IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
NAMIT KUMAR, J.
Sh. Daljit Singh - Petitioner
Versus
State of Punjab and Others - Respondents
CWP No. 18789 of 2016
Decided On : 06-02-2024
Mandamus - Recovery of Excess Payment - Article 226/227 of the Constitution of India - State of Punjab and others v. Rafiq Masih (White Washer) and others, 2015 (1) SCT 195
Fact of the Case:
The petitioner sought a writ of mandamus to direct the respondents to release the amount of Rs.70,000/-, which was deducted on account of wrong fixation of salary/excess payment. The petitioner had joined as Clerk in 1981 and retired in 2014. The respondent-department had recovered Rs.70,000/- from the petitioner, alleging wrong salary fixation.
Finding of the Court:
The court found that the recovery was made without any misrepresentation on the part of the petitioner. The court referred to the judgment in State of Punjab and others v. Rafiq Masih, which outlined situations where recoveries by employers would be impermissible in law.
Issues: The main issue was whether the recovery of the excess payment from the petitioner was justified.
Ratio Decidendi: The court relied on the judgment in Rafiq Masih's case, which outlined situations where recoveries by employers would be impermissible in law, and found that the recovery from the petitioner was not justified.
Final Decision: The petition was allowed, and the respondents were directed to refund the amount of Rs.68,631/- to the petitioner with interest.
JUDGMENT :
Namit Kumar, J.
1. Petitioner has invoked the extraordinary jurisdiction of this Court by filing present writ petition under Articles 226/227 of the Constitution of India, seeking a writ of mandamus for directing the respondents to release the amount of Rs.70,000/- which has been deducted by the respondents on account of wrong fixation of salary/excess payment.
2. Brief facts, as have been pleaded in the petition, are that the petitioner had joined as Clerk on 15.10.1981 in the office of respondent No.3 – Municipal Council, Gurdaspur and retired from service on 31.07.2014 on attaining the age of superannuation. It has been pleaded that the respondent-department has recovered a sum of Rs.70,000/- from the petitioner in instalments from year 2010 to 2013 from the account of the petitioner on the ground that salary of the petitioner was wrongly fixed and excess payment was made to him. Petitioner submitted a representation dated 12.05.2016 to the respondents for releasing the deducted amount of Rs.70,000/- as per law laid down by the Hon’ble Supreme Court in State of Punjab and others v. Rafiq Masih (White Washer) and others, 2015 (1) SCT 195. But no action has been taken on the said representation, therefore, petitioner has approached this Court through instant writ petition.
3. Separate written statements have been filed on behalf of respondents No.1 & 2 and respondent No.3-Municipal Council, Gurdaspur. In its reply, respondent No.3 has taken the following stand :
4. Learned counsel for the petitioner submits that since there was no mis-representation on behalf of the petitioner, therefore, no recovery could have been effected by the respondents. He has placed reliance on the judgment of the Hon’ble Supreme Court in Rafiq Masih’s case (supra).
5. Per contra, learned counsel for respondent No.3 submits that since amount of Rs.68,631/- has been recovered from the petitioner as the same was paid in excess due to wrong fixation of salary as the objection was raised by the audit department, therefore, the said amount has already been deducted in instalments, therefore, no cause of action arises to the petitioner to file the present writ petition as the same is not maintainable.
6. I have heard learned counsel for the parties and perused the record of the case.
7. Admittedly, the excess payment of Rs.68,631/- has been made to the petitioner, who stood retired as Class-III employee on 31.07.2014, on account of wrong fixation of salary, which was recovered during the year 2006-2013 by way of instalments. It is admitted fact that recovery was made during the year 2006 to 2013 but none of the sides have intimated this Court about the period of pay fixation, when mistake had been committed, however, there was no mis-representation on the part of the petitioner. The petitioner had given representation dated 12.05.2016 to this effect but to no avail.
8. Hon’ble Supreme Court in Rafiq Masih’s case (supra) has held as under: -
State of Punjab and others v. Rafiq Masih (White Washer) and others
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.
The main legal point established in the judgment is that no recoveries should be ordered or enforced after the retirement of employees if the excess payment was due to unintentional mistakes and the ....
Recovery of excess payments from retired employees is impermissible unless fraud or misrepresentation is established, as reaffirmed by the Supreme Court.
Recovery of excess salary impermissible from Group C employees due to employer's erroneous pay fixation.
Recovery of excess salary impermissible from Group ‘C’ employees due to erroneous pay fixation, per Supreme Court precedent.
Recovery of excess salary payments caused by departmental errors is impermissible from Group 'C' and 'D' employees.
Recovery of excess salary from employees in Class-III service is impermissible if no fraud occurred and payment was based on wrong fixation, aligning with principles of equity.
Recovery of excess salary payments from Class III and IV employees is impermissible when the overpayment resulted from employer error rather than employee misrepresentation, as such recovery causes u....
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