Retired employee bound by undertaking to adjust any excess payment made to him: SC [Read Judgment]

The Supreme Court in HIGH COURT OF PUNJAB &HARYANA VS.  JAGDEV SINGH, has set aside a judgment of Punjab and Haryana High Court which had allowed a Writ petition preferred by a retired Judicial officer wherein it held that the excess payment made to a retired employee towards salary and allowance prior to his retirement could not be recovered after his retirement, there being no fraud or misrepresentation on his part.

In the instant case, the Judicial officer had opted for the revised pay scale, by furnishing an undertaking to the effect that he would be liable to refund any excess payment made to him.

The Bench comprising of Chief Justice of India T.S. Thakur and Justice Dr. D Y Chandrachud observed “The submission of the Respondent, which found favour with the High Court, was that a payment which has been made in excess cannot be recovered from an employee who has retired from the service of the state. This, in our view, will have no application to a situation such as the present where an undertaking was specifically furnished by the officer at the time when his pay was initially revised accepting that any payment found to have been made in excess would be liable to be adjusted. While opting for the benefit of the revised pay scale, the Respondent was clearly on notice of the fact that a future re-fixation or revision may warrant an adjustment of the excess payment, if any, made.” “

The Court further observed: “In the present case, the officer to whom the payment was made in the first instance was clearly placed on notice that any payment found to have been made in excess would be required to be refunded. The officer furnished an undertaking while opting for the revised pay scale. He is bound by the undertaking”.

Read the Judgment here.