Service Law — Pay fixation error — The appellant, a retired government employee, was promoted and received a revised pay scale — Years after retirement, the government sought to recover excess payments due to a pay fixation error — Whether the government can retrospectively reduce the appellant’s pay scale and recover excess payments after retirement — The appellant argued that the government resolution protecting promotions before a certain date was misinterpreted, and the recovery was arbitrary and violated natural justice —The State of Bihar contended that the resolution applied uniformly and the recovery was justified due to the error in pay fixation —The Supreme Court quashed the government’s order to reduce the pay scale and recover excess payments, ruling it illegal and arbitrary —The court emphasized that the appellant’s promotion was valid and protected by the resolution, and the recovery was unjustified after such a long period —The court cited precedents where recovery of excess payments was deemed inequitable if not promptly addressed and without employee fault —The appellant’s pay scale and pension were restored, and any recovered amounts were to be reimbursed with interest.
2024 INSC 591 SUPREME COURT OF INDIA DIVISION BENCH JAGDISH PRASAD SINGH — Appellant Vs. STATE OF BIHAR AND OTHERS — Respondent ( Before : Sandeep Mehta and R. Mahadevan,…