Supreme Court Quashes October 2009 Order For Reduction Pay Scale of Retired Employee
The state had also directed recovery of the excess amount from him.
Any step of reduction in the pay scale and recovery from a government employee would tantamount to punitive action as the same has drastic civil and "evil consequences", the Supreme Court said on Thursday.
The apex court observed that a decision taken by a state government to reduce an employee's pay scale and recover the excess amount cannot be applied retrospectively and that too, after a long time gap.
A bench of Justices Sandeep Mehta and R Mahadevan quashed an October 2009 order of the Bihar government for reduction in the pay scale of a retired employee. The state had also directed recovery of the excess amount from him.
"In addition thereto, we are of the view that any step of reduction in the pay scale and recovery from a government employee would tantamount to a punitive action because the same has drastic civil as well as evil consequences," the bench said in its verdict.
The top court delivered its judgement on an appeal filed by the retired employee who had challenged the August 2012 order of the Patna High Court.
The high court had held that the revision and consequent reduction in pay fixation was done in accordance with the government resolution of February 1999, as per which he was not entitled to higher pay scale which had wrongly been accorded to him.
The apex court noted that the man was appointed to the post of supply inspector in the Bihar government in 1966, and after serving for 15 years, he received his first time-bound promotion as marketing officer and put in junior selection grade with effect from April 1981.
It further noted that upon completing 25 years in service, he was promoted to the post of senior selection grade, marketing officer-cum-assistant district supply officer with effect from March 10, 1991.
The bench said the state government had issued a resolution in February 1999 revising the pay scale of marketing officer and ADSO with effect from January 1996.
It noted that the man superannuated from the post of ADSO on January 31, 2001 and he received a letter in April 2009 from the state government conveying that an error was committed in his pay fixation and, therefore, Rs 63,765 had to be recovered from him as the same was paid beyond his entitlement.
The bench said he had approached the high court which directed the state to consider his representation but it was later rejected by the authority.
It noted he again moved the high court which dismissed his plea.
"The order dated October 8, 2009 passed by the state government directing reduction in the pay scale of the appellant… and directing recovery of the excess amount from him is grossly illegal and arbitrary and is hereby quashed and set aside," the top court said in its verdict.
The bench also quashed the order passed by the high court's division bench.
"In case, if any reduction in pension and consequential recovery was effected on account of the impugned orders, the appellant shall be entitled to the restoration/reimbursement thereof with interest as applicable," it said.
