Bombay High Court Allows Widow's Petition Quashing Recovery from Gratuity in Pay Fixation Error Case. Recovery of Excess Payment Made to Deceased Government Employee Without Notice Violates Natural Justice and Cannot Be Deducted from Death Gratuity.

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

The petitioner, Jayshri w/o Sanjay Chandode, is the widow of Sanjay Bhagirath Chandode, a government employee who worked as a peon in the office of Respondent No. 3, Regional Deputy Director, Groundwater Survey and Development Agency, Aurangabad. He died in service on 11.03.2022 due to cardiac arrest. After his death, a proposal for pension and death gratuity was forwarded to the Accountant General, which was sanctioned vide family pension payment order dated 21.04.2023, entitling the petitioner to a monthly family pension of Rs.15,850/- and gratuity of Rs.8,71,750/-. However, on 20.03.2023, Respondent No. 3 forwarded a proposal to the Accountant General stating that an excess payment of Rs.3,11,194/- had been made to the deceased employee for the period from 01.01.2006 to 11.03.2022 due to wrong pay fixation. Consequently, recovery was initiated by office order dated 11.05.2023, and the amount was deducted from the death gratuity payable to the petitioner. Aggrieved, the petitioner filed the present writ petition seeking quashing of the recovery order and refund of the deducted amount. The court considered the legal issue of whether recovery of excess payment can be made from the gratuity of a deceased employee without following principles of natural justice. The petitioner argued that no opportunity of hearing was given before the recovery, and the excess payment was not due to any misrepresentation or fraud by the employee. The respondents contended that the recovery was justified as per rules. The court held that the recovery order was passed in violation of principles of natural justice as no notice or opportunity was given to the petitioner. The court also noted that the excess payment was made due to an error by the department, not by the employee. Relying on precedents, the court quashed the recovery order and directed the respondents to refund the deducted amount within four weeks. The writ petition was allowed.

Headnote

A) Service Law - Recovery from Gratuity - Excess Payment - Recovery of excess payment made to a deceased government employee during his lifetime cannot be deducted from death gratuity payable to his widow without following principles of natural justice - The court held that the recovery order was passed without giving any notice or opportunity of hearing to the petitioner, and the excess payment was not due to any misrepresentation or fraud by the employee - Held that the impugned recovery is unsustainable and quashed (Paras 1-17).

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Issue of Consideration

Whether recovery of excess payment made to a deceased government employee can be effected from the death gratuity payable to his widow without affording an opportunity of hearing and in violation of principles of natural justice.

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Final Decision

The writ petition is allowed. The impugned recovery order dated 11.05.2023 is quashed and set aside. The respondents are directed to refund the deducted amount of Rs.3,11,194/- to the petitioner within four weeks from the date of the order.

Law Points

  • Recovery from gratuity
  • excess payment
  • government employee
  • widow
  • natural justice
  • Maharashtra Civil Services (Pension) Rules
  • 1982
  • Rule 27
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Case Details

2026:BHC-AUG:17337-DB

WRIT PETITION NO. 13261 OF 2023

2026-04-21

Nitin B. Suryawanshi, Vaishali Patil Jadhav

2026:BHC-AUG:17337-DB

Mr. Pratik K. Bhosle, Mr. A.V. Lavte

Jayshri w/o Sanjay Chandode

The State of Maharashtra, The Director of Groundwater Survey & Development Agency, The Regional Deputy Director, Groundwater Survey and Development Agency

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Nature of Litigation

Writ petition challenging recovery of excess payment from death gratuity of deceased government employee.

Remedy Sought

Petitioner seeks quashing of recovery order dated 11.05.2023 and refund of deducted amount of Rs.3,11,194/- from death gratuity.

Filing Reason

Recovery of Rs.3,11,194/- was deducted from death gratuity payable to petitioner-widow without giving any opportunity of hearing.

Previous Decisions

Family pension and gratuity were sanctioned vide order dated 21.04.2023; recovery order dated 11.05.2023 was passed thereafter.

Issues

Whether recovery of excess payment made to a deceased government employee can be effected from the death gratuity payable to his widow without affording an opportunity of hearing? Whether the recovery order is in violation of principles of natural justice?

Submissions/Arguments

Petitioner argued that no notice or opportunity of hearing was given before recovery, and the excess payment was not due to any misrepresentation or fraud by the deceased employee. Respondents argued that the recovery was justified as per rules and the excess payment was made due to wrong pay fixation.

Ratio Decidendi

Recovery of excess payment from gratuity of a deceased employee without following principles of natural justice is unsustainable. The department cannot recover amounts paid due to its own error without giving an opportunity of hearing to the affected party.

Judgment Excerpts

By this petition, the petitioner challenges the action of the respondent authorities in effecting recovery of an amount of Rs.3,11,194/- from the gratuity payable to the petitioner -widow after the death of her husband-government employee, towards recovery of excess payment made to him. The recovery order was passed without giving any notice or opportunity of hearing to the petitioner, which is in violation of principles of natural justice.

Procedural History

The petitioner's husband died on 11.03.2022. Family pension and gratuity were sanctioned on 21.04.2023. On 20.03.2023, respondent no.3 proposed recovery of excess payment. Recovery order dated 11.05.2023 deducted Rs.3,11,194/- from gratuity. Petitioner filed writ petition on 2023.

Acts & Sections

  • Maharashtra Civil Services (Pension) Rules, 1982: Rule 27
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