Case Note & Summary
The petitioner, Devidas Marotirao Kandhare, a retired junior clerk (Class III) under the Godavari Marathwada Irrigation Development Corporation, challenged the recovery of Rs.77,446/- from his pensionary benefits and gratuity. The recovery was directed by an order dated 18-04-2013, based on a cancellation order dated 24-09-2012 of a higher pay scale granted earlier. The petitioner had been granted time bound promotional pay scale with effect from 01-01-1996 by order dated 04-01-1997, and pay was fixed on 15-04-1997. Subsequently, in 2004, pay was revised under the Fifth Pay Commission with effect from 01-01-1996. The petitioner retired on 31-05-2013. Just before retirement, an objection by the Pay Verification Unit led to cancellation of the higher pay scale and recovery. The petitioner contended that he had not misrepresented any facts and the recovery after 17 years was unjust. The respondents argued that the pay fixation was erroneous. The court held that since the petitioner was a Class III employee and there was no misrepresentation, recovery after such a long delay was unsustainable. The court quashed the recovery order and directed refund of any amount recovered, with interest at 6% per annum from the date of recovery till payment.
Headnote
A) Service Law - Recovery of Excess Payment - No Misrepresentation - Recovery from pensionary benefits of a retired Class III employee directed after 17 years of pay fixation, without any misrepresentation by the employee, is unsustainable - Held that recovery cannot be effected from a retired employee who has not misrepresented, especially after a long delay (Paras 3-5). B) Service Law - Pay Fixation - Time Bound Promotional Pay Scale - Cancellation of higher pay scale after retirement - Where pay fixation was done by the department and employee retired, subsequent cancellation and recovery without notice is arbitrary - Held that the order of recovery is quashed and set aside (Paras 3-5).
Issue of Consideration
Whether recovery of Rs.77,446/- from pensionary benefits and gratuity of a retired Class III employee, based on a pay fixation error that occurred 17 years prior and without any misrepresentation by the employee, is sustainable in law.
Final Decision
The writ petition is allowed. The impugned order dated 18-04-2013 and the cancellation order dated 24-09-2012 are quashed and set aside. The respondents are directed to refund the amount recovered from the petitioner's pensionary benefits and gratuity, if any, with interest at 6% per annum from the date of recovery till the date of payment, within eight weeks.
Law Points
- Recovery of excess payment from retired employee without misrepresentation
- Recovery after long delay
- Principle of no recovery from Class III/IV employees
- Pensionary benefits protection
