Bombay High Court Quashes Recovery Order Against Retired Employee in Assured Career Progression Scheme Case — Recovery of Excess Payment Not Permissible Without Fault of Employee. The court held that recovery of excess payment from a retired employee is not permissible when the payment was not due to any misrepresentation or fraud by the employee, and quashed the order dated 2nd July 2015.

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

The petitioner, Rajaram s/o Namdeo Sudke, was appointed as Road Karkoon on 1st April 1987 and had an unblemished service record. He was appointed and converted on C.R.T. on the same date. Under the Assured Progress Scheme, the petitioner completed 12 years of service from the date of appointment on 1st April 1999. The Government of Maharashtra, inspired by a scheme prepared by the Central Government to grant senior pay scale or certain benefits after completing regular service of 12 years for Class-III and Class-IV employees, issued a Government Resolution dated 8th June 1995. This resolution took a policy decision to amalgamate the post of Civil Engineer Assistant in one cadre, and accordingly, 2439 posts were created in the pay scale of Rs.1640-2900 in the year 1999. The petitioner completed 45 years of age. The petitioner filed a Writ Petition under Article 226 of the Constitution of India challenging the order dated 2nd July 2015 issued by respondent No.4, by Outward No.477/2015, which sought to recover excess payment made to the petitioner. The court heard the parties and considered the submissions. The court held that recovery of excess payment from a retired employee is not permissible when the payment was not due to any misrepresentation or fraud by the employee. The impugned order was quashed and set aside. The court allowed the petition and made the rule absolute.

Headnote

A) Service Law - Recovery of Excess Payment - Assured Career Progression Scheme - Recovery from retired employee not permissible if payment was not due to misrepresentation or fraud - The petitioner, a retired employee, was granted senior pay scale under the Assured Career Progression Scheme. The respondent issued an order to recover the excess payment. The court held that recovery of excess payment from a retired employee is not permissible when the payment was not due to any misrepresentation or fraud by the employee. The impugned order was quashed and set aside. (Paras 1-10)

B) Service Law - Assured Career Progression Scheme - Government Resolution dated 8th June 1995 - Benefits under the scheme - The petitioner completed 12 years of service and was entitled to benefits under the Assured Career Progression Scheme as per the Government Resolution dated 8th June 1995. The court held that the benefits granted under the scheme cannot be recovered after retirement. (Paras 4-10)

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Issue of Consideration

Whether the order of recovery of excess payment made to the petitioner under the Assured Career Progression Scheme is sustainable in law, especially when the petitioner has already retired and the payment was not due to any misrepresentation or fraud on his part.

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Final Decision

The court allowed the petition, quashed and set aside the impugned order dated 2nd July 2015 issued by respondent No.4, and made the rule absolute.

Law Points

  • Recovery of excess payment from retired employee not permissible if payment was not due to misrepresentation or fraud
  • Assured Career Progression Scheme benefits cannot be recovered after retirement
  • Government Resolution dated 8th June 1995
  • Article 226 of Constitution of India
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Case Details

2016 LawText (BOM) (02) 14

WRIT PETITION NO.7386 OF 2015

2016-02-09

S.S.SHINDE, P.R.BORA

Mr. V.R.Bhumkar, Mr. S.K.Tambe, Mr. Vivek Bhavthankar

Rajaram s/o Namdeo Sudke

The State of Maharashtra, The Chief Executive Officer, Zilla Parishad, Hingoli, The Executive Engineer, Zilla Parishad, Hingoli, The Deputy Engineer [W] Zilla Parishad Sub-Division Hingoli

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Nature of Litigation

Writ Petition under Article 226 of the Constitution of India challenging an order of recovery of excess payment.

Remedy Sought

Quashing of the order dated 2nd July 2015 issued by respondent No.4, by Outward No.477/2015, seeking recovery of excess payment.

Filing Reason

The petitioner, a retired employee, was served with an order to recover excess payment made under the Assured Career Progression Scheme, which he challenged as unsustainable.

Issues

Whether the order of recovery of excess payment made to the petitioner under the Assured Career Progression Scheme is sustainable in law, especially when the petitioner has already retired and the payment was not due to any misrepresentation or fraud on his part.

Submissions/Arguments

The petitioner argued that the recovery of excess payment from a retired employee is not permissible when the payment was not due to any misrepresentation or fraud on his part. The respondents argued in support of the recovery order.

Ratio Decidendi

Recovery of excess payment from a retired employee is not permissible when the payment was not due to any misrepresentation or fraud by the employee.

Judgment Excerpts

Heard. Rule. Rule made returnable forthwith, and heard finally with the consent of the parties. By way of filing present Writ Petition under Article 226 of the Constitution of India, the petitioner takes exception to the order dated 2nd July, 2015, issued by the respondent No.4, by Outward No.477/2015.

Procedural History

The petitioner filed a Writ Petition under Article 226 of the Constitution of India before the High Court of Judicature at Bombay Bench at Aurangabad challenging the order dated 2nd July 2015. The court heard the parties and delivered judgment on 9th February 2016.

Acts & Sections

  • Constitution of India: Article 226
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