Madras High Court

Recovery of excess pay from Group C and D employees without misrepresentation is impermissible.

E.KRISHNAMOORTHY vs THE SUB JUDGE

Madras High CourtJUDGMENT: July 09, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner joined service as a Night Security Guard in 2001, was promoted to Writer in 2012, and retired on 31.05.2022

Source reference: p.2

In 2020, while still in service, the 1st Respondent issued a show cause notice (dated 09.12.2020) based on an internal audit report

Source reference: p.2

The notice alleged that the petitioner’s pay was wrongly fixed, resulting in an excess payment of ₹73,159/-, which was subsequently recovered from his salary

Source reference: p.2-3

The petitioner challenged this show cause notice and sought a refund of the recovered amount via a Writ of Certiorarified Mandamus

Source reference: p.2
02

Issues

1. Whether a Writ Petition is maintainable against a show cause notice regarding pay recovery

Source reference: p.3, para. 3

2. Whether the recovery of excess salary paid due to an administrative error is permissible from a Class III/IV employee after a significant lapse of time

Source reference: p.4, para. 6-7
03

Law Applied

While authorities may rectify pay fixation errors to prevent unjust gain of public money, recovery is limited by equitable principles.

Source reference: p.3, para. 5

State of Punjab v. Rafiq Masih (White Washer) (2015) 4 SCC 334, which prohibits recovery from Group C/D (Class III/IV) employees, retired employees (or those within one year of retirement), or where excess payment exceeded five years before the recovery order

Source reference: p.4-5, para. 7
04

Reasoning

The Court observed that unless the employer proves misrepresentation by the employee, an error in pay fixation is an administrative mistake for which the employee should not be penalized

Source reference: p.4, para. 6

Applying the Rafiq Masih criteria, the Court reasoned that recovering ₹73,159/- after several years would cause "extreme hardship" and was "iniquitous"

Source reference: p.4, para. 6-7

While the Court upheld the management's right to re-fix the pay to the correct level prospectively in accordance with Pay Rules, it determined that the retrospective recovery of paid amounts was legally impermissible under the specific circumstances of the petitioner's service status and the lapse of time

Source reference: p.6, para. 8
05

Holding

The Court disposed of the Writ Petition by setting aside the recovery order

It held that while the respondents may re-fix the petitioner's pay correctly for future/pensionary calculations, they must refund the recovered amount of ₹73,159/- to the petitioner within twelve weeks. No costs were awarded, and the connected miscellaneous petition was closed

Source reference: p.6, para. 9
Madras High Court

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E.KRISHNAMOORTHYvsTHE SUB JUDGE

Madras High Court · July 09, 2026

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