Delhi High Court Quashes Demand for Refund, Grants Terminal Benefits to Employee

The Delhi High Court has dismissed the request for a government employee to refund the excess amount he was paid, stating that his terminal benefits will be determined by granting him the benefits of the higher scale he was previously on.

The employee, who was initially hired as a Senior Research Assistant and later re-designated as an Economic Officer in the project appraisal division, was promoted to the position of Research Officer on an ad hoc basis in 1996. Despite the temporary nature of this promotion, the employee continued to serve in this role for over 14 years, receiving a higher salary accordingly.

A Division Bench consisting of Justice Rekha Palli and Justice Saurabh Banerjee stated, “we overturn the challenged order and grant the writ petition by directing that the demand made by the respondents for the refund of the differential higher amount paid to the petitioner for the period between 13.07.2010 to 06.03.2013 will be dismissed. Furthermore, taking into account his long service of over 14 years as a Research Officer, the petitioner’s terminal benefits, including pension, will be determined by granting him the benefits of the higher scale he received during his tenure as a Research Officer. However, he will not be entitled to the pay of the Research Officer from which post he stands reverted.”

Advocate Shiva Sharma represented the petitioner, while CGSPC Vivek Goyal appeared for the respondents.

The Center decided to revert Makwana back to his original position as an Economic Officer, resulting in a decrease in his salary. Additionally, the authorities sought to recover the excess salary paid to him during his time as a Research Officer. The employee challenged this reversion and the subsequent recovery orders, seeking the reinstatement of his previous salary and protection from the recoveries.

The employee’s application was rejected by the Central Administrative Tribunal (CAT). He then approached the High Court, which took into consideration his extensive service in the higher position without any wrongdoing or misrepresentation on his part.

The High Court acknowledged that while the reversion to his previous position was not in dispute, the significant duration of service in the higher position warranted special consideration. It was noted that the employee had served as a Research Officer for over 14 years without any complaints and was nearing retirement.

“We must not overlook the fact that the petitioner worked in a higher position for over 14 years, during which time he not only received a higher salary but also had no complaints against him at any stage. In these circumstances, combined with the fact that he is now nearing retirement, the respondents should consider releasing his terminal benefits by taking into account the higher salary he received during his 14 years as a Research Officer,” the Court stated.

Referring to the precedent set in the Supreme Court case of Badri Prasad v. Union of India (2005) 11 SCC 304, the Court emphasized the need to balance equities. The Court concluded that the employee’s terminal benefits, including pension, should be calculated based on the higher salary he received as a Research Officer.