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Usman Ahmed vs The State Of Madhya Pradesh
2025 Latest Caselaw 2682 MP

Citation : 2025 Latest Caselaw 2682 MP
Judgement Date : 4 August, 2025

Madhya Pradesh High Court

Usman Ahmed vs The State Of Madhya Pradesh on 4 August, 2025

Author: Vijay Kumar Shukla
Bench: Vijay Kumar Shukla
          NEUTRAL CITATION NO. 2025:MPHC-IND:20386




                                                               1                             WP-745-2018
                              IN     THE      HIGH COURT OF MADHYA PRADESH
                                                     AT INDORE
                                                        BEFORE
                                       HON'BLE SHRI JUSTICE VIJAY KUMAR SHUKLA
                                                   ON THE 4 th OF AUGUST, 2025
                                                  WRIT PETITION No. 745 of 2018
                                                    USMAN AHMED
                                                       Versus
                                      THE STATE OF MADHYA PRADESH AND OTHERS
                           Appearance:
                                   Ms.Anushaka Jain - Advocate for petitioner.

                                   Shri Mukesh Parwal - Government Advocate for respondents/State.

                                                                   ORDER

The petitioner who retired from the Government services as a Class-III employee as Non Medical Supervisor (NMS) under the respondent No.2 - Chief Medical & Health Officer, Ratlam, has filed present petition under Article 226 of the Constitution of India challenging the recovery of Rs.4,09,586/- (with interest) from his post retiral benefits.

Counsel for the petitioner submits that the petitioner is a retired government servant and the aforesaid recovery from the retiral dues is illegal

and arbitrary. It is further argued that the recovery is being made on account of wrong fixation, resulting in excess payment.

Counsel for State justifies the action of the recovery. The respondents have filed the reply, and in the reply, they have not stated that there was any fault, cheating, or misrepresentation of the petitioner in the fixation of pay. The reply does not indicate that there was

NEUTRAL CITATION NO. 2025:MPHC-IND:20386

2 WP-745-2018 any fault, misrepresentation, or cheating of the petitioner.

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 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). Conversely an undertaking given at the stage of payment of retiral dues with reference to the refixation of pay or increments done decades 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 the 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."

In the case of Shyam Babu Verma vs. Union of India, (1994) 2 SCC

NEUTRAL CITATION NO. 2025:MPHC-IND:20386

3 WP-745-2018 521 , the Apex Court while observing that the petitioners therein were not entitled to the higher pay scales, had come to the conclusion that since the amount has already been paid to the petitioner, for no fault of theirs, the said amount shall not be recovered by the respondent/Union of India. The observation made by the Apex Court in the said case is as under:-

''Although we have held that the petitioners were entitled only to the pay scale of Rs.330-480 in terms of the recommendations of the Third Pay Commission w.e.f. January 1, 1973 and only after the period of 10 years, they became entitled to the pay scale of Rs.330- 506 but as they have received the scale of Rs.330-560 since 1973 due to no fault of theirs and that scale is being reduced in the year 1984 with effect from January 1, 1973, it shall only be just and proper not to recover any excess amount which has already been paid to them.'' In the case of Sahib Verma vs. State of Haryana (1995) Supp. (1) SCC 18 , the Apex Court once again held that although the employee did not possess the required educational qualification, yet the Principal granting him the relaxation,, had paid the salary on the revised pay scale. It was further observed that the said payment was not on account of misrepresentation by the employee, but by a mistake committed by the department and, therefore, the recovery could not have been made. The relevant observation of the Apex Court is reproduced as under:-

''Admittedly the appellant does not possess the required educational qualifications. Under the circumstances the appellantwould not be entitled to the relaxation. The

NEUTRAL CITATION NO. 2025:MPHC-IND:20386

4 WP-745-2018 principal erred in granting him the relaxation. Since the date of relaxation the appellant had been paid his salary on the revised scale. However, it is not on account of any misrepresentation made by the appellant that the benefit of the higher pay scale was given to him but by wrong construction made by the Principal for which appellant cannot be held to be fault. Under the circumstances, the amount paid till date may not be recovered from the appellant."

In the case of Syed Abdul Kadir vs. State of Bihar (2009) 3 SCC 475, the Apex Court held that the recovery of excess payment from a retired government servant cannot be made if there is no misrepresentation or fault on the part of the employee. In the light of the aforesaid judgments, facts of the case are examined, and it is found that the recovery is made on the ground of erroneous pay fixation resulting in excess payment to the petitioner. It is not the case of the respondents that there was any misrepresentation or cheating committed by the petitioner.

In view of the aforesaid, the petition is allowed. The impugned order of recovery is hereby quashed.

The petition is accordingly allowed and disposed of.

(VIJAY KUMAR SHUKLA) JUDGE

MK

 
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