Bombay High Court Quashes Recovery Order Against Retired Employee in Pay Fixation Dispute — No Misrepresentation by Employee. Recovery of Rs.3,46,931/- from pension set aside as order passed without notice and employee not responsible for pay fixation error.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The petitioner, Rangrao s/o Mersing Jadhav, was appointed as a Peon on 08.11.1983 and superannuated on 31.08.2017 as Junior Administrative Officer (Superintendent). He filed a writ petition on 09.04.2018 challenging an order dated 31.01.2017 issued by the Chief Executive Officer, Zilla Parishad, Nanded (respondent No.2), which revised his pay and directed recovery of Rs.3,46,931/- along with interest. The petitioner contended that he had no role in the fixation of his pay scale as per the 5th and 6th Pay Commission's recommendations; the Block Development Officer was responsible for preparing the fixation. He argued that the impugned order was passed without any notice to him, violating principles of natural justice. The respondents argued that the petition was barred by limitation as it was filed after more than a year from the order, and that the recovery was justified due to excess payment. The court, after hearing both sides, observed that the impugned order was passed without notice to the petitioner, which is a clear violation of natural justice. The court also noted that the petitioner had no role in the pay fixation and there was no allegation of misrepresentation. Relying on the principle that recovery from an employee who has not misrepresented is impermissible, the court quashed the impugned order and directed the respondents to refund the recovered amount of Rs.3,46,931/- with interest at 6% per annum from the date of recovery till payment, within eight weeks. The court did not accept the limitation objection as the recovery was from pension and the petition was filed within a reasonable time.

Headnote

A) Service Law - Pay Fixation - Recovery - The petitioner, a retired employee, challenged the recovery of Rs.3,46,931/- from his pensionary benefits on the ground that the pay fixation was done by the Block Development Officer without his involvement and the impugned order was passed without notice to him. The court held that recovery cannot be ordered from an employee who has not misrepresented and where the error is not attributable to him, and that the order was passed in violation of principles of natural justice. (Paras 1-10)

B) Limitation - Challenge to Recovery Order - The petition was filed on 09.04.2018 challenging an order dated 31.01.2017. The court considered the delay and held that since the recovery was sought to be effected from pension, the petition was maintainable and the delay was not fatal. (Paras 3, 10)

C) Natural Justice - Notice - The impugned order was passed without affording any opportunity of hearing to the petitioner. The court quashed the order on this ground alone, as it violated the principles of natural justice. (Paras 5, 10)

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Issue of Consideration

Whether the impugned order dated 31.01.2017 revising the pay of the petitioner and directing recovery of Rs.3,46,931/- along with interest is sustainable in law, especially when the petitioner had no role in the pay fixation and the order was passed without notice to him.

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Final Decision

The impugned order dated 31.01.2017 is quashed and set aside. The respondents are directed to refund the amount of Rs.3,46,931/- recovered from the petitioner along with interest at 6% per annum from the date of recovery till the date of payment, within eight weeks from the date of the order.

Law Points

  • Recovery from retired employee without notice
  • pay fixation error not attributable to employee
  • principles of natural justice
  • limitation period for challenging recovery order
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Case Details

2021 LawText (BOM) (08) 18

Writ Petition No.4173 of 2018

2021-08-04

Ravindra V. Ghuge, S.G. Mehare

Shri Kulkarni Girish N. (Mardikar) for Petitioner, Shri P.S. Patil AGP for Respondent 1, Shri Pulkundwar Santosh B. for Respondents 2 and 3

Rangrao s/o Mersing Jadhav

The State of Maharashtra, The Chief Executive Officer, Zilla Parishad, Nanded, The Block Development Officer, Panchayat Samiti, Kinwat

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Nature of Litigation

Writ petition challenging recovery order of excess pay from retired employee.

Remedy Sought

Quashing of order dated 31.01.2017 revising pay and directing recovery of Rs.3,46,931/- with interest, and refund of the amount.

Filing Reason

The petitioner, a retired employee, was served with an order revising his pay and directing recovery of Rs.3,46,931/- without any notice or opportunity of hearing, and he had no role in the pay fixation.

Issues

Whether the impugned order dated 31.01.2017 directing recovery of Rs.3,46,931/- from the petitioner is sustainable when passed without notice and without attributing misrepresentation to the petitioner. Whether the petition is barred by limitation.

Submissions/Arguments

Petitioner: The pay fixation was done by the Block Development Officer without his involvement; the impugned order was passed without notice; recovery cannot be made from a retired employee who has not misrepresented. Respondents: The petition is barred by limitation; the recovery is justified due to excess payment.

Ratio Decidendi

An order of recovery of excess payment from an employee cannot be sustained if it is passed without notice to the employee and without any allegation of misrepresentation by the employee. The principle of natural justice requires that the employee be heard before any adverse order is passed. Additionally, recovery from a retired employee who has not misrepresented is impermissible.

Judgment Excerpts

The impugned order has been passed without any notice to the petitioner. The petitioner had no role to play in the fixation of his pay scale. Recovery cannot be ordered from an employee who has not misrepresented.

Procedural History

The petitioner filed Writ Petition No.4173 of 2018 on 09.04.2018 before the Bombay High Court (Aurangabad Bench) challenging the order dated 31.01.2017 passed by the Chief Executive Officer, Zilla Parishad, Nanded. The petition was heard and disposed of on 04.08.2021.

Acts & Sections

  • Constitution of India: Articles 226, 227
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