Simplified Explanation of the Judgment

In a significant ruling dated 8 July 2020, the Patna High Court addressed the long-standing dispute involving several school teachers from Aurangabad district, Bihar, who had been appointed without formal training but later obtained it. These teachers had been granted a senior pay scale under a government order, which was later revoked by the authorities. The core issue revolved around whether these teachers were legally entitled to the senior scale benefits and whether the government could recover the already paid amount.

Initially, the teachers had been appointed as “Matric Trained Teachers,” although many held qualifications like Intermediate or Graduation. Since they were untrained at the time of appointment, the Department later allowed them to complete their training, post which the issue of senior pay scale eligibility arose.

On 17 May 2019, the District Programme Officer (Establishment), Aurangabad, issued an order granting senior scale to these teachers. However, this benefit was later withdrawn through a memo issued on 5 May 2020, citing that such benefits were wrongly granted as per the Finance Department’s Resolution No. 6022 dated 18.12.1989, which did not apply to them.

This revocation led to the State recovering a substantial portion—up to 95%—of the teachers’ salaries for April and May 2020. The teachers challenged this recovery and the cancellation of senior scale benefits through a writ petition.

The turning point in the case came when both parties—petitioners and the State—agreed that the teachers would be eligible for the next higher pay scale after completing 12 years of service post-training. Thus, the petitioners no longer pursued the challenge to the cancellation orders but sought a refund of the amount already recovered.

The Court noted that although the initial grant of senior scale was erroneous, it was made without any misrepresentation or fraud by the teachers. However, it also acknowledged that the original order itself included a clause allowing for recovery in case of ineligibility, which the teachers had accepted.

The Court examined Supreme Court precedents, particularly Syed Abdul Qadir v. State of Bihar and Rafiq Masih v. State of Punjab, where recoveries were held impermissible under certain circumstances, such as when the employee was nearing retirement or had served more than five years under mistaken benefits. But these conditions did not apply here—the petitioners were neither retired nor on the verge of retirement, and the benefits were drawn for less than a year.

Moreover, the High Court emphasized that since the teachers had accepted the benefits conditionally and recovery was initiated within a short span, the government was within its rights to recover the excess payments. Importantly, the Court ruled that the principle of natural justice (right to a hearing before recovery) did not apply rigidly in this case, as the facts clearly established that the benefits were mistakenly extended.

Therefore, the Patna High Court rejected the petitioners’ prayer for a refund of the recovered amount. However, it directed the State to compute and pay all current and arrear dues based on 12 years of post-training service, within three months, with a detailed statement of calculation. Any remaining recoveries (if necessary) were to be done in reasonable monthly installments thereafter.

Significance or Implication of the Judgment

This judgment has far-reaching implications for teachers across Bihar and possibly other states who were initially untrained but later acquired training. It clarifies that senior pay scale benefits cannot be granted retroactively unless the qualifying service (12 years post-training) is completed. Moreover, the Court balanced the government’s right to recover public funds with fairness towards employees who did not commit any fraud.

For the government, this ruling provides a legal framework for handling similar financial misallocations efficiently. For public servants, it emphasizes the importance of understanding the conditions attached to financial benefits and the limited scope of relief available in the event of mistaken payments.

Legal Issue(s) Decided and the Court’s Decision with Reasoning

• Whether teachers appointed without training are entitled to senior pay scale benefits?
  • Decision: No. They are only eligible after completing 12 years of service post training.
• Whether recovery of erroneously granted benefits is legal if there was no fraud or misrepresentation?
  • Decision: Yes, recovery is valid if:
    • The original order permitted it.
    • Recovery was initiated promptly.
    • Petitioners are not retired or close to retirement.
• Whether the principles of natural justice were violated by not giving a hearing before recovery?
  • Decision: No. Since recovery was inevitable and not contestable, hearing would have been a useless formality.
• Whether the petitioners are entitled to a refund of the amounts already recovered?
  • Decision: No. The petitioners accepted the conditional grant and recovery terms, and substantial recovery had already taken place.

Judgments Referred by Parties

• Syed Abdul Qadir & Ors v. State of Bihar & Ors, (2009) 3 SCC 475
• Nand Kishore Sharma & Ors v. State of Bihar & Ors, 1995 Supp (3) SCC 722
• State of Punjab v. Rafiq Masih (White Washer), (2015) 4 SCC 334

Judgments Relied Upon or Cited by Court

• High Court of Punjab and Haryana v. Jagdev Singh, (2016) 14 SCC 267
• Punjab National Bank v. Manjeet Singh, (2006) 8 SCC 647
• Ashok Kumar Sonkar v. Union of India, (2007) 4 SCC 54

Case Title
Ranjan Kumar & Others v. The State of Bihar & Others

Case Number
Civil Writ Jurisdiction Case No. 5719 of 2020

Citation(s)
2021(1) PLJR 1

Coram and Names of Judges
Hon’ble Mr. Justice Madhuresh Prasad

Names of Advocates and Who They Appeared For
Mr. Y.V. Giri, Sr. Adv. with Mr. Pranav Kumar, Adv. — For Petitioners
Mr. Ashutosh Ranjan Pandey, AAG XV — For State

Link to Judgment
https://patnahighcourt.gov.in/viewjudgment/MTUjNTcxOSMyMDIwIzEjTg==-g–am1–4ghQc8dvg=

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