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2026 Supreme(Online)(Ker) 34243

IN THE HIGH COURT OF KERALA AT ERNAKULAM
Viju Abraham, J
Annakutty V J – Appellant
Versus
State Of Kerala – Respondent
WP(C) No. 12512 of 2025



Advocates:
For the Appellants/Petitioners: Neeraj Narayan, R.Harikrishnan, Sanel Cherian, A.S.Salma
For the Respondents: Haritha V A

Recovery of excess pension payments from a retiree is impermissible when the overpayment resulted from a bona fide administrative error by the state, rather than through misrepresentation or fraud by the employee, especially after a significant lapse of time.

Headnote:The petitioner, a retired teacher, challenged the recovery proceedings initiated by the state authorities regarding alleged excess pension payments made since 2002. Relying on established precedents, the court examined whether recovery was permissible when the overpayment resulted from employer error absent any fraud or misrepresentation by the employee. The court determined that recovery after approximately 24 years was unjust, as the error was attributable solely to the government. The core issues framed were whether pensionary recovery is permissible for payments made due to calculation errors by the department after a significant lapse of time and whether such recovery unfairly prejudices a superannuated pensioner. The court held that, as established in various Apex Court rulings, recovery of excess emoluments is prohibited if the payment was not procured through employee fraud or misrepresentation, particularly post-retirement. The writ petition is allowed, the impugned notices and recovery proceedings are set aside, and the respondents are directed to refund the recovered amounts with 6% interest within one month.

Table of Content
1. factual background of pension fixation errors and subsequent recovery attempts. (Para 2 , 3)

JUDGMENT

Dated this the 8th day of June, 2026 Above writ petition is filed seeking to set aside Exts.P3, P4 and P5.

2. The petitioner was a Professional Development (PD)

Teacher who retired from service as early as on 31.03.2002. The amount of monthly pension before computation was fixed and the petitioner has been receiving a monthly salary accordingly. While so, the 4th respondent informed the petitioner that the Deputy Director of Treasuries, Southern Range, Kottayam conducted an inspection on 13.08.2024 to 14.03.2024 in the accounts and found that some errors had occurred regarding the calculation of the pension amount paid to the petitioner. Thereafter as per Exts.P4 and P5, steps were taken for the recovery of the excess amount paid to the petitioner. Petitioner submits that the recovery now ordered as per Exts.P3, P4 and P5 are due to wrong fixation done by the Government which happened as early as in 2002 and the steps taken for recovery of the same after a lapse of almost 24 years are liable to be interfered with.

3. A detailed counter affidavit has been filed by the 4th respondent, wherein it is stated that an anomaly was noted in the fixation of pension of the petitioner in the inspection conducted by the Deputy Director of Treasuries of Southern Region, Kottayam and suggested that Rs.2,35,651/- is paid in excess and the same is to be recovered. Accordingly, an amount of Rs.1,35,094/- was recovered from the petitioner’s monthly pension as instalments and from pension revision arrears and that an amount of Rs.1,00,557/- is yet to be recovered, and on the basis of the same it is submitted that proceedings have been validly issued for recovering the excess amount paid to the petitioner.

4. I have heard the rival contentions on both sides.

5. Admittedly, petitioners retired from service as early as on

31.03.2002, and has been receiving pension as fixed by the Government. Now after a lapse of almost 24 years, based on Ext.P3 report that the fixation of pension was found to be erroneous, Exts.P4 and P5 were issued and a substantial amount had been recovered from the pension account of the petitioner. I am of the view that any mistake in the fixation cannot be attributable to the petitioner, and solely due to a wrong fixation done by the Government almost 24 years back, the steps taken as per Exts.P4 and P5 for recovery of the amount is illegal and unjust.

6. The Apex Court in Thomas Daniel v. State of Kerala &

Ors [AIR 2022 SC 2153] has held that if excess amount was not paid on account of any misrepresentation or fraud of employee or if such excess payment was made by employer by applying a wrong principle for calculating pay/allowance or on the basis of a particular interpretation of rule/order which is subsequently found to be erroneous, such excess payment of emoluments or allowances are not recoverable.

7. Further the Apex Court in Syed Abdul Qadir and Others v. State of Bihar and Others [(2009) 3 SCC 475] has held that when the excess amount paid to the employees was not due to any misrepresentation or fraud on their part and they had no knowledge that the amount that was being paid to them was more than what they were entitled to and when it is admitted by the Department that it was a bonafide mistake on their part, the employees cannot be held responsible.

8. The Apex Court in State of Punjab v. Rafiq Masih [2015 4 SCC 334] has held that the monetary benefits given to the employees in excess of their entitlement due to unintentional mistakes committed by the concerned competent authorities in determining the emoluments payable to them, and the employees were not guilty of furnishing any incorrect information/ misrepresentation/ fraud, which had led the concerned competent authorities to commit the mistake of making the higher payment to the employees, no recoveries must be ordered or enforced after the retiremen

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