Recovery of excess payments from Group C and retired employees is impermissible if it occurs after a gap of more than five years or upon retirement, provided there is no fraud or misrepresentation by the employee, as per the principles laid down in State of Punjab v. Rafiq Masih.

ORDER

BY JUSTICE AKHIL KUMAR SRIVASTAVA, JM;

1.The applicant has filed instant Original Application challenging the order dated 10.04.2024 whereby the respondent authorities passed the order of recovery of Rs. 4,49,164/- on the ground of excess payment on account of incorrect pay fixation.

2. The brief facts of the case is that the applicant was working on post of Loco Pilot (mail) and retired from his service on 30.04.2024, after attaining the age of superannuation. Just before the date of his retirement, he was served with an order dated 10.04.2024 by the respondents, which enumerates upon recovery of an excess payment of Rs. 4,49,164/- on account of alleged incorrect fixation of his pay from time to time. It was further informed to the applicant that the said recovery would be carried out by the respondent from the DCRG payable to the applicant. The applicant preferred a representation dated 25.04.2024 before the respondent authorities and submitted that after lapse of more than 20 years, that service sheet is sought to be reviewed and requested them not to stripe any of his referral benefits payable upon his retirement and neither to amend his pay fixation. Despite the representation preferred by the applicant, the respondents continued with the said recovery order without disclosing the reasons in the alleged order and the respondent authorities have reduced the basic pay of the applicant and made recovery on account of alleged over payment.

3. The respondents have filed their reply wherein they have contended that the respondents railway administration passed the order of recovery of Rs.4,49,164/- which has been paid to him excess on account of incorrect pay fixation. Their service sheet is sent 3 months before retirement to associate Accounts Department for review. While going through the service sheets of the applicant by Accounts Department it is found that the employee has been awarded increment during the non-functional promotion placement as per Estt. Rule 53/2003. Recovery in any head viz; overpayment, various advances, difference of house rent, electricity arrears if any arises during the review or at the time of calculation of settlement dues, recovery is being done through DCRG only as per Pension Manual 1983 Chapter-11. Thereafter overpayment of Rs. 4,49,164/- has been accrued and same has been certified by Accounts Department which has been deducted from DCRG of the applicant with the approval of competent authority.

4. The applicant in his rejoinder, have reiterated its earlier stand as has been averred in the Original Application.

5. Heard the learned counsel for both the parties and perused the pleadings and documents annexed therewith.

6. The main issue involved in the present case is whether recovery of excess payment due to wrong fixation can be adjusted from the retiral dues of the railway employee after retirement?

7. It is worthwhile to mention that it is a settled law on the point that firstly, no recovery can be made unless any fraud or misrepresentation is alleged on the part of any person from whom the recovery is being sought to be made and secondly, if at all there is any justification for making any recovery, then also adhering to the Principle of Natural Justice, a show cause notice is a condition precedent for making any such recovery. A bare reading of the entire case reveals that recovery order was issued in the year 2024 for the cause of 2004.

7.1 The Hon’ble Supreme Court in the matters of State of Punjab & Others vs. Rafiq Masih (White Washer) & Others, reported in (2015) 2 SCC (L&S) has been pleased to observe as under:-

"It is not possible to postulate all situations of hardship, whic