In a recent ruling, the Jammu and Kashmir and Ladakh High Court overturned a recovery order issued by the Srinagar Development Authority (SDA). The order had demanded that retired employee Mohammad Ramzan Tantray return an excess amount paid to him due to an error in his pay scale upgrade.
Justice Wasim Sadiq Nargal, presiding over the case, emphasised that recovery of excess payments made to employees due to mistakes or misinterpretation of rules is impermissible.
Tantray, who began as a daily wager in 1976 and later served as a Chowkidar before being designated as a pump operator in 1993, saw his pay scale upgraded accordingly. However, upon his retirement in 2014, a notice was issued for the recovery of an excess amount paid to him, totaling Rs. 6,08,022.
The court’s decision was grounded in principles of fairness and precedent. Justice Nargal highlighted that Tantray had not misrepresented any facts, and no inquiry was conducted by the authorities regarding his upgrade during his service or post- retirement. The court underscored the absence of any allegation against Tantray and criticised the lack of clarity from the respondents regarding the purported violation of rules.
Referring to various Supreme Court judgments, the court emphasised that recovering excess amounts from employees, especially after retirement, is unjust unless fraud or misrepresentation is proven. It also reiterated the principle established in previous rulings that pay fixation issues cannot be revisited beyond a specific period preceding retirement.
In a definitive move, the Court quashed the recovery order and directed the authorities to release all pensionary benefits owed to Tantray, including an amount of Rs. 3,26,982 withheld from his gratuity. Non-compliance within eight weeks would attract an interest of nine per cent, anually.
