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2026 Supreme(Online)(Mad) 44460

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.T. Asha, J
K.S. Varatharajan – Appellant
Versus
State Of Tamil Nadu – Respondent
WP Nos. 15418 and 15426 of 2026



Advocates:
For the Appellants/Petitioners: Nalini Chindambaram
For the Respondents: M. Bindran

Recovery of excess salary payments from terminal benefits of retired employees is impermissible in the absence of fraud or misrepresentation on the part of the employee.

Headnote:The proceedings involved a challenge to the recovery of excess salary from the petitioner's retirement benefits and a prayer for the refixation of pension. Relying on established precedents regarding the impermissibility of recovering excess payments from retired employees where no misrepresentation or fraud is attributable to the employee, the court determined that the recovery was unsustainable in law. The core issue was whether the recovery of alleged excess salary after retirement was legally justifiable. The ratio decidendi established that administrative errors in pay fixation, which result in excess payment without fault of the employee, cannot be recovered from the terminal benefits of a retired public servant, especially after a lapse of time. The impugned recovery order is quashed and the respondents are directed to refund the recovered amount to the petitioner and refix the pension appropriately.

Table of Content
1. petitioner challenges recovery of alleged excess salary and seeks pension refixation. (Para 1 , 2)
2. recovery from retired employees for non-attributable excess payment is impermissible. (Para 3 , 4)

..Respondent(s) in both cases Prayer in W.P.No.15418 of 2026: The writ petition is filed under Article 226 of the Constitution of India for issuance of a writ of certiorarified mandamus calling for the records of the 5th respondent in proceedings having Ref.No.R.No.113/A2/2025 dated 31.07.2025 and quash the same in so far as the 5th respondent has computed the excess salary drawn by the petitioner at Rs.4,50,250/- resulting in the petitioner having to remit a sum of Rs.4,50,250 into the government treasury from the Death-cum-Retirement Gratuity (DCRG) and consequently direct the 5th respondent herein to pay the sum of Rs.4,50,250 to the petitioner along with interest at 12% till date of refund.

Prayer in W.P.No.15426 of 2026: The writ petition is filed under Article 226 of the Constitution of India for issuance of a writ of mandamus directing the Office of Accountant General (A&E), Tamil Nadu, Chennai 3rd respondent herein having reference No.(AG(A&E)/PEN E08/10831810/1/R0831810/782 dated 02.07.2025 to compute the pension payable to the petitioner at Rs.45,300/- instead of Rs.44,000/- based on the last drawn salary of Rs.90,600/- instead of Rs.88,000/- with eligible allowances every month without any deduction.

For Petitioner(s): M/s.Nalini Chindambaram, Senior counsel For Respondent(s): Mr.M.Bindran, Additional Government Pleader for R1 to R5

COMMON ORDER

W.P.No.15418 of 2026 has been filed to quash the proceedings in Ref.No.R.No.113/A2/2025 dated 31.07.2025 in so far as the 5th respondent has computed the excess salary drawn by the petitioner at Rs.4,50,250/- resulting in the petitioner having to remit a sum of Rs.4,50,250 into the government treasury from the Death-cum-Retirement Gratuity (DCRG) and consequently direct the 5th respondent herein to pay the sum of Rs.4,50,250 to the petitioner along with interest at 12% till date of refund.

2. W.P.No.15426 of 2026 has been filed to direct the Office of Accountant General (A&E), Tamil Nadu, Chennai third respondent herein having reference No.(AG(A&E)/PEN E08/10831810/1/R0831810/782 dated 02.07.2025 to compute the pension payable to the petitioner at Rs.45,300/- instead of Rs.44,000/- based on the last drawn salary of Rs.90,600/- instead of Rs.88,000/- with eligible allowances every month without any deduction. 3. When the matters are taken up for hearing, it is brought to the notice of this Court that, the very same issue involved in these writ petitions has been dealt by this Court in W.P.No.47695 of 2025 etc. & batch dated 27.01.2026 wherein, it is observed as follows:

“13.The Hon’ble Supreme Court in White Washer’s case (supra) has categorically held that recovery from retired employees is impermissible in law, particularly when the excess payment was not attributable to any misrepresentation or fraud on the part of the employee. The said principle has been followed by the Government in G.O.Ms.No.286, dated 28.08.2018, wherein it has been clarified that no recovery shall be made from retired employees or in cases where the excess payment had been made for a period exceeding five years prior to the order of recovery.

14.In the present case, the petitioners retired from the service on 30.06.2019 and 30.06.2024 respectively. Thereafter, the fourth respondent refixed the pay and held that excess pay and allowances had been drawn by the petitioners and proceeded to effect recovery. Admittedly, the alleged excess payment was not on account of any fault on the part of the petitioners. In such circumstances, the action of the fourth respondent in refixing the pay and ordering recovery is unsustainable in law. Therefore, the impugned proceedings cannot be sustained.

15.In view of the above, the impugned proceedings of the fourth respondent dated 31.05.2019 & 25.09.2019 and 2

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