Sahib Ram vs The State Of Haryana And Others on 19 September, 1994
27. This Court, in a catena of decisions, has granted relief against recovery of
excess payment of emoluments/allowances if (a) the excess amount was not paid on
account of any misrepresentation or fraud on the part of the employee and (b) if
such excess payment was made by the employer by applying a wrong principle for
calculating the pay/allowance or on the basis of a particular interpretation of
rule/order, which is subsequently found to be erroneous. The relief against recovery
is granted by courts not because of any right in the employees, but in equity,
exercising judicial discretion to relieve the employees from the hardship that will be
caused if recovery is ordered. But, if in a given case, it is proved that the employee
had knowledge that the payment received was in excess of what was due or wrongly
paid, or in cases where the error is detected or corrected within a short time of
wrong payment, the matter being in the realm of judicial discretion, courts may, on
the facts and circumstances of any particular case, order for recovery of the amount
paid in excess. See Sahib Ram vs. State of Haryana, 1995 Supp.