Citation : 2024 Latest Caselaw 21371 MP
Judgement Date : 7 August, 2024
1 WP-21357-2024
IN THE HIGH COURT OF MADHYA PRADESH
AT INDORE
BEFORE
HON'BLE SHRI JUSTICE PRANAY VERMA
ON THE 7 th OF AUGUST, 2024
WRIT PETITION No. 21357 of 2024
MOHANLAL
Versus
THE STATE OF MADHYA PRADESH AND OTHERS
Appearance:
Shri M.K. Choudhary, learned counsel for the petitioner.
Ms. Mradula Sen, P.L. for respondents/State.
ORDER
1 . This petition under Article 226 of the Constitution of India, has been preferred by the petitioner challenging the order dated 14/3/2024 passed by respondent No.2 whereby a sum of Rs.1,04,027/- has been directed to be deducted and recovered from his gratuity amount.
2. The petitioner has retired on 30/6/2019 from a Class IV post. From the impugned order it is apparent that recovery has been directed to be made from the petitioner for the fact that he was given certain additional
allowances for his salary on account of wrong pay fixation.
3. The Full Bench of this Court at Principal Seat, Jabalpur in identical matters has quashed such recovery orders by judgment dated 06.03.2024 passed in Writ Appeal No.815 of 2017 [State of Madhya Pradesh and Another vs. Jagdish Prasad Dubey and Another] and connected writ petitions reported in 2024 SCC online MP 1567 . It has been held in paragraph No.35
2 WP-21357-2024 as under:
"Answers to the questions referred
35.(a) Question No.1 is answered by holding that recovery can be effected from the pensionary benefits or from the salary based on the undertaking or the indemnity bond given by the employee before the grant of benefit of pay refixation. The question of hardship of a Government servant has to be taken note of in pursuance to the judgment passed by the Larger Bench of the Hon'ble Supreme Court in the case of Syed Abdul Qadir (supra). The time period as fixed in the case of Rafiq Masih (supra) reported in (2015) 4 SCC 334 requires to be followed.Conversely an undertaking given at the stage of payment of retiral dues with reference to the refixation of pay or increments donedecades ago cannot be enforced.
(b) Question No.2 is answered by holding that recovery can be made towards the excess payment made in terms of Rules 65 and 66 of the Rules of 1976 provided that the entire procedures as contemplated in Chapter VIII of the Rules of 1976 are followed by the employer. However, no recovery can be made in pursuance to Rule 65 of the Rules of 1976 towards revision of pay which has been extended to a Government servant much earlier. In such cases, recovery can be made in terms of the answer to Question No.1.
(c) Question No.3 is answered by holding that the undertaking given by the employee at the time of grant of financial benefits on account of refixation of pay is a forced undertaking and is therefore not enforceable in the light of the judgment of the Hon'ble Supreme Court in the case of Central Inland Water Transport Corporation Limited and Another vs. Brojo Nath Ganguly and Another, reported in (1986) 3 SCC 136 unless the undertaking is given voluntarily."
4. Even if any undertaking had been furnished by the petitioner at the time of his pay fixation and payment of allowances to him, then also in light
3 WP-21357-2024
of the aforesaid decision the case of the petitioner is required to be considered in the light of the decision of the Apex Court in State of Punjab & Ors. V/s. Rafiq Masih (White Washer) (2015) 4 SCC 334 in which it has been held as under :-
"18. While it is not possible to postulate all situations of hardships where payments have mistakenly been made by an employer, in the following situations, a recovery by the employer 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."
5. In the present case also the recovery is being made from a Class IV employee and after his retirement and in fact after a period of 5 years therefrom. It does not appear that the petitioner was in any manner responsible for his wrong pay fixation or payment of extra allowances to him. Thus undertaking if any hence does not help the respondents in any manner.
6 . As a result of the aforesaid discussion, the impugned order dated
4 WP-21357-2024 14/3/2024 (Annexure P/1) cannot be sustained and is hereby quashed. In view of the quashment of the recovery order, the respondents are directed to pay the gratuity amount to the petitioner within a period of two months from the date of receipt of certified copy of this order in case there is no legal impediment for the same.
7. The petition is accordingly allowed and disposed off.
(PRANAY VERMA) JUDGE
SS/-
Publish Your Article
Campus Ambassador
Media Partner
Campus Buzz
LatestLaws.com presents: Lexidem Offline Internship Program, 2026
LatestLaws.com presents 'Lexidem Online Internship, 2026', Apply Now!