Allahabad High Court orders return of gratuity amount deducted on basis of wrong salary payment

The Allahabad High Court has ordered the return of the gratuity amount deducted on the basis of wrong salary payment along with six percent interest.

A Single Bench of Justice Salil Kumar Rai passed this order while hearing a petition filed by Bhagirathi.

The petitioner was posted as Gram Panchayat Adhikari in the Department of Panchayati Raj, U.P at Lucknow and retired from service on 31.7.2020.

An amount of Rs 5,90,061/- has been deducted from his gratuity on the ground that the petitioner was paid an excess amount in salary because of wrong fixation of his salary while the petitioner was in service. Orders to that effect have been passed by the District Panchayat Raj Officer, Sant Kabir Nagar on 6.4.2021 and 22.3.2021.

The Court observed that the orders directing recovery of the petitioner are contrary to law in light of the judgement of the Supreme Court in State of Punjab and Others Vs Rafiq Masih (White Washer) and Others, reported in (2015) 4 SCC 334.

The Court quashed the orders dated 6.4.2021 and 22.3.2021 passed by the District Panchayat Raj Officer, Sant Kabir Nagar directing recovery of alleged excess payment to the petitioner.

The Court directed the District Panchayat Raj Officer, Sant Kabir Nagar and the Senior Treasury Officer, Sant Kabir Nagar to refund Rs 5,90,061/- alongwith 6% simple interest per annum to the petitioner within one month and in any case by 31.5.2024.

With the aforesaid directions, the Court allowed the petition.