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2025 Supreme(Online)(CAT) 10777

CENTRAL ADMINISTRATIVE TRIBUNAL
MR. RAJINDER SINGH DOGRA, J, MR. M.L. SRIVASTAVA, A
Bidhan Chanda – Appellant
Versus
The Union of India – Respondent
Original Application Nos. 040/00098/2020



Advocates:
For the Appellants/Petitioners: Sri M. Chanda, Smt. U. Dutta
For the Respondents: Sri V.K. Bhatra, Sr. CGSC

Excess payments made due to administrative error cannot be recovered if no fraud or misrepresentation by the employee exists, aligning with established legal principles concerning employee rights.

Headnote:(A) Administrative law - Recovery of excess payment - Recovery of excess amount from employee due to wrong fixation of pay is not permissible unless there is fraud or misrepresentation by the employee - Reference made to State of Punjab Vs Rafiq Masih, AIR 2015 SC 696. (Paras 5, 12, 19)

(B) Principle of natural justice - No show-cause notice issued before recovery actions, violating principles of natural justice. (Paras 2, 3, 20)

Facts of the case:
The applicant, a Stenographer Grade-1, challenged several orders of recovery of Rs. 7,83,484/- on grounds of wrong pay fixation without prior notice. (Paras 1, 2)

Findings of Court:
The recovery is not permissible after such a long gap without fraud or misrepresentation, and the applicant's pay must be re-fixed without recovery. (Paras 19, 20)

Issues: The principal issue involved whether recovery of excess payment due to administrative error is lawful after a significant time has elapsed. (Paras 11, 12)

Ratio Decidendi: Recovery from an employee after long duration of erroneous payment is impermissible without fraud; erroneous payments must eventually be corrected. (Paras 5, 12, 19)

Result: The OA is disposed of without any recovery.

Table of Content
1. recovery of excess salary based on wrong pay fixation. (Para 1 , 2 , 3 , 4)
2. no recovery permissible without fraud or misrepresentation. (Para 5 , 6 , 12)
3. criteria limiting recovery based on employee circumstances. (Para 11 , 16 , 18)
4. re-fixation of pay valid; recovery not permitted. (Para 19 , 20)
5. case disposed without recovery. (Para 21)

ORDER

PER MR. RAJINDER SINGH DOGRA, MEMBER (J):

Smt. U. Dutta, learned counsel for the applicant submitted that this application is made against the impugned order of excess recovery dated 20.06.2018, 13.06.2019, 27.01.2020 and impugned order dated 20.02.2020, issued by Doordarshan Kendra Guwahati, whereby an excess amount to the tune of Rs. 7,83,484/-, excluding other allowance like DA, SDA & HRA etc. is sought to be recovered from the applicant for the period from 01.01.2006 to 01.06.2018. At the time of filing the instant O.A., applicant was working as Stenographer Grade-1 in the Office of the Doordarshan Kendra Guwahati. It is pertinent to mention here that the alleged recovery of Rs. 7,83,484/- is sought to be recovered on the alleged ground of wrong fixation of pay carried out in compliance with the instructions contained in DG AIR letter bearing no. A-26022/02/2012-S.II/1328 to 1330 dated 03/04-10-2012, which was implemented by the local Head of Office i.e. Programme Executive (DDO) Doordarshan Guwahati vide Order bearing letter no. PPC(NE)/DD/GUW/10(3)/2012-S/3689 dated 10.01.2013, and also on account of wrong fixation of pay carried out following introduction of CCS (Revised Pay Rules) 2008 w.e.f. 01.01.2006 in respect of the present applicant by the Director PPC (NE) Doordarshan Guwahati. The applicant has no hand or involvement in carrying out the so called wrong fixation of pay on account of introduction of CCS (Revised Pay Rules) 2008 w.e.f. 01.01.2006 and also on account of wrong instruction contained in DG AIR letter dated 03/04.10.2012.

2. Learned counsel submitted that additional one increment, which was alleged to have been granted to the applicant on account of stepping up of pay at par with his junior in fact the said increment also had withdrawn from 01.07.2018, by reducing and re-fixing his pay following Audit Objection. However, it is to be noted here at this stage that the applicant actually submitted his application dated 05.02.2009 for equating his pay at par with his junior Shri A.K. Barbhuyan, Stenographer Grade-I, but the benefit of the option given by the applicant pursuant to the OM bearing letter no. F No. 1/1/2008-IC dated 29.01.2009, issued by the Govt. of India, Ministry of Finance, Department of Expenditure. Be it stated that the said option of the applicant is given within the stipulated period of one month as per OM dated 29.01.2009 but it is alleged that the applicant has not furnished any option for such stepping up of pay from reliable source and therefore benefit of stepping up has been withdrawn w.e.f. 01.07.2018 in an arbitrary manner inspite of submission of application dated 05.02.2009. But surprisingly the alleged excess payment both on account of wrong fixation of pay w.e.f. 01.01.2006, on introduction of CCS (Revised Pay Rules) 2008, and also on account of alleged re-fixation of pay, an amount of Rs. 7,83,484/- is now sought to be recovered from the applicant. It is also alleged that the stepping up of pay of the applicant with his junior A. K. Barbhuyan, Stenographer Grade-I, has also been wrongly carried out in the absence of any option from the applicant which resulted alleged excess payment of Rs. 7,83,484/- vide impugned order dated 20.06.2018, impugned memo dated 13.06.2019, impugned order dated 27.01.2020 and impugned memo dated 20.02.2020. Be it stated that before issuing the impugned orders/memo's as stated herein above for recovery of alleged excess amount of Rs. 7,83,484/-, no show-cause notice has been issued to the applicant and thereby denied reasonable opportunity of being heard and also violated the princ

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