Krishan Lal-I v. State of Pb.& Others

o CWP-12210-2006o ooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo-1-o o INoTHEoHIGHoCOURToOFoPUNJABo&oHARYANAoATo CHANDIGARHo o 970ooo o o o o o o CWP-12210-2006o(Oo&oM)o Dateoofodecision:o03.05.2025 o o o o o o KrishanoLal-Io ooo o o o o o o o o o o o oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo....Petitionero o Versuso StateoofoPunjaboandoOtherso o o o o o o o o o ooooooooooooo...Respondents o o o o CORAM:oHON'BLEoMR.oJUSTICEoAMANoCHAUDHARYo o o o o o o o o o o o Presento:oo Mr.oR.K.Arora,oAdvocate,oo o o o o o o forotheopetitioner.o o o o Mr.oSwapanoShorey,oDAG,oPunjab.oo oo AMANoCHAUDHARY,oJ.o(ORAL)o o

1.o o Prayeromadeoinotheopresentopetitionoisoforoquashingotheoorderso datedo19.05.2006oando26.06.2006,oAnnexuresoP-3oandoP-4,ovideowhichopayo ofo theo petitionero waso reducedo witho retrospectiveo effecto ando recoveryo ordered.oo

2.o o Learnedocounselosubmitsothatotheopetitionerowasoappointedoaso WarderoinotheoPunjaboMentaloHospitaloinotheoyearo1967oandoretiredoono

30.06.2006o ono attainingo theo ageo ofo superannuation.o Theo payo ofo theo petitionero waso fixedo inotermso ofo theoinstructionso datedo8.1.1998oinotheo Mastero Scale,o buto ato theo vergeo ofo hiso retirement,o video ordero datedo

20.01.2006,o hiso payo waso reducedo withouto issuanceo ofo prioro noticeo oro supplyoofocopyothereof,oleadingotoorecovery,owhichotheoDivisionoBencho o CWP-12210-2006o ooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo-2-o o whileo issuingo noticeo ofo motiono ono 07.08.2006,o hado stayed.o He,o ono instructionso fromo theo petitioner,o restrictso hiso prayero too onlyo recoveryo orderedobyorelyingoonotheopolicy/instructionsodatedo20.01.2017oandotheo judgmentoofotheoHon'bleoSupremeoCourtoinoJogeshwaroSahoooandootherso vs.oTheoDistrictoJudge,oCuttackoandoothers,oSLPo(C)oNo(s).o5918-2024,o decidedo ono 04.04.2025,o whereino ito haso beeno heldo thato theo recoveryo ofo excesso emolumentso oro allowances,o disbursedo aso ao consequenceo ofo ano erroneouso computationo ofo theo same,o oughto noto too beo affected,o sucho indulgenceo beingo grantedo aso ano equitableo relief,o extendedo solelyo too alleviateotheohardshipothatomightootherwiseobeocausedobyosuchorecovery,o especiallyotoothoseoretired,otheorelevantoparasowhereoforeadothus:-o "7.oTheoissueofallingoforoouroconsiderationoisonotoaboutotheo legalityo ofo theo retrospectiveo promotiono ando theo financialo benefitograntedotootheoappellantsoono10.05.2017.oTheoissueoforo considerationoisowhetherorecoveryoofotheoamountoextendedotoo theo appellantso whileo theyo wereo ino serviceo iso justifiedo aftero theiro retiremento ando thato tooo withouto affordingo anyo opportunityoofohearing.o

8.oTheolawoinothisoregardohasobeenosettledobyothisoCourtoino catenaoofojudgmentsorenderedotimeoandoagain;oSahiboRamovs.o Stateo ofo Haryana,o (1995)o Suppo (1)o SCCo 18,o Shyamo Babuo Vermaovs.oUnionoofoIndia,o(1994)o2oSCCo521,oUnionoofoIndiao vs.o M.o Bhaskar,o (1996)o 4o SCCo 416o ando V.o Gangaramo vs.o Regionalo Jt.o Director,o (1997)o 6o SCCo 139o ando ino ao recento decisionoinotheomatteroofoThomasoDanielovs.oStateoofoKeralao &oOrs.,o(2022)oSCCoonlineoSCo536.o

9.o Thiso Courto haso consistentlyo takeno theo viewo thato ifo theo excesso amounto waso noto paido ono accounto ofo anyo misrepresentationoorofraudoonotheopartoofotheoemployeeooroifo suchoexcessopaymentowasomadeobyotheoemployerobyoapplyingo aowrongoprincipleoforocalculatingotheopay/allowanceooroonotheo basiso ofo ao particularo interpretationo ofo rule/order,o whicho iso subsequentlyofoundotoobeoerroneous,osuchoexcessopaymentsoofo emolumentsooroallowancesoareonotorecoverable.oItoisoheldothato suchoreliefoagainstotheorecoveryoisonotobecauseoofoanyorightoofo o CWP-12210-2006o ooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo-3-o o theoemployeeobutoinoequity,oexercisingojudicialodiscretionotoo provideoreliefotootheoemployeeofromotheohardshipothatowillobeo causedoifotheorecoveryoisoordered.o

10.oInoThomasoDanielo(supra),othisoCourtohasoheldothusoino paraso10,o11,o12oando13:o "10.o Ino Sahibo Ramo v.o Stateo ofo Haryana,o thiso Courto restrainedorecoveryoofopaymentowhichowasogivenoundero theo upgradedo payo scaleo ono accounto ofo wrongo constructiono ofo relevanto ordero byo theo authorityo concerned,o withouto anyo misrepresentationo ono parto ofo theoemployees.oItowasoheldothus:o "5.o Admittedlyo theo appellanto doeso noto possesso theo requiredo educationalo qualifications.o Undero theo circumstancesotheoappellantowouldonotobeoentitledotoo theorelaxation.oTheoPrincipaloerredoinograntingohimotheo relaxation.oSinceotheodateooforelaxation,otheoappellanto hado beeno paido hiso salaryo ono theo revisedo scale.o However,oitoisonotoonoaccountoofoanyomisrepresentationo madeobyotheoappellantothatotheobenefitoofotheohigheropayo scaleo waso giveno too himo buto byo wrongo constructiono madeobyotheoPrincipaloforowhichotheoappellantocannoto beo heldo too beo ato fault.o Undero theo circumstanceso theo amountopaidotillodateomayonotobeorecoveredofromotheo appellant.oTheoprincipleoofoequalopayoforoequaloworko wouldo noto applyo too theo scaleso prescribedo byo theo UniversityoGrantsoCommission.oTheoappealoisoallowedo partlyowithoutoanyoorderoasotoocosts."o

11.oInoCol.oB.J.oAkkarao(Retd.)ov.oGovernmentoofo India2othisoCourtoconsideredoanoidenticaloquestionoaso under:o "27.o Theo lasto questiono too beo consideredo iso whethero reliefo shouldo beo grantedo againsto theo recoveryo ofo theo excesso paymentso madeo ono accounto ofo theo wrongo interpretation/understandingoofotheocircularodatedo7-6-1999.oThisoCourtohasoconsistentlyograntedoreliefoagainsto recoveryo ofo excesso wrongo paymento ofo emoluments/allowanceso fromo ano employee,o ifo theo followingoconditionsoareofulfilledo(videoSahiboRamov.o StateoofoHaryanao[1995oSuppo(1)oSCCo18o:o1995oSCCo (L&S)o 248],o Shyamo Babuo Vermao v.o Uniono ofo Indiao [(1994)o2oSCCo521o:o1994oSCCo(L&S)o683o:o(1994)o27o ATCo121],oUnionoofoIndiaov.oM.oBhaskaro[(1996)o4o SCCo416o:o1996oSCCo(L&S)o967]oandoV.oGangaramov.o RegionaloJt.oDirectoro[(1997)o6oSCCo139o:o1997oSCCo (L&S)o1652]):o o CWP-12210-2006o ooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo-4-o o

(a)oTheoexcessopaymentowasonotomadeoonoaccountoofo anyo misrepresentationo oro fraudo ono theo parto ofo theo employee.o

(b)oSuchoexcessopaymentowasomadeobyotheoemployero byo applyingo ao wrongo principleo foro calculatingo theo pay/allowanceo oro ono theo basiso ofo ao particularo interpretationo ofo rule/order,o whicho iso subsequentlyo foundotoobeoerroneous.o

28.o Sucho relief,o restrainingo backo recoveryo ofo excesso payment,oisograntedobyocourtsonotobecauseoofoanyorighto inotheoemployees,obutoinoequity,oinoexerciseoofojudicialo discretionotoorelieveotheoemployeesofromotheohardshipo thato willo beo causedo ifo recoveryo iso implemented.o Ao governmento servant,o particularlyo oneo ino theo lowero rungsoofoserviceowouldospendowhateveroemolumentsoheo receivesoforotheoupkeepoofohisofamily.oIfoheoreceivesoano excessopaymentoforoaolongoperiod,oheowouldospendoit,o genuinelyo believingo thato heo iso entitledo too it.o Aso anyo subsequentoactionotoorecoverotheoexcessopaymentowillo causeoundueohardshipotoohim,oreliefoisograntedoinothato behalf.oButowhereotheoemployeeohadoknowledgeothato theopaymentoreceivedowasoinoexcessoofowhatowasodueooro wronglyo paid,o oro whereo theo erroro iso detectedo oro correctedowithinoaoshortotimeoofowrongopayment,ocourtso willonotograntoreliefoagainstorecovery.oTheomatterobeingo inotheorealmoofojudicialodiscretion,ocourtsomayoonotheo factsoandocircumstancesoofoanyoparticularocaseorefuseotoo grantosuchoreliefoagainstorecovery.o

29.oOnotheosameoprinciple,opensionersocanoalsooseekoao directiono thato wrongo paymentso shouldo noto beo recovered,o aso pensionerso areo ino ao moreo disadvantageousopositionowhenocomparedotooin-serviceo employees.o Anyo attempto too recovero excesso wrongo paymento wouldo causeo undueo hardshipo too them.o Theo petitionersoareonotoguiltyoofoanyomisrepresentationooro fraudoinoregardotootheoexcessopayment.oNPAowasoaddedo toominimumopay,oforopurposesoofosteppingoup,odueotooao wrongo understandingo byo theo implementingo departments.o Weo areo thereforeo ofo theo viewo thato theo respondentso shallo noto recovero anyo excesso paymentso madeo towardso pensiono ino pursuanceo ofo theo circularo datedo 7-6-1999o tillo theo issueo ofo theo clarificatoryo circularo datedo 11-9-2001.o Insofaro aso anyo excesso paymento madeo aftero theo circularo datedo 11-9-2001,o obviouslyotheoUnionoofoIndiaowillobeoentitledotoorecovero theoexcessoasotheovalidityoofotheosaidocircularohasobeeno o CWP-12210-2006o ooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo-5-o o upheldoandoasopensionersohaveobeenoputoononoticeoino regardotootheowrongocalculationsoearlieromade."o

12.o Ino Syedo Abdulo Qadiro v.o Stateo ofo Bihar3o excesso paymentowasosoughtotoobeorecoveredowhichowasomadeo tootheoappellants-teachersoonoaccountoofomistakeoando wrongointerpretationoofoprevailingoBiharoNationalisedo Secondaryo Schoolo (Serviceo Conditions)oRules,o 1983.o Theoappellantsothereinocontendedothatoevenoifoitowereotoo beo heldo thato theo appellantso wereo noto entitledo too theo benefito ofo additionalo incremento ono promotion,o theo excessoamountoshouldonotobeorecoveredofromothem,oito havingo beeno paido withouto anyo misrepresentationo oro fraudoonotheiropart.oTheoCourtoheldothatotheoappellantso cannoto beo heldo responsibleo ino sucho ao situationo ando recoveryoofotheoexcessopaymentoshouldonotobeoordered,o especiallyo wheno theo employeeo haso subsequentlyo retired.o Theo courtoobservedothatoinogeneraloparlance,o recoveryoisoprohibitedobyocourtsowhereothereoexistsonoo misrepresentationoorofraudoonotheopartoofotheoemployeeo ando wheno theo excesso paymento haso beeno madeo byo applyingo ao wrongo interpretation/understandingo ofo ao RuleooroOrder.oItowasoheldothus:o "59.o Undoubtedly,o theo excesso amounto thato haso beeno paidotootheoappellantoteachersowasonotobecauseoofoanyo misrepresentationo oro fraudo ono theiro parto ando theo appellantsoalsoohadonooknowledgeothatotheoamountothato wasobeingopaidotoothemowasomoreothanowhatotheyowereo entitledoto.oItowouldonotobeooutoofoplaceotoomentionohereo thato theo Financeo Departmento had,o ino itso counter-o affidavit,oadmittedothatoitowasoaobonaofideomistakeoono theiropart.oTheoexcessopaymentomadeowasotheoresultoofo wrongointerpretationoofotheoRuleothatowasoapplicableotoo them,o foro whicho theo appellantso cannoto beo heldo responsible.oRather,otheowholeoconfusionowasobecauseo ofoinaction,onegligenceoandocarelessnessoofotheoofficialso concernedo ofo theo Governmento ofo Bihar.o Learnedo counseloappearingoonobehalfoofotheoappellantoteacherso submittedothatomajorityoofotheobeneficiariesohaveoeithero retiredooroareoonotheovergeoofoit.oKeepingoinoviewotheo peculiarofactsoandocircumstancesoofotheocaseoatohando andotooavoidoanyohardshipotootheoappellantoteachers,oweo areoofotheoviewothatonoorecoveryoofotheoamountothatohaso beenopaidoinoexcessotootheoappellantoteachersoshouldobeo made."o

13.oInoStateoofoPunjabov.oRafiqoMasih,o(2015)o4oSCCo 334oo whereino thiso courto examinedo theo validityo ofo ano o CWP-12210-2006o ooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo-6-o o ordero passedo byo theo Stateo too recovero theo monetaryo gainsowronglyoextendedotootheobeneficiaryoemployeeso ino excesso ofo theiro entitlementso withouto anyo faulto oro misrepresentationoatotheobehestoofotheorecipient.oThiso Courtoconsideredosituationsoofohardshipocausedotooano employee,o ifo recoveryo iso directedo too reimburseo theo employero ando disallowedo theo same,o exemptingo theo beneficiaryoemployeesofromosuchorecovery.oItowasoheldo thus:o "8.o Aso betweeno twoo parties,o ifo ao determinationo iso renderedoinofavouroofotheoparty,owhichoisotheoweakeroofo theo two,o withouto anyo seriouso detrimento too theo othero (whicho iso trulyo ao welfareo State),o theo issueo resolvedo wouldobeoinoconsonanceowithotheoconceptoofojustice,o whichoisoassuredotootheocitizensoofoIndia,oevenoinotheo Preambleo ofo theo Constitutiono ofo India.o Theo righto too recoverobeingopursuedobyotheoemployer,owillohaveotoobeo compared,o witho theo effecto ofo theo recoveryo ono theo employeeoconcerned.oIfotheoeffectoofotheorecoveryofromo theoemployeeoconcernedowouldobe,omoreounfair,omoreo wrongful,omoreoimproper,oandomoreounwarranted,othano theocorrespondingorightoofotheoemployerotoorecoverotheo amount,othenoitowouldobeoiniquitousoandoarbitrary,otoo effectotheorecovery.oInosuchoaosituation,otheoemployee'so rightowouldooutbalance,oandothereforeoeclipse,otheorighto ofotheoemployerotoorecover.o Xxxxxxxxxo

18.o Ito iso noto possibleo too postulateo allo situationso ofo hardshipowhichowouldogovernoemployeesoonotheoissueo ofo recovery,o whereo paymentso haveo mistakenlyo beeno madeobyotheoemployer,oinoexcessoofotheiroentitlement.o Beothatoasoitomay,obasedoonotheodecisionsoreferredotoo hereinabove,oweomay,oasoaoreadyoreference,osummariseo theofollowingofewosituations,owhereinorecoveriesobyotheo employers,owouldobeoimpermissibleoinolaw:o

(i)oRecoveryofromotheoemployeesobelongingotooClasso IIIo ando Classo IVo serviceo (oro Groupo Co ando Groupo Do service).o

(ii)o Recoveryo fromo theo retiredo employees,o oro theo employeesowhooareodueotooretireowithinooneoyear,oofotheo orderooforecovery.o

(iii)oRecoveryofromo theo employees,owhenotheoexcesso paymentohasobeenomadeoforoaoperiodoinoexcessoofofiveo years,obeforeotheoorderooforecoveryoisoissued.o

(iv)o Recoveryo ino caseso whereo ano employeeo haso wrongfullyo beeno requiredo too dischargeo dutieso ofo ao o CWP-12210-2006o ooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo-7-o o highero post,o ando haso beeno paido accordingly,o eveno thoughoheoshouldohaveorightfullyobeenorequiredotooworko againstoanoinferioropost.o

(v)oInoanyootherocase,owhereotheocourtoarrivesoatotheo conclusion,othatorecoveryoifomadeofromotheoemployee,o wouldobeoiniquitousooroharshooroarbitraryotoosuchoano extent,oasowouldofarooutweighotheoequitableobalanceoofo theoemployer'sorightotoorecover."o o

11.oInotheocaseoatohand,otheoappellantsowereoworkingoonotheo postoofoStenographersowhenotheosubjectoillegalopaymentowaso madeo too them.o Ito iso noto reflectedo ino theo recordo thato sucho paymentowasomadeotootheoappellantsoonoaccountoofoanyofraudo oromisrepresentationobyothem.oItoseems,owhenotheofinancialo benefitowasoextendedotootheoappellantsobyotheoDistrictoJudge,o Cuttack,o theo sameo waso subsequentlyo noto approvedo byo theo Higho Courto whicho resultedo ino theo subsequento ordero ofo recovery.oItoisoalsoonotoinodisputeothatotheopaymentowasomadeo inotheoyearo2017owhereasotheorecoveryowasodirectedoinotheo yearo2023.oHowever,oinotheomeanwhile,otheoappellantsohaveo retiredoinotheoyearo2020.oItoisoalsooanoadmittedopositionothato theoappellantsowereonotoaffordedoanyoopportunityoofohearingo beforeoissuingotheoorderooforecovery.oTheoappellantsohavingo superannuatedo ono ao ministerialo posto ofo Stenographero wereo admittedlyonotoholdingoanyogazettedopostoasosuchoapplyingo theoprincipleoenunciatedobyothisoCourtoinotheoaboveoquotedo judgment,otheorecoveryoisofoundounsustainable.o

12.oForotheoaforestated,oweoareoofotheoconsideredoviewothatotheo appealo deserveso toobeo allowed.o Accordingly,o weo allowo theo appealo ando seto asideo theo ordero ofo theo Higho Courto ando ino consequenceotheoordersodatedo12.09.2023oando08.09.2023obyo whicho theo appellantso wereo directedo too deposito theo excesso drawnoarrearsoareosetoaside.o o o o o o o o

3.o o Theointerimoorderodatedo07.08.2006owasomadeoabsoluteoono

31.10.2006,oafterohearingotheolearnedocounseloforotheoparties.o

4.o o Despiteobestoefforts,olearnedoStateocounselohasonotobeenoableo too showo thato theo petitionero receivedo theo amounto byo makingo anyo misrepresentationooroconcealmentoofofactsoandodrawooutoanyodistinctiveo aspectsoinotheoaforementionedojudgmentoorociteoanyocontraryolaw.o o CWP-12210-2006o ooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo-8-o o

5.o o Inoviewoofotheoafore,otheopresentopetitionoisopartlyoallowedo insofaroasorecoveryoorderedoisoconcerned.o o o o

03.05.2025o o o o o o oooo(AMANoCHAUDHARY)oooooooooooo parveenokumaro o o o o o o oooooooooJUDGEo o Whetherospeaking/reasonedo:oYeso/oNoo o o o o o o Whetheroreportableo ooooo:ooYeso/oNoo o