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Excess Pay Cannot Be Recovered After Retirement as Employee Did Not Misrepresent Facts: J&K High Court

Case Law Details

TaxGuru Citation
2026 taxguru.in 5581
Case Name
Sajad Ali Misgar Vs UT of J&K And Other (Jammu & Kashmir High Court)
Date of Judgement/Order
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Sajad Ali Misgar Vs UT of J&K And Other (Jammu & Kashmir High Court)

J&K High Court Bars Recovery From Retired Employee Because Excess Pay Was Not Due to Fraud; Recovery From Pensionary Benefits Set Aside Because Employee Retired Before Recovery Order; J&K High Court Quashes Recovery of Excess Salary Because Benefits Were Granted by Department Itself; Pension May Be Refixed but Recovery of Past Salary Not Allowed After Superannuation: J&K High Court.

In Sajad Ali Misgar Vs UT of J&K And Others, the Jammu & Kashmir High Court examined whether the authorities could recover excess salary and emoluments from a retired employee after his superannuation.

The petitioner challenged an order dated 28.08.2023 through which the respondents rescinded several service benefits granted to him during service. These included his upgradation from the pay scale of Rs.950-1500 to Rs.1200-2040, cancellation of first and second in-situ promotions, and cancellation of his placement as Tax Inspector in the pay scale of Rs.5000-8000. The impugned order also sought adjustment and recovery of excess salary from the petitioner’s retirement benefits, including DCRG emoluments.

The petitioner had initially been appointed as Tax Collector in 1995 in the pay scale of Rs.950-1500. In 1997, he was upgraded to the pay scale of Rs.1200-2040, which was later confirmed by the respondent authority in 2002. He subsequently received first in-situ promotion in 2006 and second in-situ promotion in 2018. In 2020, he was placed as Tax Inspector in the pay scale of Rs.5000-8000 pending clearance by the Departmental Promotion Committee (DPC).

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,910

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