HIGH COURT OF JAMMU &KASHMIR AND LADAKH AT SRINAGAR
RAJNESH OSWAL, J.
Jabeen Kounsar – Appellant :
Versus
Ut of J&K & OTHERS – Respondent
WP(C) No.2013 of 2022
Decided on : 26-03-2025
(A) Constitution of India - Principles of natural justice - Recovery of excess family pension - The petitioner challenged the recovery of excess family pension amounting to Rs.7,18,268/- directed by the respondent, asserting no fault on her part. The court found that the excess payment was due to an omission by the respondents, not any misrepresentation by the petitioner. (Paras 2, 3, 8)
(B) Recovery of excess payments - The Supreme Court's ruling in Daniel Thomas vs. State of Kerala establishes that excess payments not arising from fraud or misrepresentation are not recoverable. (Para 9)
(C) Hardship considerations - The Supreme Court in State of Punjab vs. Rafiq Masih outlines circumstances under which recovery from employees is impermissible, emphasizing the balance of justice between employer and employee. (Para 10)
Facts of the case:
The petitioner received excess family pension due to an error by the respondents, which was not her fault. The recovery was ordered despite no allegations of fraud against her.
Findings of Court:
The court quashed the recovery order, affirming the petitioner’s entitlement to the refixed family pension of Rs.15,363/-.
Issues: The main issue was whether the recovery of excess pension could be enforced against the petitioner given the circumstances of the case.
Ratio Decidendi: The court ruled that recovery of excess payments is impermissible when the recipient is not at fault, aligning with principles of justice and equity.
Result: The direction for recovery of excess family pension was quashed.
JUDGMENT :
1. With the consent of learned counsel for the parties, the instant petition is taken up for final disposal.
2. The petitioner is aggrieved of the action of respondent No.3 whereby he has ordered recovery of excess amount of family pension paid to the petitioner amounting to Rs.7,18,268/ and has further directed the Manager, J&K Bank, Branch Chanapora, to recover an amount of Rs.3,59,134/ at first instance from the family pension of the petitioner and rest in the instalments @ Rs. 7,500/ per month.
3. The sole contention of the petitioner is that the excess family pension was paid to her neither on account of any fraudulent act nor any misrepresentation on the part of the petitioner but was paid to her on account of fault of respondents No.1 to 3, as such, the said amount cannot be recovered from her.
4. The reply has been filed by respondent No.2 stating therein that the said respondent received the case of the petitioner for revision of pension under Government Order No.222-F and after scrutiny of the case, it was found that the petitioner was paid enhanced payment beyond 1st July, 2013 whereas the petitioner was supposed to get the enhanced benefit for seven years but she continued to receive the same which was due to omission on the part of respondent No.3. When the same was brought to the notice of respondent No.3, he issued a communication to respondent No.4 pursuant to which action has been taken by him.
5. The respondent No.4 has filed the response stating therein that a communication was received from respondent No.3-Treasury Officer, Lal Mandi, Srinagar, with a direction to recover certain amount and pay the future amount as per the schedule mentioned in the communication, as such, respondent No.4 has no role in recovering or fixation of the pension of the petitioner.
6. Heard and perused the record.
7. This is an admitted case of the parties that the excess family pension has been received by the petitioner on account of omission on the part of respondent No.3 as the petitioner was to get enhanced benefit only for seven years but due to inadvertent omission of the respondent No.3 she continued to get the benefit beyond the said period and when the said fact was brought to the notice of respondent No.3, he issued communication to respondent No.4.
8. So far as the recovery of excess amount of family pension paid to the petitioner is concerned, the same cannot be recovered from the petitioner, as the fault, if any, whether inadvertent or otherwise, was of respondent No.3 as the petitioner had no role in revision of her family pension and more so there are no allegations against her in respect of any fraud or misrepresentation.
9. The Supreme Court in the case of Daniel Thomas vs. State of Kerala, 2022 SCC OnLine SC 536, has held that if the excess amount was not paid on account of any misrepresentation or fraud of the employee or if such excess payment was made by the employer by applying a wrong principle for calculating the pay/allowance or on the basis of a particular interpretation of rule/order which is subsequently found to be erroneous, such excess payment of emoluments or allowances are not recoverable.
10. In State of Punjab vs. Rafiq Masih (White Washer) & ors.), (2015) 4 SCC 334, the Supreme Court examined the validity of an order passed by the State to recover the monetary gains wrongly extended to the beneficiary employees in excess of their entitlements without any fault or misrepresentation at the behest of the recipient. The Court considered the situations of hardship caused to an employee, if he is directed to reimburse the employer. In the said case the Supreme Court held as under:
“8. As between two parties, if a determination is rendered in favour of the party, which is the weaker of the two, without any serious detriment to the other (which is truly a welfare State), the issue resolved would be in consonance with the concept of justice, which is assured to the citizens of India, even in the Preambl
Excess payments made without fraud or misrepresentation are not recoverable from employees, emphasizing justice and equity in recovery actions.
Recovery of excess pension payments without notice or opportunity to be heard violates principles of natural justice, and such recovery is impermissible if no fraud or misrepresentation is involved.
Recovery of excess pension from a family pensioner after significant delay is impermissible without misrepresentation or fraud, violating principles of natural justice.
The main legal point established in the judgment is that no recovery can be made from a retired employee or the legal heirs of the retired employee, or with regard to an amount which was being paid f....
Recovery of excess pension payments may be impermissible in certain situations, especially when it would be harsh or prejudicial to the beneficiary's survival.
Recoveries from pensioners are permissible only under strict guidelines to prevent hardship, emphasizing protection for retired employees against unjust financial demands.
The excess amount paid to an employee may not be recoverable if it was not due to misstatement or fraud on the part of the employee, as established in State of Punjab & Ors. v. Rafiq Masih.
Recovery of excess pension payments is impermissible if it causes undue hardship to the recipient, especially when the recipient is not at fault.
The impermissibility of recovery in certain situations and the iniquitous nature of recovery after a long period.
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