Allahabad High Court

BABU RAMversusSTATE OF U.P. AND 3 OTHERS

Decided: 5 May 2026
Bench: ANISH KUMAR GUPTA

Holding

Recovery of excess retirement dues from a retired Class III employee is impermissible; the recovery order is quashed.

Summary

The petitioner, Babu Ram, a Class III employee, challenged a recovery order of Rs. 2,11,147 made from his retirement dues on the ground that the excess amount arose from a wrong fixation of his pay scale, for which he bore no responsibility and had not given any undertaking. The petitioner relied on the Supreme Court’s decision in State of Punjab v. Rafiq Masih, which enumerated situations where recovery from employees is impermissible, including Class III employees and retired persons. The High Court examined the cited precedent and found that the petitioner fell squarely within the protected categories. Consequently, the Court held that the recovery order was unlawful and quashed it, directing the respondents to repay the amount with 6% per annum interest within four weeks. The petition was therefore allowed.

Issues considered

Whether a Class III employee who has retired can be compelled to repay excess amounts recovered due to a wrong fixation of pay scale.
Whether the principles laid down in State of Punjab v. Rafiq Masih (2015) 4 SCC 334 apply to the present case.

Subjects

excess salary recovery
class III employee
retirement dues
pay scale fixation
equitable relief
interest

Judgment

HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT - A No. - 4628 of 2026

Babu Ram
.....Petitioner(s)
Versus

State Of U.P. And 3 Others
.....Respondent(s)

Counsel for Petitioner(s) : Manoj Kumar Mishra
Counsel for Respondent(s) : C.S.C.

Court No. - 34
HON'BLE ANISH KUMAR GUPTA, J.

1. Heard Shri Manoj Kumar Mishra, learned counsel for the petitioner and Shri
Vishal Singh, learned standing counsel for the State respondents.

2. The instant petition has been filed challenging the order dated
29.12.2025 whereby an amount of Rs. 2,11,147/- has been recovered from
the the retiral dues of the petitioner after his retirement being the excess
amount paid to the petitioner due to wrong fixation of pay scale.

3. Learned counsel for the petitioner relying upon the judgment of State
of Punjab versus Rafiq Masih, (2015) 4 SCC 334, submits that the since
the petitioner was a class III employee and was not responsible for wrong
fixation of pay scale during his service period and he has never submitted
any undertaking at the time of fixation of pay scale. Therefore, recovery
of excess amount paid to the petitioner due to wrong fixation of pay scale
cannot be recovered from the petitioner on his retirement or after his
retirement. In such view of the matter the impugned order so far as it
relates to recovery of Rs. 2,11,147/- be quashed and the respondents be
directed to pay the aforesaid amount to the petitioner.

4. In Rafiq Masih (supra) the apex court has observed in paragraph 18 as
under para

"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
WRIA No. 4628 of 2026
2

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."

5. In view of the aforesaid, since the petitioner is a class III employee and
was not responsible for wrong fixation of pay scale and has never
submitted any undertaking in such circumstances any amount paid in
excess to the petitioner due to such wrong fixation of pay scale on the part
of the respondents cannot be recovered from the petitioner after his
retirement.

6. In such view of the matter the instant petition is allowed the order
dated 29.12.2025 so far as it relates to recovery of an amount of Rs.
2,11,147/- is concerned is hereby quashed. The respondents are directed
to pay the aforesaid amount of Rs. 2,11,147 with interest at the rate of 6%
per annum to the petitioner within a period of four weeks from the date of
receipt of the certified copy of this order.

(Anish Kumar Gupta,J.)
May 6, 2026
o.k.

Digitally signed by :-
OM KRISHNA CHOUDHARY
High Court of Judicature at Allahabad

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