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by sayum
14 February 2026 2:22 PM
In a significant ruling, the Patna High Court has quashed the recovery order issued by the Bihar Government to recover excess payments made to retired employees. The judgment, delivered by Hon’ble Mr. Justice Purnendu Singh on 27th July 2023, provides a major relief to the retired employees who were facing financial hardships due to the recovery order. “Recovery from employees belonging to Class-III and Class-IV service would be impermissible in law.”
The court, in its landmark decision, cited guidelines provided by the Supreme Court in State Of Punjab & Others Vs. Rafiq Masih (White Washer) and anr. [(2015) 4 SCC 334], emphasizing the need for equitable consideration in cases of recovery. The judgment highlighted that recovery by the employer would be impermissible in law if it resulted in iniquitous or harsh consequences for the employees.
The case revolved around the Assured Career Progression (ACP) and Modified Assured Career Progression (MACP) schemes, which were introduced to provide financial benefits to employees who faced limited promotional opportunities. The court clarified that these schemes were intended to grant monetary benefits without actual promotions and were aimed at relieving frustration caused by stagnation.
The controversy arose when the Bihar Government Issued a subsequent notification, Memo No. 1237 dated 10.10.2018, modifying earlier notifications and directing recovery from retired employees after several years of their retirement. The court held that this action, without proper approval and authentication, was without jurisdiction and unwarranted.
“Benefit granted to employees through the original notification cannot be taken away by executive order after several years of retirement,” the court stated in its judgment.
The court directed the Bihar Government to rectify the original notification, if necessary, after giving a proper opportunity to individual petitioners. This ruling has brought respite to the retired employees who were facing financial hardships due to the recovery order.
Date of Decision: 27th July 2023
Rupa Prasad Vs The State Of Bihar
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