Case Note & Summary
The petitioner, a former Agricultural Officer, retired on 30.04.2014 and was receiving a monthly pension of Rs.43,921 under PPO No.RO-713261. The respondents claimed that an excess pension of Rs.2,43,682 was inadvertently paid to the petitioner from 01.10.2017 due to incorrect fixation under the 7th Pay Commission on the E-Pension portal, contrary to G.O.Ms.No.328 dated 31.10.2017. The third respondent issued an order on 21.05.2021 directing repayment, failing which recovery would be made from the monthly pension. The petitioner contended that no show cause notice was issued, violating principles of natural justice; there was no misrepresentation or fraud on his part; and recovery from a retired employee after a long period is impermissible under Supreme Court rulings in State of Punjab v. Rafiq Masih (White Washer) and Syed Abdul Qadir v. State of Bihar. The respondents maintained that the excess payment was a mistake and must be recovered. The court found that no material evidence showed any notice or opportunity was given to the petitioner before the recovery order, thus vitiating it for violation of natural justice. On the recovery issue, the court noted that the petitioner retired in 2014 and recovery was sought in 2021 with no allegation of misrepresentation or fraud, and indicated that recovery would be impermissible relying on the cited precedents. Consequently, the impugned order was quashed, the writ petition was allowed, and the respondents were restrained from making any recovery from the petitioner’s pension account.
Headnote
A) Natural Justice - Requirement of show cause notice before recovery - Impugned order quashed for violation - Constitution of India, Article 226 - The petitioner was not issued any show cause notice or given an opportunity before the recovery order was passed, thus violating principles of natural justice. Held that the impugned order is vitiated on this ground. (Paras 11) B) Service Law - Recovery of excess payments from retired employees - Permissibility in absence of misrepresentation/fraud - The court examined whether recovery of excess pension paid inadvertently could be directed against a retired employee after a long duration, relying on State of Punjab v. Rafiq Masih (White Washer) and Syed Abdul Qadir v. State of Bihar. The matter was under consideration. (Paras 12-13)
Issue of Consideration
Whether the impugned order of recovery of excess pension amount passed against the petitioner, a retired employee, is sustainable in law given that it was passed without notice or opportunity, and whether recovery can be effected without any misrepresentation or fraud on the part of the petitioner.
Final Decision
The impugned recovery order dated 21.05.2021 was quashed on the ground of violation of principles of natural justice as no show cause notice was issued. The court further held that recovery of excess pension from a retired employee without any misrepresentation or fraud and after a long period is impermissible in law. The writ petition was allowed and the respondents were restrained from making any recovery from the petitioner's pension account.
Law Points
- Legal points not extracted
- No recovery of excess pension from retired employee in absence of misrepresentation or fraud
- Violation of principles of natural justice
- Recovery impermissible after long duration post-retirement
- Reliance on State of Punjab v. Rafiq Masih (White Washer) and Syed Abdul Qadir v. State of Bihar
