COMMISSIONER Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The Second to Fifth Respondents are the legal representatives of one Loganathakrishnan, who voluntarily retired from service on 30.06.2011 from the First Appellant, viz., Erode Corporation. At the time of settlement of the terminal benefits of the said Loganathakrishnan, a sum of Rs.1,09,957/- was recovered from his Death Cum Retirement Gratuity (hereinafter referred to as the 'DCRG' for short). The reason stated for such recovery was that an objection had been raised during audit that an excess payment had been made in the scale of pay of the said Loganathakrishnan, with effect from 01.06.1988, which was noticed only at the time of his voluntary retirement from service.

(2.) According to the said Loganathakrishnan, the pension had been fixed taking into account the reduction in the scale of pay and the terminal benefits were released to him only on 21.01.2013 without any interest for the belated payment. It was also complained by him that the entire procedure followed in effecting the excess payment was in gross violation of the principles of natural justice inasmuch as no show cause notice had been issued to him before effecting the recovery. In the aforesaid circumstances, the said Loganathakrishnan filed W.P. No. 12013 of 2013 challenging the orders passed by the First Respondent and the Appellants reducing his scale of pay and the consequent recovery of excess payment, and had sought for consequential direction to repay the recovered amount of Rs.1,09,957/- and restore the scale of pay as it originally stood on 01.06.1998 and pay interest for the belated payment of the pensionary benefits. During the pendency of the Writ Petition, the said Loganathakrishnan died and the Second to Fifth Respondents, who are his legal heirs, were brought on record.

(3.) The Learned Judge, who heard the Writ Petition, after referring to the decision of this Court in K. Malarkodi -vs- Director of Elementary Education (Order dated 15.11.2017 in W.P. No. 33570 of 2012) that had followed the decision of the Hon'ble Supreme Court of India in State of Punjab -vs- Rafiq Masih (Whitewasher) [(2015) 4 SCC 334] by order dated 25.04.2018, held as follows:-