1 O.A. No.
953/2023
MAHARASHTRA ADMINISTRATIVE TRIBUNAL MUMBAI,
BENCH AT AURANGABAD
ORIGINAL APPLICATION NO. 953 OF 2023
DISTRICT : AURANGABAD
Iliyas Khan Samsher Khan Pathan, )
Age : 64 years, Occu. : Retired as A.S.I. from )
Traffic Branch, Badge No. 4282, )
Chhawani Division, Aurangabad. )
R/o. Plot No. 58/89, Power House Road, )
Ansar Colony, Padegaon, Aurangabad, )
Dist. Aurangabad. )
…. APPLICANT
V E R S US
1. The State of Maharashtra, )
Through Secretary, )
Home Department, )
Mantralaya, Mumbai-32. )
2. The Director General of Police, )
Maharashtra State, Shahid Bhagatsingh)
Marg, Coloba, Mumbai-39. )
3. The Commissioner of Police, )
Office at Mill Corner, Dr. Babasaheb )
Ambedkar Road, Chatrapati Sambhaji )
Nagar, Dist. Chatrapati Sambhaji Nagar)
(Aurangabad) 431001. )
… RESPONDENTS
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APPEARANCE : Shri V.G. Pingle, Counsel for Applicant.
: Shri I.S. Thorat, Presenting Officer for
respondent authorities.
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CORAM : Hon’ble Justice Shri V.K. Jadhav, Member (J)
DATE : 22.02.2024
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2 O.A. No. 953/2023
ORAL-ORDER
1. Heard Shri V.G. Pingle, learned counsel appearing for
the applicant and Shri I.S. Thorat, learned Presenting Officer
appearing for respondent authorities.
2. The present Original Application heard finally with
the consent of both the parties at the admission stage.
3. Leave to insert the total amount recovered in para No.
(VIII) (B) of the prayer clause.
4. By filing the present Original Application, the
applicant is seeking direction to respondent authorities to refund
the deducted amount of Rs. 1,23,931/- from installment of 7th
Pay Commissioner arrears after his retirement on 30.06.2019
under the gab of excess payment made to him.
5. Learned counsel for the applicant submits that
initially the applicant was appointed as Police Constable on
16.02.1987 and thereafter time to time he came to be promoted
and lastly on 26.02.2010 he was promoted as A.S.I. He retired on
attaining the age of superannuation on 30.06.2019. After
retirement, his pension papers were forwarded to the Accountant
General, Nagpur for sanction of pension and accordingly, he
3 O.A. No. 953/2023
started getting monthly pension from July, 2019 onwards. After
lockdown of Covid-19 pandemic, the applicant came to know
from the co-employees that they are receiving more amount of
pension and they are also receiving the more amounts of
installments of 7th Pay Commission arrears. Thus, the applicant
has submitted representation dated 23.08.2022 to the
respondent No. 3 to verify his service book and issue appropriate
order for payment of correct amount. The applicant has again
and again submitted representations, however, the respondent
No. 3 authority neither considered the representations made by
the applicant nor communicated anything to the applicant to
that effect. Thus, the applicant was constrained to sought
information by submitting application dated 09.08.2023 under
the Right to Information Act. He provided with information after
by issuing order dated 22.04.2019 stated therein that the pay
fixation of the applicant was revised and excess payment is made
to him. The applicant further came to know that the applicant
has been granted total amount of Rs. 2,26,572/- towards the
arrears of 7th Pay Commission from 01.01.2016 to 31.12.2018
receivable by the applicant in five equal installments of Rs.
45,286/- each. However, the applicant has received amount of
4 O.A. No. 953/2023
Rs. 20,529/- each installment due to the order 22.04.2019,
thought the applicant was not at fault.
6. Learned counsel for the applicant submits that the
applicant was class-III employee at the time of his retirement and
he was not responsible in any manner for wrong pay fixation, if
any. The said amount allegedly paid in excess to the applicant for
the period of 01.01.2006 to 01.07.2018. After his retirement, the
said amount has been recovered from the arrears of 7th Pay
Commission.
7. Learned counsel for the applicant submits that the
ratio laid down by the Hon’ble Apex Court in the case of State of
Punjab and others Etc. Vs. Rafiq Masih (White Washer) Etc. in
Civil Appeal No. 11527/2014 (arising out of SLP (C) No. 11684 of
2012), dated 18.12.2014 is squarely applicable to the facts and
circumstances of the present case. Learned counsel submits
that though the applicant allegedly given the undertaking and
copy of the undertaking annexed to the affidavit in reply,
however, the said undertaking does not bear any date and place
and it seems to have been obtained at the time of retirement.
Learned counsel submits that the present Original Application
5 O.A. No. 953/2023
deserves to be allowed and the respondents are liable to refund
the said recovered amount.
8. Learned Presenting Officer submits that the
respondent No. 3 by order dated 22.04.2019 corrected the pay
fixation of the applicant for the period of 01.01.2006 to
01.07.2018 and on the basis of said corrected pay fixation, an
amount of Rs. 1,23,931/- came to be recovered from the arrears
of 7th Pay Commission of the applicant. Thereafter, the Pay
Verification Unit approved the pay fixation on 16.10.2019.
Learned P.O. submits that the applicant has given undertaking
to the office of respondent No. 3 in terms of G.R. dated
30.01.2019 and it is specifically stated in the said undertaking
that if any excess amount is paid, then the applicant would be
returned the aforesaid amount. Learned P.O. submits the ratio
laid down by the Hon’ble Apex Court in the case of State of
Punjab and others Etc. Vs. Rafiq Masih (White Washer) Etc. (cited
supra) is not applicable to the facts and circumstances of the
present case. Learned P.O. submits that there is no substance in
the present Original Application and the same is liable to be
dismissed.
9. In view of the ration laid down by the Hon’ble Apex
Court in a case State of Punjab and Others Vs. Rafiq Masih (White
6 O.A. No. 953/2023
Washer) etc., (2015) 4 Supreme Court Cases 334, the recovery
from class-III and class-IV employees after their retirement is
impermissible on certain conditions. The Hon’ble Apex Court in
para No. 18 has made the following observations :-
“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, summarize 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 the 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 employees,
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.”
The case of the applicant is fully covered under the clause
Nos. (i), (ii) and (iii).
7 O.A. No. 953/2023
10. The applicant belongs to Class-III category employee.
The said recovery has been done after his retirement. It is also
clear from the pleadings that the excess payment has been made
on account of wrong fixation of pay for the period of 01.01.2006
to 01.07.2018 and thus the period is in excess of five years
before the order of recovery is issued. It is also not disputed that
neither the applicant is responsible for the said wrong pay
fixation nor he has mislead the respondent authorities at any
point of time in this regard.
11. The Hon’ble High Court of Bombay, Bench at
Aurangabad in W.P. No. 14296/2023 (Gautam Sakharam Mairale
Vs. State of Maharashtra and Ors.) and other connected matters
in para Nos. 5 and 6 has made the following observations :-
“5. In some cases, at the stroke of retirement, a condition was
imposed that they should execute an undertaking and it is in
these circumstances that an undertaking has been extracted. The
learned Advocate representing the Zilla Parishad as well as the
learned [Link]., submit that, once an undertaking is executed, the
case of the Petitioners would be covered by the law laid down by
the Hon’ble Supreme Court in the case of High Court of Punjab
and Haryana and others vs. Jagdev Singh, 2016 AIR (SCW)
3523. Reliance is placed on the judgment delivered by this Court
on 1.9.2021, in Writ Petition No. 13262 of 2018 filed by
Ananda Vikram Baviskar Vs. State of Maharashtra and
others.
8 O.A. No. 953/2023
6. We have referred to the law laid down by the Hon’ble
Supreme Court in High Court of Punjab and Haryana and
others vs. Jagdev Singh (supra). The record reveals that no
undertaking was taken from these Petitioners when the pay
scales were revised. An undertaking from some of them was
taken at the stroke of their retirement. An undertaking has to be
taken from the candidate when the revised pay scale is made
applicable to him and the payment of such pay scale commences.
At the stroke of superannuation of the said employee, asking him
to tender an undertaking, practically amounts to an afterthought
on the part of the employer and a mode of compelling the
candidate to execute an undertaking since they are apprehensive
that their retiral benefits would not be released until such
undertaking is executed. Such an undertaking will not have the
same sanctity as that of an undertaking executed when the
payment of revised pay scale had commenced. We, therefore,
respectfully conclude that the view taken in High Court of
Punjab and Haryana and others vs. Jagdev Singh (supra)
would not be applicable to the case of these Petitioners, more so
since the recovery is initiated after their superannuation.”
12. So far as the issue of undertaking is concerned, the
said undertaking seems to have been taken after retirement of
the applicant and further the said undertaking (Annexure R-2)
does not bear any place and date. It is also not clear as to whom
the said undertaking has been submitted. It seems that the said
undertaking has been taken after retirement merely to comply
with the G.R. dated 30.01.2019. Thus no importance can be
9 O.A. No. 953/2023
given to the said undertaking. In the result, the present Original
Application deserves to be allowed and the applicant is entitled
for refund of the said recovered amount with interest.
13. So far as grant of interest is concerned, learned
Presenting Officer submits that there is no specific prayer in the
Original Application to that effect. However, the Hon’ble Apex
Court way back in the year 2014 has expressed that the recovery
from the retired employees or employees who due to retired
within a period of one year of the order of recovery, is
impermissible. Even though, after retirement of the applicant,
the respondent authorities have deducted the said amount from
the arrears being paid to the applicant towards the arrears of 7th
Pay Commission. In view of above, even if there is no specific
prayer regarding the interest on recovered amount, this Tribunal
can exercise discretion in such type of cases. Hence, the
following order :-
ORDER
(i) The Original Application is hereby allowed.
(ii) The respondents are hereby directed to refund the amount
of Rs. 1,23,931/- to the applicant within a period of three
months from the date of this order with interest @ 9% p.a.
10 O.A. No. 953/2023
from the last date of installment recovered from the
applicant till its realization of amount.
(iii) In the circumstances, there shall be no order as to costs.
(vi) The Original Application accordingly disposed of.
PLACE : Aurangabad. (Justice V.K. Jadhav)
DATE : 22.02.2024 Member (J)
KPB S.B. O.A. No. 953 of 2023 VKJ Recovery/ refund of recovered amount