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As per case facts, the Petitioner, an Agriculture Officer, faced a punishment of increment stoppage and later retired without receiving full retiral benefits. Post-retirement, while his pay was revised, a
...significant amount was recovered from his leave encashment for alleged excess salary, without prior notice or proven misrepresentation. The Petitioner challenged this recovery and sought interest on delayed payments, including revised salary arrears and other retiral benefits. The question arose whether the recovery of excess payment from a retired employee, without prior notice, misrepresentation or fraud, and delayed payment of retiral benefits and revised salary arrears, is legally permissible and if interest should be granted on delayed payments. Finally, the High Court held that such recovery from a retired employee, without proven misrepresentation or fraud and without opportunity of hearing, is impermissible in law, citing Supreme Court judgments. The Court also ruled that the Petitioner is entitled to interest at 6% per annum on the recovered amount and on all delayed retiral benefits and revised salary arrears, given that the delay was not due to the Petitioner's fault.
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