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2023 Supreme(J&K) 735

HIGH COURT OF JAMMU AND KASHMIR AND LADAKH
TASHI RABSTAN, PUNEET GUPTA, JJ.
UT of J&K & Ors. – Appellant
Versus
Muzammal Shah & Ors. – Respondent
WP(C) No. 1806/2022 & CM No. 5058/2022
Decided on : 03-05-2023

Advocates:
Advocate Appeared:
For the Appellant : R.S. Jamwal
For the Respondent: Sheikh Najeeb

Headnote:(A) Constitution of India - Articles 226 and 227 - Writ petition challenging the Central Administrative Tribunal's order which directed the petitioners not to recover excess payment made to employees due to wrong interpretation of the applicable rules - Employment and salary recovery issues pertaining to Class-IV employees. (Paras 1, 2, 3, 4, 9, 10, 14)

(B) Recovery of excess payments - Courts may not order recovery of excess payments made to employees if such payment was not due to their misrepresentation or fraud, but rather as a result of error or wrong interpretation of rules. (Paras 9, 10, 12, 13)

(C) Nature of judicial discretion - Granting relief against recovery is based on equity, considering potential hardship to the employee due to excess recovery. (Paras 9, 10, 12, 13)

Facts of the case:
The writ petition was filed challenging the Tribunal's order that required petitioners to refund excess amounts previously paid to respondents who had been wrongfully awarded higher pay scales based on erroneous circulars and modification of rules since 1993. (Paras 2, 3, 4)

Findings of Court:
Recovery of payments made to Class-IV employees without their fault or misrepresentation is unjust, and the Tribunal's order is upheld. (Paras 14)

Issues: Whether the Tribunal's order directing non-recovery of excess payments made under misinterpretation of rules was justified? (Paras 1, 2, 14)

Ratio Decidendi: The court affirmed that excess payments made to employees due to erroneous interpretations should not be recoverable, emphasizing equity and the absence of fault on the employees' part. (Para 14)

Result: Writ petition dismissed.

Table of Content
1. challenge to recovery of excess pay. (Para 1 , 2 , 3)
2. grounds for challenging the tribunal's order. (Para 4 , 5 , 6)
3. legal principles on recovery of excess payments. (Para 9 , 10 , 11 , 12 , 13)
4. writ petition dismissed. (Para 14 , 15)

JUDGEMENT :

Tashi Rabstan, J.

1. Present writ petition has been filed by the petitioners under Article 226 read with Article 227 of the Constitution of India against the order dated 28.04.2021 passed by the Central Administrative Tribunal, Jammu Bench, Jammu in T.A. No. 1580/2020 clubbed with O.A. No. 668/2021 whereby the Tribunal has inter alia directed that the petitioners herein shall not recover the amount already paid, in the form of higher scales of pay, and in case, any component was recovered, the same shall be refunded without interest within a period of three months from the date of receipt of a copy of this order.

2. Relief prayed for in this writ petition is as:

    "Issue an appropriate writ quashing the impugned order dated 28.04.2021 passed by the Hon'ble Central Administrative Tribunal, Jammu Bench, Jammu in Transfer Application No. 1580/2020 (SWP No. 15/2019) clubbed with OA No. 668/2021 titled Muzammal Shah & Ors. v. State of J&K & Ors. to the extent whereby it has been directed to return the recovered amount to the respondents herein."

3. The facts of the case in nutshell are:

That the respondents herein were initially engaged in the department on daily rated basis and thereafter came to be regularized on permanent basis. In the year 1993, a Circular came to be issued vide No. PHEJ/20094-20013, dated 08.03.1993 which provided for grant of one Higher Pay Grade to those officials who are working in lower grades of the posts shall be placed in the higher grades subject to various conditions. On 11.06.1993, another Circular No. PHEJ/3417-37, dated 11.06.1993 whereby it has been provided that all those employees who have notionally completed at least three years in the lower grade and have physically worked against the post for at least one year shall be eligible for promotion to the next higher grade.

It is averred in the petition that in compliance of Government Order No. 277-F, dated 06.06.2018, the Chief Engineer PHE Department Jammu had issued a Circular bearing No. PHEJ/GE/12082-114, dated 10.11.2018 directing therein not to extend the benefits to those employees who were borne on regular establishment after 1993 and had further directed that the benefits so extended are hereby withdrawn with immediate effect and extra salary paid shall be recovered under rules from the salary of the employees.

Aggrieved of the Government order dated 06.06.2018 (supra) and the subsequent circular, respondents filed writ petition SWP No. 15/2019 which was transferred by this Court to Central Administration Tribunal and renumbered as TA No. 1580/2020. Petitioners are aggrieved of the order passed in the aforesaid TA which constrained them to file the present writ petition.

4. The impugned order is challenged by the petitioners, inter alia, on the following grounds:

    "a. Because all the respondents herein got regularized w.e.f. 01.04.1994, as such, were not entitled to the benefit under Circular No. PHEJ/20094-20113, dated 18.03.1993 read with modification issued vide No. PHEJ/3417-37, dated 11.06.1993 on the ground that the said benefit was extendable to those employees only who had been engaged prior to issuance of Circular No. PHEJ/20094-20113, dated 18.03.1993 read with modification issued vide No. PHEJ/3417-37, dated 11.06.1993.

    b. Because the Chief Engineer PHE Department Jammu had issued a Circular vide No. PHEJ/GE/12082-114, dated 10.11.2018 for not giving the benefits to those employees who were borne on regular establishment after 1993 in furtherance of Government Order No. 277-F of 2018, dated 06.06.2018, whereby directed that the benefits so extended are hereby withdrawn with immediate effect and extra salary paid shall be recovered under rules from the salary of the employee

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