Case Note & Summary
The petitioner, Lata Gajanan Wankhede, a retired Assistant Teacher employed with Zilla Parishad, Akola, filed a writ petition challenging the recovery of Rs.3,04,475/- which was mistakenly paid to her during her service. The excess payment occurred due to an error by the employer (respondents), and there was no misrepresentation or fraud by the petitioner. After her voluntary retirement, the respondents sought to recover the excess amount. The petitioner argued that such recovery after retirement is illegal, relying on the Supreme Court judgment in State of Punjab v. Rafiq Masih (AIR 2015 SC 696). The respondents did not dispute the legal position. The court, after hearing both sides, noted that the facts of the case were squarely covered by the Rafiq Masih decision, where the Supreme Court held that recovery of excess payments made due to employer's mistake, without any misrepresentation by the employee, cannot be recovered after retirement. The court allowed the petition, quashed the recovery order, and directed the respondents to refund any amount already recovered. The judgment was delivered by a division bench of the Bombay High Court at Nagpur on July 1, 2016.
Headnote
A) Service Law - Recovery of Excess Payment - Mistaken Payment - Recovery after Retirement - The petitioner, a retired Assistant Teacher, was paid excess amount of Rs.3,04,475/- due to mistake of employer without any misrepresentation by her - Respondents sought recovery after retirement - Court held that recovery of excess amount mistakenly paid without misrepresentation cannot be recovered after retirement, following State of Punjab v. Rafiq Masih (AIR 2015 SC 696) - Petition allowed, recovery order quashed (Paras 1-3).
Issue of Consideration
Whether recovery of excess amount mistakenly paid to an employee during service can be recovered after retirement
Final Decision
Writ petition allowed. The action of respondents in recovering the excess amount is declared illegal and set aside. Respondents are directed to refund any amount already recovered from the petitioner.
Law Points
- Recovery of excess payment from retired employee without misrepresentation is illegal
- State of Punjab v. Rafiq Masih principle applied
