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Patna High Court

BiharversusAmol Naryan Choudhary

Decided
Disposal
DISMISSED

Holding

The recovery order dated 21‑12‑2018 was unsustainable as it lacked statutory authority, and the intra‑court appeal is dismissed.

Summary

The State of Bihar appealed against a judgment that quashed a recovery order directing a retired employee, Amol Narayan Choudhary, to repay Rs 37,566.94 with interest. The recovery stemmed from alleged misappropriation of Rs 8,25,212.94 detected in block records, later reduced by a four‑member committee. The single judge held that the District Magistrate’s order lacked any statutory basis to recover from a retired employee and was therefore unsustainable. The State argued that the earlier High Court order in CWJC 12899/2015 permitted the authorities to proceed and that natural‑justice requirements were met. The Patna High Court affirmed the single judge’s reasoning, finding no legal authority for post‑retirement recovery and dismissed the intra‑court appeal.

Issues considered

  • Whether the District Magistrate’s recovery order dated 21‑12‑2018 was supported by any statutory provision permitting recovery from a retired government employee.
  • Whether the principles of natural justice were complied with in the recovery proceedings.
  • Whether the intra‑court appeal is maintainable in view of the findings of the learned Single Judge.

Subjects

  • post‑retirement recovery
  • misappropriation of public funds
  • administrative authority
  • natural justice
  • jurisdiction
  • intra‑court appeal
  • quashing of order

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                                     Letters Patent Appeal No.169 of 2021
                                                      In
                                Civil Writ Jurisdiction Case No.11631 of 2019
                 ======================================================
           1.     The State of Bihar
           2.    The Divisional Commissioner, Koshi Division, Saharsa.
           3.    The District Magistrate, Madhepura.
           4.    The Block Development Officer, Shankarpur, Madhepura.

                                                                      ... ... Appellant/s
                                                     Versus
                 Amol Naryan Choudhary S/o Late Dasarath Choudhary R/o Village- Behahi,
                 P.S.- Bihariganj, District- Madhepura.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Appellant/s    :     Mr. Nadim Seraj, GP-5
                                              Mr. Shailesh Kumar, AC to GP-5
                 For the Respondent/s   :
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
                         and
                         HONOURABLE MR. JUSTICE RAJESH KUMAR VERMA
                                       ORAL ORDER

                 (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)

4   26-02-2026                  Re: I.A. No. 01 of 2021

                                Learned counsel for the appellants presses I.A. No. 01

                   of 2021 for condoning the delay of 1 year and 133 days in

                   preferring this appeal.

                                2. For the reasons stated in the application, the delay

                   in preferring this appeal is condoned.

                                3. I.A. No. 01 of 2021 stands allowed.

                                Re: LPA No. 169 of 2021

                                4. The present intra court appeal has been preferred
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          against the judgment and order dated 05.09.2019 (as modified

          on 20.09.2019) passed by the learned Single Judge in CWJC

          No. 11631 of 2019, whereby Memo No. 953-2/Est. dated

          21.12.2018 issued by the District Magistrate, Madhepura

          directing recovery of Rs. 37,566.94 along with 12% interest

          from the writ petitioner (now respondent herein) was quashed.

                       5. The brief facts of the present case are that the sole

          respondent, Amol Narayan Choudhary, was posted as Upper

          Division Clerk and had also functioned as Nazir at Shankarpur

          Block in the district of Madhepura between 24.08.1996 and

          24.06.1998. He retired from service on 31.07.2009 from Block

          Office, Bihariganj. Subsequently, on the basis of irregularities

          detected in the Nazarat records of Shankarpur Block, the Block

          Development Officer, Shankarpur reported misappropriation of

          government funds to the tune of Rs. 8,25,212.94. Initially, by

          order dated 08.04.2015, recovery of the said amount was

          directed. The respondent challenged the same in CWJC No.

          12899 of 2015, which was allowed on 14.12.2015, leaving it

          open to the authorities to proceed in accordance with law.

          Thereafter, a Four-Member Committee was constituted on

          29.10.2016 to inspect and verify the records. The Committee

          submitted its report, reducing the alleged recoverable amount to
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          Rs. 37,566.94. Based on the said report, Memo No. 953-2/Est.

          dated 21.12.2018 was issued directing recovery of Rs.

          37,566.94 along with 12% interest, totaling Rs. 2,89,509.20.

          The respondent again challenged the recovery order by filing

          CWJC No. 11631 of 2019, and the learned Single Judge

          quashed the recovery order primarily on the ground that there

          was no legal authority to recover the amount from a retired

          employee.

                       6. The learned Writ Court, after hearing the parties,

          passed the following orders:

                                                 “Amount is irrelevant. The Court’s
                                   concern is only whether action was permissible as
                                   per law or preceded by any opportunity to the
                                   petitioner. Apparently there is nothing on record to
                                   sustain the action of the District Magistrate,
                                   Madhepura on the basis of any provision in law
                                   providing for such an order of recovery, post
                                   retirement of a government employee without
                                   affording any opportunity. Order of the District
                                   Magistrate,     Madhepura,    therefore   is   clearly
                                   unsustainable.
                                                 State counsel submits that authorities
                                   should be given liberty to proceed as per law. The
                                   order dated 14.12.2015 passed in C.W.J.C. No.
                                   12899 of 2015 already grants such an opportunity to
                                   the State authorities.
                                                 In view of the aforesaid circumstances
                                   order of the District Magistrate dated 21.12.2018 is
                                   hereby quashed. The petitioner would be entitled to
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                                   all consequential benefits on account of quashing of
                                   the order dated 21.12.2018.
                                                In the circumstances, it goes without
                                   saying that the consequential order issued by the
                                   Establishment Section dated 20.08.2019 (Annexure-
                                   A) would not be enforceable against the petitioner.
                                                The      instant   writ   petition   stands
                                   allowed.”


                       7. Learned counsel for the appellants submits that the

          recovery order dated 21.12.2018 was passed strictly in

          compliance with the liberty granted by the High Court in its

          earlier order dated 14.12.2015 in CWJC No. 12899 of 2015,

          wherein the authorities were permitted to proceed in accordance

          with law. Pursuant thereto, a duly constituted Four-Member

          Committee conducted inspection and verification of records and

          quantified the actual amount recoverable, which stood

          substantially reduced.

                       8. It is further submitted that the recovery proceedings

          were initiated only after receipt of the Committee’s report and

          after issuance of notice to the respondent, thereby adhering to

          the principles of natural justice as directed earlier by the Court.

                       9. Learned counsel for the appellants further submits

          that the competent authority is empowered to recover

          misappropriated public funds even after retirement of the

          delinquent employee, particularly where such loss has been
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          caused to the State exchequer due to acts of misrepresentation

          and embezzlement.             It is further submitted that the learned

          Single Judge erred in holding that there was no legal basis for

          recovery from a retired employee, without considering that

          public money allegedly embezzled cannot be permitted to be

          retained merely on account of superannuation.

                       10. The limited issue for consideration before this

          Court is that whether the judgment and order dated 05.09.2019

          (as modified on 20.09.2019) passed in CWJC No. 11631 of

          2019 suffers from any legal infirmity warranting interference by

          this Court in exercise of its intra court appellate jurisdiction.

                       11. We have heard learned counsel for the parties at

          length and have carefully perused the records.

                       12. The learned Single Judge has proceeded on a clear

          and well-defined premise, namely, that the issue before the

          Court was not the quantum of the alleged misappropriation but

          the legality of the action taken by the District Magistrate. The

          focus of judicial scrutiny was whether the order of recovery

          dated 21.12.2018 was supported by any statutory provision and

          whether such action had been preceded by adherence to the

          minimum requirements of fairness.

                       13. From the materials brought on record, it is evident
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          that the recovery was directed against the respondent after his

          retirement. However, nothing has been shown before this Court

          to indicate the specific source of power under which such

          recovery was ordered in the manner adopted. Administrative

          action affecting civil rights must trace its authority to law. In

          absence of any demonstrated legal provision authorizing such

          post-retirement recovery through a mere administrative order,

          the action cannot be sustained.

                       14. This Court also finds that the learned Single Judge

          correctly observed that the permissibility of the action in law is

          the determinative factor. Even assuming that an enquiry was

          conducted and a reduced amount was quantified, such

          determination by itself would not clothe the authority with

          jurisdiction unless the recovery is anchored in a valid legal

          framework.

                       15. In intra court appellate jurisdiction, this Court

          does not sit as a Court of first instance to re-appreciate the entire

          controversy afresh. Interference is warranted only where the

          findings recorded are shown to be manifestly erroneous,

          perverse, or contrary to settled legal principles. The reasoning

          assigned by the learned Single Judge is consistent, legally

          sound, and based on the record. No jurisdictional error or patent
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                     illegality has been demonstrated by the appellants.

                                  16. We are, therefore, of the considered opinion that

                     the learned Single Judge rightly held the order dated 21.12.2018

                     to be unsustainable. Once the principal order of recovery was

                     quashed, the consequential order issued by the Establishment

                     Section could not independently survive.

                                  17. Accordingly, the present intra court appeal being

                     devoid of merit, stands dismissed.

                                  18. Pending application(s), if any, shall also stand

                     disposed of.



                                                  (Sudhir Singh, J)


                                             (Rajesh Kumar Verma, J)
Rajesh/-

U


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