IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
M. Yasothai - Appellant
Versus
The Superintending Engineer, TANGEDCO, Thiruvannamalai & Others - Respondent
W.P. No. 17676 of 2014 & M.P. No. 1 of 2014
Decided On : 16-06-2022
Recovery of Excess Salary - Part Time Conservancy Worker - The court quashed the order of recovery of excess salary paid to a part-time conservancy worker, holding that the error in granting the time scale of pay was committed by the establishment and the excess amount cannot be recovered from the worker after a lapse of many years, resulting in hardship.
Fact of the Case:
The writ petitioner, a part-time conservancy worker, was granted time scale of pay with dearness allowance, but an audit objection was raised regarding the excess salary paid to the petitioner from 2007 to 2011.
Finding of the Court:
The court held that no show cause notice was issued to the petitioner before the order of recovery was issued, and the error in granting excess payment was committed by the establishment officials. The court quashed the order of recovery and allowed the writ petition with liberty for the respondents to initiate actions against the officials responsible for the error.
Issues: Recovery of excess salary, absence of show cause notice, responsibility for error in granting excess payment.
Ratio Decidendi: The court emphasized that an order affecting the rights of an employee should be issued only after affording an opportunity to the employee to defend his case. The error in granting excess payment by the establishment officials should result in recovery proceedings against them, not the worker.
Final Decision: The court quashed the order of recovery and allowed the writ petition, with liberty for the respondents to initiate actions against the officials responsible for the error. No costs were awarded, and the connected Miscellaneous Petition was closed.
JUDGMENT
(Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus, calling for the records Koo No. E.Nee. Po/ E2/Konalur/ Koppu-2/CAO 268-2014-15 dated 05.04.2014 on the file of the 3rd respondent herein and quash the same and consequently directing the respondents herein to re-fix pay the proceedings of the 1st respondent.)
1. The order of recovery dated 05.04.2014 issued based on the Audit Objection to recover the time scale of pay granted to the writ petitioner with effect from 2007 is under challenge in the present writ petition.
2. The writ petitioner is now working as part time conservancy worker in the time scale of pay with dearness allowance. The petitioner was initially appointed as part time conservancy worker in the year 2007. He was paid with consolidated pay/salary during the relevant point of time. The consolidated salary was increased periodically from time to time. The respondent / Board issued proceedings dated 29.09.2011, granting time scale of pay to part time conservancy workers. Consequently, the petitioner was also sanctioned with the time scale of pay with dearness allowance as per B.P.No.11 dated 02.08.2011. However, an audit objection was raised regarding the time scale of pay granted to the writ petitioner from his date of appointed i.e., from the year 2007 onwards till such time the B.P.No.11 was issued.
3. The learned counsel for the petitioner mainly contended that no notice was issued to the writ petitioner before issuing the order impugned. However, there is no misrepresentation or otherwise on the part of the writ petitioner. Even in case his salary was paid erroneously during the relevant point of time and in the event of recovering such a huge amount, the same will affect the normal life of the writ petitioner.
4. The learned Standing Counsel appearing on behalf of the respondents objected the said contentions by stating that part time conservancy workers during the relevant point of time was not eligible for the time scale of pay. They were initially appointed under consolidated pay/salary and the said salary was periodically increased, but the time scale of pay was erroneously granted to the writ petitioner. At that time the part time conservancy workers are eligible for time scale of pay with dearness allowance only based on the Board proceedings B.P.No.11 issued on 02.08.2011. Thus, based on the audit objection the excess salary paid to the petitioner from 2007 to 2011 is sought to be recovered.
5. Any order affecting the right of an employee is to be issued only after affording an opportunity to the employee to defend his case. In the present case, no show cause notice has been issued. That apart, the petitioner is working as conservancy worker and there was no misrepresentation or otherwise on the part of the petitioner, while granting time scale of pay in the year 2007. The error was committed by the respondents / Establishment for which the petitioner cannot be penalized after a lapse of many years. When the establishment committed an error in granting excess payment to such employees, the recovery proceedings are to be initiated against the officials, who have erroneously granted the pay and who all are accountable.
6. Thus, in such circumstances, where there is no misrepresentation on the part of the employee concerned and if establishment has committed an error and granted excess pay and the said amount is to be recovered from the establishment officials, who all are responsible and such excess pay cannot be recovered from such conservancy workers after a lapse of many years, which would result in hardship and they may not be in a position to repay such huge amount from their salary.
7. Thus, the respondents are at liberty to initiate all appropriate actions under service rules in force against the officials, who have committed an error by fixing time scale of pay or granting excess pay to the writ petitioner during the r
AI
An order affecting the rights of an employee should be issued only after affording an opportunity to the employee to defend his case, and recovery proceedings for errors in payment should be initiate....
Recovery of excess pay from employees, especially those in Class-IV categories, cannot be made if it would cause hardship.
Recovery cannot be initiated beyond the period of five years from the allegedly offending event.
The court established that while authorities can correct pay fixation errors, the recovery of excess payments must consider the potential hardship to the employee, especially after a long period.
Recovery of excess salary payments from Class III and IV employees is impermissible when the error in fixation is solely attributable to the employer and no misrepresentation by the employee exists, ....
Recovery of excess salary paid due to an employer's error from Class III or IV employees is impermissible if it results in hardship, even if the pay fixation is lawfully revised.
Opportunity must be provided before re-fixation of pay, and excess amount paid cannot be recovered from retired employees.
The court established that the petitioners were entitled to the higher pay scale as per the Government Resolutions and that the recovery initiated by the respondents was unjust, illegal, and arbitrar....
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