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2026 Supreme(Online)(Gau) 14974

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Budi Habung, J
JAHINDRA BRAHMA – Appellant
Versus
THE STATE OF ASSAM AND 5 ORS – Respondent
WP(C)/3144/2023



Advocates:
For the Appellants/Petitioners: A. K. Hussain
For the Respondents: R. R. Gogoi, A. Baruah, A. Chaliha

Recovery of excess payments from retired employees is impermissible if the error was caused by the employer and no fraud or misrepresentation was committed by the employee, as such recovery is arbitrary and inequitable.

Headnote:(A) Recovery of Excess Payment - Retired Employee - Gratuity - Recovery of excess payment made due to employer's technical error or wrong calculation, in the absence of fraud or misrepresentation by the employee, is impermissible and inequitable. (Para 12, 15)

(B) Equity and Hardship - Pensionary Benefits - Recovery from retired employees causes undue hardship and is arbitrary, and such relief is granted based on equity and judicial discretion. (Para 12, 13)

Issues: Whether recovery of alleged excess gratuity, in absence of misrepresentation or fraud on the part of the petitioner, is legally sustainable?

Table of Content
1. background of gratuity payment and the subsequent recovery order based on alleged technical error. (Para 2 , 3 , 4 , 5 , 6 , 7)
2. arguments regarding the legality of recovering excess payments from a retired employee. (Para 8 , 10 , 11)
3. legal principles and precedents prohibiting recovery from retired employees in the absence of fraud. (Para 12 , 13 , 14)
4. application of the 'no-recovery' principle to the facts of the current case. (Para 15 , 16 , 17)
5. quashing of the recovery order and direction for refund of the recovered amount. (Para 18 , 19 , 20 , 21 , 22)

Whether the pronouncement is of the Operative part of the Judgment? :No

Whether the full Judgment has been pronounced ? : Yes

JUDGMENT & ORDER

(CAV)

Heard Mr. A. K. Hussain, learned counsel for the petitioner. Also heard Mr. R. R. Gogoi, learned Standing Counsel, Forest for the respondent Nos. 1 & 4; Mr. A. Baruah, learned Standing Counsel, AG for the respondent No. 3; and Mr. A. Chaliha, learned Standing Counsel, Finance for the respondent No.6.

2. The present writ petition raises a short but important question regarding the legality of recovery of alleged excess payment of gratuity from the pensionary benefits of a retired employee.

3. The brief facts of the case is that the petitioner was appointed as Forest Range Officer on 02.05.1976. He retired from the service on 30.10.2011 as Assistant Conservator of Forests (ACF).

4. Initially, by an order dated 11.07.2019, the petitioner was paid DCRG amounting to Rs. 6,76,253/- (Rupees six lakhs seventy-six thousand two hundred fifty-three only). Thereafter, by an order dated 28.09.2020, the pension of the petitioner was revised. Upon revision, a further amount of Rs. 1,54,341/- (Rupees one lakh fifty-four thousand three hundred forty-one only) was released to the petitioner, making the total gratuity amount of the petitioner to Rs. 8,30,594/- (Rupees eight lakhs thirty thousand five hundred ninety-four only).

5. Since the benefits entitled to him was denied, he filed writ petition being WP(C) No. 1511/2020 seeking direction for promotional and financial benefits, consequential arrears, and re-fixation of pension amounts. During pendency of WP(C) No. 1511/2020, the petitioner was retrospectively promoted to the rank of Deputy Conservator of Forests (DCF) w.e.f. 26.11.2010 by order dated 17.08.2022. Subsequently, pursuant to direction of this Court dated 24.08.2022, passed in WP(C) No. 1511/2020, the respondent authorities had worked out and recalculated the pensionary benefits and released the dues.

6. However, by impugned order dated 26.12.2022, the respondent No. 3 directed recovery of Rs. 1,30,594/- (Rupees one lakh thirty thousand five hundred ninety-four only) from the petitioner on the ground of “excess payment” of gratuity, to be adjusted from pensionary benefits. The said order being relevant is reproduced as follows:

“O.O the Principal Accountant General(A& F)Assam,

Maidamgaon, Beltola, Guwahati-781029

No. PR-6/Seq No.8051/A-055180/Rev/R2/2022 dated 14/12/2022

To,

The Treasury Officer

Bongaigaon, PIN- 783380

Sub: Payment of Revised Pension etc. in respect of Shri Jahindra Brahma Retd. Assistant Conservator of Forest holder of PPO No.902611256713.

Sir,

Consequent upon revision pension case in terms of OM No.PPG(P) 88/2010/27 dated 01/06/2010, the pensionery benefits of

SHRI JAHINDRA BRAHMA RETD. ASSISTANT CONSERVATOR OF FOREST

has been revised as follows :-

I) Pension @ Rs. 43080/- (Rupees forty three thousand eighty only) p.m w.e.f. 01/11/2011 onwards.

II) Reduced payment @ Rs. /- (Rupees only) p.m. from the date of commutation or w.e.f. 01.11.2011 whichever is later till the date of restoration of pension due to commutation of Rs./- (Rupees only) only p.m.

III) In the event of death of pensioner Enhanced Family Pension @ Rs./-(Rupees only) only p.m. from the date following the date of death of the pensioner for the period of 7 (seven) or upto 08.10.2016 whicheve

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