Case Note & Summary
The petitioner, Donald Daniel Ferreira, was initially appointed as a Teacher in respondent no.9 school on 1 August 1990 and later appointed as Head Teacher from 2 September 1996. His appointment was approved by the competent authority, the Superintendent, Private Primary School, Education Department, MCGM. He retired on 29 February 2016 on attaining superannuation. Throughout his service, he was paid regular salary and revised pay scales without any dispute. After retirement, he was not paid his retiral dues and only a meager amount of Rs.5,940 per month was released from 1 January 2017, with no payment from March 2016 to December 2016. On 29 December 2016, an order was passed directing recovery of overpayment made to the petitioner for a period of 4 years 11 months. The petitioner challenged this order on the ground that recovery after a considerable lapse of time from retirement is unsustainable. The court held that since the petitioner had not misrepresented any facts and the employer had approved his appointment and pay fixation, recovery after such a long delay is impermissible. The court quashed the impugned order and directed the respondents to refund the recovered amount with interest at 6% per annum from the date of recovery till payment.
Headnote
A) Service Law - Recovery of Overpayment - Delay and Lapse of Time - Recovery of salary paid to a retired employee after a period of 4 years 11 months from retirement is unsustainable, as the employer had approved the appointment and pay fixation without any misrepresentation by the employee. (Paras 1-8) B) Service Law - Retiral Benefits - Refund of Recovered Dues - Where retiral dues have been recovered from a retired employee without any fault on his part, the court can direct refund of the recovered amount with interest. (Paras 7-8)
Issue of Consideration
Whether the order of refixation and recovery of salary already drawn by the petitioner as 'Head Teacher' and recovery of retiral dues after his retirement is sustainable in law.
Final Decision
The impugned order dated 29 December 2016 is quashed and set aside. The respondents are directed to refund the amount recovered from the petitioner with interest at 6% per annum from the date of recovery till payment.
Law Points
- Recovery of overpayment from retired employees is impermissible after a long lapse of time
- especially when there is no misrepresentation by the employee
- and the employer had approved the pay fixation.
