Bombay High Court Allows Teacher's Petition Against Pay Reduction and Recovery Order — Recovery of Excess Payment Set Aside Due to No Misrepresentation. Pay Fixation Error by Employer Cannot Be Recovered from Employee Without Show Cause Notice.

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

The petitioner, Premchand Nathu Patil, was appointed as an Assistant Teacher on 16.06.1989 in a secondary school run by respondent No. 5 institute. He possessed B.A. B.Ed. qualifications. His appointment was approved and confirmed. In 1996, his pay scale was fixed as per the 5th Pay Commission. On 16.06.2001, upon completing 12 years of service, the management granted him the benefit of time bound/first ACPS with effect from 16.06.2001. By order dated 12.04.2008, his pay was fixed in the pay scale of Rs. 6500-200-10500. On 12.06.2009, the 6th Pay Commission was made applicable with effect from 01.01.2006. At that time, the petitioner was drawing basic pay of Rs. 7700. By order dated 12.09.2011, his pay was fixed at Rs. 15600-39100 with Grade Pay of Rs. 5400. Meanwhile, he was transferred from secondary school to Jr. College on 16.09.2006 and was given the same pay scale. He had also passed M.Ed. in May 2006. Subsequently, the Deputy Director of Education passed an order on 18.08.2016 reducing his pay and pay scale and directing recovery of excess payment. The Principal of the College of Education (respondent No. 6) also passed an order on 04.07.2017 implementing the recovery. The petitioner challenged these orders. The court noted that the petitioner had not misrepresented any facts and the mistake in pay fixation was on the part of the authorities. The orders were passed without any show cause notice to the petitioner, violating principles of natural justice. The court held that recovery of excess payment from a government servant is not permissible when there is no misrepresentation or fraud by the employee. The court set aside the impugned orders and directed the respondents to restore the petitioner's pay and pay scale as earlier fixed and to refund any amount recovered. The writ petition was allowed with no order as to costs.

Headnote

A) Service Law - Pay Fixation - Recovery of Excess Payment - No Misrepresentation - The petitioner, an Assistant Teacher, was granted higher pay scale due to wrong fixation by the authorities. The court held that recovery of excess payment is not permissible when the employee has not misrepresented or committed fraud, and the mistake was on the part of the employer. (Paras 1-10)

B) Service Law - Natural Justice - Show Cause Notice - The orders reducing pay and directing recovery were passed without giving any show cause notice to the petitioner, violating principles of natural justice. (Paras 2, 10)

C) Service Law - Pay Fixation - Time Bound Promotion - The petitioner was granted time bound promotion under ACPS, but later the pay was reduced without proper justification. The court set aside the orders and directed restoration of pay. (Paras 3-10)

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Issue of Consideration

Whether the recovery of excess payment made to the petitioner due to wrong pay fixation is justified when there is no misrepresentation or fraud by the employee.

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Final Decision

The writ petition is allowed. The impugned orders dated 18.08.2016 and 04.07.2017 are quashed and set aside. The respondents are directed to restore the petitioner's pay and pay scale as earlier fixed and to refund any amount recovered from the petitioner. Rule is made absolute in those terms. No order as to costs.

Law Points

  • Pay fixation
  • Recovery of excess payment
  • No misrepresentation
  • No fraud
  • Government servant
  • Natural justice
  • Show cause notice
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Case Details

2019 LawText (BOM) (05) 6

WRIT PETITION NO. 3928 OF 2018

2019-05-02

S. V. Gangapurwala, A. M. Dhavale

Shri. Avishkar S. Shelke for petitioner, Shri. P. K. Lakhotiya AGP for respondent/State, Shri. Naseem R. Shaikh for respondent No. 6

Premchand S/o. Nathu Patil

The State of Maharashtra, The Deputy Director of Education and Chairman Task Force, The Accounts Officer, The Education Officer (Secondary), Jalgaon Zilla Maratha Vidya Prasarak Cooperative Samaj Ltd., Smt. S. D. Sonawane

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Nature of Litigation

Writ petition challenging orders reducing pay and directing recovery of excess payment.

Remedy Sought

Quashing of orders dated 18.08.2016 and 04.07.2017 and restoration of pay and pay scale.

Filing Reason

The petitioner's pay and pay scale were reduced and recovery of excess payment was directed without any show cause notice and without any misrepresentation by the petitioner.

Previous Decisions

The Deputy Director of Education passed order on 18.08.2016 reducing pay and directing recovery; the Principal passed order on 04.07.2017 implementing the recovery.

Issues

Whether the recovery of excess payment made to the petitioner due to wrong pay fixation is justified when there is no misrepresentation or fraud by the employee. Whether the orders reducing pay and directing recovery were passed in violation of principles of natural justice.

Submissions/Arguments

The petitioner argued that he had not misrepresented any facts and the mistake in pay fixation was on the part of the authorities. The petitioner argued that no show cause notice was given before passing the impugned orders. The respondents argued that the excess payment was made due to wrong fixation and recovery is justified.

Ratio Decidendi

Recovery of excess payment from a government servant is not permissible when there is no misrepresentation or fraud by the employee and the mistake was on the part of the employer. Orders passed without show cause notice violate principles of natural justice.

Judgment Excerpts

The petitioner assails the order of respondent No. 2/Dy. Director of Education dt. 18.08.2016 and the order of Principal, College of Education (respondent No. 6) dt. 04.07.2017 whereby his pay and pay scale were reduced and direction for recovery of excess payment made to him was passed. The petitioner had not misrepresented any facts and the mistake in pay fixation was on the part of the authorities.

Procedural History

The petitioner filed Writ Petition No. 3928 of 2018 before the Bombay High Court, Aurangabad Bench, challenging the orders dated 18.08.2016 and 04.07.2017. The court heard the matter and reserved judgment on 05.04.2019, pronouncing it on 02.05.2019.

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