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Recovery of excess increments paid to employee due to wrong interpretation of service rules unjustified: Supreme Court

A Division Bench of Justices S Abdul Nazeer and Vikram Nath stated that such recoveries are more unfair, wrongful, improper and unwarranted than the corresponding right of the employer to get the amount.

“This relief against the recovery is granted not because of any right of the employees but in equity, exercising judicial discretion to provide relief to the employees from the hardship that will be caused if the recovery is ordered,” the Bench observed.

The Supreme Court made these observations while hearing an appeal challenging a decision of the Kerala High Court that had allowed the State to recover excess service benefits granted to the present appellant (during his employment) on account of a wrong interpretation of the Kerala Service Rules.

The issue for consideration before the Court was whether increments granted to the appellant, while he was in service, can be recovered from him almost 10 years after his retirement on the ground that the said increments were granted on account of an erroroneous interpretation of the prevailing service rules.

Source: Barandbench

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