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2025 Supreme(MP) 310

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
VIVEK JAIN, J.
Kiran Agrawal - Appellant
Versus
The State of Madhya Pradesh and Others - Respondents
Writ Petition No. 19175 of 2023
Decided On : 06-08-2025

Advocates:
Advocate Appeared:
For the Appellant : Atul Kumar Rai
For the Respondent: Tapan Bathre

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' responsibility.

Headnote:(A) Police Act, 1861 - Recovery from retired employees - Impugned recovery orders against retired ministerial employees of the police force quashed - Recovery for excess salary paid after judicial re-fixation is impermissible, especially concerning interest payments due to hardships on the employees. (Paras 1, 11, 17)

(B) Legal principles of recovery - Recovery from retired employees or employees due to retire within a year from the order is impermissible. The undertaking given during the service period cannot justify recovery post-retirement, particularly when the fixation errors were not the employees' fault. (Paras 11, 18)

Facts of the case:
The petitioner, widow of a deceased police Sub Inspector, challenged a recovery order for Rs.12,91,395 principal and Rs.9,28,229 interest, issued after the husband's death, citing precedents where similar recoveries were quashed. (Paras 1, 2, 7)

Findings of Court:
The court determined that recovery orders against retired employees are not sustainable, particularly for interest, emphasizing hardships faced by petitioners and the lack of personal responsibility in excessive payment. (Paras 17, 18)

Issues: Whether recovery can be enforced against retired employees and the implications of previous decisions regarding similar cases. (Paras 4, 6)

Ratio Decidendi: The court held that subsequent decisions, particularly the Full Bench decision regarding recovery from retired employees, prohibit the enforcement of recovery orders after retirement, especially regarding interest, thus reinforcing earlier rulings. (Paras 11, 17)

Result: Petition allowed, recovery orders quashed, and any recovered amounts are to be refunded with interest. (Paras 17, 18)

ORDER :

1. The petitioner is widow of a deceased ministerial employee of the police force and she challenges the Order of recovery issued after death of the deceased employee who was working as Sub Inspector (Ministerial) in the M.P. Police Force. The recovery has been ordered vide Order dated 08.12.2022 whereas the husband of the petitioner expired on 13.02.2021 and recovery is after death of deceased Class III employee. The recovery includes Rs.12,91,395/- as principal amount and Rs.9,28,229/- as interest.

2. It is contended that initially various other Ministerial employees had filed writ petitions before this court and recovery ordered from the similarly situated employees was set aside only as to the interest part and not for the principal part. Thereafter in various other cases, the Coordinate Benches of this Court have set aside the recovery from Ministerial employees of the police for the principal part also even after considering the affect of judgment of the Supreme Court in case of S.H. Baig and Others Vs. State of M.P. and Others (Civil Appeal No. 9888-9899 of 2018). This was ordered in W.P. No. 19539/2020 ( Umakanti Parihar Vs. State of M.P. and Others ) by the Gwalior Bench of this Court.

3. Subsequently, another Coordinate Bench of this Court in W.P. No. 2629/2021 ( Tehsildar Singh Vs. State of M.P. and Others ) has also quashed the recovery of principal as well as interest part of Ministerial employees of the police.

4. In W.P. No.2629 of 2021, the Coordinate Bench of this Court has passed the following order:-

"1. Petitioners have filed these writ petitions challenging their respective orders of recovery, whereby certain amount has been directed to be recovered from them towards amount paid in excess on account of certain benefits granted to them erroneously. The amount of recovery also includes the interest on the excess amount paid.

2. The petitioner in W.P. No.2649/2021 (Om Prakash Singh Sikarwar) was initially appointed as Assistant Sub Inspector (M). In course of time, he was promoted to the post of Sub Inspector (M), Accountant and then ultimately as Head Clerk/Subedar (M). He retired on attaining the age of superannuation w.e.f. 31/8/2015. Since, there was some dispute pending with regard to anomaly in fixation of his salary, this petitioner was initially sanctioned anticipatory pension. The respondents vide order dated 13/5/2020 (Annexure P/3) revised his pay-scale in view of judgment of Apex Court in the case of S.H. Baig & Ors. Vs. State of M.P. & Ors. (2018) 10 SCC 621 and consequently, also revised his anticipatory pension vide order dated 14/7/2029 (Annexure P/4). Later on, the impugned order was passed on 2/11/2020 (Annexure P/1) whereby an amount of Rs.28,17,508/- has been directed to be recovered from the petitioner which includes an amount of Rs.15,64,163/- towards the excess amount paid and Rs.12,53,345/- is directed to be recovered towards interest.

3. The petitioner in W.P. No. 2646/2021 (Keshav Singh) was appointed as Assistant Sub Inspector (M) on 15/10/1984 and he retired from service w.e.f. 30/6/2016. His anticipatory pension was also revised vide order dated 13/5/2020 (Annexure P/3) and his pension was revised vide order dated 14/7/2020 (Annexure P/4). The respondents vide order dated 1/9/2020 (Annexure P/1) directed recovery of an amount of Rs.20,60,641/- out of which Rs.11,40,066/- was to be recovered towards excess payment while Rs.9,20,576/- was directed to be recovered towards interest.

4. Likewise, the petition in W.P. No.2629/2021 (Tehsildar Singh) was initially appointed as Daftari on 2/8/1965 and was later on re-designated as Head Constable (M). He retired from service on attaining the age of superannuation w.e.f. 31/8/2009. Like others, his salary was also revised vide order dated 22/6/2020 (Annexure P/3) while his pension was revised vide order dated 14/7/2020 (Annexure P/4). The recovery of an amount of Rs.11,85,707/- was directed against him, out of which Rs.6,73,729/- was to be r

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