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Shyam Babu Verma vs Union Of India on 8 February, 1994

(emphasis supplied) It is apparent, that in Shyam Babu Verma case, the higher pay scale commenced to be paid erroneously in 1973. The same was sought to be recovered in 1984 i.e. after a period of 11 years. In the aforesaid circumstances, this Court felt that the recovery after several years of the implementation of the pay scale would not be just and proper. We therefore hereby hold, recovery of excess payments discovered after five years would be iniquitous and arbitrary, and as such, violative of Article 14 of the Constitution of India."
Supreme Court of India Cites 8 - Cited by 850 - N P Singh - Full Document

Syed Abdul Qadir & Ors vs State Of Bihar & Ors on 16 December, 2008

"13. First and foremost, it is pertinent to note, that this Court in its judgment in Syed Abdul Qadir case recognised, that the issue of recovery revolverd on the action being iniquitous. Dealing with the subject of the action being iniquitous, it was sought to be concluded, that when the excess unauthorised payment is detected within a short period of time, it would be open for the employer to recover the same. Conversely, if the payment had been made for a long duration of time, it would be iniquitous to make any recovery. Interference because an action is iniquitous, must really be perceived as, interference because the action is arbitrary. All arbitrary actions are truly, actions in violation of Article 14 of the Constitution of India. The logic of the action in the instant situation, is iniquitous, or arbitrary, or violative of Article 14 of the Constitution of India, because it would be almost impossible for an employee to bear the financial burden, if a refund of payment received wrongfully for a long span of time. It is apparent, that a government employee is primarily dependent on his wages, and if a deduction is to be made from his/her wages, it should not be a deduction which would make it difficult for the employee to provide for the needs of his family. Besides food, clothing and shelter, an employee has to cater, not only to the education needs of those dependent upon him, but also their medical requirements, and a variety of sundry expenses. Based on the above consideration, we are of the view, that if the mistake of making a wrongful payment is detected within five years, it would be open to the employer to recover the same. However, if the payment is made for a period in excess of five years, even though it would be open to the employer to correct the mistake, it would be extremely iniquitous and arbitrary to seek a refund of the payments mistakenly made to the employee. (emphasis ours).
Supreme Court of India Cites 5 - Cited by 2121 - B N Agrawal - Full Document

State Of Punjab & Ors vs Rafiq Masih (White Washer) on 18 December, 2014

17. We, therefore, find the order of the Central Administrative Tribunal, Kolkata Bench, passed in the case of the four applicants allowing recovery upto 01.01.2020 to be unsustainable. Such a direction, if allowed to sustain, would be contrary to the law laid down in the decision of the apex Court in the case of Rafiq Masih & Ors (supra) taken note of above. The order of the Tribunal is set aside.
Supreme Court of India Cites 15 - Cited by 7379 - J S Khehar - Full Document
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