IN THE HIGH COURT OF MADHYA PRADESH
Vijay Kumar Shukla, J.
Sangita Agnihotri v. State of M.P.
Writ Petition No. 27081 of 2023 (I); Decided on 5.12.2024*
Civil Services -- recovery of excess payment -- Sub-Inspector died in harness -- Rs. 12,79,696/- recovered as excess payment from retiral dues -- no fault on part of employee -- no misrepresentation, cheating or fraud with department -- order of recovery quashed - - department directed to refund amount along with 6% interest within 3 months. (1994) 2 SCC 521, 1995 Supp. (1) SCC 18, (2009) 3 SCC 475 and (2015) 4 SCC 334 followed. 2024 SCC Online MP 1567 relied on. [Para 10]
flfoy lsok & vf/kd lank; dh olwyh & mifujh{kd dh lsokjr jgrs gq, e`R;q & lsokfuo`fÙk ns;¨a ls vf/kd lank; d¢ :i esa #i;s 12]79]696@& dh olwyh dh xà & deZpkjh dh v¨j ls d¨Ã =qfV ugha & foÒkx d¢ lkFk d¨Ã nqO;Zins'ku] Ny ;k diV ugha & olwyh dk vkns'k vfÒ[kafMr & foÒkx d¨ rhu ekl d¢ Òhrj 6 Áfr'kr C;kt lfgr jde dk çfrnk; djus dk funs'kA ¼1994½ 2 ,llhlh 521] ¼1995½ lIyhŒ ¼1½ ,llhlh 18] ¼2009½ 3 ,llhlh 475 rFkk ¼2015½ 4 ,llhlh 334 vuqlfjrA 2024 ,llhlh vkWuykbu ,eih 1567 voyafcrA ¼iSjk 10½
ORDER
1. The petitioner is challenging the order of recovery from deceased employee on the ground of wrong fixation of pay.
2. The facts of the case are that the husband of the petitioner was initially appointed as Assistant Sub-Inspector (M) and thereafter he was promoted on the post of Sub-Inspector (M). He died in harness on 20.10.2015 when he was working on the post of Sub-Inspector (M) in the office of Superintendent of Police Special Branch (Rail), Indore.
3. Counsel for the petitioner submits that on 15.3.2016, the respondents proposed to be recovered an amount Rs.20,96,548/- (principal Rs.12,79,696/- + Rs.8,16,852/- interest) from her deceased husband without there being any fault on the part of the deceased employee under various heads as excess payment alleged to have been made during the service of the husband of the petitioner and the recovery was done from the arrears of pension, GPF, leave encashment on 5.4.2023. By order dated 15.3.2016, 5.4.2023 and 26.4.2023 the respondents proposed to be recovered the amount against her husband.
4. Counsel for the State submits that the respondents have recovered only the principal part out of the said amount from the retiral dues of the deceased employee.
5. Counsel for the petitioner submits that the recovery cannot be made in the light of the judgement passed by the apex Court in the case of State of Punjab v. Rafique Masih (White Washer) , (2015) 4 SCC 334 . He further submits that it is not the case of the respondents that the deceased employee has made any misrepresentation or cheating with the department.
6. After hearing learned counsel for the parties and considering the fact that it is not the case of the respondents that there was any misrepresentation of fact or any fraud or cheating played by the petitioner with the department.
7. The Full Bench of this Court at Principal Seat, Jabalpur in identical matters has quashed such recovery orders by judgment dated 6.3.2024 passed in Writ Appeal No.815 of 2017 (State of Madhya radesh and Another v. Jagdish Prasad Dubey and Another) and connected writ petitions reported in 2024 SCC online MP 1567, it has been held in paragraph No.35 as under:
"Answers to the questions referred
35.(a) Question No.1 is answered by holding that recovery can be effected from the pensionary benefits or from the salary based on the undertaking or the indemnity bond given by the employee before the grant of benefit of pay refixation. The question of hardship of a Government servant has to be taken note of in pursuance to the judgment passed by the Larger Bench of the Hon’ble Supreme Court in the case of Syed Abdul Qadir (supra). The time period as fixed in the case of Rafiq Masih (supra) reported in (2015) 4 SCC 334 requires to be followed. Conversely an undertaking given at the stage of payment of retiral dues with reference to the refixation of pay or increments done decades ago cannot be enforced.
(b) Question No.2 is answered by holding that recovery can be made towards the excess payment made in terms of rules 65 and 66 of the rules of 1976 provided that the entire procedures as contemplated in Chapter VIII of the Rules of 1976 are followed by the employer. However, no recovery can be made in pursuance to Rule 65 of the Rules of 1976 towards revision of pay which has been extended to a Government servant much earlier. In such cases, recovery can be made in terms of the answer to Question No.1.
(c) Question No.3 is answered by holding that the undertaking given by the employee at the time of grant of financial benefits on account of refixation of pay is a forced undertaking and is therefore not enforceable in the light of the judgment of the Hon’ble Supreme Court in the case of Central Inland Water Transport Corporation Limited and Another v. Brojo Nath Ganguly and Another, reported in (1986) 3 SCC 136 unless the undertaking is given oluntarily."
7. In the case of Shyam Babu Verma v. Union of India, (1994) 2 SCC 521, the Apex Court wh
Recovery of excess payments from retired employees is impermissible under certain conditions, particularly relating to Class III and IV service classifications and time limits for recovery.
Recovery from retired employees is impermissible barring exceptional circumstances such as fraud or misrepresentation.
Recovery of excess payments from retired employees is impermissible due to hardship, and cannot be enforced when the employee is not responsible for erroneous salary fixation.
Recovery from retired employees for excess payments is impermissible, especially regarding interest, as it imposes undue hardship and lacks lawful justification when errors are not the employees' res....
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