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2023 Supreme(P&H) 3410

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
M.S. RAMACHANDRA RAO, MRS SUKHVINDER KAUR, JJ.
Bhakra Beas Management Board & Anr. – Appellants
Versus
Jai Bhagwan – Respondent
LPA-2038 of 2019(O&M)
Decided On : 09-02-2023

Advocates Appeared:
For the Appellants :Mr.Rajesh Garg, Sr. Advocate with Mr.Pranav Chadha, Advocate.
For the Respondent:Mr.A.D.S. Jattana, Advocate.

Headnote:(A) The Supreme Court's decision in Rafiq Masih case regarding recovery from retired employees and the parameters including undue hardship due to timing of recovery were referenced. (Paras 21-25)

(B) Recovery cannot be made from retired employees or those nearing retirement, in light of the principle that at this stage, an employee's needs and earnings significantly change. (Paras 35-36)

(C) The employer must demonstrate fault on the part of the employee for recovery to be justified. (Paras 33-34)

Facts of the case:
The respondent retired as an Assistant Design Engineer and contested the recovery of excess payments made to him for almost 20 years due to employer error. His representations against the recovery were ignored, leading to the Writ Petition challenging the recovery order.

Findings of Court:
The Single Judge ruled the recovery unjustified due to the employee's long-standing service, lack of fraud, and the timing of recovery so close to retirement.

Issues: The core issue was whether the recovery was permissible given the timing and employee's status near retirement.

Ratio Decidendi: The court emphasized that recovery can be inequitable when made from employees retiring soon, legitimizing the Single Judge’s decision to quash the recovery order.

Result: Appeal dismissed.

Table of Content
1. background of the respondent's employment (Para 1 , 2 , 3 , 4 , 5)
2. details of pay fixation and recovery order (Para 6 , 7 , 8 , 9 , 10 , 11 , 12)
3. challenges to the recovery order (Para 13 , 14 , 15 , 16 , 17 , 18 , 19)
4. analysis of the single judge's order (Para 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27)
5. appellants' appeal and legal arguments (Para 28 , 29 , 30 , 31 , 32)
6. innocence of respondent in excess payment case (Para 33 , 34 , 35 , 36 , 37)
7. conclusion of appeal and dismissal (Para 38 , 39 , 40 , 41 , 42)

JUDGMENT

Mr M.S. Ramachandra Rao, J.

This Letters Patent Appeal is preferred against the judgment dt.16.10.2019 in CWP-5253-2016 passed by the learned Single Judge.

2. The said Writ Petition had been preferred by the respondent herein challenging an office order dt.24.08.2015 (P9) passed by the Secretary of Bhakra Beas Management Board ( for short 'the Board') rejecting the respondent's representation dt.27.2.2015 to stop recovery of Rs.1,79,463/- on the ground that an excess increment was paid to him from 15.09.1995 when Second Time Bound Pay Scale was granted to him.

3. The respondent was initially selected as a Draftsman by the Subordinate Service Selection Board in the Haryana Irrigation Department on 15.09.1979. He was promoted as Divisional Head Draftsman in Drawing Branch of the Board in 1998 and later promoted as Sub Divisional Officer on 16.05.2013.

4. Thereafter, he was working as Assistant Design Engineer with the appellants. He retired from service on 31.07.2015 after attaining the age of superannuation.

5. He had been granted, while in service, his second time bound pay scale on 15.09.1995.

6. Just prior to his retirement in the year 2015, his service book was demanded for revising the pay fixation. Thereafter on 10.02.2015, his pay was fixed and an amount of Rs. 275/- was taken out on the ground that it had been paid incorrectly.

7. Thereafter an office order dt.10.02.2015 (P2) was issued stating that his pay on grant of 16 years Time Bound Pay Scale was refixed at Rs. 2550/- w.e.f. 15.09.1995 in the scale of Rs. 2000-3500 instead of what was already fixed at Rs. 2640/- w.e.f. the said date in the said scale, and it was mentioned therein that recovery would be effected from 15.09.1995 onwards.

8. But no prior show cause notice was issued to the respondent before passing order dt.10.02.2015 (P2) and no justification was mentioned therein as to why the Second Time Bound Pay Scale was being withdrawn from him and his pay was being refixed. There was no mention that there was any conduct attributable to the respondent on the basis of which the pay revision was done and recovery was sought to be made.

9. Thereafter, order dt.26.02.2015 (P3) was issued reiterating that recovery would be effected from 15.09.1995 and it was indicated that his pay was refixed from 01.09.1998 upto 01.09.2005 with appropriate deductions at each stage. Thereafter, a new pay scale was fixed to the petitioner vide order dt.26.02.2015 (P4).

10. The Respondent contended that such recovery cannot be effected from his pay or retiral benefits as he had not represented or played fraud upon appellants to get the Second Time Bound Scale, and at the fag end of his service this cannot be done. The respondent submitted representation on 27.02.2015 (P5) opposing the recovery. There was no response to this representation and he later made other representations on 31.03.2015 and 01.04.2015.

11. The respondent also contends that on 17.04.2015 vide Annexure P6, the Director/Water Regulation of the appellant addressed a letter to the Chief Engineer, Bhakra Dam of the appellant referring to respondent's plan/representation opposing the recovery being made on the basis of the judgment of the Supreme Court in the State of Punjab and others v. Rafiq Masih, 2015(1) RSJ 177 rendered on 18.12.2014, prohibiting any such recovery from employees who were due to retire within one year of the order of recovery.

12. When there was no response

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