Patna HC Quashes ₹22 Lakh Recovery From Retd University Employee, Says Pay Scale Cannot Be Reduced 12 Years After Retirement Without Notice

The Patna High Court has quashed a pay verification certificate reducing the pay scale of a retired university employee and directing recovery of over Rs. 22 lakh from his retiral dues, holding that such action could not be taken 12 years after retirement without notice or opportunity of hearing. A Single Judge Bench of Justice Ritesh Kumar was hearing a writ petition filed by a retired employee of L.N. Mithila University challenging reduction of his pay scale from Rs. 15,600-39,100 with Grade Pay Rs. 6600 to Rs. 9300-34,800 with Grade Pay Rs. 4600, and consequential recovery of Rs. 22,08,744/- from his retiral benefits.The petitioner had joined R.N. College, Pandaul as Typist-cum-Assistant in 1968 and later became a permanent university employee after the college was taken over by the State. He was subsequently promoted as Head Clerk (Accounts) with effect from 01.01.2006 on the recommendation of the University Selection Committee. According to the petitioner, the Statutory Pay Fixation Committee of the University had fixed his pay in the higher pay band and the same formed the basis of his retiral dues. However, during pendency of earlier proceedings, the Pay Verification Cell of the State Government issued a fresh pay verification certificate drastically reducing his pay scale and leading to adjustment of over Rs. 22 lakh from his post-retiral benefits.The petitioner argued that the action was contrary to law laid down by the Supreme Court and had been taken without issuing any notice or granting him an opportunity of hearing.The State contended that the pay fixation had been revised in accordance with directions issued in earlier proceedings and after scrutiny by the Pay Verification Cell, which found that the petitioner had been wrongly granted a higher scale.After hearing the parties, the Court noted that the petitioner had retired on 30.06.2010 and the impugned reduction in pay scale was carried out nearly 12 years after his retirement. The Court observed:“After his retirement in 2010, the master and servant relationship came to an end and the University was not justified in reducing the pay-scale of the petitioner, only on the basis of the directions issued by the State Government, without issuing any notice to the petitioner or without giving him any opportunity to rebut the objections made by the Pay Verification Cell of the State Government.”The Bench relied upon earlier decisions holding that the State Auditor or Pay Verification Cell has no jurisdiction over pay fixation of university employees where a Statutory Pay Fixation Committee exists under university statutes.The Court also referred to decisions including State of Punjab v. Rafiq Masih and Thomas Daniel v. State of Kerala concerning impermissibility of recovery from retired employees. Holding that the pay verification certificate issued by the Pay Verification Cell was illegal, the Court set it aside.The Court further directed that the petitioner would be entitled to salary and retiral benefits on the basis of the pay fixation made by the University. It also directed refund of Rs. 22,08,744/, if already adjusted from the petitioner's post-retiral benefits, within three months. Case Title: Pitamber Jha v. State of Bihar and Ors.Case No.: Civil Writ Jurisdiction Case No. 12043 of 2022Appearance: Mr. Shashi Bhushan Singh for the Petitioner. Mr. Madhaw Pd. Yadaw for the Respondent. Mr. Iqbal Asif Niazi for the University.Click Here To Read/Download Order

Patna HC Quashes ₹22 Lakh Recovery From Retd University Employee, Says Pay Scale Cannot Be Reduced 12 Years After Retirement Without Notice

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Patna HC Quashes ₹22 Lakh Recovery From Retd University Employee, Says Pay Scale Cannot Be Reduced 12 Years After Retirement Without Notice

Rushil Batra

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