IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M.Subramaniam, C.Kumarappan, JJ.
E.Kasthuribai Gandhi W/o. S.T.Jothi - Petitioner
Versus
The Secretary to Government, Home (Courts-V) Department and ors. – Respondents
W.P.No.14289 of 2024 and W.M.P.No.15513 of 2019
Decided On : 11-06-2024
AUDIT OBJECTIONS - EMPLOYMENT LAW - The court addressed the legality of audit objections regarding the recovery of excess salary paid to the petitioner, emphasizing that the date of regularization was final and that recovery after a prolonged period would cause undue hardship. The court upheld the revised pay fixation in accordance with applicable rules.
Fact of the Case:
The petitioner was appointed as a Copyist in 2007 and later promoted to Head Clerk. Her services were regularized from 09.07.2009, but the Internal Audit Wing raised objections regarding increments granted from her initial appointment, leading to a demand for recovery of excess payments.
Finding of the Court:
The court found no fault in the petitioner's actions regarding pay fixation and confirmed that the regularization date was final. It ruled that the audit objections concerning excess salary were valid but emphasized that recovery after several years would cause hardship.
Issues: Whether the audit objections regarding the recovery of excess salary were justified and whether the petitioner was entitled to increments from her initial appointment date.
Ratio Decidendi: The court held that the regularization date of 09.07.2009 was final and that recovery of excess salary after a prolonged period is impermissible, thus confirming the revised pay fixation.
Result: The court set aside the recovery of excess salary and confirmed the revised pay fixation, allowing the writ petition in part.
ORDER :
S.M.SUBRAMANIAM, J.
The Audit Objections raised by the Internal Audit Wing of Principal Seat of Madras High Court is under challenge in the present writ proceedings.
2. The writ petitioner was initially appointed to the post of Copyist through Employment Exchange. Subsequently, she was promoted to the post of Head Clerk and working as such.
3. It is not in dispute that though the petitioner was appointed to the post of Copyists in the year 2007, her services were regularised with effect from 09.07.2009 in proceedings dated 16.03.2011 in the post of Copyist. The order of regularization issued in the year 2011 became final. Thus, the date of regularization of the petitioner is to be considered as 09.07.2009 for all purposes.
4. The Internal Audit Wing raised an objection that the increment granted from the date of initial appointment in the year 2007 was not in accordance with the Pay Rules and consequently, raised an objection and ordered for recovery of excess pay and allowances disbursed to the writ petitioner.
5. Mr.K.Venkat Ramani, learned Senior Counsel would contend that there is no fault on the part of the petitioner. The petitioner has not made any misrepresentation regarding fixation of pay. She was appointed in the year 2007. Her regularization with effect from 2009 itself is not in consonance with the Rules in force. Similar cases were already considered by this Court and regularisation was granted with retrospective effect.
6. Mr.M.T.Arunan, learned Counsel appearing on behalf of the respondents 2 to 4 would oppose by stating that the regularization remains unchallenged. Once the date of regularization of the petitioner is 09.07.2009, she is not entitled to get increment from the date of appointment. Audit objections raised is accordance with the Pay Rules and Government Orders in force. Therefore, Audit Objections raised is to be sustained.
7. We are of the considered opinion that there was no misrepresentation on the part of the petitioner, while fixation of pay at the time of appointment or while revising the pay in the promotional post. The Establishment fixed the pay and further it was revised on her promotion. The date of regularization cannot be now altered, since the proceedings issued in the year 2011 and become final. Thus, the date of regularisation of the petitioner is 09.07.2009 and the benefits are to be granted based on the said date. The Audit Objection raised regarding excess payment of salary alone is to be considered by this Court. The excess salary, even as per the Audit Objections was paid in the year 2007 and in the event of recovery of the said amount now after a lapse of several years, it would result in hardship to the employee. Recovery of excess salary after a prolonged period is impermissible. Lump-sum recovery would result in hardship to the employee. But the revised pay as done in accordance with the Pay Rules and Government Orders in force is to be confirmed.
8. For all these reasons, the recovery of excess salary alone is set aside. The revised fixation done in accordance with Pay Rules and Government Orders in force stands confirmed and the Writ Petition stands allowed-in-part. No costs. Consequently, connected miscellaneous petition is closed.
Recovery of excess salary after a significant delay is impermissible, and the date of regularization, once established, cannot be altered to affect pay increments.
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....
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 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 authority can rectify pay fixation errors at any time, but recovery of excess payments after a long delay may be unjust and cause hardship.
Recovery cannot be initiated beyond the period of five years from the allegedly offending event.
The court emphasized that recovery of excess payments from Group-D employees is impermissible, and actions taken without due process violate principles of natural justice.
Redeployment to a post with identical pay scale does not constitute promotion, and excess personal pay need not be recovered from the retired employee.
Government cannot retrospectively reduce an employee’s pay or recover excess payments without due process, especially post-retirement.
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