Citation : 2025 Latest Caselaw 3787 MP
Judgement Date : 12 August, 2025
NEUTRAL CITATION NO. 2025:MPHC-GWL:17506
1 WP-2436-2024
IN THE HIGH COURT OF MADHYA PRADESH
AT GWALIOR
BEFORE
HON'BLE SHRI JUSTICE ASHISH SHROTI
ON THE 12th OF AUGUST, 2025
WRIT PETITION No. 2436 of 2024
RAJESH SHRIVASTAVA
Versus
THE STATE OF MADHYA PRADESH AND OTHERS
Appearance:
K.K.Sharma - Advocate for the petitioner.
Jitesh Sharma (ga) appearing on behalf of Advocate General.
ORDER
The petitioner has filed this writ petition challenging the order dated 3/6/2022 (Annexure P/1), whereby, an amount of Rs. 3,81,158/- has been directed to be recovered from the petitioner.
2. The facts necessary for decision of this case are that the petitioner retired from the post of Sub Engineer (Civil) w.e.f. 31/3/2022. After his retirement, the impugned order was passed on 3/6/2022, whereby, an amount of Rs. 3,81,158/- is directed to be recovered from the petitioner from his
retiral dues on account of excess payment made to him because of wrong fixation of his salary.
3. From the impugned order, it is evident that the wrong payment relates back to 1/7/2007.
4. Counsel for the petitioner submits that recovery of the excess amount is not permissible in view of the judgment of this Court in the case of
NEUTRAL CITATION NO. 2025:MPHC-GWL:17506
2 WP-2436-2024 State of Madhya Pradesh & others Vs. Jagdish Prasad Dubey, (2024) 2 M.P.L.J. 198. He also relied upon the Apex Court decision in the case of State of Punjab Vs. Rafiq Masih (White Washer), (2015) 4 SCC 334.
5. On the other hand, learned counsel for the State supported the impugned order and submitted that due to wrong fixation of petitioner's salary, he has been erroneously paid excess amount, therefore, the respondents are entitled to recover the same. He thus, prays for dismissal of the petitioner.
6. Considered the arguments and perused the record.
7. The Full Bench of this Court in the case of Jagdish Prasad Dubey (supra), has dealt with the similar issue and held as under:
"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. Converselyan 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 grant of financial benefits on
NEUTRAL CITATION NO. 2025:MPHC-GWL:17506
3 WP-2436-2024 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 (supra) unless the undertaking is given voluntarily."
8. Further, the Apex Court has also dealt with the similar issue in the case of Rafiq Masih (supra), wherein, the Apex Court held as under:-
"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."
9. Considering the law laid down by the Full Bench of this Court in the case of Jagdish Prasad Dubey (supra) , as also by the Apex Court in the case o f Rafiq Masih (supra), the impugned recovery dated 3/6/2022, is unsustainable and is accordingly, set aside. The respondents are directed to refund the amount of Rs.3,81,158/- along with interest @ 6% per annum
from the date of its recovery till actual payment to the petitioner.
NEUTRAL CITATION NO. 2025:MPHC-GWL:17506
4 WP-2436-2024
10. Let the said exercise, as directed above, be completed within a period of 90 days from the date of submission of certified copy of this order.
11. The petition is accordingly disposed of.
(ASHISH SHROTI) JUDGE
JPS/-
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