given only for the initial pay revision does not bar application of that proposition, and a review petition cannot be used to re-argue facts not raised earlier.

Headnote:(A) Constitution of India, 1950 - Article 14 - Recovery of excess payment - Principles of review - Order 47 Rule 1 of Code of Civil Procedure, 1908 - Review petition dismissed - An error apparent on the face of record must be self-evident and not require a long-drawn process of reasoning - A review petition cannot be an appeal in disguise - Recovery of excess salary paid for more than five years is impermissible in law (Rafiq Masih (White Washer) (2015) 4 SCC 334, propositions (iii) and (v)) - Undertaking given by employee to refund excess payment does not override the principle that recovery after a long period (15 years) is iniquitous and arbitrary, especially when the undertaking was given for a specific pay revision and not for subsequent re-fixations. (Paras 8-16)

(B) Service Law - Pay Fixation - Group-C/Group-B classification - The classification of a post (Group-C or Group-B) is a factual determination that must be raised in the original proceedings; a party cannot take a diametrically opposite stand in a review petition without any error apparent on the record. (Para 16)

Facts of the case:
The Union of India and others filed a review petition against an earlier judgment dated 13.09.2022 in WP

(C) 258/2022 and seven connected writ petitions. In the original writs, the petitioners (nursing personnel) had challenged recovery of excess salary initiated in 2021 based on a pay fixation error dating back to 2006. The earlier judgment allowed the writs, holding that recovery was barred under the third proposition in Rafiq Masih (White Washer) because the excess payment had been made for over five years (15 years). The review petitioners argued that the writ petitioners were actually Group-B employees, not Group-C, and that the employees had given undertakings in 2008 agreeing to refund any excess payment, citing High Court of Punjab & Haryana vs. Jagdev Singh (2016) 14 SCC 267.

Issues: (1) Whether the review petition disclosed any error apparent on the face of the record justifying review under Order 47 Rule 1 CPC? (2) Whether recovery of excess salary after 15 years could be sustained despite the Rafiq Masih propositions, given the existence of an undertaking? (3) Whether the classification of the writ petitioners as Group-C or Group-B could be raised for the first time in review?

Findings of Court:
The court found that the review petitioners were seeking a re-hearing on the merits, which is impermissible in review. The earlier judgment had been based on the submission that the writ petitioners were Group-C employees, and a contrary stand taken in review did not constitute an error apparent. The court further held that even assuming the employees gave undertakings in 2008, those undertakings only covered the initial pay fixation under the 2008 Rules; subsequent pay fixations in 2010 and 2013 were not covered by those undertakings. Recovery after 15 years was barred by proposition (iii) of Rafiq Masih (White Washer), as it would be iniquitous and arbitrary. The impugned recovery order of 2021 did not specify the correct pay or the method of calculation, and no notice was given before recovery. The review petition was therefore an appeal in disguise.

Ratio Decidendi: (1) A review petition cannot be used to re-agitate issues already decided or to introduce new facts that were not part of the original record. (2) Recovery of excess salary made more than five years after the erroneous payment is impermissible, even if the employee had given an undertaking, unless the undertaking explicitly covers subsequent re-fixations and the recovery is not iniquitous. (3) The principle of hardship and iniquity under Article 14 outweighs the employer's right to recover after a long lapse of time.

Result: Review petition dismissed.

Legal Category Hierarchy

  • practice and procedure
    • review of judgments
      • grounds for review (Para 8, 16, 17)
  • administrative law
    • service law
      • recovery of excess salary
        • time bar for recovery (Para 9, 10, 12, 15)
        • effect of undertakings (Para 11)
  • constitutional law
    • right to equality (article 14)
      • arbitrary action (Para 12, 14, 15)

Table of Contents

1. Review petition against order barring recovery of excess salary after 15 years. (Para 2 )

2. Dispute over classification of employees and effect of undertakings on time-barred recovery. (Para 3 , 4 , 5 , 6 )

3. Review petition dismissed; no error apparent on record. (Para 15 , 16 , 17 )

4. What is the scope of review under Order 47 Rule 1 CPC?

Review is limited to errors apparent on the face of the record; it cannot be used to reargue decided issues or raise new facts; lengthy reasoning is impermissible. (Para 8 , 16 , 17 )

5. Does Proposition (iii) of Rafiq Masih bar recovery of excess salary when payment was made for over five years?

Yes, recovery after more than five years from the date of wrong fixation is impermissible, even if an undertaking was given, unless the undertaking covers subsequent revisions. (Para 9 , 10 , 12 , 15 )

6. Can an undertaking for refund of excess pay given in 2008 be enforced for pay revisions made in 2010 and 2013?

No, the undertaking only covers the initial pay fixation; subsequent revisions require fresh undertakings to be enforceable. (Para 11 )

7. Can a review petition raise a new argument about the classification of employees not previously raised?

No, review cannot be an appeal in disguise; new facts or arguments not raised in the original proceeding cannot be considered. (Para 8 , 16 )

8. Is recovery permissible without prior notice and specification of the excess amount?

No, recovery without notice and without determining the correct pay scale or excess amount is arbitrary and iniquitous. (Para 14 , 15 )

ORDER :

MICHAEL ZOTHANKHUMA, J.

1. Heard Mr. A.K. Dutta, learned CGC for the review petitioners. Also heard Mr. B.D. Das, learned Senior Counsel assisted by Ms. R. Deka and Mr. S.C. Biswas, learned counsels for the writ petitioners. Mr. R.K. Talukdar, learned counsel appears for the Comptroller and Auditor General of India (CAG).

2. The review petitioners’ counsel submits that the impugned judgment and order dated 13.09.2022 passed in WP(C) 258/2022 and the other 7 writ petitions should be reviewed, inasmuch as, this Court had allowed the writ petitions by holding that there could not be a recovery of any excess payment of salary made to the writ petitioners, as they were holding Class-III (Group-C) post, in terms of the judgment of the Supreme Court in the case of State of Punjab and others Vs. Rafiq Masih (White Washer), reported in (2015) 4 SCC 334.

3. The review petitioners’ counsel submits that when going into the Pay Scale enjoyed by the writ petitioners and the Grade Pay being given to them, it is clear that the writ petitioners were holding Group-B posts and not Group-C posts. He also submits that while there had been wrong fixation of pay of the writ petitioners as far back as on 01.01.2006, the writ petitioners had executed Undertakings in the year 2008 that they would refund back the excess pay given to them, due to any wrong fixation of pay. He submits that the recovery of the wrong fixation of pay of the petitioners started in the year 2021 and as the Undertakings given by the writ petitioners were still valid, there was no infirmity in the recovery of the excess pay given to the petitioners even after 15 years.

4. The learned CGC for the review petitioners further submits that in terms of the judgment of the Supreme Court in the case of High Court of Punjab & Haryana vs. Jagdev Singh, reported in (2016) 14 SCC 267, an employee who has furnished an Undertaking that excess payment made to him would be refunded, was bound by the Undertaking so given. He accordingly submits that the impugned judgment and order passed in WP(C) 258/2022 and the other writ petitions should be set aside by allowing the review petition.

5. Mr. B.D. Das, learned Senior Counsel for the writ petitioners, on the other hand submits that there is no mistake or error apparent on the face of the record and as such, when a lengthy process of reasoning is required to be undertaken to decide whether the impugned judgment is sustainable, a review petition will not be maintainable. He also submits that there was no stand taken by the review petitioners at the time of disposal of the writ petitions, that the Pay Scale and Grade Pay enjoyed by the writ petitioners showed that they belonged to Group-B posts. He submits that the undertaking given by the petitioners was in respect of the 6th Pay Commission recommendation, which was accepted vide the Central Civil Services (Revised Pay) Rules, 2008. However, another pay fixation was again done in the year 2010 and 2013, for which no undertaking for refund of excess pay was given by the writ petitioners. He also submits that in terms of the judgment of the Supreme Court in the case of Rafiq Masih (White Washer) [supra], when there has been wrong fixation of pay for more than 5 years, the question of recovery of the wrong fixation of pay does not arise, especially when there is no fraud or misrepresentation made on the part of the writ petitioners. He also submits that in terms of the Full Bench judgment of the Madhya Pradesh High Court in the case of State of Madhya Pradesh, through Principal Secretary and Others vs. Jagdish Prasad Dubey , reported in 2024 SC OnLine MP 1567, recovery can be effected from the pensionary benefits or from the salary of the employee, based on the Undertaking or the Indemnity Bond given by the employee before the grant of benefit of pay refixation. However, as the Supreme Court in the case of Rafiq Masih (supra) has held that recovery by the employers would be impermissible in law when

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