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Honb'le Supreme Court of India Order on Recoveries By Employer

IN THE SUPREME COURT OF INDIA 

IN CIVIL APPELLATE JURISDICTION 

CIVIL APPEAL NO. 11527 OF 2014 

(Arising out of SLP(C) No.11684 of 2012)

State of Punjab and others etc. … Appellants
versus
Rafiq Masih (White Washer) etc. … Respondent(s)


PART OF HONB'LE SUPREME COURT OF INDIA JUDGEMENT :

It is not possible to postulate all situations of hardship, which would govern employees on the issue of recovery, where payments have mistakenly been made by the employer, in excess of their entitlement. Be that as it may, based on the decisions referred to herein above, we may, as a ready reference, summarise the following few situations, wherein recoveries by the employers, would be impermissible in law:

(i) Recovery from employees belonging to Class-III and Class-IV service (or Group ‘C’ and Group ‘D’ service).

(ii) Recovery from retired employees, or employees who are due to retire within one year, of the order of recovery.

(iii) Recovery from employees, when the excess payment has been made for a period in excess of five years, before the order of recovery is issued.

(iv) Recovery in cases where an employee has wrongfully been required to discharge duties of a higher post, and has been paid accordingly, even though he should have rightfully been required to work against an inferior post.

(v) In any other case, where the Court arrives at the conclusion, that recovery if made from the employee, would be iniquitous or harsh or arbitrary to such an extent, as would far outweigh the equitable balance of the employer’s right to recover.

(NOTE: PLEASE DOWNLOAD COMPLETE JUDGEMENT ON SUPREME COURT OF INDIA WEBSITE  http://supremecourtofindia.nic.in/FileServer/2014-12-18_1418911443.pdf)

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