SHIMLA, JULY 28:
Himachal Pradesh High Court has ruled that the State government cannot retrospectively reduce an employee’s pay scale and recover the so-called “excess” amount after a long delay, especially in absence of any fraud or misrepresentation by the employee.
Allowing the petition of Vijay Kumar Chibber, a retired Draughtsman, the High Court quashed the State’s order dated August 16, 2022, which had reduced his last drawn pay by one increment — from ₹78,800 to ₹76,500 per month.
The Court held that this reduction, made after an inordinate delay of six years, was not only inequitable but amounted to punitive action.
Justice Sandeep Sharma, while pronouncing the judgment in CWP No. 8999 of 2023, said that once the Division Bench had already ordered refund of the amount earlier recovered due to a wrong pay fixation in 2020, there was no occasion left for the department to again re-fix the pay scale at a lower level.
The Background
The petitioner had opted for the revised Assured Career Progression (ACP) Scheme introduced by the Himachal government vide notification dated 9.8.2012, which provided career advancements on completion of 4, 9, and 14 years of service. He was granted the benefit under this scheme and retired on December 31, 2016.
However, after his retirement, the Accountant General’s office flagged a wrong pay fixation, citing that an extra increment had been wrongly granted in 2012.
Subsequently, an amount of ₹87,879 was recovered from his retiral dues. The High Court, through a previous order in CWPOA No. 3397 of 2020, had directed refund of this recovery, as it was made without fault or misrepresentation by the petitioner.
Despite that, in 2022, while revising pensions under the new pay rules effective from January 1, 2016, the State again re-fixed the petitioner’s last pay at a lower amount citing the same “error” — effectively reducing his pension as well. This prompted Chibber to knock at the High Court’s doors again.
The Verdict
Quoting landmark judgments including Syed Abdul Qadir vs. State of Bihar (2009), Jagdish Prasad Singh vs. State of Bihar (2024), and Rafiq Masih (2015), the Court reiterated that recoveries or reductions in pay after long durations — especially post-retirement — are unjust, inequitable, and impermissible, unless they are based on proven fraud or misrepresentation.
“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 and evil consequences,” Justice Sandeep Sharma observed.
The Court further said that since the petitioner had no role in the wrong fixation and the benefit was extended due to administrative lapse, he could not be punished for the same — especially when the lapse had continued uncorrected for years till his retirement.
The Direction
The impugned order dated 16.08.2022 was quashed. The Court directed the State Government to re-fix the petitioner’s pay and pay arrears accordingly within four months.