The court directs Savitribai Phule Pune University to refund recovered amounts and release pending retiral benefits with interest within three months.
In a significant decision, the Bombay High Court has ruled against the recovery of excess payment from a retired Class III employee of Savitribai Phule Pune University. The division bench comprising Justices G.S. Kulkarni and Aarti Sathe delivered the judgment on September 11, 2026, in response to a writ petition filed by Mr. Shrinivas Ganesh Kulkarni, a former Data Entry Operator at the university.
The court quashed the university’s letter dated April 17, 2023, which sought to recover Rs. 39,94,343 from Mr. Kulkarni, purportedly paid in excess due to an error in pay fixation. The university had withheld Mr. Kulkarni's gratuity and other retirement benefits pending this recovery. The court found this action impermissible and arbitrary, citing the principles established by the Supreme Court in the case of State of Punjab v. Rafiq Masih.
The judgment emphasized that recovering excess payments from retired Class III employees constitutes undue hardship and contradicts the equitable principles upheld by the Supreme Court. The court directed the university to refund any recovered amounts and release all pending post-retirement benefits, including the benefits under the Assured Career Progression Scheme and 7th Pay Commission arrears with interest, within three months.
The court further mandated the implementation of the 7th Pay Commission recommendations for Mr. Kulkarni, effective from January 1, 2016, along with accrued arrears and interest. The ruling underscores the legal protections available to employees against arbitrary financial recoveries post-retirement, reinforcing the judicial precedence that prioritizes employee welfare over administrative errors.
Bottom Line:
Recovery of excess payment made to a retired Class III employee is impermissible in law if it causes undue hardship, especially when payments were made due to employer's error, and recovery would contradict the principles laid down in Supreme Court judgments.
Statutory provision(s): Article 226 of the Constitution of India.
