Created by Fuzzy Cloud

Bombay High Court

NITIN MUNJAJIRAO IJATE AND OTHERSversusTHE STATE OF MAHARASHTRA AND OTHERS

Disposal
DISPOSED OFF

Holding

The order dated 05‑01‑2022 directing re‑fixation of pay and recovery of excess salary from the petitioners is arbitrary and unconstitutional and is hereby quashed.

Summary

The petitioners, nineteen Class‑III employees of the former Parbhani Municipal Council, challenged an order dated 05‑01‑2022 by the Deputy Commissioner of Parbhani Municipal Corporation that re‑fixed their pay scales and directed recovery of excess salary. They argued that the re‑fixation was arbitrary, that no fraud or misrepresentation on their part justified recovery, and that the earlier 2017 court order had already quashed a similar re‑fixation. The High Court examined the employees' classification, confirmed they were Class‑III, and held that recovery of excess emoluments from lower‑rung staff is iniquitous, arbitrary and violative of Article 14. Relying on the Supreme Court’s decision in State of Punjab v. Rafiq Masih (2015) 4 SCC 334 and the earlier Col. B.J. Akkara case, the Court found the 2022 order unconstitutional. Consequently, the writ petition was allowed and the order of 05‑01‑2022 was quashed.

Issues considered

  • Whether the Deputy Commissioner’s order re‑fixing pay and directing recovery of excess salary is legally valid.
  • Whether recovery of excess salary from Class‑III (Group C) employees is permissible under constitutional and statutory law.
  • Whether the petitioners are entitled to relief under Article 226 of the Constitution.

Legislation cited

  • Constitution of India — s. Article 14, Article 226
  • Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships State Services (Absorption, Recruitment & Conditions of Service) Rules, 2006

Subjects

  • Writ petition
  • Article 226
  • Pay fixation
  • Salary recovery
  • Class‑III employees
  • Arbitrary action
  • Article 14
  • Municipal Corporation
  • Absorption Rules
  • Equity
  • Judicial discretion

Judgment

2026:BHC-AUG:31091-DB

                                                               wp-2836-2022-final.odt
                                                   1

                          IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                     BENCH AT AURANGABAD

                                  WRIT PETITION NO.2836 OF 2022

                1.        Nitin s/o Munjajirao Ijate
                          Age : 46 years, Occu : Service,
                          R/o Municipal Colony, Darga Road,
                          Parbhani

                2.        Umesh s/o Jagannath Ardad,
                          Age : 47 years, Occu : Service,
                          R/o. Municipal Colony, Darga Road,
                          Parbhani

                3.        Muntajeeb Mehboob Khan
                          Age : 47 years, Occu : Service,
                          R/o. Azam Colony, Darga Road
                          Parbhani

                4.        Prasad s/o Purbhaji Pote,
                          Age : 54 years, Occu : Service,
                          R/o. Langot Galli, Jijamata Road,
                          Parbhani

                5.        Chandrakant s/o Limbajirao Pawar,
                          Age: 55 years, Occu: Service,
                          R/o. Samzota Colony, Karegaon Road, Parbhani.

                6.        Keshav s/o Venkatrao Daunde,
                          Age: 52 years, Occu: Service,
                          R/o. Sujate Nagar, Old Pedgaon Road, Parbhani.

                7.        Ab. Majjit Ab. Raheman Kaji,
                          Age: 58 years, Occu: Pensioner,
                          R/o. Darga Road, Parbhani.

                8.        Vishnu s/o Tanba Sawant,
                          Age: 57 years, Occu: Service,
                          R/o. Raygad Nagar, Old Pedgaon Road, Parbhani.

                9.        Laxman s/o Sambhaji Nandane,

                Narwade
                                                 wp-2836-2022-final.odt
                                   2

          Age: 56 years, Occu: Service,
          R/o. Sakhala Plot, Lohagaon Road, Parbhani.

10.       Shaikh Kalim Shaikh Jilani,
          Age: 57 years, Occu: Service,
          R/o. Paraswat Nagar, Parbhani.

11.       Smt. Vidya Vishnupant Pimpalwadkar,
          Age: 53 years, Occu: Service,
          R/o. Bhajan Galli, Parbhani.

12.       Bhagwan s/o Ramrao Shinde,
          Age: 47 years, Occu: Service,
          R/o. Khanapur Nagar, Parbhani.

13.       Govind s/o Bhaurao Tathe,
          Age: 54 years, Occu: Service,
          R/o. Yashodhan Nagar, Parbhani.

14.       Vishwas s/o Uttamrao Latpate,
          Age: 57 years, Occu: Service,
          R/o. Yashodhan Nagar, Parbhani.

15.       Babar Khan Ab. Hamid Khan,
          Age: 52 years, Occu: Service,
          R/o. Rameshwar Plot, Parbhani.

16.       Ganesh s/o Baburao Survase,
          Age: 53 years, Occu: Service,
          R/o. Dadarao Plot, Parbhani.

17.       Prabhakar s/o Shambhudev Taralkar,
          Age: 54 years, Occu: Service,
          R/o. Pokharni, Tq. & Dist. Parbhani.

18.       Ashok s/o Vaijnath Swami,
          Age: 52 years, Occu: Service,
          R/o. c/o. Nagar Parishad, Renapur,
          Tq. & Dist. Parbhani.

19.       Shahed Ali Yakub Ali,
          Age: 52 years, Occu: Service,

Narwade
                                               wp-2836-2022-final.odt
                                    3

          R/o. Yusuf Colony, Parbhani.              ...Petitioners

                VERSUS
1.        The State of Maharashtra
          Through the Principal Secretary,
          Urban Development Department,
          Mantralaya, Mumbai-32

2.        The Divisional Commissioner &
          The President of Divisional Absorption
          Committee, Aurangabad

3.        The Collector, Parbhani

4.     The Commissioner,
       Parbhani City Municipal Corporation,
       Parbhani                                  ...Respondents
                                …
Mr. S. T. Shelke, Advocate for the Petitioners.
Ms. Vaishali Chaudhari, AGP for Respondent Nos 1 to 3
Ms. Rani Bharuka-Bora h/f. Mr. S. S. Bora, Advocate for
Respondent No.4
                                 ...

                       CORAM : NITIN B. SURYAWANSHI AND
                               ABASAHEB D. SHINDE, JJ.
                 RESERVED ON : 30.06.2026
             PRONOUNCED ON : 27.07.2026

JUDGMENT (Per Abasaheb D. Shinde J.) :-

1.        Rule. Rule is made returnable forthwith. With the consent

of the parties, the writ petition is taken up for final hearing at

the stage of admission.

2.        By this Writ Petition, filed under Article 226 of the

Constitution of India, the petitioners have put forth the



Narwade
                                                          wp-2836-2022-final.odt
                                       4

following prayer :-

          “(B) Quash and set aside the order dt. 05.01.2022 passed by the
          Commissioner, Parbhani City Municipal Corporation at Exh. H
          and for that purpose issue necessary writ or order.



3.        It is the case of the petitioners that they were initially

appointed by the erstwhile Municipal Council, Parbhani on

11.01.2007. The State Government framed Rules viz. the

Maharashtra        Municipal      Councils,       Nagar      Panchayats         and

Industrial Townships State Services (Absorption, Recruitment &

Conditions of Service) Rules, 2006 (hereinafter called as “the

Rules       of   2006”).     Pursuant        to     the     said        Rules   on

22.10.2010/04.11.2010            under     the      orders      of      Divisional

Commissioner,         Aurangabad,      the        employees        of    erstwhile

Municipal Council from the Marathwada Division were absorbed

w.e.f. 01.02.2010. On 12.10.2011, the Collector, Parbhani passed

an order thereby actually absorbing the employees of Municipal

Council, Parbhani. By order dated 24.10.2011, the Chief Officer

of the then Municipal Council, Parbhani made pay fixation as

per the absorption orders passed by the Divisional Commissioner

and Collector respectively. On 01.11.2011, the Municipal

Council, Parbhani got converted into Municipal Corporation.

The Deputy Commissioner, Municipal Corporation, Parbhani by

Narwade
                                               wp-2836-2022-final.odt
                                  5

order dated 23.03.2017 cancelled the earlier pay fixation made

by the Chief Officer of the then Municipal Council by making re-

fixation of pay scale and initiating recovery of excess amount

paid to the petitioners.


4.        It is further contended by the petitioners that on

26.04.2017, the Divisional Commissioner, Aurangabad issued

posting orders of the petitioners accordingly. In the meanwhile,

the petitioners challenged the order dated 23.03.2017 of the

Deputy Commissioner, Municipal Corporation, Parbhani before

this Court by filing Writ Petition No.5134 of 2017. This Court by

an order dated 16.04.2018 allowed the said Writ Petition,

thereby quashing the re-fixation of petitioner’s pay scale and

directing the Deputy Commissioner, Municipal Corporation,

Parbhani to give opportunity of hearing to the petitioners before

re-fixation of their pay scale. On 05.01.2022, the Deputy

Commissioner, Parbhani, Municipal Corporation by maintaining

his earlier order dated 23.03.2017 made re-fixation of pay scale

of the petitioners and directed recovery of excess amount paid to

them. The petitioners are, therefore, before this Court.


5.        Heard learned Counsel for the petitioner, learned Counsel


Narwade
                                               wp-2836-2022-final.odt
                                  6

appearing for Respondent No.4- the Commissioner, Municipal

Corporation, Parbhani and learned AGP for Respondent Nos.2

and 3.


6.        In order to ascertain as to whether the petitioners were

Class-III employees, this Court directed learned Counsel for

Respondent No.4 to take instructions in that regard. Pursuant to

the said directions, learned Counsel appearing for Respondent

No.4 by placing on record communication dated 01.04.2026

received from Respondent No.4 fairly concedes that the

petitioners are Class-III employees.


7.        It is an admitted fact that, the petitioners were working

on Class-III post and the fixation of their pay scale was carried

out by the erstwhile Municipal Council and thereafter their pay

fixation was revised by the Deputy Commissioner, Parbhani.


8.        In view thereof, we are of the considered view that, the

pay fixation of the petitioners was not on account of any fraud

or misrepresentation attributable to the petitioners nor any

undertaking was obtained from the petitioners to the effect that

in case of re-fixation of their pay scale, the petitioners would

repay the excess amount received by them. Therefore the action

Narwade
                                                       wp-2836-2022-final.odt
                                        7

of Respondent No.4 thereby initiating recovery from the salary

of the petitioners is arbitrary and unreasonable.

9.        We find that the case of the petitioners is squarely covered

by the ratio laid down by the Hon’ble Apex Court in the case of

State of Punjab and Others Vs. Rafiq Masih (White Washer) and

Ors. reported in (2015) 4 SCC 334, wherein the Hon’ble Apex

Court in paragraphs 15 and 18 observed as under :-


      “15. Examining a similar proposition, this Court in Col. B.J.
      Akkara v. Government of India, (2006) 11 SCC 709, observed
      as under:
                    "28. Such relief, restraining back recovery of excess
            payment, is granted by courts not because of any right in
            the employees, but in equity, in exercise of judicial
            discretion to relieve the employees from the hardship that
            will be caused if recovery is implemented. A government
            servant, particularly one in the lower rungs of service
            would spend whatever emoluments he receives for the
            upkeep of his family. If he receives an excess payment for a
            long period, he would spend it, genuinely believing that he
            is entitled to it. As any subsequent action to recover the
            excess payment will cause undue hardship to him, relief is
            granted in that behalf. But where the employee had
            knowledge that the payment received was in excess of what
            was due or wrongly paid, or where the error is detected or
            corrected within a short time of wrong payment, courts will
            not grant relief against recovery. The matter being in the
            realm of judicial discretion, courts may on the facts and
            circumstances of any particular case refuse to grant such
            relief against recovery."
                                               (emphasis supplied)

      A perusal of the aforesaid observations made by this Court in
      Col. B.J. Akkara's case (supra) reveals a reiteration of the legal
      position recorded in the earlier judgments rendered by this
      Court, inasmuch as, it was again affirmed, that the right to
      recover would be sustainable so long as the same was not
      iniquitous or arbitrary. In the observation extracted above, this
      Court also recorded, that recovery from employees in lower


Narwade
                                                      wp-2836-2022-final.odt
                                      8

      rung of service, would result in extreme hardship to them. The
      apparent explanation for the aforesaid conclusion is, that
      employees in lower rung of service would spend their entire
      earnings in the upkeep and welfare of their family, and if such
      excess payment is allowed to be recovered from them, it would
      cause them far more hardship, than the reciprocal gains to the
      employer. We are therefore satisfied in concluding, that such
      recovery from employees belonging to the lower rungs (i.e.,
      Class-III and Class-IV - sometimes denoted as Group 'C' and
      Group 'D') of service, should not be subjected to the ordeal of
      any recovery, even though they were beneficiaries of receiving
      higher emoluments, than were due to them. Such recovery
      would be iniquitous and arbitrary and therefore would also
      breach the mandate contained in Article 14 of the Constitution
      of India.
      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.”

10.       In view of dictum of the Hon’ble Apex Court in the case of

Rafiq Masih (White Washer) (supra), we find that the writ

petition deserves to be allowed. The Writ Petition is, therefore,

Narwade
                                               wp-2836-2022-final.odt
                                   9

allowed in terms of prayer clause B.


11.       Rule is thus made absolute in the above terms.




( ABASAHEB D. SHINDE, J. )              ( N. B. SURYAWANSHI, J. )




Narwade


Continue reading with your account

Sign in to read the full judgment. It’s free.

Sign in to read

Checking your session…

For a signed copy suitable for filing, refer to the court's website.