Recovery of Excess Pay Prohibited; Pay and Pension Re-fixation Permitted Following SRO 59 Benefits Exclusion

The applicant, Ravinder Kumar, retired as a Mixture Operator from the Public Works Department (R&B), Kathua, on January 31, 2025.

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

The dispute centered on the application of SRO 59 and its impact on the calculation of his retiral benefits.

1. Whether the respondents can recover excess amounts already paid to the employee under SRO 59.

2. Whether the respondents are entitled to re-fix the pay or pension of the employee by excluding benefits purportedly granted in error under SRO 59.

Legal principles established by the Hon’ble High Court of Jammu & Kashmir in UT of J&K & Ors. v. Maqbool Sheikh & Ors., WP(C) No. 936/2025, which determined the limits of recovery for excess payments made to employees and the state's power to re-fix pay.

Section 19 of the Administrative Tribunals Act, 1985, regarding the adjudication of grievances related to recruitment and conditions of service.

The Tribunal noted that the legal controversy regarding SRO 59 was no longer res integra (an unsettled point of law) due to the High Court’s ruling in Maqbool Sheikh.

In that precedent, the High Court held that while the government has the liberty to re-fix an employee’s pay or pension by excluding wrongly granted benefits, it is strictly prohibited from recovering any excess amounts already paid to the employee.

Applying this to the current facts, the Tribunal observed that since the applicant's pension had already been adjusted (fixed after deducting SRO 59 benefits), a new re-fixation was unnecessary and the remaining obligation was the administrative finalization of the pension claim through the Accountant General.

The holding clarifies that recovery of excess payments is impermissible, and any recovered amounts must be refunded.

The respondents were ordered to forward the applicant’s complete service record and Last Pay Certificate to the Accountant General for the final settlement of pension and release of all consequential benefits, including gratuity, within four weeks.

No costs were awarded.