Punjab and Haryana High Court Quashes Unlawful Pension Recovery from Retired Officer

Court directs refund with interest for recovery made without consent, citing violation of natural justice principles.

In a landmark judgment, the Punjab and Haryana High Court has invalidated the recovery of Rs. 6,63,688 from the pension of Sajjan Kumar Goyal, a retired Executive Officer from the Municipal Council, Kaithal. Justice Harpreet Singh Brar ruled that the recovery was unlawful as it violated principles of natural justice and statutory provisions, requiring express consent from the pensioner.

The case arose when the authorities unilaterally revised Goyal's pension post-retirement, deducting a substantial amount from his pension account without prior notice or consent. This action was challenged by Goyal, who argued that the recovery was made arbitrarily and without any statutory authority.

The court emphasized that such recoveries from pension funds must adhere to the Punjab Civil Services Rules and Haryana Civil Services (Pension) Rules, which mandate prior consent from the pensioner. Citing the Supreme Court's judgment in State of Punjab v. Rafiq Masih, the court reinforced that recovery from retired employees is impermissible without consent, particularly when excess payments result from clerical errors or administrative oversight.

The judgment further highlighted the breach of natural justice, stressing that any adverse action against a pensioner must be preceded by notice and an opportunity for hearing. Justice Brar underscored the importance of transparency and humane considerations in administrative actions affecting retired individuals, whose financial stability depends heavily on their pension.

In addition to quashing the recovery order, the court directed the respondents to refund the deducted amount with 6% interest per annum from the date of filing the writ petition. The Reserve Bank of India was also instructed to ensure that agency banks do not effectuate such recoveries without the pensioner's consent or prior notice.

This ruling reaffirms the judiciary's commitment to safeguarding the rights of pensioners and ensuring that administrative actions adhere to legal standards and ethical practices. The decision sets a precedent for future cases involving pension recovery and underscores the necessity for governmental departments to act within the confines of law and justice.

Bottom Line:

Recovery from pension after retirement requires express consent of the pensioner as per Punjab Civil Services Rules and Haryana Civil Services (Pension) Rules - Abrupt recovery without prior notice violates principles of natural justice.

Statutory provision(s): Punjab Civil Services Rules, Volume II, Rule 2.2(a); Haryana Civil Services (Pension) Rules, 2016, Rule 11; Rule 9.15 of the Punjab Civil Services Rules, Volume II; Haryana Civil Services (Pension) Rules, 2016, Rule 78

Sajjan Kumar Goyal v. State of Haryana, (Punjab And Haryana) : Law Finder Doc Id # 2809630