SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(HP) 1407

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
RANJAN SHARMA, J.
Jitender Kumar – Appellant
Versus
State of Himachal Pradesh and Others – Respondents
CWPOA No. 915 of 2019
Decided On : 30-10-2025

Advocates Appeared:
For the Appellants : Rocky, Devender K. Sharma
For the Respondents: Hemant K. Verma

Recovery of excess emoluments from contractual employees due to departmental miscalculation of pay and allowances impermissible absent employee misrepresentation; quashed on equity grounds for class-III employees.

Headnote:(A) Service Jurisprudence - Contractual employees - Entitlement to minimum of pay scale attached to post as revised from time to time plus allowances including dearness pay on merger - Recovery of excess amount paid due to departmental wrong calculation, misconstruction of rules or inadvertence impermissible absent misrepresentation or fraud by employee - Such recovery harsh and arbitrary for class-III employees - Principles from equity and judicial discretion - Impugned recovery order quashed, refund directed. (Paras 6, 7, 8, 9, 14)

(B) Recovery - Conditions for restraint - Excess payment not recoverable if: (i) no misrepresentation/fraud by employee; (ii) made on wrong principle/interpretation subsequently erroneous; (iii) causes hardship; (iv) from class-III/IV employees or long period; (v) due to audit objection without hearing; (vi) punitive without inquiry compliance. (Paras 8, 9, 14)

(C) Administrative Law - Subsequent judicial clarifications and governmental instructions affirming entitlement render prior recovery order obsolete - No recovery when benefits extended to similarly placed employees. (Paras 10, 11)

Facts of the case:
Petitioner appointed lecturer on contract basis with fixed emoluments, regularized later. Sought revision of contractual emoluments per court directions. Arrears calculated and paid including allowances. Department recovered portion alleging wrong inclusion of allowances, attributing to principal's careless approach. Challenged recovery order staying further recovery.

Findings of Court:
Contractual emoluments at minimum-initial pay scale revised from time to time plus allowances admissible. Recovery impermissible due to departmental fault. Refund recovered amount with liberty for interest claim.

Issues: Entitlement of contractual teachers to revised pay scale plus allowances; validity of recovery of arrears paid per judicial precedents due to alleged miscalculation.

Ratio Decidendi: Employee not liable for excess payment arising from employer's erroneous calculation or interpretation of pay norms without employee's fault; recovery inequitable, especially for lower cadre, violating natural justice and causing hardship; reinforced by subsequent affirmations of entitlement.

Result: Petition allowed.

Table of Content
1. petition challenges recovery violating pay merger judgments. (Para 1 , 2)
2. state admits similar payments; quotes recovery order. (Para 3 , 4 , 5)
3. contractual pay: initial scale plus revised allowances. (Para 6)
4. no recovery for employer error absent fraud. (Para 7 , 8 , 9)
5. subsequent events and procedure bar recovery. (Para 10 , 11 , 12 , 13)
6. quash order; direct refund of excess. (Para 14 , 15)

JUDGMENT :

RANJAN SHARMA, J.

1. Petitioner, Jitender Kumar, initially filed CWP No.3291 of 2014, which upon establishment of State Administrative Tribunal was transferred to the Tribunal; and now upon abolition stands transferred to this Court as CWPOA No.915 of 2019 seeking the following relief(s):

“(i). That an appropriate writ, order or direction may kindly be issued and recovery notice dated 3rd November 2014 be quashed and set aside and the respondent be prohibited from making recovery of the amount granted in view of the judgment passed in LPA No.108/2012 titled as H.P. Rajkiya Prathmic Anubandh Sangh Versus State of Himachal Pradesh and another and LPA No. 105 of 2010 and benefits of merger of 50% dearness allowances with basic pay in view of the judgment passed in Nek Ram case in the interest of justice.

(ii). That an appropriate writ, order or direction may kindly passed and the respondent be directed to refund the amount of Rs.213714/- with interest which has been recovered from the petitioner vide Challan dated 29.04.2014 in violation of judgment passed by Hon’ble High Court in CWP No.2774/2014 titled as Jitender Kumar versus State of H.P. and others.”

FACTUAL MATRIX:

2. Grievance of the petitioner is that the petitioner was appointed as Lecturer in Commerce on contract basis on 25.06.1999, with fixed contractual emoluments at Rs.1800/- per month and his services were regularized by the Department in terms of order dated 31.12.2008. Petitioner along with others filed a CWP No. 329 of 2012, titled Naveen Rana & Others vs. State of H.P. & Others, claiming revision of contractual emoluments and the aforesaid CWP was taken up along with LPA No. 105 of 2010, State of Himachal Pradesh & Others vs. Rakesh Chand & Others, which was disposed of on 13.12.2012 by directing the State Authorities to extend the benefit of pay at initial of pay scale attached to the post as revised from time to time to JBT Teachers and to School Lecturers appointed on contract basis, alike the petitioners:

(i). It is averred that the judgment dated 13.12.2012 in LPA No.105 of 2010 in the case of Rakesh Chand (supra) was assailed in SLP, which was dismissed on 09.07.2013 and after dismissal of SLP the Respondents including Principal Government Senior Secondary School, Arloo, District Una calculated the contractual emoluments at revised rates on initial of pay attached to the post of Lecturer and admissible allowance(s) for the contractual service rendered from June 1999 to December 2008 and an amount of Rs.3,48,654/- [Rupees Three Lakh Forty Eight Thousand Six Hundred Fifty Four] was released to the petitioner but in the month of April, 2014, an amount of Rs.2,13,714/- [Rupees Two Lakh Thirteen Thousand Seven Hundred Fourteen] was recovered from the petitioner by getting this amount remitted in Government Treasury, whereas, an amount of Rs.1,34,940/- [Rupees One Lakh Thirty Four Thousand Nine Hundred Forty] remained allegedly recoverable from the petitioner.

(ii). Feeling aggrieved the petitioner assailed the alleged recovery in CWP No.2774 of 2014, Jitender Kumar versus State of H.P. & Others, which was disposed of on 25.04.2014 [Annexure P-4] by directing the State Authorities not to effect any recovery from the petitioner till such time a show cause notice and an opportunity of hearing was afforded to the petitioner. Pursuant to the directions contained in the judgment dated 25.04.2014, a show cause notice was issued on 01.09.2014 [Annexure P-5], directing the petitioner to file response, which was submitted on 23.09.2014 [Annexure P-6]










































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top