Case Note & Summary
The petitioner, Ashok Buchayya Pusalwar, was an Assistant Teacher employed by the Zilla Parishad, Gadchiroli, appointed on 24-10-1996. He voluntarily retired on 30-6-2020 at the age of 59 years. After the 6th Pay Commission, his pay scale was revised under the Maharashtra Civil Services (Revised Pay) Rules, 2009. Upon retirement, the respondent No.2 (Chief Audit and Finance Officer) processed his pension and gratuity. By an order dated 27-10-2020, the respondent sanctioned gratuity of Rs.6,68,575/- but simultaneously sought to recover Rs.1,39,316/- as excess salary paid to the petitioner for the period from 12-8-2007 to 31-8-2019 (or 1-1-2006 to 30-11-2019). The petitioner challenged this recovery by filing a writ petition under Article 226 of the Constitution, seeking a writ of certiorari to quash the recovery order. The petitioner contended that the excess payment was due to a mistake by the respondents in fixing his pay scale, and he had not made any misrepresentation or fraud. The respondents argued that the recovery was justified as the payment was made erroneously. The Court, after hearing both sides, held that in the absence of any fraud or misrepresentation by the employee, recovery of excess payment made by the employer from retiral benefits of a retired employee is impermissible. The Court relied on the principle that once an employee retires, the employer cannot recover excess payments made due to its own mistake. The impugned order dated 27-10-2020 was quashed and set aside, and the respondents were directed to refund the recovered amount to the petitioner within four weeks. The writ petition was allowed.
Headnote
A) Service Law - Recovery of Excess Payment - Retiral Benefits - Recovery from pension/gratuity - Maharashtra Civil Services (Revised Pay) Rules, 2009 - The petitioner, a retired Assistant Teacher, was sought to be recovered Rs.1,39,316/- from his gratuity as excess salary paid due to wrong fixation of pay scale by the employer. The Court held that in absence of any fraud or misrepresentation by the employee, recovery of excess payment made by the employer cannot be ordered from retiral benefits, especially after retirement. The impugned order was quashed and set aside. (Paras 3-8) B) Service Law - Voluntary Retirement - Pensionary Benefits - Recovery - The petitioner voluntarily retired on 30-6-2020. The respondent sanctioned gratuity of Rs.6,68,575/- but deducted Rs.1,39,316/- as excess payment. The Court held that recovery from retiral benefits of a retired employee is impermissible when the excess payment was not due to any fault of the employee. (Paras 4-8)
Issue of Consideration
Whether recovery of excess salary paid to a retired employee due to mistake of the employer can be ordered from retiral benefits in absence of any fraud or misrepresentation by the employee.
Final Decision
The writ petition is allowed. The impugned order dated 27-10-2020 passed by the respondent No.2 is quashed and set aside. The respondents are directed to refund the amount of Rs.1,39,316/- recovered from the petitioner's retiral benefits within four weeks from the date of the order.
Law Points
- Recovery of excess payment from retired employees is impermissible in absence of fraud or misrepresentation
- Principle of no recovery from retiral benefits for mistakes by employer
- Applicability of Maharashtra Civil Services (Revised Pay) Rules
- 2009
