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2025 Supreme(MP) 328

IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
VIVEK JAIN, J.
Meghraj Namdeo - Appellant
Versus
The State of Madhya Pradesh and Others - Respondents
Writ Petition No. 30594 of 2023
Decided On : 07-08-2025

Advocates:
Advocate Appeared:
For the Appellant : Atul Kumar Rai
For the Respondent: Ved Prakash Tiwari

Recovery of excess payments from retired employees is impermissible, considering hardships and the principles established in relevant precedents.

Headnote:(A) Police Act, 1861 - Recovery of excess payments - The court quashed the order of recovery against retired ministerial employees of the police, relying on precedents where recovery after retirement is impermissible. The judgment also referenced the case of S.H. Baig and the principles outlined in Rafiq Masih. (Paras 11-17)

(B) Recovery laws - The court reaffirmed that recovery from retired employees or those nearing retirement must consider the hardships faced, thus emphasizing judicious application of recovery laws post-retirement. (Paras 16-17)

(C) Indemnity bonds - The court found that the undertakings provided at retirement cannot justify recovery, highlighting inadequate grounds for enforcement of such bonds after many years. (Paras 11-12)

Facts of the case:
The writ petition involved a retired police department employee challenging the recovery of over Rs.6 lakh from his retirement benefits, previously subject to revision under erroneous pay fixation. The High Court's decision affirmed prior similar findings in favor of affected employees.

Findings of Court:
The court ruled that the recovery orders were not sustainable, requiring refunds to the petitioners with interest at 6% per annum.

Issues: The primary issue revolved around the legality of recovering excess payments made to retired employees.

Ratio Decidendi: The court determined reliance on previous judgments, which set precedents against recovery after retirement based on hardships and the nature of the undertakings given.

Result: Writ petitions allowed; recovery orders quashed.

Table of Content
1. challenge to recovery after retirement. (Para 1 , 5 , 6)
2. previous decisions impacting recovery order. (Para 2 , 3 , 4)
3. arguments for and against recoveries. (Para 7 , 8)

ORDER :

1. The petitioner is a retired ministerial employee of the police force and he challenges the Order of recovery issued after retirement of the employee who was working as Sub Inspector (Ministerial) in the M.P. Police Force. The recovery has been ordered vide Order dated 24.01.2020 (Annexure P-1) and recovery is after retirement of Class III employee. The recovery includes Rs.6,26,462/- as principal amount.

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 recove

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