Recovery of excess payments may be adjusted against arrears accruing from subsequent grant of higher pay scales.

The petitioners were initially appointed as Shikshak Karmi and later sought the benefits of the Sahayak Adhyapak post

Following prior litigation, the respondents granted these benefits effective from 01.04.2007, but subsequently withdrew them and ordered recovery of excess payments in 2015

After multiple rounds of litigation (W.P. No. 1194/2015 and W.P. No. 5484/2017) where the High Court directed fresh consideration, the respondents passed a new order on 20.01.2020 again directing recovery

During the pendency of this petition, the State issued new orders (dated 14.06.2024 and 20.07.2024) conferring higher pay scales on similar employees. The petitioners sought to amend their plea to allow the recovery amount to be adjusted against the arrears they would receive under these new orders

1. Whether the pending recovery proceedings should bar the petitioners from receiving the benefit of a higher pay scale as per government orders dated 14.06.2024 and 20.07.2024

2. Whether the amount sought to be recovered from the petitioners can be adjusted against the arrears accruing from the grant of a higher pay scale

State Government’s own executive orders dated 14.06.2024 and 20.07.2024, which mandate the grant of higher pay scales to Prathmik Shikshak (Primary Teachers) and similarly situated persons

The Court also applied the principle of set-off/adjustment, allowing the State to satisfy its recovery claims through the arrears payable to the employees rather than through fresh deductions

The Court observed that the primary obstacle to the petitioners' receipt of the higher pay scale was the pendency of the recovery dispute

It found the petitioners' suggestion—to adjust the recovery amount against the new arrears—to be "justifiable" as it balances the State's right to recover excess payments with the employees' right to updated emoluments

The Court noted that the right to the higher pay scale arose in 2018, while the recovery related to 2017; therefore, to ensure equity, it directed that neither party should be burdened with interest on their respective claims

The Court refrained from ruling on the merits of the petitioners' eligibility for the pay scale, leaving that determination to the competent authority

If eligible, the arrears must be adjusted against the recovery amount, and any remainder paid to the petitioners within three months thereafter

Recovery proceedings are stayed pending this decision, and the petitioners retain the liberty to challenge the recovery if their pay scale claim is denied

The Court specifically held that no interest shall be applied to either the arrears or the recovery amount