IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, C. KUMARAPPAN, JJ.
S. Varadharajan - Petitioner
Versus
The Secretary to Government, Home (Courts-V) Department & Ors. - Respondents
W.P. No. 12046 of 2024 and W.M.P. No. 13152 of 2024
Decided On : 27-06-2024
Recovery - Writ Petition - Article 226 - The court confirmed the refixation of pay but set aside the recovery of excess salary from a retired employee, emphasizing the hardship it would cause.
Fact of the Case:
The petitioner, a retired employee of the Judiciary, challenged the recovery of excess salary due to an erroneous pay fixation identified by an audit. The petitioner argued that he was not responsible for the error and that recovery would cause hardship.
Finding of the Court:
The court upheld the refixation of pay as per the applicable rules but recognized the undue hardship that recovery of excess salary would impose on the retired petitioner, leading to the decision to set aside the recovery.
Issues: Whether the recovery of excess salary from a retired employee is justified when the error was not due to any fault of the employee.
Ratio Decidendi: The court determined that while authorities can correct pay fixation errors, recovering excess salary from a retired employee, especially when it causes hardship, is not justified.
Result: The writ petition is partly allowed; recovery of excess salary is set aside.
ORDER :
S.M. Subramaniam, J.
[PRAYER: Writ Petition filed under Article 226 of the Constitution of India, to issue a writ of Certiorarified Mandamus, calling for the records relating the 3rd respondent proceedings issued in D.No.11363/2022 dated 15.12.2022, the consequential letter dated 16.08.2023 with respect to recovery proceedings and the impugned order passed by the 3rd respondent in D.No.8948/2023 dated 30.11.2023, quash the same and direct the respondents to regularize the petitioner's service from the date of joining in the post of Typist namely 27.08.2007 with all consequential service and monetary benefits and further direct the respondents to settle the retirement benefits of the petitioner within a reasonable time.]
The writ petitioner is a retired employee served in the Judiciary. The Internal Audit Wing of Madras High Court raised an audit objection stating that the pay admissible to the petitioner was erroneously fixed in the year 2007. Along with the audit slip, notice was issued to the petitioner by affording opportunity. The petitioner submitted his objections, which were considered by the learned Principal District Judge, Cuddalore. The order impugned was passed refixing the pay as admissible to the petitioner as per the pay Rules and Government Orders in force. Consequently, the excess salary paid for the period from 09.07.2009 to 31.10.2022 is directed to be recovered.
2. Mr. K. Venkataramani, learned Senior Counsel appearing on behalf of the petitioner would submit that the recovery of excess salary from the retired employee would result in hardship. The petitioner is not responsible for wrong fixation of pay in the year 2007. There is no misrepresentation on the part of the petitioner. The petitioner has not given any undertaking at the time of effecting revision of pay. Thus, the petitioner cannot be held responsible. Even in respect of revision of pay, the petitioner raised his objection and submitted explanations, which were not considered. Thus, the present writ petition came to be instituted.
3. Mr. A. Balaji, learned Counsel appearing on behalf of the respondents 2 and 3 would oppose by stating that the revision of pay was effected based on the Audit Objection raised by the Internal Audit Wing of the High Court. The error crept-in, in the fixation was identified and it is a rectification of error, which cannot be faulted. Therefore, the writ petition is to be rejected.
4. Undoubtedly, the Authorities competent are empowered to correct the errors/mistakes crept-in, if any in the pay fixation. Therefore, we do not find any reason to interfere with the refixation of pay made by the respondents in accordance with the pay Rules and Government Orders in force. No employee is entitled to get excess salary more than the admissible salary, which would result in unjust gain. The public money cannot be paid in excess to the employees. Therefore, the petitioner is entitled for the pay as admissible to him and as per the Government orders in force. Thus, the refixation of pay effected by correcting the error stands confirmed.
5. Regarding the recovery of excess salary, we find that there is a force in the arguments as advanced by the learned Counsel for the petitioner. The petitioner is retired from service. Recovery of such huge amount from the retired employee would result in hardship and he may not be in a position to meet out his day to day expenses including medical expenses etc., Therefore, we are inclined to interfere with the recovery of excess salary alone.
6. Accordingly, the revision of scale of pay/refixation made by the respondents stands confirmed. The recovery of excess salary alone is set aside. Since the pay has been corrected and refixed, the respondents are directed to settle all the terminal benefits within a period of three (3) months from the date of receipt of a copy of this order.
7. Accordingly, the Writ Petition stands partly allowed. No costs. Consequently, connected miscellaneous petition is
The court established that recovery of excess salary from a retired employee is unjustified if it causes undue hardship, despite the authority's power to correct pay errors.
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.
The court established that recovering excess salary from employees years after erroneous fixation causes undue hardship, especially for pensioners.
Recovery of excess salary after a significant delay is impermissible, especially when it causes hardship to employees, despite valid corrections in pay fixation.
Recovery of excess salary after a prolonged period is impermissible, especially when prior regularization orders are final.
Authorities have the power to correct pay fixation errors, but recovery of excess payments is not permissible if the employee did not misrepresent their pay and if such recovery would cause undue har....
Recovery of excess payment from a retired employee should not be allowed, especially in the absence of misrepresentation, as it would result in hardship. Any order affecting the right of an employee ....
Erroneous fixation of pay or pension can be corrected, but recovery after retirement causing hardship is not sustainable without evidence of misrepresentation or written undertakings.
The authority can rectify pay fixation errors at any time, but recovery of excess payments after a long delay may be unjust and cause hardship.
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