The recovery of excess pay from retired government employees' terminal benefits due to a unilateral refixation of pay scale is impermissible under service law principles, and pensionary benefits must be computed based on the last drawn salary.

ORDER

This writ petition is filed for the following relief:

“To call for the entire records of the 3rd respondent in impugned proceedings having reference Na.Ka.No.7836/Akatha/2025 dated /03/2025 and of the 4th respondent in proceedings having Ref No.

Na.Ka.No.1001/A2/2025 dated 07.07.2025 refixing petitioner’s pay scale from PB 15600 - 39100 + 5400 GP granted to the petitioner from 09.10.2006 reducing it to the pay scale of PB 9300-34800 + 4600 grade pay and ordering recovery of the excess amount paid to the petitioner from 09.10.2006 and to quash the same as arbitrary and consequently direct the respondents to refix the petitioner’s pension pay scale as per petitioner’s last drawn pay scale as on 30.06.2024 i.e., date of retirement and release the entire amount of Rs.21,38,400/- the death cum retirement gratuity (DCRG) payable as per the 5th respondent sanction letter reference no.E16/11636690/1/R1636690/1084 dated 10.09.2025 along with arrears if any together with interest @ 12 percentage per annum till the date of repayment.”

2. Heard the learned counsels on both sides and perused the materials available on record.

3. The issue involved in the present writ petition was earlier considered in a batch of writ petitions in W.P.No.12275 of 2024 dated 02.03.2026, wherein a similar relief was claimed. The learned Judge after hearing the arguments of both sides and discussing the relevant Rules and Government Orders in detail, had ultimately disposed of the writ petitions with directions. These directions are extracted herein below:

85. In the result, all the writ petitions are disposed of with the following directions:~

i) The impugned order directing the fixation of the selection grade/special grade scale of pay at the first promotional level and 2nd promotional level is set aside to the extent that there shall be no recovery of amount, which has already been paid, from the petitioners ;

ii) Insofar as the petitioners, who have retired from service is concerned, no amount shall be recovered on the basis of the impugned order from the retiral benefits/pensionary benefits of the petitioners with regard to the amount already paid;

iii) Insofar as the petitioners, who are still in service, no amount shall be recovered on the basis of the impugned order from the salary of the petitioners with regard to the amount already paid;

iv) In case any amount has already been recovered from any of the petitioners towards excess payment made in the selection grade scale, the same shall not be refunded to the petitioners and the respondents shall refix the selection grade scale of pay of the said petitioners after amendment to FR 22~B and, thereafter, upon computation, if any amount is due and payable to any of petitioners, the same shall be paid by the respondents forthwith;

v) Until FR 22~B is amended so as to include the directions given in G.O. Ms. No.63305/Pay Cell/2010~1 dated 8.11.2010, more particularly para 4 (i) of the said Government Order, no action shall be taken by the respondents to refix the scale of pay of the petitioners and similarly placed persons;

vi) Subject to amendment, if any, that may be made to FR 22~B, with reference to G.O. Ms. No.63305/Pay Cell/2020~1 dated 8.11.2020, the respondents are at liberty to revise the salary of the persons who are in service by refixing their scales of pay in the selection grade as also the pensionary benefits of the pensioners by refixing their scales of pay in selection grade in line with the amendments that may be made to FR 22~B for computing the admissible pension payable based on para 4 (i) of G.O. Ms. No.63305/Pay Cell/2010~1 dated 8.11.2010, which shall be applicable only prospectively and not retrospectively;

vii) Pursuant to the amendment, if any, made to FR 22~B, upon refixation