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Patna High Court

Jitendra SinghversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The order dated 27.02.2025 directing recovery from the petitioner’s gratuity and pension is quashed.

Summary

The petitioner, a retired employee, challenged a letter dated 27.02.2025 that ordered the withholding of Rs. 602,768 from his gratuity and pension on the ground of alleged pay anomalies. He argued that the recovery was unlawful because the excess payments spanned more than five years, he had no misrepresentation, and a prior stay order dated 09.02.2024 barred any deduction. The State contended that the petitioner was overpaid due to an erroneous pay fixation and that the finance department’s circular mandated recovery. Relying on the Supreme Court’s decision in State of Punjab v. Rafiq Masih, the court held that recovery from retired employees for excess payments exceeding five years is impermissible. Consequently, the court quashed the impugned order and allowed the writ petition, directing payment of the full gratuity and pension with interest.

Issues considered

  • Whether the order directing recovery of Rs. 602,768 from the petitioner’s gratuity and pension is valid in view of the principles prohibiting recovery from retired employees for excess payments exceeding five years.
  • Whether the stay order dated 09.02.2024 bars the recovery of the alleged overpaid amount.
  • Whether the petitioner’s pay fixation, though later found anomalous, can be recovered in the absence of any misrepresentation by him.
  • Whether the precedent set in State of Punjab & Ors. v. Rafiq Masih (2015) 4 SCC 334 applies to the present case.

Subjects

  • pay fixation
  • gratuity
  • pension
  • excess payment recovery
  • retired employee
  • stay order
  • certiorari
  • writ petition
  • State of Punjab v. Rafiq Masih

Judgment

         IN THE HIGH COURT OF JUDICATURE AT PATNA
                   Civil Writ Jurisdiction Case No.13011 of 2025
     ======================================================
     Jitendra Singh Son of Ram Chandra Singh, Resident of Mohalla-Sherpur,
     Gandak Colony, Police Station Sadar, District-Muzaffarpur.

                                                      ... ... Petitioner/s
                                Versus
1.   The State of Bihar through Principal Secretary, Water Resources
     Department, Bihar, Patna.
2.   The Principal Secretary, Water Resources Department, Govt. of Bihar, Patna.
3.   The Chief Engineer, Mechanical, Water Resources Department, Bihar, Patna.
4.   The Superintending Engineer, Irrigation Mechanical Circle, Muzaffarpur.
5.   The Executive Engineer, Mechanical, Irrigation Mechanical Division,
     Muzaffarpur.
6.   The Treasury Officer, Muzaffarpur.
7.   The Accountant General, Bihar, Patna.

                                               ... ... Respondent/s
     ======================================================
     Appearance :
     For the Petitioner/s   :      Mr.Sanjeev Kumar Singh
     For the Respondent/s   :      Mr.Government Pleader (10)
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE AJIT KUMAR
                           ORAL JUDGMENT
      Date : 31-01-2026

                     In the instant petition, petitioner has prayed for the

     following relief(s):-

                                      “That the present writ application is
                            being filed on behalf of the petitioner above
                            named for issuance of appropriate writ/writs,
                            order/orders in the nature of certiorari for
                            quashing part of order contained in letter no.
                            205 dated 27.02.2025 issued by respondent
                            no.5, whereby direction has been given to
                            withhold amount of Rs. 602768/- from post
                            retirement benefits i.e. gratuity amount and
                            pension amount on non est ground that the
                            case related to pay anamoly is pending for
                            consideration before this Hon'ble Court,
                            without appreciating the fact that this Hon'ble
                            Court vide order dated 09.02.2024 has already
Patna High Court CWJC No.13011 of 2025 dt.31-01-2026
                                           2/5




                               stayed the recovery from the salary of the
                               petitioner. In consequent thereof, the petitioner
                               further prays for direction to make payment of
                               entire gratuity amount as well as pension for
                               the period from February, 2025 to May, 2025
                               with admissible statutory interest to the
                               petitioner and for any other writ/writs,
                               order/orders which the petitioner may found to
                               be entitled in the facts and circumstances of
                               the case.”

                    2. Counsel for the petitioner by referring to the order as

       contained in Letter No. 205 dated 27.02.2025, submits that on the

       basis of certain anomalies in the pay fixation, the amount to the

       tune of Rs. 6,02,768/- has been quantified for recovery but before

       quantifying such amounts, no such proceedings known to the

       service jurisprudence, is said to have ever been adopted, and

       despite there being no misrepresentation on behalf of this

       petitioner, such amounts have been directed to be recovered from

       this petitioner after his retirement.

                    3. It is next submitted that anomalies in the pay fixation,

       which is being shown for the purpose of making recovery, starts

       from the period 2016 till the date of retirement on 31.01.2025. The

       recovery cannot be made, if there is no representation, and as also

       from the persons, who are low paid, especially Class-IV and Class-

       III employees. It is the case of the petitioner that in view of the

       judgment rendered in the case of State of Punjab and others vs.

       Rafiq Masih White Washer & Ors. reported in (2015) 4 SCC 334,
Patna High Court CWJC No.13011 of 2025 dt.31-01-2026
                                            3/5




       the recovery is impermissible when excess payment has been

       made for a period in excess of five years. The relevant para of the

       aforesaid judgement is reproduced 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
                               hereinabove, we may, as a ready reference,
                               summarise the following few situations,
                               wherein recoveries by the employers, would be
                               impermissible in law:
                                          (i) Recovery from the employees
                               belonging to Class III and Class IV service (or
                               Group C and Group D service).
                                          (ii) Recovery from the retired
                               employees, or the 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 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.”

                    4.    It   is    next     submitted   that   there   was    no

       misrepresentation on his behalf, for getting such pay fixation done

       in his favour, rather it was fixed on the basis of the pay scale,
Patna High Court CWJC No.13011 of 2025 dt.31-01-2026
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       which was approved by the Department of Finance, and therefore,

       the recovery is wholly unsustainable in law.

                    5. On the other hand, counsel representing the State

       submits that the petitioner was not entitled to such pay scale still,

       such benefits were granted to this petitioner, which on finding such

       anomalies in pay fixation, the authorities, in the light of the

       Government Circular issued through the Department of Finance,

       were legally obliged to take decisions for fresh pay fixation, and

       owing to such fixation, the amounts which were paid in excess, the

       recovery has been directed vide the impugned order dated

       27.02.2025 as contained in Letter No. 205.

                    6. Counsel for the petitioner fairly submits that for

       wrong fixation, there is already a writ pending vide CWJC No.

       9655 of 2023 (Jitendra Singh vs. State of Bihar & Ors.), and this

       Court has already stayed the recovery vide order dated 09.02.2024.

       Therefore, the authorities have not recovered the amount in

       question, which forms part of the impugned order as contained in

       Annexure-P/6.

                    7. Considering the fact that the amount in question,

       which is said to have been quantified for recovery, was paid to this

       petitioner, as per the pay fixation done and not because of his

       misrepresentation, and further, the salary was paid pursuant to the
             Patna High Court CWJC No.13011 of 2025 dt.31-01-2026
                                                        5/5




                    pay scale allowed by the Department of Finance, which

                    subsequently            was         modified      based    on       the

                    recommendation/resolution of the Finance Department, and owing

                    to such modification, any revision in pay scale made with regard to

                    this petitioner, shall not automatically vest an authority to the

                    employer, in absence of any misrepresentation by the employee in

                    question, to make recovery of the amount paid in excess for a

                    period paid in excess of five years, and accordingly, the order

                    dated 27.02.2025 is quashed.

                                 8. Consequently, the instant writ petition stands allowed.



                                                    (Ajit Kumar, J)
abhishekkr/-
AFR/NAFR                NAFR
CAV DATE                NA
Uploading Date          09.02.2026
Transmission Date       NA


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