IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
INDERJEET SINGH, ASHUTOSH KUMAR, JJ.
Kendriya Vidyalaya Sangathan – Appellant
Versus
Mrs Renu Vaish Wife Of Shri Rajendra Vaish – Respondent
D.B. Civil Writ Petition No. 12876 of 2022
Decided on : 10-01-2024
Recovery - Adjustment of Excess Payment - [AIR 2022 SC 2153] - The court discussed the judgments passed by the Apex Court in the case of Chandi Prasad Uniyal & Ors. Vs. State of Uttarakhand & Ors. [(2012) 8 SCC 147], State of Punjab & Ors. Vs. Rafiq Masih (Whitewasher) [(2014) 8 SCC 883], and Thomas Daniel Vs. State of Kerala & Ors. (AIR 2022 SC 2153). The court highlighted the legal provisions and interpretations related to recovery of excess payment, misrepresentation, fraud, and the hardship caused to employees in case of recovery.
Fact of the Case:
The Department filed a writ petition challenging the order of the Tribunal setting aside the adjustment of excess payment made to the respondent-employee. The Department argued that the adjustment was made on account of audit objection and that they have the right to recover/adjust the excess payment. The respondent-employee opposed the petition, stating that there was no misrepresentation on her part and that the amount cannot be recovered as she was not at fault.
Finding of the Court:
The court found that there was no misrepresentation or concealment on the part of the respondent-employee while receiving the excess amount from the Department. The court also noted that the Department issued the order of recovery/adjustment after two years of the respondent-employee's retirement, causing great hardship to a retired employee. The court referred to the judgment in the case of Thomas Daniel (supra) and dismissed the writ petition.
Issues: Misrepresentation, concealment, fraud, jurisdictional error, hardship caused to retired employee
Ratio Decidendi: The court held that recovery/adjustment cannot be made if there is no misrepresentation or fraud on the part of the employee. The court also considered the hardship caused to a retired employee and referred to the judgment in the case of Thomas Daniel (supra) to support its decision.
Final Decision: The present writ petition stands dismissed.
ORDER :
1. The present writ petition has been filed by the petitioners (to be referred as ‘the Department’) challenging the order dated 05th May, 2022, passed by the Central Administrative Tribunal, Jaipur Bench, Jaipur (to be referred as ‘Tribunal’), whereby the adjustment of Rs.30,642, made by the Department, vide orders dated 16th October, 2018 and 31st October, 2018, was set aside.
2. Learned counsel for the petitioners submits that order of adjustment of the amount, excess paid to the respondent-employee, was rightly passed by the Department on account of audit objection.
3. Learned counsel further submits that the Department has every right to make recovery/adjustment of the excess payment made to its employee.
4. Learned counsel for the petitioners relied upon the judgments passed by the Apex Court in the case of Chandi Prasad Uniyal & Ors. Vs. State of Uttarakhand & Ors. [(2012) 8 SCC 147] as well as State of Punjab & Ors. Vs. Rafiq Masih (Whitewasher) [(2014) 8 SCC 883].
5. Learned counsel, appearing on behalf of the respondent, opposed the writ petition and submits that the learned Tribunal has not committed any illegality in passing the order dated 05th May 2022.
6. Learned counsel further submitted that there is no misrepresentation on the part of the respondent-employee while receiving the amount from the Department.
7. Learned counsel further submits that if some amount has been paid in excess to the respondent-employee then the same cannot be recovered by the Department, as the respondent-employee was not at fault and she has not concealed or misrepresented anything to the Department while taking the said benefit.
8. Learned counsel submits that only small amount of Rs.30,642/- is involved in the present case, thus the present writ petition may be dismissed.
9. Learned counsel for the respondent relied on the judgment passed by the Apex Court in the case Thomas Daniel Vs. State of Kerala & Ors. (AIR 2022 SC 2153), whereby the Apex Court, after considering the law laid down in para Nos.10, 11, 12, 13 and 16, held as under :
“5. Admittedly the appellant does not possess the required educational qualifications. Under the circumstances the appellant would not be entitled to the relaxation. The Principal erred in granting him the relaxation. Since the date of relaxation, the appellant had been paid his salary on the revised scale. However, it is not on account of any misrepresentation made by the appellant that the benefit of the higher pay scale was given to him but by wrong construction made by the Principal for which the appellant cannot be held to be at fault. Under the circumstances the amount paid till date may not be recovered from the appellant. The principle of equal pay for equal work would not apply to the scales prescribed by the University Grants Commission. The appeal is allowed partly without any order as to costs.”
(11) In Col. B.J. Akkara (Retd.) v. Government of India and Others this Court considered an identical question as under:
“27. The last question to be considered is whether relief should be granted against the recovery of the excess payments made on account of the wrong interpretation/understanding of the circular dated 7-61999. This Court has consistently granted relief against recovery of excess wrong payment of emoluments/allowances from an employee, if the following conditions are fulfilled (vide Sahib Ram v. State of Haryana [1995 Supp (1) SCC 18 : 1995 SCC (L&S ) 248], Shyam Babu Verma v. Union of India [(1994) 2 SCC 521 : 1994 SCC (L&S) 683 : (1994) 27 ATC 121], Union of India v. M. Bhaskar [(1996) 4 SCC 416 : 1996 SCC (L&S) 967] and V. Gangaram v. Regional Jt. Director [(1997) 6 SCC 139 : 1997 SCC (L&S) 1652]):
State of Punjab & Ors. Vs. Rafiq Masih (Whitewasher)
Shyam Babu Verma v. Union of India (1994) 2 SCC 521 : 1994 SCC (L&S) 683 : (1994) 27 ATC 121
Thomas Daniel Vs. State of Kerala & Ors. (AIR 2022 SC 2153)
Union of India v. M. Bhaskar (1996) 4 SCC 416 : 1996 SCC (L&S) 967
V. Gangaram v. Regional Jt. Director (1997) 6 SCC 139 : 1997 SCC (L&S) 1652
Recovery/adjustment cannot be made if there is no misrepresentation or fraud on the part of the employee, and the court should consider the hardship caused to the employee, especially in the case of ....
Where court arrives at conclusion, that recovery if made from the employee, would be iniquitous or harsh or arbitrary to such an extent, as would far outweigh the equitable balance of employer's righ....
The main legal point established in the judgment is the applicability of the decision in Rafiq Masih to cases involving recovery of excess payment from employees, emphasizing the hardship faced by pe....
Recoveries from retired employees based on erroneous salary payments are impermissible, emphasizing equitable treatment and judicial discretion in enforcing employee rights.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.