Service Law- No Recovery can be done from Retiral Benefits- Jharkhand HC

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August 22, 2018

Case name: Ram Pyare Mishra v. The State of Jharkhand & Ors.

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In the case, the AGP (“Academic Grade Pay”) granted to the petitioner was recovered allegedly behind the back of the petitioner, on the ground that only such persons who have been promoted, are entitled for the AGP.

Also read Service Law: Is Recovery of Excess Payment from Employee Permissible?

Aggrieved by the aforesaid, the Petitioner approached the High Court of Jharkhand.

The High Court while allowing the Petition, noted the following:

That no recovery can be done from the retiral benefits viz. pension, gratuity, etc. without following the principles of natural justice and without adhering to the settled principles of law. In view of the facts of the case, the Court noted that the recovery was not done in accordance to the settled principles and as such, the respondents could not to recover any amount from the retiral benefits and if it has been recovered, the same should be refunded to the petitioner.

While arriving at its judgment, the High Court relied on Supreme Court’s judgment in the case of High Court of Punjab & Haryana vs. Jagdev Singh, wherein it was opined 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.

The entire case can be accessed here.