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Dear friends,

The Supreme Court has said that even after retirement from service, an employee can't escape the recovery of the excess amount that is credited due to an error in salary calculations. Rejecting the submission that no amount should be recovered from the excess salary paid to employees, the apex court bench of Justice Anil R. Dave and Justice Dipak Misra said, "...if any amount had been paid due to mistake, the mistake must be rectified and the amount so paid in pursuance of the mistake must be recovered". "It might also happen that the employer might have to pay some amount to the respondent as a result of some mistake and in such an event, even the appellant (employer) might have to pay to the respondent (employee)," said Justice Dave in the judgment pronounced on Friday.

"Be that as it may, upon settlement of the account, whatever amount has to be paid to the respondent employee or to the appellant employer shall be paid and the account shall be adjusted accordingly", the court said setting aside a Punjab and Haryana High Court order. The apex court said this while allowing an appeal by Chandigarh administration challenging the March 20, 2008 decision of Punjab and Haryana High Court by which it had allowed the plea of Gurcharan Singh against the recovery of excess of money that was paid to him due to erroneous fixation of his salary by the Chandigarh Transport Undertaking where he had worked as a clerk. Gurcharan Singh had moved the High Court after his plea against the recovery of excess money was junked by the Central Administrative Tribunal Jan 4,2002. Singh, who had served as Combatant Clerk, was discharged from the army January 31,1990. He got employed with Chandigarh Transport Undertaking April 15, 1990 against ex-servicemen quota. Two years later, he got his pay that was fixed by an order of September 2,1992. Upon his retirement, it emerged during an audit that his pay was wrongly fixed by the communication of September 2. On retrospective re-fixation of his salary, it emerged that he was paid excess payment and same were sought to be recovered.

Thanks

From India, Malappuram

Attached Files
File Type: pdf Employee cannot escape recovery of excess payment SC 1.11.2013.pdf (179.8 KB, 491 views)

But can the employer/bank escape excess recovery? Is the employer/bank bound to provide the recovery order to the person concerned?
From India, Delhi
Friends,
The Hon'ble Supreme Court in case of Syed Abdul Qadir has observed that where the excess payment is made to an employee not on account of any misrepresentation or fraud on his part, and that the employee was not aware that the amount paid to him was in excess to his entitlement, then in such cases, the recovery should not be made. It has been further observed that if the employee has either retired or is on the verge of retirement, such recovery should not be made in such situation.
Based on this judgement, in the case of Arun Ambadasji Chawade vs. CGM, BSNL & Others, Bombay High Court in its order dated 14.10-.2013 (copy attached) has held that there can be no recovery of excess payment made to the employee after 4 years of his retirement.
Thanks

From India, Malappuram

Attached Files
File Type: pdf Bombay High Court - No recovery of excess payment 14.10.2013.pdf (735.4 KB, 193 views)

Anonymous
Sir, in my case I have been charge sheeted for the payments made to Third Parties who are Advocates and were handling the cases of the Company before the High Court. Due to negligence the payments of excess fees were made to them, but on coming to know all the excess payments were recovered by us, but after audit the Company had issued charge sheet to three officers and one class 3 employee under Rule 25 (major penalities) for negligence, misconduct and intigrity. There is no financial loss to the Company as all the recovery of excess professional fees have already been recovered from the Advoctes dealing the cases of our Company before the High Court. The Management had issued charge sheets to all four officers including one class 3 employee. I had neither recommended fee bills of advocates nor the passing authority, but the management had also issued charge sheet to me. Now the Management had issued charge sheets to all of us and they submitted their list of witnesses wherein we are all are made Management witnesses against each other. Whether the evidence led by all co charge sheeted employees can be read against each other or not. What would be maximum punishment under the charge sheet when there is no financial loss to the Company as the excess amount of professional fee stands already recovered from all the advocates.
From India, Chandigarh
is Employer liable for refund of Tax also from employee in case of excess payment refund. or the employee is only liable to pay the amount after tax to the employer
From India, Chennai
Anonymous
I am employee of IT company as software engineer and completed 4 years and 7 months of service. Can I claim gratuity
From India, Chandigarh
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