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2026 Supreme(HP) 505

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
Ranjan Sharma, J.
Ramesh Chand and Others - Petitioners
Versus
State of Himachal Pradesh & Others - Respondents
CWPOA No.6702 of 2020 a/w CWPOA Nos.7894, 7897, 7898, 7901, 7929, 7931 and 7933 of 2019, CWP No.1203 of 2020 Execution Petition No.503 of 2023 and CWP No.12116 of 2024
Decided On : 09-01-2026

Advocates Appeared:
For the Petitioner:Ms. Manisha Thamta, Advocate
For the Respondent:Mr. Sumit Sharma, Deputy Advocate General, Mr. Lokender Paul Thakur, Senior Panel Counsel, Mr. Rangil Singh, Advocate

Three-tier pay structure excludes employees from ACP benefits; recovery of erroneous excess payments barred from Class-III employees, retirees, over five years without misrepresentation.

Headnote:(A) Himachal Pradesh Civil Services (Revised Pay) Rules, 1998 & 2009 - Assured Career Progression Scheme, 1998 (w.e.f. 01.01.1996) & 2012 (w.e.f. 27.08.2009) - Employees in categories granted three-tier pay structure (50:30:20 ratio for junior technicians, technician grade-II, technician grade-I) expressly excluded from ACP benefits on completion of 4, 9, 14 years service - Erroneous grant of ACP incentives withdrawn, pay refixation upheld as benefits unavailable dehors rules/schemes - No vested right to continue inadmissible benefits. (Paras 8-10)

(B) Recovery of excess payments - Impermissible from Class-III employees, retirees/due to retire within one year, payments over five years, without employee misrepresentation/fraud, or from retiral benefits like gratuity/pension sans due process - Action arbitrary, harsh, violative of equality where due to employer’s wrong interpretation of rules/schemes - Refund with interest mandated. (Paras 11-15)

Facts of the case:
Petitioners, technicians initially on daily wage basis regularized w.e.f. 1994, promoted to higher grades 2002-2019, erroneously granted ACP benefits per 2012 scheme despite three-tier structure exclusion; some retired 2019-2025. State withdrew benefits vide order dated 23.03.2019, refixed pay, ordered recovery 27.03.2019. Petitions assail recovery post concession on refixation.

Findings of Court:
Refixation after ACP withdrawal upheld; recovery orders quashed/set aside; state restrained from recovery; recovered amounts refunded within two months, 6% interest post-expiry till payment.

Issues: Whether ACP benefits admissible to technicians under three-tier pay structure; whether recovery of erroneously paid excess lawful from Class-III employees/retirees sans fault.

Ratio Decidendi: Three-tier pay structure ouster clauses in pay rules/ACPs render technicians ineligible for progression incentives; erroneous payments recoverable only in permitted cases per Supreme Court guidelines - here, impermissible given employee class, retirement status, payment duration, lack of fault, employer negligence.

Result: Petitions partly allowed.

Table of Content
1. cases consolidated under lead petition cwpoa 6702/2020. (Para 1 , 2 , 3)
2. petitioners challenge acp withdrawal and recovery orders. (Para 4)
3. state justifies acp inadmissibility and recovery from technicians. (Para 5)
4. petitioners rely on sc precedents barring recovery. (Para 6 , 7)
5. prior judgment upholds acp ineligibility for technicians. (Para 8 , 9)
6. three-tier pay structure excludes technicians from acp schemes. (Para 10)
7. no recovery from class-iii/retired employees without fraud. (Para 11 , 12)
8. uphold refixation, quash recoveries, order refunds. (Para 13 , 14 , 15)

JUDGMENT :

Ranjan Sharma, J.

Petitioner, Ramesh Chand, along with 09 others, had filed Original Application No. 1648 of 2019 before the State Administrative Tribunal and, upon abolition of the Tribunal, the matter came to be re-transferred to this Court as CWPOA No. 6702 of 2020.

2. Likewise, the petitioners, namely, Mansa Ram, Mohan Singh, Mor Dass, Brij Lal, Ramesh Chand, Sita Ram and Jia Lal had filed had filed Original Applications Nos.1648 of 2019, 3480 of 2016, 3481 of 2016, 3482 of 2016, 3483 of 2016, 3484 of 2016, 3486 of 2016 and 3485 of 2016, before the State Administrative Tribunal and upon abolition of Tribunal, the matters came to be re-transferred to this Court as CWPOA No.7894, 7897, 7898, 7901, 7929, 7931 and 7933 of 2019, respectively.

3. With the consent of Learned Counsel(s) since issue relates to re-fixation of pay and recovery of retirees as well as in service employes, therefore, CWPOA No.6702 of 2020 [originating from OA No.1648 of 2019, titled Ramesh Chand & Others versus State of Himachal Pradesh & Others] is treated as the lead case for adjudicating all the connected cases.

FACTUAL MATRIX IN CWPOA NO.6702 OF 2020:

4. Petitioner, Ramesh Chand, had filed Original Application No.1648 of 2019, converted as CWPOA No.6702 of 2020, seeking the following relief(s):

“i. That the Respondents may kindly be directed to cancel and held void the Office Order No.PW-ED-CB-EA-II-Pay Fixation/ 2018-19-7039-43, 7069-73, 7074-78, 7069-73 Dated 27.03.2019 and other similar orders issued on the same date specifically addressed to all the present Applicants in pursuance to the order of recovery vide office order No.6897-6902 dated 23.03.2019, whereby the orders of recovery consequent upon the revised fixation made by the Respondent No.3 were passed in contravention to the well established legal principles as well as in contravention to the directions passed by the Hon’ble Apex Court from time to time.”

4(i). Case as set up by Learned Counsel for the petitioner, is that the petitioners are working as technicians [Technician Grade-II and Technician Grade-I] under the Public Works Department of the State Government. They were initially engaged on daily wage basis and were regularized on different dates w.e.f. 1994 onwards. It is further averred that the petitioners were granted the benefit of promotions as Technician Grade-II and thereafter as Technician Grade-I on different dates from 2002 to 2019.

4(ii). It is averred that while the petitioners were working as Technicians, the State Authorities notified the Assured Career Progression Scheme on 09.08.2012, giving effect to the said Scheme w.e.f. 27.08.2009, whereby progression incentives were to be granted on completion on 4, 9 & 14 years of service in a cadre. Based on the ACP Scheme, notified on 09.08.2012, the State Government issued a Communication dated 07.07.2014 [Annexure A-2] reiterating the admissibility of benefits under the Scheme.

4(iii). It is averred that on the ACP Scheme notified on 09.08.2012, State Authorities granted the benefit of ACP benefits on completion of 4, 9 & 14 years of service to the petitioners and benefit of higher pay was extended/granted to them and some of the petitioners retired on different dates between 30.04.2019 and 31.03.2025, while some of the petitioners are still in service.

4(iv). It is averred that abruptly, the State Authorities issued an order on


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