No Misrepresentation Or Fault On Her Part: Madhya Pradesh HC Quashes Recovery Order In A Case Of Excess Payment To Employee

The Madhya Pradesh quashed a recovery order passed in a case where excess amount was mistakingly paid to an Auxiliary Nurse Midwife on account of wrong fixation of pay.

The Court was hearing a Writ Petition challenging the recovery of excess amount of around ₹5.8 lakhs from a retired Auxiliary Nurse Midwife. She had submitted that there was no misrepresentation or fault on her part in fixation of pay and that the recovery was contrary to law.

A Single Judge Bench of Justice Sobodh Abhyankar, taking note of past cases, partly allowed the petition, declaring that "the impugned recovery order... is hereby quashed." The respondents were directed to refund the recovered amount along with 6 percent interest from the date of recovery within three months.

Advocate L. C. Patne appeared for the petitioner and Advocate Pranay Joshi appeared for the respondent-State.

The Court noted that the Supreme Court in Shyam Babu Verma v. Union of India (1994), while observing that the petitioners in that case were not entitled to the higher pay scales, had come to the conclusion that since the amount has already been paid to the petitioner, for no fault of theirs, the said amount shall not be recovered. "...[I]t shall only be just and proper not to recover any excess amount which has already been paid to them."

The Court cited the Supreme Court's judgment Sahib Verma vs. State of Haryana (1995) where it was observed that the excess payment made was not on account of misrepresentation by the employee, but by a mistake committed by the department and, therefore, the recovery could not have been made.

Similarly, in Syed Abdul Kadir v. State of Bihar (2009), the Supreme Court held that recovery of excess payment from a retired government servant cannot be made if there is no misrepresentation or fault on the part of the employee.

Taking the above precedents into consideration, the High Court quashed the recovery order in the present case.

Cause Title: Rooplekha Sirsath v. Public Health And Family Welfare Department And Others [2024:MPHC-IND:29984]

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