Government servants are not entitled to receive excess payment from the government, and recovery of excess payments is justified to prevent unjust enrichment.

ORDER :

The order of recovery issued by the third respondent in proceeding, dated 28.07.2014, to recover the excess Pay Commission arrears paid to the writ petitioner is under Challenge in the present writ petitions.

2. The writ petitioner was initially appointed as Panchayat Clerk and thereafter promoted as Panchayat Secretary. The contentions of the writ petitioner is that the Government issued G.O.(Ms.)No.191, Finance (Pay Cell) Department, dated 29.04.1998 and issued orders revising the pay of the employees on Consolidated Pay/Honorarium/Fixed Pay be allowed to increase the remuneration subject to a minimum benefit of Rs.50/- per annum. After adjusting the three installment of the interim relief and as such the employees of the Panchayat were also paid arrears from 01.01.1996.

3. The learned counsel appearing on behalf of the writ petitioner states that the writ petitioner is also eligible to avail benefits granted in G.O.(Ms.)No.191, dated 29.04.1998. The benefits granted in G.O. (Ms.)No.191 was sanctioned and disbursed to the writ petitioner by the Panchayat. Subsequently, there was an Audit objection on the ground that the said G.O.(Ms.)No.191, Finance (Pay Cell) Department, dated 29.04.1998 is not applicable in respect of the permanent employees of the Panchayat, who all are working in a sanctioned post in the regular time scale of pay. In other words, the G.O.(Ms.)No.191, dated 29.04.1998 is applicable only in respect of the employees, servicing on Consolidated Pay/ Honorarium / Fixed Pay. Thus, the benefits granted to the writ petitioner is erroneous and amounts to unjust enrichment.

4. Under these circumstances, the impugned order of recovery has been issued to recover the excess arrears of pay commission amount paid to the writ petitioner with reference to G.O.(Ms.)No.191.

5. The learned counsel appearing on behalf of the writ petitioner further states that this Court had already held that the benefit of G.O. (Ms.)No.191 is to be extended to the employees of the Panchayat, in view of the judgment of this Court, the benefits already extended to the writ petitioner is in accordance with the Government Order and therefore, the impugned order of the recovery is liable to be set aside.

6. The learned Additional Government Pleader appearing on behalf of the respondents disputed the contentions raised by the writ petitioner by stating that the order passed by the Division Bench in the Review Application in Rev.Aplc(MD)No.178 of 2018, dated 05.04.2019 and the relevant portions are extracted here under:-

“14.In the light of the above coupled with the fact that there is absolutely no change in the status between the government servants and the employees of the Government bodies, we find there is considerable force in the submission of the learned additional Government Pleader. Moreover, the judgment of the Division Bench rendered in W.A.(MD) No.1270 of 2012, no relief has been granted to similarly placed employees by taking note of the fact that they have been brought under regular time scale of pay.

15.Thus, we feel that this is a fit case where the Review Application has to be allowed especially when the respondents have already been brought under regular time scale of pay.

16.With the above observation the Review Application is allowed. No costs.”

7. May that it be, this Court is of the considered opinion that the issue to be considered in this writ petition is that whether the writ petitioner is entitled to get the pay commission arrears with reference to the order issued by the Government in G.O.(Ms.)No.191, Finance (Pay Cell) Department, dated 29.04.1998.

8. Let us now, look into the Government Order issued in G.O. (Ms.)No.191, which is extracted here under.

“2.The Government has accepted the above recommendation of the Committee and direct the employees on Consolidated Pay / Honorarium / Fixed Pay be allowed 40% increase in their remuneration as on 01.01.1996.

3.The amount arrived at as above shall ensure a minimum net increase