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2024 Supreme(Online)(P&H) 7008

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Kuldeep Tiwari, J
Subhash Chand – Appellant
Versus
State of Haryana – Respondent
CWP-11053-2024



Advocates:
For the Appellants/Petitioners: Japsehaj Singh, Digantika Rao
For the Respondents: Bhupender Singh, Ranjit Singh Kalra

While an employer may correct erroneous pay fixation, recovery of excess payments from employees, especially those in lower service categories, is impermissible in the absence of misrepresentation or fraud, as it causes undue hardship and violates principles of equity.

Headnote:(A) Haryana Civil Services (Assured Career Progression) Rules, 2016 - Rules 7(3) and 13 - Service law - ACP pay structure - Determination of pay based on feeder post vs. promotional post - Petitioner was granted 2nd ACP considering pay scale of promotional post (Clerk) instead of feeder post (Daftri) - Court held that pay fixation must be based on feeder post, thus re-fixation is valid. (Para 11)

(B) Service Law - Pay/Increment - Shetty Commission Report - Advance increment - Entitlement of employee to increment upon promotion or entry into common category post - Petitioner was promoted after implementation date, hence not entitled to advance increment applicable to incumbents as of 01.04.2003. (Para 15)

(C) Service Law - Recovery of excess payment - Recovery held impermissible where employee did not commit misrepresentation or fraud - Petitioner belonging to lower rungs of service - Recovery of past payments would cause undue hardship - Employer restrained from recovery despite existence of undertaking for one specific segment. (Paras 21)

Facts of the case:
The petitioner, a Daftri who was promoted to Clerk, challenged an order directing re-fixation of his pay and recovery of excess amounts paid due to the erroneous granting of 2nd ACP and an additional increment. The respondent argued these benefits were granted based on wrong pay scales not applicable to the petitioner's timeline.

Findings of Court:
The Court upheld the re-fixation of pay due to the application of incorrect rules but restrained the respondent from recovering the excess amounts, citing the principles of equity and the absence of fraud or misrepresentation by the petitioner.

Issues: Whether the 2nd ACP was granted on an erroneous principle; whether the additional increment was admissible; and whether recovery of the excess amount is permissible.

Ratio Decidendi: ACP benefits must be calculated based on the feeder post. If an employee receives excess payment due to the employer's wrong interpretation/calculation without any fraud by the employee, recovery is barred by equity, especially for lower-rung employees.

Result: Petition disposed of; re-fixation allowed, recovery proceedings rejected.

Table of Content
1. basis of writ petition regarding pay refixation and recovery order. (Para 1 , 2 , 3)
2. competing arguments on acp rules and additional increments. (Para 4 , 5 , 6 , 7 , 8)
3. determination that acp pay should be based on the feeder post, not promotional post. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15)
4. prohibition of recovery of excess payments in the absence of employee fraud. (Para 16 , 17 , 18 , 19 , 20 , 21 , 22)

***

KULDEEP TIWARI, J.

1. Through the instant writ petition, the petitioner calls into question the validity of the order dated 08.01.2024 passed by the respondent No.2- District and Sessions Judge, Kaithal, whereby although the petitioner has been granted 3rd ACP w.e.f. 01.02.2023 on the post of Daftri, his pay has been directed to be re-fixed in accordance with the opinion rendered by the concerned Accounts Officers, and recovery proceedings, if any, have also been directed to be initiated separately as per the rules.

2. Shorn of unnecessary details, the facts germane to the disposal of the instant writ petition are that the petitioner joined the office of the District and Sessions Judge, Bhiwani, as Daftri on 25.01.1999 and was subsequently promoted as Clerk on 22.05.2010. He was granted the benefit of 1st and 2nd ACP on 01.02.2009 and 01.02.2015, respectively. He was also granted the benefit of an additional increment on 29.07.2019, i.e., subsequent to his promotion as Clerk. Thereafter, consequent upon the completion of his 24 years of service on 24.01.2023, he made a request for granting him the benefit of 3rd ACP in accordance with the applicable rules. Accordingly, an opinion was sought from the Section Officer of the Sessions Division concerned, who, vide opinion dated 26.09.2023, opined that the additional increment granted to the petitioner on his promotion was not admissible, as he was posted as Daftri at the time of implementation of the Shetty Commission’s report. It was also opined that the pay of the petitioner fixed at the time of grant of the 2nd ACP also needs to be reviewed/refixed, and that his case for grant of 3rd ACP w.e.f. 01.02.2023 on the post of Daftri, under Rule 7(3) read with Rule 13 of the Haryana Civil Services (Assured Career Progression) Rules, 2016, may be considered subject to fulfillment of the conditions required for grant of ACP. Based on this opinion, a second opinion was also sought from the Chief Accounts Officer-cum-Nodal Officer concerned, who, vide letter dated 06.11.2023, forwarded the hereinafter extracted opinion of their Senior Accounts Officer:-

“Keeping in view the facts as narrated in the note it is submitted as under:-

1. Pay fixed at the time of granting 2nd ACP on 1.2.2015 as daftri is not in order and needs to be re fixed.

2. He is not entitled to get one additional increment granted on 22.5.10 as clerk on the implementation of Shetty Commission.

3. He is entitled to get 3rd ACP w.e.f. 1.2.2023 as daftri under rule 7(3) r/w rule 13 of Haryana Civil Services (ACP) Rules, 2016, as per provisions contained in ACP rules.”

3. The above opinions constituted the bedrock for the impugned order dated 08.01.2024, which has caused prejudice to the petitioner and has impelled him to assail the same before this Court.

4. Learned counsel for the petitioner submits that the “additional increment” granted to the petitioner was granted specifically in accordance with the rules and it was not at all an “advance increment”, as is evident from the opinions (supra) furnished by the Section Officer and the Accounts Officer concerned. He also places reliance upon the order dated 25.01.2018 passed in CWP-14750-2015 ( Om Parkash and others vs. State of Haryana and others ), to submit that a Coordinate Bench of this Court has already clarified that any increment paid with reference to the Haryana Civil Services (Pay) Rules, 2016, is distinct from the implementation of the Shetty Commission’s report in respect of increment and does not amount to an advance i

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