Recovery of excess pay is impermissible, though respondents may re-fix pension by excluding wrongly granted benefits.

The applicants, Pawan Kumar and Subash Singh, were employees of the Jal Shakti (PHE) Department who retired on 31-12-2022 and 30-06-2022, respectively

They approached the Tribunal seeking a direction to the respondents to fix their pensionary and post-retirement benefits based on their last pay drawn and to release all pending dues, arrears, and gratuity

The dispute arose in the context of pay benefits previously granted under SRO 59, which the respondents sought to re-fix or recover

1. Whether the respondents can recover excess amounts already paid to the applicants if their pay is re-fixed due to the withdrawal of SRO 59 benefits?

2. Whether the applicants are entitled to the final settlement of pension and release of consequential retiral benefits based on their adjusted service records?

UT of J&K & Ors. vs. Maqbool Sheikh & Ors. (WP(C) No. 936/2025, dated 06.03.2026), which held that while the government maintains the "liberty to re-fix the pay/pension" by excluding wrongly granted benefits, it is "impermissible" to effect any recovery of excess amounts already paid to employees

Section 19 of the Administrative Tribunals Act, 1985, regarding the adjudication of grievances in service matters

The Tribunal noted that the controversy regarding SRO 59 is no longer res integra (an untouched matter), as the High Court has settled the specific conflict between recovery of payments and re-fixation of pay

Applying the High Court's mandate, the Tribunal observed that while any excess payment made to the applicants cannot be recovered (and must be refunded if already seized), the respondents are legally permitted to re-calculate the pension by excluding the disputed SRO 59 benefits

Currently, the applicants' pension has already been fixed based on the actual last pay drawn after deducting the SRO 59 benefits; therefore, the Tribunal reasoned that no further re-fixation is necessary, but the administrative process for the final settlement and release of gratuity must be expedited

It held that no recovery shall be made from the applicants, and any recovered amount must be refunded. The respondents were specifically ordered to forward the complete service record and Last Pay Certificate (LPC) to the Accountant General for the final settlement of pension and release of all consequential retiral benefits within four weeks