Madhya Pradesh HC: Retiral Dues Not to Be Recovered From Employee if Once Paid Due to Incorrect Pay Fixation

Must Read

SC: Under-21 Convicts Can Be Given Less Than Minimum Sentence, Resorts To Probation of Offenders Act

The Supreme Court resorted to the Probation of Offenders Act to sidestep the mandate under Section 397 of the Indian Penal Code that mentions a sentence of not less than 7 years to those convicted of armed robbery, to give a chance to two young convicts to reform their lives.

Environment Protection Act Passed at the Instance of Foreign Powers: NHAI in Karnataka HC

The National Highways Authority of India (NHAI) claimed in a submission that the Environment Protection Act 1986 was passed not only for the protection of the environment by the parliament but also at the instance of foreign powers. This statement was made while referring to a UN conference and got the NHAI into great trouble in the Karnataka High Court.

Delhi High Court To Implement a Hybrid System Through Virtual and Physical Hearing

On Friday the Delhi High Court said that they have initiated steps to implement a mode wherein hearing can be done by virtual as well as physical mode. The Delhi High Court is aiming to implement the Hybrid mode. It stated that when the particular bench is conducting a virtual hearing the lawyer may opt for this mode after giving prior intimation about the same.

Mercy Plea of Rajiv Gandhi Assassination Case To Be Decided in Four Weeks, TN Governor To Supreme Court

Tamil Nadu Governor Banwarilal Purohit on Thursday told the Supreme Court that a decision on the mercy petition of one of the convicts serving a life sentence for the assassination of former Prime Minister Rajiv Gandhi, AG Perarivalan will be taken within four weeks. The petition has been pending with the Governor since December 30, 2015.

Bombay High Court Questions FIR Over Journalist Alleged of Communist Comment on WhatsApp

An FIR lodged against the editor of Marathi newspaper, Rajkumar Chhajed has been questioned by the Bombay High Court. The Maharashtra Police has accused Chhajed of creating a rift between the two communities based on a WhatsApp message.

Allahabad High Court Expresses Dissatisfaction on Counsels Seeking Unnecessary Adjournments

The petition had been filed by Smt. Radha prayed to issue directions to Judicial Magistrate-I in Faizabad. The petition...

Follow us

In the present case, a petition was filed under Article 226 of the Constitution of India, in which the petitioner has assailed pension payment order as to recovery of Rs. 1, 96, 980/- was concerned, which had been made from the retiral dues of the petitioner. The Court directed that in light of the principle of law laid down by the Supreme Court, that the recovery of an amount from the retiral dues of the petitioner was illegal.

Brief Facts

Brief facts giving rise to the filing of the present petition were that the petitioner was aggrieved by an order of recovery after retirement. The grievance of the petitioner was that neither affording any opportunity of hearing nor issuance of show cause notice, the said amount had been deducted from the gratuity of the petitioner. The petitioner was neither found guilty of any misconduct nor for any offense in the criminal proceedings. The inaction on the part of the respondents is in flagrant violation of principles of natural justice.

Petitioner’s Submissions

The petitioner had superannuated in February 2016. He contended that the number of his retiral dues could not be recovered, even if there was no misrepresentation or fault on the part of the petitioner. The said recovery was done without the prior approval of the Governor which violated the Pension Rules, 1976. He had further contended that the Supreme Court in the case of State of Punjab Vs. Rafiq Masih (White Washer), ( M.P.H.T 130 (SC) had held that no recovery could be affected by the retrial dues of the employee after his retirement. Hence, it was prayed that recovery of Rs.1,96,980/- already made from the retiral dues of the petitioner must be refunded along with interest.

Respondent’s Submissions

The learned State counsel by filing return had contended that originally petitioner was appointed as Constable w.e.f. 02/04/1976 and had been posted in different units in the District Police Force in Shivpuri. 

It was after the implementation of the Revision of Pay Rules, 1990, that the pay of the petitioner was wrongly fixed w.e.f. 01/01/1986 and he continued to receive that payment accordingly, due to incorrect pay fixation. However, after retirement when the service book of the petitioner was forwarded for verification before the Joint Director, Treasury, Accounts, and Pension, on its verification, they had raised objection about incorrect pay fixation and as per them, the pay fixation of the petitioner had been corrected and vide an order dated 25/01/2016, before retirement of the petitioner, correct pay fixation had been done and therefore, amount of recovery of Rs. 1, 96, 980/- was made. Moreover, the petitioner had also given an undertaking that in case any excess amount will be paid to the petitioner, then the respondents would be at liberty to recover the same from him.

Consideration by the Court

The Court considered various aspects, like that the pay of the petitioner was fixed w.e.f. 01/01/1986. There was also no allegation that it was fixed due to any collusion. Moreover, the undertaking given by the petitioner at the time of retirement could not be said to be an undertaking of pay fixation, therefore it was considered that the instant petition deserved to be allowed.

The Hon’ble Supreme Court in the case of Syed Abdul Qadir and others Vs State of Bihar and others (2009) 3 SCC 475, held that the relief against recovery of the excess amount paid to an employee on account of the wrong fixation of pay was granted by the court, not because of any right in the employees, but in the interest of equity, exercising judicial discretion to relieve the employees from the hardship in case recovery will be ordered.

In the case of State of Punjab and Others Vs. Rafiq Masih (White Washer) (supra), few situations wherein recoveries by the employers, would be impermissible in law were summarised as a ready reference, like recovery from retired employees, or employees who would be due to retire within a year of the order of recovery, etc.

Court’s Directions

In light of the principle of law laid down by the Supreme Court, the Court opined that the recovery of an amount of Rs. 1,96,980/- from the retiral dues of the petitioner was illegal. Consequently, the petition was allowed. 

The respondents were directed to refund the amount of Rs. 1,96,980/- to the petitioner within three months. In case, the amount won’t be refunded within the aforesaid period, the same shall carry interest @ 9 % per annum till the date of payment.

Click here to view the original judgment


Libertatem.in is now on Telegram. Follow us for regular legal updates and judgment from courts. Follow us on Google News, InstagramLinkedInFacebook & Twitter. You can subscribe to our Weekly Email Updates. You can also contribute stories like this and help us spread awareness for a better society. Submit Your Post Now.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

SC: Under-21 Convicts Can Be Given Less Than Minimum Sentence, Resorts To Probation of Offenders Act

The Supreme Court resorted to the Probation of Offenders Act to sidestep the mandate under Section 397 of the Indian Penal Code that mentions a sentence of not less than 7 years to those convicted of armed robbery, to give a chance to two young convicts to reform their lives.

Environment Protection Act Passed at the Instance of Foreign Powers: NHAI in Karnataka HC

The National Highways Authority of India (NHAI) claimed in a submission that the Environment Protection Act 1986 was passed not only for the protection of the environment by the parliament but also at the instance of foreign powers. This statement was made while referring to a UN conference and got the NHAI into great trouble in the Karnataka High Court.

Delhi High Court To Implement a Hybrid System Through Virtual and Physical Hearing

On Friday the Delhi High Court said that they have initiated steps to implement a mode wherein hearing can be done by virtual as well as physical mode. The Delhi High Court is aiming to implement the Hybrid mode. It stated that when the particular bench is conducting a virtual hearing the lawyer may opt for this mode after giving prior intimation about the same.

Mercy Plea of Rajiv Gandhi Assassination Case To Be Decided in Four Weeks, TN Governor To Supreme Court

Tamil Nadu Governor Banwarilal Purohit on Thursday told the Supreme Court that a decision on the mercy petition of one of the convicts serving a life sentence for the assassination of former Prime Minister Rajiv Gandhi, AG Perarivalan will be taken within four weeks. The petition has been pending with the Governor since December 30, 2015.

Bombay High Court Questions FIR Over Journalist Alleged of Communist Comment on WhatsApp

An FIR lodged against the editor of Marathi newspaper, Rajkumar Chhajed has been questioned by the Bombay High Court. The Maharashtra Police has accused Chhajed of creating a rift between the two communities based on a WhatsApp message.

Allahabad High Court Expresses Dissatisfaction on Counsels Seeking Unnecessary Adjournments

The petition had been filed by Smt. Radha prayed to issue directions to Judicial Magistrate-I in Faizabad. The petition sought a speedy decision in...

[Delhi Riots] When the IT Ministry Calls Us, We Will Go Says Harish Salve To Delhi High Court

The Vice President and Managing Director of Facebook, Ajit Mohan told the Supreme Court that when the representatives of the company are called by the Information Technology Ministry they will come and record their statements.

Allahabad High Court Seeks Response on Compensation of Cutting Trees From National Highways Authority of India (Nhai) 

The Order had come in the form of a Public Interest Litigation (PIL) filed by a bunch of law students in Uttar Pradesh. The...

Doctrine of Proportionality Must Adhere to Reasonableness Principal Test: Madras High Court

Young Men's Christian Association built a commercial complex and leased it without having due permission. The District Collector & Tahsildar issued a show-cause notice...

Delhi High Court Refuses To Stay Release of ‘The White Tiger’ on the OTT Platform Netflix

A plea requesting a stay on the release of the film ‘The White Tiger’ by the American producer, John Hart Jr. alleging copyright violation was rejected by the Delhi High Court on Thursday.

More Articles Like This

- Advertisement -