Judgments – Law declared by the Courts: No recoveries can be made from the retiral dues of an employee

Central Administrative Tribunal, Delhi

13.09.2022

No recoveries can be made from the retiral dues of an employee – CAT, Delhi

On 31.01.2018, Sh. Randhir Singh Grewal retired from Sanjay Gandhi Memorial Hospital, Government of NCT of Delhi while working as a pharmacist. Delhi Government, however, illegally withheld the retiral dues of the applicant on the ground that some purported excess payment of Rs 2,71,418 was made to the applicant and the same was recoverable from his retiral dues. Being aggrieved by the recovery order, Shri. Grewal filed an Original Application [O.A. No.4112/2018] before the Central Administrative Tribunal, Delhi. Vide Order dated 13.09.2022, the Original Application was allowed. The directive paragraphs of the Order dated 13.09.2022 are reproduced below for ready reference: -

“6. Heard counsel for the parties at length. The case of the applicant is whether the recovery from the employee can affected after retirement by the respondents. This issue is no more res integra.

7. The Hon’ble Apex Court states in the case of State of Punjab v/s Rafiq Masih, (2015) 4 SCC 334 has decided, if excess payment is made prior to five years, it is not recoverable from the employees post retirement. In view of this, this Tribunal feels that the applicant’s case is squarely covered by the decision of the Hon’ble Supreme Court in Rafiq Masih case (supra). This OA has got merit, it is hereby directed to the respondents to release the amount so recovered i.e., Rs.2,71,418/- within a period of 60 days to the applicant along with interest at GPF rates. The rate of interest shall be paid for the period of delay which comes to as 3 months’ time are already supposed to be taken by the respondents calculating the retiral benefits. With this, OA is allowed with no orders passed. No costs.”

[Sh. Randhir Singh Grewal Vs. Govt. of NCT of Delhi, O.A. No.4112/2018, Date of decision = 13.09.2022, Central Administrative Tribunal, Principal Bench, New Delhi]

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