Citation : 2026 Latest Caselaw 1118 Chatt
Judgement Date : 30 March, 2026
1/7
2026:CGHC:14837
NAFR
HIGH COURT OF CHHATTISGARH AT BILASPUR
WPS No. 2409 of 2025
Abhash Kumar Shrivastava S/o Late Rajendra Prasad Shrivastava Aged
About 64 Years (Retired Assistant Grade-2 Mandi Ambikapur) Resident Of
House No. 129/1, Masjidpara, Gayatri Ward No.-3, Sitapur, District : Surguja
(Ambikapur), Chhattisgarh
... Petitioner(s)
versus
1 - State Of Chhattisgarh Through The Secretary, Department Of Agriculture,
Mahanadi Bhawan, Mantralay, Naya Raipur, Atal Nagar, Naya, Naya Raipur,
P.O./p.S. Naya Raipur, District : Raipur, Chhattisgarh
2 - Chhattisgarh State Agriculture Marketing (Mandi) Board Through The
Managing Director, Beej Bhavan, G. E. Road, Telibandha, Atal Nagar, Naya
Raipur, District : Raipur, Chhattisgarh
3 - Krishi Upaj Mandi Samiti Through The Secretary, Office Of Krishi Upaj
Mandi Samiti, Ambikapur, District : Surguja (Ambikapur), Chhattisgarh
4 - Chhattisgarh State Agricultural Marketing Board Through The Joint
Secretary, Ambikapur, District : Surguja (Ambikapur), Chhattisgarh
... Respondent(s)
For Petitioner : Mr. Ritesh Verma, Advocate Digitally signed by For Resp. No.1 : Mr. Love Sharma, Panel Lawyer PRAVEEN KUMAR SINHA Date:
2026.04.01 19:04:48 +0530
For Resp. No.2 to 4 : Mr. Navoday Singh, Advocate
S.B.: Hon'ble Shri Parth Prateem Sahu, Judge Order on Board 30/03/2026
1. With the consent of learned counsel appearing for the parties, this
case is heard finally.
2. Petitioner has filed this writ petition seeking following reliefs:-
" 10.1 that, the Hon'ble Court may further be pleased to quash the recovery Order No./Mandi/Acc./Family Pension/2024-25/579 Ambikapur, dated 15.1.2025 issued by the respondent No. 3, Secretary Krishi Upaj Mandi Samiti, Ambikapur, Surguja (C.G.) (Ann. P/1) at an earliest.
10:2. that, the Hon'ble Court may kindly be pleased to issue appropriate writ or direction to the respondents to pass an order/direction to the respondents to pay the amount already recovered Rs. 1, 26, 229/- from the petitioner at the rate of interest of 12% per annum.
10.3. that, the respondents may kindly be directed that they should not penalize the petitioner for their own fault and they may be directed to compensate the petitioner for his faulty order of recovery. The Hon'ble Court may kindly pass any order or issue any suitable writ or direction as may deem fit under the circumstances of the case.."
3. Learned counsel for petitioner submits that the petitioner while
working on the post of Assistant Grade-II in respondent - Krishi Upaj
Mandi Samiti Ambikapur, stood retired from service after attaining
age of superannuation on 30.06.2022. At the time of his retirement
petitioner was paid retrial dues including amount of Rs.3,13,296/-
towards leave encashment of 240 days. Petitioner was served with
letter/ notice dated 15.01.2025 asking for recovery of sum of
Rs.1,76,229/- on the ground that petitioner has been paid excess
amount towards leave encashment. Recovery is sought after about
more than 2 and ½ years from date of retirement and therefore
recovery of excess amount from petitioner who is a Class-III
Employee is not permissible in view of decision of Hon'ble Supreme
Court in case of State of Punjab & ors vs. Rafiq Masih (White
Washer) & ors, reported in (2015) 4 SCC 334.
4. On the other hand, learned counsel for respondents No. 2 to 4
would vehemently oppose submission of learned counsel for the
petitioner and would submit that it is not the payment made in part
during period of time but a lump sum amount has been paid to
petitioner in excess while making payment of retiral dues. However,
he does not dispute the submission of learned counsel for the
petitioner that recovery is sought from petitioner after more than 2
and ½ years from the date of retirement.
5. I have heard learned counsel for the parties and also perused the
documents annexed along with writ petition.
6. Recovery which is made from petitioner is in respect of excess
payment made towards leave encahsment. It is not the case of
respondent that excess payment is made to petitioner due to
misrepresentation or suppression of fact or any fraud played by
petitioner with respondent.
7. In case of Rafiq Masih (supra), Hon'ble Supreme Court
considering the issue of recovery of amount paid in excess has
summarized the situations where in certain cases, even recovery
from the employee by the employer would not be permissible in law.
In Para-18 it was observed thus:-
"18. It is not possible to postulate all situations of hardship, which would govern employees on the issue of recovery, where payments have mistakenly been made by the employer, in excess of their entitlement. Be that as it may, based on the decisions referred to herein above, we may, as a ready reference, summarise the following few situations, wherein recoveries by the employers, would be impermissible in law:
(i) Recovery from employees belonging to Class-III and Class-IV service (or Group 'C' and Group 'D' service).
(ii) Recovery from retired employees, or employees who are due to retire within one year, of the order of recovery.
(iii) Recovery from employees, when the excess payment has been made for a period in excess of five years, before the order of recovery is issued.
(iv) Recovery in cases where an employee has wrongfully been required to discharge duties of a higher post, and has been paid accordingly, even though he should have rightfully been required to work against an inferior post.
(v) In any other case, where the Court arrives at the conclusion, that recovery if made from the employee, would be iniquitous or harsh or arbitrary to such an
extent, as would far outweigh the equitable balance of the employer's right to recover."
8. In case of High Court of Punjab and Haryana and others vs.
Jagdev Singh, reported in (2016) 14 SCC 267, Hon'ble Supreme
Court though had considered the issue with regard to the
undertaking, however, Para-10 (i) of the decision in case of Rafiq
Masih (supra) has not been overruled or interfered. This aspect is
also considered by the Division Bench of this Court in WA
No.264/2020 (State of CG vs Labha Ram Dhruv) wherein it was
observed thus:
"9.In the case at hand, the Revision of Pay Rules, 2009 and 2017 do not make any enabling provision reserving option for the employer to seek refund of the amount paid in excess, by making the employee to furnish an undertaking. Even if we conclude, for the sake of arguments, that even in the absence of enabling provision under the Rules, undertaking given by the employee would operate, the fact remains that against the classes of employees against whom recovery would be impermissible in law, as held by the Hon'ble Supreme Court in the matter of Rafiq Masih (Supra), recovery from the employees belonging to Class-III and Class-IV service (or Group 'C' and Group 'D' service) would still be impermissible in law. Meaning thereby that even when undertaking is submitted by the employee, but he otherwise belongs to Class-III and Class-IV service, and the amount has been paid more than 5 years back, the law declared by the Hon'ble Supreme Court in the matter of Rafiq Masih (Supra) would still hold the field in favour of such employees, because the judgment in the matter of Rafiq Masih (Supra) has not
been overruled, but only clarified, by the Hon'ble Supreme Court in its later judgment in the matter of Jagdev Singh, Supra"
9. The petitioner is a retired Class- III employee who has already
concluded his service career and is now dependent on his retiral
benefits for his old aged retired life. After receiving the retiral dues, the
petitioner would have reasonably planned his post-retirement life by
making necessary investments, allocating funds for daily expenses,
medical needs, and other essential requirements. These financial
decisions are typically made with the legitimate expectation that the
amounts received are final and not subject to subsequent recovery.
Therefore, it will be very harsh if the recovery is permitted to be made
from the petitioner.
10. In the case at hand, it is not the case of respondents that
petitioner had received excess payment by practicing fraud or by
making misrepresentation. Thus, petitioner cannot be compelled to
return the amount which has been paid by the respondents on their
own without any misrepresentation or fraud on the part of petitioner.
11.In light of above decisions and in the given facts and circumstances
of the case, in the considered opinion of this Court, the respondents
cannot be permitted to effect recovery from the petitioner of the
amount paid in excess and being so, recovery against petitioner is not
sustainable.
12. Consequently, writ petition is allowed. Letter/notice Annexure P-1
dated 15.01.2025 is quashed. Respondents are directed to refund the
amount so recovered, to petitioner within a period of four months from
the date of receipt of copy of order, failing which recovered amount
shall carry interest @ 6% per annum from the date of order till its
realization.
Sd/-
(Parth Prateem Sahu) Judge Praveen
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