"Delhi High Court Sets Aside Retrospective Pay Reduction and Recovery Without Notice"
💡Employers cannot arbitrarily reduce salaries retrospectively without due process.
➡️The petitioner, Asha Ram Nehra, who was initially a BSF constable, was absorbed into Delhi Police in 1988. In 2017, after 19 years, the authorities reduced his pay retrospectively from 1988 and ordered a recovery of ₹2,97,879, which was deducted from his gratuity upon superannuation.
➡️The primary legal issue in this case was
🔹Whether the authorities could retrospectively reduce the petitioner’s pay after 19 years without prior notice.
🔹Whether the recovery of excess payment made over the years was legally justified.
➡️Petitioner contended that (Asha Ram Nehra)
🔹The pay reduction after 19 years, without prior notice, violated principles of natural justice.
🔹The petitioner was not responsible for any alleged erroneous fixation and should not be penalized.
🔹Relied on Supreme Court rulings in Bhagwan Shukla v. UOI and State of Punjab v. Rafiq Masih, which prohibit recovery of overpayments made due to employer errors.
➡️Respondents rebutted saying that (Commissioner of Police & Anr.)
🔹The petitioner was erroneously granted a deputation allowance despite being permanently absorbed into Delhi Police.
🔹Recovery was justified as the excess amount was wrongly paid.
🔹The Tribunal correctly upheld the recovery, citing past Supreme Court judgments on correcting pay fixation errors.
➡️The High Court observed
🔹Tribunal failed to appreciate the precedents in *Bhagwan Shukla and *Rafiq Masih.
🔹Any salary reduction must follow due process, including a show-cause notice.
🔹Recovering payments after 19 years violates the Supreme Court's ruling in Rafiq Masih, which protects employees from financial hardship due to belated recoveries.
➡️The High Court set aside the Tribunal’s decision and quashed the recovery order, ruling in favor of the petitioner.
➡️Case Asha Ram Nehra v. Commissioner of Police and Another
WP 3903/2019
Court Delhi High Court
Judge Hon'ble Madam Justice Rekha Palli J & Hon'ble Mr Justice Manoj Jain J
➡️Stay tuned and connected for more such #legalupdates #significantrulings #legalconsultation #legaladvice & #legalinsights from #SupremeCourt & #HighCourts.
👉*Bhagwan Shukla v. Union of India (1994):
An employee's #pay was #retrospectivelyreduced after 21 years without notice. The Supreme Court ruled this #violatednaturaljustice, requiring #notice and a #hearing before #anyaction with #civilconsequences.
👉*State of Punjab v. Rafiq Masih (2015):
The Supreme Court defined situations where #recoveringexcesspayments to employees due to #administrativeerrors is #impermissible. These include recoveries from lower-grade employees, retired employees, payments made over five years prior, and other cases where recovery would be unfair.
