Tuesday, August 29, 2017
RECOVERY OF WRONGFUL / EXCESS PAYMENTS MADE TO GOVERNMENT SERVANTS
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
New Delhi, the 2nd March, 2016
Sub: Recovery of wrongful / excess payments made to Government servants.
The undersigned is directed to refer to this Department’s OM No.18/26/2011-Estt (Pay-I) dated 6th February, 2014 wherein certain instructions have been issued to deal with the issue of recovery of wrongful / excess payments made to Government servants in view of the law declared by Courts, particularly, in the case of Chandi Prasad Uniyal And Ors. vs. State of Uttarakhand And Ors., 2012 AIR SCW 4742, (2012) 8 SCC 417. Para 3(iv) of the OM inter-alia provides that recovery should be made in all cases of overpayment barring few exceptions of extreme hardships.
2. The issue has subsequently come up for consideration before the Hon’ble Supreme Court in the case of State of Punjab & Ors vs Rafiq Masih (White Washer) etc in CA No.11527 of 2014 (Arising out of SLP(C) No.11684 of 2012) wherein Hon’ble Court on 18.12.2014 decided a bunch of cases in which monetary benefits were given to employees in excess of their entitlement due to unintentional mistakes committed by the concerned competent authorities, in determining the emoluments payable to them, and the employees were not guilty of furnishing any incorrect information / misrepresentation / fraud, which had led the concerned competent authorities to commit the mistake of making the higher payment to the employees. The employees were as innocent as their employers in the wrongful determination of their inflated emoluments. The Hon’ble Supreme Court in its judgment dated 18 th December, 2014 ibid has, inter-alia, observed as under:
“7. Having examined a number of judgments rendered by this Court, we are of the view, that orders passed by the employer seeking recovery of monetary benefits wrongly extended to employees, can only be interfered with, in cases where such recovery would result in a hardship of a nature, which would far outweigh, the equitable balance of the employer’s right to recover. In other words, interference would be called for, only in such cases where, it would be iniquitous to recover the payment made. In order to ascertain the parameters of the above consideration, and the test to be applied, reference needs to be made to situations when this Court exempted employees from such recovery, even in exercise of its jurisdiction under Article 142 of the Constitution of India. Repeated exercise of such power, “for doing complete justice in any cause” would establish that the recovery being effected was iniquitous, and therefore, arbitrary. And accordingly, the interference at the hands of this Court.”
“10. In view of the afore-stated constitutional mandate, equity and good conscience, in the matter of livelihood of the people of this country, has to be the basis of all governmental actions. An action of the State, ordering a recovery from an employee, would be in order, so long as it is not rendered iniquitous to the extent, that the action of recovery would be more unfair, more wrongful, more improper, and more unwarranted, than the corresponding right of the employer, to recover the amount. Or in other words, till such time as the recovery would have a harsh and arbitrary effect on the employee, it would be permissible in law. Orders passed in given situations repeatedly, even in exercise of the power vested in this Court under Article 142 of the Constitution of India, will disclose the parameters of the realm of an action of recovery (of an excess amount paid to an employee) which would breach the obligations of the State, to citizens of this country, and render the action arbitrary, and therefore, violative of the mandate contained in Article 14 of the Constitution of India.”
3. The issue that was required to be adjudicated by the Hon’ble Supreme Court was whether all the private respondents, against whom an order-of recovery (of the excess amount) has been made, should be exempted in law, from the reimbursement of the same to the employer. For the applicability of the instant order, and the conclusions recorded by them thereinafter, the ingredients depicted in paras 2&3 of the judgment are essentially indispensable.
4. The Hon’ble Supreme Court while observing that it is not possible to postulate all situations of hardship which would govern employees on the issue of recovery, where payments have mistakenly been made by the employer, in excess of their entitlement has summarized the following few situations, wherein recoveries by the employers would be impermissible in law:-
(i) Recovery from employees belonging to Class-III and Class-IV service (or Group ‘C’ and Group ‘D’ service).
(ii) Recovery from retired employees, or employees who are due to retire within one year, of the order of recovery.
(iii) Recovery from employees, when the excess payment has been made for a period in excess of five years, before the order of recovery is issued.
(iv) Recovery in cases where an employee has wrongfully been required to discharge duties of a higher post, and has been paid accordingly, even though he should have rightfully been required to work against an inferior post.
(v) In any other case, where the Court arrives at the conclusion, that recovery if made from the employee, would be iniquitous or harsh or arbitrary to such an extent, as would far outweigh the equitable balance of the employer’s right to recover.
5. The matter has, consequently, been examined in consultation with the Department of Expenditure and the Department of Legal Affairs. The Ministries / Departments are advised to deal with the issue of wrongful / excess payments made to Government servants in accordance with above decision of the Hon’ble Supreme Court in CA No.11527 of 2014 (arising out of SLP (C) No.11684 of 2012) in State of Punjab and others etc vs Rafiq Masih (White Washer) etc. However, wherever the waiver of recovery in the above-mentioned situations is considered, the same may be allowed with the express approval of Department of Expenditure in terms of this Department’s OM No.18/26/2011-Estt (Pay-I) dated 6th February, 2014.
6. In so far as persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.
7. Hindi version will follow.
Deputy Secretary to the Government of India
Implementation of Government decision on the recommendation of the VIIth Pay Commission on CCS (Extraordinary Pension) Rules, 1939 Enhancement of Constant Attendant Allowance
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SIMPLIFICATION OF PENSION PROCEDURE
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Financial Powers of the Head of Department of P&PW have been increased for incurring Contingent and Miscellaneous Expenditure under Schedule V and VI of DFPRs 1978...
PROCEDURE TO GET A CGHS PLASTIC CARD
Eligible serving employees/pensioners have to apply in the prescribed form (available on CGHS website www.cghs.nic.in and in the wellness centers)
The form should be completely filled up with individual photographs pasted as specified in the form
Following documents need to be attached
In case of serving employee:
· Proof of residence.
· Proof of stay of dependents.
· Proof of age of son.
· In case of differently abled dependent son above 25 years, disability certificate from competent authority as specified.
In case of pensioners:-
In addition to 1 to 4 above: Surrender certificate of CGHS Card (only if CGHS Card was issued during Service Period).
Attested copies of PPO/Provisional PPO/Last Pay Certificate (in case PPO is not readily available immediately after retirement.)
Demand Draft in the name of “PAO CGHS New Delhi” (in case of Delhi) or Additional Director of the CGHS city where the card is to be made.
The amount of Demand Draft will be for contribution due for one year if the card is to be made for yearly renewal basis and for 10 years if whole life card is required.
Dependency criteria- In pursuance of the recommendations of the Sixth Central Pay Commission, it has been decided that for availing the medical facilities under the scheme, parents (or parents-in -law in case of female employee), unmarried son till 25 years of age, dependent unmarried/widowed/divorced/separated daughters and sisters, minor brothers will be deemed dependent on the Government employee if they are normally residing- with him and their income from all sources including pension and pension equivalent of DCRG benefit is less than Rs. 3500 +DA per month. This criteria does not apply to spouse and disabled son irrespective of age (please see definition of disability in instructions for filling CGHS card)
Channel of submission:-In case of serving employees the application is to be submitted through the department after due endorsement. In case of Pensioners the application with enclosures are to be submitted to Addl. Director (HQ) in Delhi and concerned Addl. Director of the city.
Provision for making pensioner CGHS card while in Service:-
A serving employee can apply for a pensioner CGHS Card along with his pension papers.
Application with enclosures and bank draft is to be forwarded to the CGHS through the office of the employee. The pensioner Card will be issued on the day of retirement (provided it is applied for at least six weeks before retirement date) and will get activated from next day.
Addition/Deletion of names in CGHS Cards
On the death of the main card holder, the card becomes invalid and fresh card has to be applied for by the spouse after he/she starts drawing the family pension. Old CGHS card and a Death Certificate need to be attached with the application.
A serving employee on marriage or on the birth of his/ her child may get the names of spouse /child added to the card after submitting the form for addition duly endorsed by his department
After the death of spouse and death/marriage/employment of a son/daughter/dependent it is the responsibility of main card holder to inform CGHS for necessary deletion of the card
Validity of the CGHS Card
The service card will be valid till the date of retirement if otherwise the employee is eligible. In case of yearly contribution pensioner cards, in order to continue validity, contribution is to be made prior to completion of the continuing year.
In case of transfer of serving employee to a non CGHS covered area the service card will be valid for the family members up to six months after transfer provided CGHS contribution for 6 months is made before hand. CGHS card is valid in all CGHS cities for treatment/investigation/Hospitalization. There is no need for transit permit to get treatment in another CGHS city except for receiving high value medicines classified as “lifesaving”/restricted supply medicines for which temporary attachment to a wellness center is required.
Transfer of CGHS Cards
In case of serving CGHS beneficiary transferred from one department /ministry to another in the same city, the same CGHS card will continue. The new department/ministry will duly inform CGHS so that necessary changes can be made in the database of the employee. In case of transfer of a serving CGHS beneficiary from one CGHS covered city to another, the CGHS card is to be surrendered in the existing city of posting and a new CGHS card is to be issued from the new city of Posting.
CGHS Card for Pensioners residing outside CGHS Cities
Pensioners residing outside CGHS covered area can opt for a regular CGHS Card or an IPD (Indoor treatment) CGHS Card with fixed medical Allowance (in lieu of OPD treatment) from the nearby CGHS city. IPD card holders will not be eligible for OPD treatment & issue of medicines from CGHS Wellness Centers.
Click to Download Application Forms
Application Forms available for download for Plastic Card