Excess pay given due to dept mistake cannot be recovered from retiral benefits: High Court

Excess pay given due to dept mistake cannot be recovered fromPress Trust of India | Chennai April 18, 2014

Madras High Court today said that if excess pay was granted to an employee due to the mistake of the department and not due to any misrepresentation by him, that amount shall not be recovered from the worker from the retiral benefits, that too after retirement.
Allowing a petition from K Syed Razack, a retired Police Inspector, Justice D Hariparanthaman set aside the order of the Commissioner of Police, Chennai, to recover Rs 36,312 from the DCRG (Death-Cum-Retirement Gratuity) of the petitioner.
He directed the authorities not to make any recovery on the ground of any wrong fixation done during the service, as it was not the petitioner’s mistake.
The judge also directed that the amount be refunded if any already recovered from the petitioner within six weeks.
Razack submitted he was appointed Grade-II constable on June 1, 1971. After two promotions, he was listed in ‘C’ list of head constables fit for promotion to Sub-Inspector’s post on Sep 22, 1985. As there was no vacancy, he was not promoted at that time.

Later, he was promoted temporarily as SI on September 15, 1987 and also paid salary by fixing his pay to the post. He was regularised in the post with effect from August 17 1992, promoted as Inspector on October 15,2003 and retired from service on January 31, 2009.
When the pension proposals were sent, the Accountant General opined that the benefit of fixation was given from September 15, 1987 and should be given only from the date of regularisation of service (August 7, 1992).
The CoP then passed an order to recover Rs 36,312 from the DCRG of Razack towards alleged excess payment due to the fixation.
Citing a judgment of a division bench, which held such recovery was bad, the judge said he was also of the view that the judgement applies to the facts of this particular case.
“Any wrong fixation that was said to have been made in 1987 shall not be sought to be recovered, after retirement in 2009, more particularly, when it is not the case of the authorities that the wrong fixation was done at the instance of the petitioner by way of misrepresentation.”
“Even, if there was any error, the petitioner cannot be made to suffer after retirement, by way of recovery,” the judge said.


  • Sir, Hon,ble Madra High Court Judgement and order mentioned above is in contravention of the Hon,ble Supreme Court Judgment and order-2012 in case between Chandi Prasad Unial and others versus State of Uttakhand and others , AIR SCW-4742(2012) 8 SCC 417 in pursuance of which the DOPT vide order No. 18/26/2011-Estt(Pay I) dated 06.02.2014 has issued direction for recovery of excess payment/ wrongful payment either from the beneficiary or from the official due to whose fault the excess money from the public fund / tax payer amount has been paid. This also applies to the pensioners. Hence, there is a need to challange the Madras High Court Order in the Supreme Court by the Tamil Nadu Government.
    Dr.D.S.Singh , C-301, The Crescent, Plot No. F/2, Sector-50, NOIDA-201301, Mob. 09811554470 E.Mail. [email protected]

    • Sir, recovery has been made impermissible by the Supreme Court (i) from the retired employees or employees who are due to retire within one year of the order of recovery(ii)recovery from employees when the excess payment has been made for a period in excess of 05 years before the order of recovery is issued while disposing 241 civil appeals alongwith case of State of Punjab Vs Rafiq Masih in Civil appeal no.11527 of 2014.