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2019 Supreme(P&H) 943

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Harsimran Singh Sethi, J.
Surinder Kaur - Appellant
Vs.
State Of Punjab And Others - Respondent
Civil Writ Petition No. 1928 of 2007, 4127 of 2007
Decided On : 19-08-2019

Advocates Appeared:
Jasmeet Mehra, Adv., L.M. Gulati, Adv., Ranjivan Singh, Adv., Kanika Toor, Adv., Sunint Kaur, Adv.

Recovery of excess payment cannot be done without observing the rules of natural justice.

Headnote:Natural Justice - Recovery of Excess Payment - Pension - ACP Scheme - Class III and IV Employees - [NATURAL JUSTICE] - [RECOVERY OF EXCESS PAYMENT] - [PENSION] - [ACP SCHEME] - [CLASS III AND IV EMPLOYEES] - The court held that the recovery of excess payment cannot be done without observing the rules of natural justice. It stated that any order causing prejudice to an employee must be passed after affording an opportunity of hearing. The court also referred to the guidelines laid down by the Supreme Court in State of Punjab and others Vs. Rafiq Masih (White Washer) etc., 2015 (1) SCT 195, which stated that recovery cannot be ordered from Class III and IV employees. The court further held that recovery from retired employees or employees due to retire within one year is impermissible. It also stated that recovery cannot be done if the excess payment has been made for a period exceeding five years before the order of recovery is issued. The court concluded that the recovery of excess amount on refixation of pension and pay is bad and set it aside. The respondents were directed to refund any amount already recovered from the petitioners.

Fact of the Case:

The petitioner's husband, who was working in the Punjab Police, was killed by terrorists. The petitioner was entitled to certain benefits after her husband's death, but these benefits were not extended to her. The petitioner challenged the reduction of her family pension and the recovery of a certain amount without any show cause notice or opportunity of hearing.

Finding of the Court:

The court found that the reduction of the family pension and the recovery of the amount without following the rules of natural justice were unjust. It held that recovery cannot be done without affording an opportunity of hearing and observing the principles of natural justice.

Ratio Decidendi:

Recovery of excess payment cannot be done without observing the rules of natural justice. Recovery from Class III and IV employees is impermissible. Recovery from retired employees or employees due to retire within one year is also impermissible. Recovery cannot be done if the excess payment has been made for a period exceeding five years before the order of recovery is issued. Final Decision: The court set aside the recovery of the excess amount and directed the respondents to refund any amount already recovered from the petitioners.

JUDGMENT :

Harsimran Singh Sethi, J.

By this common order, above-mentioned two Civil Writ Petitions are being disposed of in the light of common question of law and similar facts involved. For the sake of convenience, the facts are being extracted from CWP No.1928-2007 titled 'Surinder Kaur Vs. State of Punjab and others'.

2. In CWP-1928-2007, husband of the petitioner was working in the Punjab Police and while on duty, her husband was killed by terrorists on 23.11.1990. After the death of her husband, petitioner was entitled for certain benefits such as free education to the children upto the University level; 2% reservation of LIG houses; allotment of residential and commercial sites and shops at reserved price; grant of interest free loan; issuance of yellow cards; grant to permit of plying Mini Buses; and allotment of fair price shops. It has been averred that though these benefits should have been given to the petitioner, but none of these benefit was extended to her, after the death of her husband. Only benefits, which was extended to the petitioner after the death of her husband was sum of Rs. 4,10,632/- as family pension.

3. The grievance of the petitioner is that suddenly, without giving any show cause notice, respondents reduced the family pension of the petitioner and also effected the recovery to the tune of Rs. 1,49,640/-. A specific averment has been made by the petitioner in paragraph No.8 of the writ petition that no show cause notice whatsoever was given to her before effecting the recovery. A challenge in the present writ petition is to the action of the respondents in reducing the pension of the petitioner and the consequent recovery from her that too without issuing any show cause notice and without affording any opportunity of hearing.

4. Similarly in CWP No.4127 of 2007, pay of the petitioners was refixed by withdrawing the benefit of ACP Scheme on completion of 8/16/24/32 years of service. After withdrawing the said benefit, the pay of the petitioners was fixed by the respondents. It is the case of the petitioners that before refixing their pay, no show cause notice whatsoever was given and they were not given any opportunity to present their case, except petitioner No.2, who was given a letter on 11.03.2005 (Annexure P-3) and that too after the refixation of his salary as to why the recovery should not be done. The benefit, which was granted to the petitioners by giving them the benefit of ACP in the year 2002, was withdrawn in the year 2005 and upon withdrawal of the said benefit, the pay of the petitioners was refixed and the excess amount was sought to be recovered.

5. At the time of hearing, counsels for the petitioners in both the writ petitions states that petitioners restricts their challenge to the recovery, which was ordered to be done from them.

6. Upon notice of motion, reply was filed by the respondents.

7. In the reply in CWP-1928-2007, the respondents-State have stated that after the husband of the petitioner died in extremists attack on 23.11.1990, pension was sanctioned to the petitioner on 13.05.1991. The family pension, which was sanctioned to the petitioner was Rs. 1600/- per month, which the petitioner was to get from 24.11.1990 till 30.11.2003, when her husband was to superannuate. After the said date from i.e. from 01.12.2003, petitioner was entitled to the family pension of Rs. 900/- per month, which her husband would have drawn had he remained alive on the said date. It has been mentioned that inadvertently, the family pension @ Rs. 1600/- per month was being paid to the petitioner and by the time, the mistake was realized by the respondents that an excess payment of Rs. 1,49,640/- had been paid to the petitioner. The respondents have stated that the payment of excess amount was inadvertent and therefore, the same could have been recovered. In respect of grant of no opportunity to the petitioner before effecting recovery, the reply is silent. Nothing has been placed on record as to wheth

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