Circumstances Where Recovery of Excess Payment to Employees are not Permissible

The Jammu and Kashmir High Court in SWP No. 2237/2014 by following the decisions of the Supreme Court in the case of Thomas Daniel v. State of Kerala & Ors. and Syed Abdul Qadir v. State of Bihar held that where excess amount was not paid due to misrepresentation or fraud of the employee then recovery may not be allowed to prevent hardship to the employee. Further recovery of excess amount made to the employee due to mistake or wrong interpretation of rules cannot be permitted. The employees have not acted unlawfully in receiving the payments and therefore recovery of excess payment is unjustified.