BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
BATTU DEVANAND, J.
C. Porchelvi – Appellant
Versus
Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), Rep., by its Secretary,Chennai & Others – Respondents
W.P.(MD) No. 22395 of 2016 & W.M.P.(MD) No. 16039 of 2016
Decided On : 08-08-2023
Pay Anomaly - Service Jurisprudence - Tamil Nadu Electricity Board Revised Scales of Pay (Officers) Regulations, 1998 - Recovery of Excessive Salary and Allowance - Cancelled Order - Recovery Beyond Five Years
Fact of the Case:
The petitioner, an Assistant Engineer, sought refixation of pay on par with a junior colleague due to a pay anomaly. The respondents rectified the pay anomaly in 2008 but later cancelled the order and sought to recover excessive salary and allowances from the petitioner.
Finding of the Court:
The court found that the impugned order was issued beyond the prescribed period of five years, making it liable to be set aside.
Issues: The issues revolved around the rectification of pay anomaly, recovery of excessive salary and allowances, and the validity of the impugned order in light of service jurisprudence and constitutional principles.
Ratio Decidendi: The court relied on the principle that recovery cannot be initiated beyond the period of five years from the allegedly offending event, as established in the State of Punjab and others Vs Rafiq Masih (White Washer) case.
Final Decision: The court allowed the writ petition, setting aside the impugned order and closing the connected miscellaneous petition.
JUDGMENT
(Prayer:Petition filed under Article 226 of the Constitution of India praying for issue of Writ of Certiorari to call for the records relating to the impugned proceedings of the 1st respondent in reference Memo No.008038/G. 17/G-171/2015-1, dated 19.08.2016 and quash the same.)
1. Heard Mr.V.Veerapandian, learned counsel for the petitioner and Ms.M.Parameswari, learned Standing Counsel appearing for the respondents.
2. The case of the petitioner is that he is an Engineering Graduate. He joined as Assistant Engineer (Training) with the then Tamil Nadu Electricity Board, now known as Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) on 07.06.1995. He was confirmed and appointed as Assistant Engineer on 07.09.1995 in the basic pay scale of Rs.2150-85-2570-85-3050-105-3680 and drawing a basic pay of Rs.2,150/-. Thereafter, he passed the Electricity Account Test of the Department and was granted incentive increment and his pay was increased to Rs.2,235/- on 24.05.1996. He was also granted regular annual increment and his basic pay scale was increased to Rs.2,235/- on 24.05.1996. He was also granted regular annual increment and his basic pay scale was increased to Rs.2,320/- with effect from 01.07.1996.
3. One Mrs.R.Meenakshi, a junior to the petitioner joined as Assistant Engineer (Training) on 04.10.1995 and she was appointed after training as Assistant Engineer on 04.01.1996, four months later to the petitioner. She also passed Department Accounts Test on 24.05.1996. She was granted annual increment on 01.07.1996, since she did not complete her one year by then. Hence, she was drawing less pay than the petitioner being a junior. During that relevant point of time, the petitioner''s pay stood higher than Tmt.R.Meenakshi because of the petitioner''s earlier regular annual increments and increment due to the passing of the Department Test.
4. The then Tamil Nadu Electricity Board, by orders in B.P.No.59, dated 18.07.1998, ordered revision of scale of pays, rates of Dearness Allowance, House Rent Allowance, City Compensatory Allowance, Special Pays and other allowances with effect from 01.12.1996 by notifying Tamil Nadu Electricity Board Revised Scales of Pay (Officers) Regulations, 1998. Accordingly, the petitioner was entitled to draw salary from the basic pay scale of Rs.7225-225-12175 and her basic pay was fixed as Rs.7,225/- with effect from 01.12.1996. In terms of the revision brought by the said Regulations, the petitioner''s pay and her junior''s pay was fixed in the basic pay scale of Rs.7225-225-12175. Subsequently, she was given an annual increment on 01.01.1997 and her pay was increased to Rs.7,450/- in the same scale. But, no refixation was done to the petitioner. Thus, as on 29.05.1997, the petitioner''s basic pay scale stood at Rs.7,225/- only, whereas the basic pay scale of his junior Tmt.R.Meenakshi was fixed at Rs.7,675/-. The situation continued for the further years with periodical increase to the junior and the petitioner''s salary being lesser than the junior.
5. Under these circumstances, the petitioner submitted a representation dated 22.12.2016 to the then Superintending Engineer, Madurai Electricity Distribution Circle for refixation of her pay on par with her junior Tmt.R.Meenakshi. The Superintending Engineer, Madurai Electricity Distribution Circle recommended for refixation of the petitioner''s scale of pay on par with her junior. In turn, the Secretary, Tamil Nadu Electricity Board, ordered refixation of the pay scale of the petitioner on par with her junior by proceedings dated 24.10.2008. Accordingly, the respondents rectified the pay anomaly as ordered by the 1st respondent vide proceedings dated 19.03.2009.
6. To the shock and surprise of the petitioner, she was informed that by Audit Slip No.1, dated 17.05.2014, the Audit Department has raised objection to the refixation of the petitioner''s pay on the ground that the pay anomaly was due to her availing of a leave and not draw
Recovery cannot be initiated beyond the period of five years from the allegedly offending event.
The binding nature of an employee's undertaking regarding the recovery of excess pay and the authority of competent authorities to re-fix pay scale based on applicable Pay Rules and Government Orders....
Recovery of alleged excess salary payments from Group 'C' or 'D' employees, which occurred due to administrative error without any misrepresentation by the employee, is impermissible in law.
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....
The central legal point established is that any order affecting the rights of an employee should be passed only after affording an opportunity to the employee concerned, in accordance with the princi....
Recovery of excess payment from employees must adhere to principles of natural justice and cannot be made after an unreasonable delay, especially for Class-3 employees.
The central legal point established in the judgment is that any order affecting the rights of an employee, such as the fixation of pay, should be passed only after affording an opportunity for a hear....
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.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.