IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
AJAY MOHAN GOEL, J.
Sushil Singh – Petitioner
Versus
State of Himachal Pradesh and Others – Respondents
CWP No. 5399 of 2023
Decided On : 08-05-2024
Recovery of Excess Payment - Service Benefits - CWP No. 189 of 2012 - Nek Ram vs. State of H.P. - State of Punjab and Others vs. Rafiq Masih (White Washer) and Others, (2015) 4 SCC 334
Fact of the Case:
The petitioner, a Lecturer, sought quashing of a communication and show cause notice regarding recovery of excess payment after his superannuation.
Finding of the Court:
The court found that the recovery of excess payment from the petitioner was impermissible in law as he had already superannuated before the issuance of the impugned communications.
Issues: The main issue was whether the recovery of excess payment from the petitioner, after his superannuation, was permissible in law.
Ratio Decidendi: The court relied on the judgment in State of Punjab and Others vs. Rafiq Masih (White Washer) and Others, (2015) 4 SCC 334, which held that recovery from retired employees or those due to retire within one year of the order of recovery would be impermissible in law.
Final Decision: The petition was allowed, and the impugned communications were quashed and set aside. The respondents were directed not to act against the petitioner on the basis of the impugned communications and effect any recovery from him.
1. By way of this petition, the petitioner has, inter-alia, prayed for the following reliefs:
(II) That the respondents may kindly be directed to release all the financial and consequential benefits along with interest arising out of superannuation of his service including leave encashment, gratuity, pension etc. to the petitioner.”
2. The case of the petitioner is that he was appointed as a Lecturer in the Subject of English on 03.03.1999. His initial appointment was on contract basis. His services were regularized w.e.f. 31.12.2008. After regularization he was granted revised pay scale of 12090+4200. As per the increment policy of the State Government, the pay scale of the petitioner was increased @ 3% per annum. Feeling aggrieved by his pay scale, the petitioner alongwith other similarly situated persons filed CWP No. 189 of 2012, titled Jatinder Singh and Others vs. State of H.P. before this Court for counting contract period for determining the revised pay scale and increments etc. Further prayer made in the Writ petition was for conferment of benefits upon the petitioner in terms of the law laid down by this Court in CWP (T) No. 14232 of 2008, titled Nek Ram vs. State of H.P.
3. CWP No. 189 of 2012 was disposed of by this Court in terms of Annexure P-1, dated 10.01.2012 in the following terms:
4. Thereafter, the Department re-assessed the pay scale of the petitioner and benefits as were admissible to him stood granted. The petitioner superannuated from the service of the respondent-Department on 28.02.2023.
5. The grievance of the petitioner is that after his superannuation a communication has been issued by the respondent-Department, i.e. Annexure P-4, followed with Annexure P-5, dated 21.03.2023 and 20.05.2023, respectively, in terms whereof, it has been mentioned that the petitioner was granted increments for contract period contrary to the rules and mistake be rectified by effecting recoveries from the petitioner of the over payment so made after issuance of a Show Cause Notice. In terms of communication dated 20.05.2023, the petitioner has been called upon to submit his opinion with documentary proof on recovery of excess payment.
6. Learned Senior Counsel appearing for the petitioner has argued that the impugned order per se is not sustainable in the eyes of law, for the reason that it is not the case of the Department that the alleged wrong fixation of pay scale was at the behest of the petitioner. He further submitted that otherwise also in light of the law laid down by Hon’ble Supreme Court of India in State of Punjab and Others vs. Rafiq Masih (White Washer) and Others, (2015) 4 SCC 334, as the impugned order has been issued after the superannuation of the petitioner, no recovery can be effected and because the impugned order does violence to the law declared by Hon’ble Supreme Court of India, therefore, the petition be allowed, the impugned order be quashed and set aside.
7. Reply to the petition has been filed by the respondents.
8. Learned Advocate General by placing reliance upon the contents of the reply has submitted t
State of Punjab and Others vs. Rafiq Masih (White Washer) and Others
Recovery of excess payment from retired employees or those due to retire within one year of the order of recovery is impermissible in law.
Recovery of excess amount from retiral benefits, especially from retired employees or employees belonging to Class-III and Class-IV service, may be impermissible in law, considering the hardship caus....
Recovery of excess payments from retired employees is impermissible without adherence to natural justice, especially when payments were made for an extended period without notice.
Recovery of excess salary cannot be enforced without prior hearing, especially when no fraud or misrepresentation by the employee is established.
The main legal point established in the judgment is that the recovery of an amount from a retired employee, in the absence of misrepresentation or fraud, and due to a misconception leading to the exc....
The recovery of excess amount due to mistake or wrong interpretation of rules cannot be made, and the benefit of promotion and consequential monetary benefits cannot be taken away without providing a....
Recovery of excess payments from retired employees or those belonging to Class-III service is impermissible without prior notice, especially when the excess payment was made over five years prior to ....
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