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Bombay High Court

BANWIRSINGH GULABSINGH GOURversusTHE STATE OF MAHARASHTRA AND OTHERS

Disposal
DISPOSED OFF

Holding

Recovery of the alleged excess salary from the petitioner’s retirement benefits is not permissible; the recovery order is quashed and the respondents must refund the amount with interest.

Summary

The petitioner, a retired primary teacher, challenged a 2017 recovery order that sought to deduct Rs. 2,88,946 from his pension on the ground that he had received increments despite not obtaining a B.Ed. qualification. The petitioner argued that the pay scales for graduate primary teachers and primary teachers after 12 years of service were identical, and cited the Supreme Court’s decision in State of Punjab & Others v. Rafiq Masih. The High Court noted that the petitioner was a Class‑III employee who had retired and that recovery from retirement benefits, especially after a stay order, is impermissible. It held that the respondents were not justified in deducting the amount and that the recovery order was unsustainable. Consequently, the petition was allowed, the recovery order was quashed, and the respondents were directed to refund the amount with 6% simple interest.

Issues considered

  • Whether the respondents could recover alleged excess salary from the petitioner’s retirement benefits despite a stay order.
  • Whether the petitioner’s failure to obtain a B.Ed. qualification justifies cessation of increments from 01.07.2011.
  • Whether recovery is permissible when excess payment has been made for a period exceeding five years or when the employee is within one year of retirement.
  • Whether the recovery order should be set aside and the amount refunded with interest.

Subjects

  • retirement benefits
  • salary recovery
  • pay fixation
  • B.Ed. qualification
  • stay order
  • pension deduction
  • interest on refund
  • service rules

Judgment

2026:BHC-AUG:21479-DB

                                                               907 - WP Allowed, Direction 8W


                        IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                   BENCH AT AURANGABAD

                              907 WRIT PETITION NO. 9198 OF 2019

                    Banwirsingh S/o Gulabsingh Gour
                    Age : 42 Years, Occ : Service,
                    R/o Plot No. 104-A, Builder Housing
                    Co-operative Society, Nandanvan Colony,
                    Aurangabad.                                ... PETITIONER

                          ...VERSUS...

             1.     The State of Maharashtra
                    (Through its Secretary,
                    Rural Development and Water
                    Conservation Department,
                    Mantralaya, Mumbai-32.

             2.     Zilla Parishad, Aurangabad,
                    Through its Chief Executive Officer.

             3.     The Education Officer (Primary),
                    Zilla Parishad, Aurangabad.

             4.     The Block Education Officer,
                    Panchayat Samiti, Paithan,
                    Tq. Paithan, Dist. Aurangabad.             ... RESPONDENTS
             ________________________________________________________________
             Adv. Dhakne Vijay A. for the Petitioner
             Mrs. R. P. Gaur, AGP for State
             Adv. Prashant R. Nangare for Respondent Nos. 2 and 3
             ________________________________________________________________

                                         CORAM :      NITIN B. SURYAWANSHI AND
                                                      VAISHALI PATIL-JADHAV, JJ.
                                         DATE     :   28.04.2026

             ORAL JUDGMENT : [Per Nitin B. Suryawanshi, J.]

             .        Rule. Rule made returnable forthwith and heard finally with the

             consent of the parties.

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2.       The petitioner challenges the recovery chart dated 17.04.2017

issued by respondent No. 4 by which a recovery of Rs. 2,88,946/- is

proposed against the petitioner towards increments paid to him during

the period between 2004 to 2010.


3.       The petitioner was appointed as a primary teacher in the year

1991. The first Time Bound Promotion Scheme benefits were granted to

the petitioner on completion of his 12 years of service on 01.08.2003. By

order dated 27.01.2004, the petitioner was appointed as graduate

primary teacher on a condition to acquire B.Ed. qualification within five

years. Appointment order mentions that if the said appointment is

refused then the petitioner will not be entitled to claim next higher pay

scale.

4.       The petitioner failed to acquire B.Ed. qualification within the

stipulated period. However, as the pay scale of Rs. 5500-175-9000 in

respect of graduate primary teacher and higher pay scale of Rs. 5000-

150-8000 to the post of primary teacher after completion of 12 years of

service is one and the same, the petitioner continued to receive the

admissible pay and increments even after 01.07.2011. On 03.09.2016,

the petitioner was promoted as Headmaster as per seniority.

5.       On 17.04.2017, respondent No. 4 has done pay fixation of the

petitioner, according to the petitioner, by wrongly calculating his basic

pay of Headmaster's post on the ground that petitioner failed to acquire
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B.Ed. qualification and therefore, his increments are required to be

stopped from 01.07.2011. A chart was also prepared showing recovery of

Rs. 2,88,946/- from the petitioner towards difference of the salary

payable to the petitioner and the salary which the petitioner received.

6.        The petitioner preferred representation dated 11.03.2019

requesting the respondents not to recover the said amount in view of the

decision of the Apex Court in State of Punjab and others Vs. Rafiq Masih

(White Washer); (2015) 4 SCC 334. The petitioner has therefore,

approached this Court. While issuing notice on 25.07.2019, this Court

directed that "The respondent No. 2 shall not claim recovery pursuant to the

impugned communication."

7.        During the pendency of this petition, the petitioner attained

age of superannuation on 31.07.2023. At the time of paying pensionary

benefits to the petitioner, a consent was obtained from the petitioner for

recovery of the amount of Rs. 2,89,946/- and the said amount was

deducted from the pensionary benefits of the petitioner.


8.        In the affidavit-in-reply, respondent No. 3 - Education Officer

has tendered unconditional apology for deducting the said amount in

spite of stay order operating in favour of the petitioner.

9.        Heard learned advocate for the petitioner, learned advocate for

the respondents and learned AGP for the State. Perused the record.


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10.       It is not in dispute that petitioner is a Class-III Employee and is

retired from service. He has not played any fraud when his salary was

fixed by the respondents. There appears substance in the contention of

the petitioner that the pay scale of Rs. 5500-175-9000 of graduate

primary teacher and higher pay scale of Rs. 5000-150-8000 to the post of

primary teacher after completion of 12 years of service is one and the

same. This Court has consistently held that recovery on the basis of

undertaking obtained from the employee, at the time of his retirement of

his retirement is not justified, as the employee is pressurized to give

undertaking at the time of retirement or else his retiral benefits are

threatened to be withheld.

11.       Therefore, we are of the view that respondents were not

justified in recovering the amount from the retiral benefits of the

petitioner, more so in view of stay granted by this Court. The said

recovery is therefore unsustainable. The case of the petitioner is also

covered by the decision of the Apex Court in Rafiq Masih (supra),

wherein it is categorically held that recovery from the retired employees

or employees who are due to retire within one year of the order of

recovery is not permissible. It is further held that recovery from

employees where excess payment has been made for a period exceeding

five years prior to the order of recovery is also not permissible.



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12.          For the aforestated reasons, the impugned action of the

respondents of deducting amount of Rs. 2,88,946/- from the retiral

benefits of the petitioner cannot be sustained.

13.          In the result, Writ Petition is allowed.

14.          The impugned order dated 17.04.2017 to the extent it directs

recovery from the retiral benefits of the petitioner is hereby quashed and

set aside.

15.          The respondents shall refund the amount of Rs. 2,88,946/- to

the petitioner within eight (8) weeks from the date of receipt of copy of

this order.

16.          Since the recovery is made in spite of stay order passed by this

Court, we accept the unconditional apology tendered by respondent No.

3. However, in facts of the present case, we direct the respondents to pay

simple interest at the rate of 6% per annum on the refunded amount

from the date of recovery till its actual realization.


17.          Rule is made absolute in above terms.



[VAISHALI PATIL-JADHAV, J.]                      [NITIN B. SURYAWANSHI, J.]




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