Recovery of excess salary/pension paid is impermissible, though respondents may re-fix pay to exclude wrongly granted benefits.

The applicant, a 62-year-old retired employee of the Public Works Department (PWD), challenged a communication dated 25.04.2023.

The respondents had sought to recover excess payments and withhold retiral benefits based on a dispute involving SRO 59.

The applicant sought the release of his full pension, gratuity, and other allied retiral benefits, arguing that the impugned communication was arbitrary and violative of Article 14 of the Constitution.

Whether the respondents are permitted to recover excess amounts already paid to the employee and whether the applicant is entitled to the release of withheld retiral benefits in light of settled law.

The Tribunal applied the legal principles established by the Hon’ble High Court of Jammu & Kashmir in UT of J&K & Ors. vs. Maqbool Sheikh & Ors., WP(C) No. 936/2025.

While the State has the liberty to re-fix pay or pension by excluding wrongly granted benefits, it is impermissible to effect any recovery of excess amounts already paid to employees.

The law mandates the refund of any such amounts if already recovered.

The Tribunal noted that the controversy regarding SRO 59 is no longer res integra (an open question), as it was conclusively settled by the High Court in the Maqbool Sheikh case.

Applying that precedent to the present facts, the Tribunal found that a "plain reading" of the High Court’s judgment prohibits the respondents from making recoveries of excess payments from the applicant.

While the respondents retain the legal right to re-fix the applicant's pay and pension prospectively by correcting errors in benefit allocation, they cannot obstruct the release of retiral benefits or withhold gratuity based on past excess payments.

The respondents were ordered to forward the applicant's complete service record and revised Last Pay Certificate to the Office of the Accountant General for re-fixation and the subsequent release of all retiral benefits and gratuity within four weeks.