Case Note & Summary
The petitioners, nine daily wagers employed with the respondent State of Gujarat, challenged a recovery order dated 04/02/2013 (No.113 of 2013) seeking recovery of excess salary paid to them under a Government Resolution dated 17/10/1988. The petitioners had completed five years of service and were granted fixed pay as per the resolution. Subsequently, the respondents sought to recover the amount, alleging it was paid in excess. The petitioners argued that the recovery was arbitrary as they had not misrepresented or committed any fraud; the excess payment was due to a mistake by the authorities. They sought quashing of the recovery order and consequential benefits. The State contended that the recovery was justified. The High Court, exercising jurisdiction under Article 226, held that recovery from daily wagers without any misrepresentation or fraud on their part is arbitrary and cannot be sustained. The court quashed the impugned order and directed the respondents to not recover any amount from the petitioners. The petition was allowed.
Headnote
A) Service Law - Recovery of Excess Payment - Daily Wagers - Recovery of amount paid under Government Resolution dated 17/10/1988 without misrepresentation or fraud by employees is arbitrary and cannot be sustained - Held that recovery from daily wagers who have not misrepresented is unjust and violative of Article 14 (Paras 3-10) B) Constitutional Law - Writ of Mandamus - Article 226 - Quashing of recovery order - Court can issue writ to quash arbitrary recovery orders passed by state authorities - Held that the impugned order dated 04/02/2013 is quashed and set aside (Paras 2, 11)
Issue of Consideration
Whether the recovery of excess payment made to daily wagers under a Government Resolution without any misrepresentation or fraud on their part is arbitrary and violative of Article 14 of the Constitution of India?
Final Decision
The petition is allowed. The impugned order dated 04/02/2013 bearing No.113 of 2013 is quashed and set aside. The respondents are directed not to recover any amount from the petitioners. Rule is made absolute.
Law Points
- Recovery of excess payment from employees without misrepresentation or fraud is arbitrary
- Principle of no recovery from daily wagers for payments made under government policy
- Article 226 of Constitution of India for writ of mandamus
