Citation : 2025 Latest Caselaw 9935 MP
Judgement Date : 7 October, 2025
NEUTRAL CITATION NO. 2025:MPHC-IND:29119
1 WP-9579-2025
IN THE HIGH COURT OF MADHYA PRADESH
AT INDORE
BEFORE
HON'BLE SHRI JUSTICE VIJAY KUMAR SHUKLA
ON THE 7 th OF OCTOBER, 2025
WRIT PETITION No. 9579 of 2025
MANSINGH
Versus
THE STATE OF MADHYA PRADESH AND OTHERS
Appearance:
Ms.Ranjana Gawade - Advocate for the petitioner.
Shri Kushagra Jain - Dy.GA for State.
ORDER
The petitioner is a retired government servant who retired on 31.7.2024 from the post of Peon. The petitioner is challenging the order dated 19.12.2024 by which a recovery of an amount of Rs.2,47,924/- after retirement from gratuity has been directed to be recovered.
The respondents have filed the reply and it is stated that the recovery is being made on the ground that the petitioner has wrongly been granted excess payment.
Counsel for the petitioner argued that the aforesaid recovery on the said ground of erroneous payment is not legal in view of the judgment passed by the Apex Court and this Court.
In the case of Shyam Babu Verma vs. Union of India, (1994) 2 SCC 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
NEUTRAL CITATION NO. 2025:MPHC-IND:29119
2 WP-9579-2025 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.'' (emphasis supplied)
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 appellant would not be entitled to the relaxation. The 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."
NEUTRAL CITATION NO. 2025:MPHC-IND:29119
3 WP-9579-2025 In the case of Syed Abdul Kadir vs. State of Bihar (2009) 3 SCC 475 , the Apex Court held that recovery of excess payment from a government servant cannot be made if there is no misrepresentation or fault on the part of the employee.
After hearing learned counsel for parties and taking into consideration the aforesaid judgments, this Court finds that the issue involved in the present case that whether a recovery from a retired government servant can be effected on the ground of erroneous excess payment, is no longer res integra.
In view of the aforesaid, the impugned order of recovery Annexure P/1 dated 19.12.2024 is quashed. The respondents are directed to refund the amount recovered from the petitioner with 6% interest from the date of the amount due till the same is repaid to the petitioner within a period of 60 days from the date of filing of a copy of the order passed today. If the amount is not refunded within 60 days, the amount shall carry 9% interest.
With the aforesaid, the petition is allowed and disposed of.
(VIJAY KUMAR SHUKLA) JUDGE
VM
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