The Bombay High Court has set aside a demand by Savitribai Phule Pune University seeking recovery of nearly Rs 39.94 lakh from a retired Class III employee on the ground that excess salary had been paid to him due to an error in pay fixation.
A Division Bench of Justice G. S. Kulkarni and Justice Aarti Sathe held that the case was covered by the Supreme Court’s principles in State of Punjab v. Rafiq Masih, which restrict recovery of mistaken excess payments from Class III and Class IV employees, particularly after retirement.
Background of the Case
Shrinivas Ganesh Kulkarni had joined Savitribai Phule Pune University as a Data Entry Operator in 1993 and was later confirmed in service. He retired on December 31, 2022.
After his retirement, the University issued a letter dated April 17, 2023, stating that his pay had allegedly been wrongly fixed under the Sixth Pay Commission. The University claimed that Rs 39,94,343 had been paid to him in excess and proposed recovery from his retiral benefits.
Kulkarni approached the High Court, contending that the pay had been fixed by the University and that he had not sought the disputed pay scale. The University, however, maintained that the higher pay had been applied by mistake and relied on an undertaking given during implementation of the Sixth Pay Commission.
Court's Observation
The High Court found that Kulkarni was undisputedly a Class III employee and that the recovery notice was issued after his retirement.
The Bench observed,
"Considering the aforesaid factual and legal backdrop, we are of the opinion that it would be illegal and arbitrary to recover the amount of Rs.39,94,343/- from the Petitioner’s retiral benefits, more so when the Petitioner is a Class III employee."
The Court also rejected the University's reliance on the undertaking. It held that the Supreme Court's ruling in Rafiq Masih specifically recognises recovery from Class III and Class IV employees and from retired employees as situations where recovery of mistaken excess payments is impermissible.
Decision
The Bench quashed the April 17, 2023 recovery notice to the extent that it directed recovery from Kulkarni. If any amount had already been recovered, the University was directed to refund it within three months.
The Court further directed the University to release his post-retiral benefits, including Assured Career Progression benefits from June 2017 with arrears and appropriate interest, accumulated leave encashment and Provident Fund interest.
It also directed implementation of the Seventh Pay Commission from June 1, 2016, on the specified pay scale.
All directions were ordered to be complied with within three months.
Case Details
Case Title: Shrinivas Ganesh Kulkarni v. Savitribai Phule Pune University & Others
Case Number: Writ Petition No. 14168 of 2024
Judge: Justice G. S. Kulkarni and Justice Aarti Sathe
Decision Date: September 11, 2026
