M.P. MEDICAL OFFICERS ASSOCIATIONversusTHE STATE OF MADHYA PRADESH & ORS.

                        [2022] 7 S.C.R. 67                             67


           M.P. MEDICAL OFFICERS ASSOCIATION                           A
                                 v.
         THE STATE OF MADHYA PRADESH & ORS.
                  (Civil Appeal No. 5527 of 2022)
                        AUGUST 26, 2022                                B
        [M. R. SHAH AND B. V. NAGARATHNA, JJ.]
       Service Law – Recovery of excess amount paid – Employees-
members of the appellant association were wrongly granted certain
benefits under a circular till it was subsequently withdrawn, having
                                                                       C
been issued without authority and also without approval of Finance
Department – State Govt. ordered recovery of the excess amount
paid with interest – Single Judge quashed the communication
withdrawing the circular and the orders of recovery of excess amount
– Order set aside by Division Bench – Held: Division Bench justified
in setting aside the order passed by Single Judge quashing the         D
communication withdrawing the circular, considering the grounds
on which the circular was withdrawn – Impugned order upholding
the communication withdrawing the circular not interfered with –
However, Division Bench erred in quashing the order passed by
Single Judge setting aside the recovery of excess amount paid – It
                                                                       E
was the Department/State that issued the circular and paid the
benefits thereunder – There was neither any misrepresentation by
the concerned employees nor can the mistake be attributed to them
– Mistake, if any, can be said to be that of the Department/State
that issued the circular – On facts, State not justified in ordering
recovery of the excess amount paid, also as some of the employees      F
have retired and the recovery shall be from their pension/pensionary
benefits – Order passed by Division Bench upholding the recovery
of the excess amount paid, set aside – No recovery of the excess
amount paid – However, for all other purposes including pay fixation
and pension etc., the same shall be worked out as per order dtd
                                                                       G
26.08.08 – M.P. Public Health and Family Welfare (Gazetted) Service
Recruitment Rules, 2007 – M.P. Public Health and Family Welfare
(Gazetted) Service Recruitment Rules, 1988.
      State of Punjab and others v. Rafiq Masih, (2015) 4
      SCC 334 : [2014] 13 SCR 1343 – held inapplicable.
                                                                       H
                                67
68            SUPREME COURT REPORTS                           [2022] 7 S.C.R.


A                             Case Law Reference
     [2014] 13 SCR 1343               held inapplicable      Para 5
           CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5527
     of 2022.
B          From the Judgment and Orders dated 11.10.2018 of the High Court
     of Madhya Pradesh Principal Bench at Jabalpur in W.A. No.1073 of
     2018.
           With
           Civil Appeal Nos. 5528, 5529 and 5530 of 2022.
C
            P. S. Patwalia, Sr. Adv., Sanjay Sarin, Rohin Oza, Ms. Meghna
     Mittal, Ms. Gagan Deep Kaur, Aditya Sarin, Pushkar Karni Sinha, Dinkar
     Kalra, Prashant Shukla, Ms. Anushree Shukla, Ashu Bhindwar, Ankit
     Tiwari, Ms. Shubhi Bharadwaj, Abhinav Ramkrishna, Divyesh Pratap
     Singh, Advs. for the Appellant.
D
           Saurabh Mishra, AAG, Ms. Mrinal Elker Mazumdar, Ankit Mishra,
     Rahul Kaushik, Pashupathi Nath Razdan, Advs. for the Respondents.
           The Judgment of the Court was delivered by
           M. R. SHAH, J.
E           1. Feeling aggrieved and dissatisfied with the impugned judgment
     and order passed by the High Court of Madhya Pradesh, Jabalpur in
     Writ Appeal No. 1073 of 2018 by which the High Court has allowed the
     said writ appeal preferred by the State of Madhya Pradesh and others
     and has quashed and set aside the judgment and order passed by the
F    learned Single Judge passed in Writ Petition No. 6236 of 2014, the original
     writ petitioners – M.P. Medical Officers Association and other individual
     members of the Association have filed the present appeals.
           2. The members of the appellant Association and other appellants
     were working as Specialists and Dental Specialists respectively under
G    the M.P. Public Health and Family Welfare (Gazetted) Service
     Recruitment Rules, 1988. The said Rules were repealed by the M.P.
     Public Health and Family Welfare (Gazetted) Service Recruitment Rules,
     2007 published in the Gazette on 27.03.2008. The State issued an order
     on 26.08.2008 to grant higher pay-scale on completion of six years to the
     Medical Officers, Dental Surgeons and officers working in the Specialist
H
  M.P. MEDICAL OFFICERS ASSOCIATION v. THE STATE OF                                69
        MADHYA PRADESH & ORS. [M. R. SHAH, J.]

cadre in a four tier pay-scales. Later, the circular dated 23.05.2009 was          A
issued to the effect that the period from the date of appointment shall
be counted as notional appointment though the benefit of the scheme
shall be granted from the date of issuance of the order of the State
Government dated 26.08.2008. In the circular dated 23.05.2009, it was
also provided that the fourth tier pay-scale will be payable on completion
                                                                                   B
of the prescribed service period, but the financial benefits shall be
extended w.e.f. 26.8.2008. The period between the date of completion
of the prescribed period and 26.08.2008 shall be eligible for notional pay
fixation. Having found that the circular dated 23.05.2009 was wrongly
issued and was issued without approval of the Finance Department and
as the benefits flowing from the circular dated 23.05.2009 were having             C
financial implications/burden and it was found that the said circular was
issued by the authority, who had no competence and therefore vide
communication dated 30.05.2012, the circular dated 23.05.2009 came to
be withdrawn. However, the respective Medical Officers working as
Specialists, Dental Specialists and the officers working in the specialist’s
                                                                                   D
cadre – members of the appellant association were granted the actual
benefit flowing from the circular dated 23.05.2009 till 30.05.2012, i.e., till
the circular dated 23.05.2009 was withdrawn. As the benefits were
wrongly paid under the circular dated 23.05.2009, which was subsequently
withdrawn on 30.05.2012, the State Government ordered recovery of
the excess amount paid alongwith the interest.                                     E
       2.1 The communication dated 30.05.2012 withdrawing the circular
dated 23.05.2009 and the recovery of the excess amount paid alongwith
the interest were the subject matter of Writ Petition No. 6236 of 2014
preferred by the M.P. Medical Officers Association. Individual writ
petitioners also filed their separate writ petitions, however, the Writ Petition   F
No.6236 of 2014 preferred by the Association was treated as the lead
matter. By common judgment and order, the learned Single Judge allowed
all the writ petitions and quashed the communication dated 30.05.2012
withdrawing the circular dated 23.05.2009. The learned Single Judge
also quashed the orders of recovery of the excess amount paid alongwith
the interest.                                                                      G

       2.2 Feeling aggrieved and dissatisfied with the judgment and order
passed by the learned Single Judge dated 20.12.2017 passed in Writ
Petition No. 6236 of 2014, the State preferred Writ Appeal No. 1073 of
2018 before the Division Bench of the High Court. By the impugned
                                                                                   H
70             SUPREME COURT REPORTS                            [2022] 7 S.C.R.


A    judgment and order, the Division Bench of the High Court has allowed
     the aforesaid writ appeal and has quashed and set aside the judgment
     and order passed by the learned Single Judge quashing and setting aside
     the communication dated 30.05.2012 withdrawing the circular dated
     23.05.2009 and also quashing the recovery of the excess amount paid
     alongwith the interest. The impugned judgment and order passed by the
B
     Division Bench of the High Court passed in Writ Appeal No. 1073 of
     2018 is the subject matter of the present appeals.
           3. We have heard Shri P.S. Patwalia, learned Senior Advocate
     appearing on behalf of the appellant and Shri Saurabh Mishra, learned
     Additional Advocate General appearing on behalf of the respondent State.
C
            4. Having heard the learned counsel for the respective partis and
     having gone through the impugned judgment and order passed by the
     Division Bench of the High Court and the ground on which the circular
     dated 23.05.2009 was withdrawn namely, the same was issued without
     authority and/or competence and was issued without any approval and/
D    or concurrence of the Finance Department as the benefits flowing from
     the circular dated 23.05.2009 were having financial implications/burden,
     we see no reason to interfere with the impugned judgment and order
     passed by the Division Bench of the High Court upholding the
     communication dated 30.05.2012 withdrawing the circular dated
E    23.05.2009. The Division Bench of the High Court is absolutely justified
     in quashing and setting aside the judgment and order passed by the learned
     Single Judge of the High Court quashing the communication dated
     30.05.2012 withdrawing the circular dated 23.05.2009.
            4.1 However, at the same time, the Division Bench of the High
F    Court has erred in quashing and setting aside the judgment and order
     passed by the learned Single Judge allowing the writ petitions and setting
     aside the recovery of excess amount paid for the period between 2009
     to 2012, which was sought to be recovered with interest.
            5. It is not in dispute that the members of the appellant association,
G    who were serving as Specialists, Dental Specialists and officers in the
     specialist’s cadre got the benefits under the circular dated 23.05.2009. It
     was the Department/State, who issued the circular dated 23.05.2009
     and paid the benefits under the circular dated 23.05.2009 to the members
     of the appellant association, which subsequently came to be withdrawn
     by the State in the year 2012. Therefore, as such, there was neither any
H    misrepresentation on the part of the concerned employees – members
  M.P. MEDICAL OFFICERS ASSOCIATION v. THE STATE OF                              71
        MADHYA PRADESH & ORS. [M. R. SHAH, J.]

of the appellant association nor can the mistake be attributed to them.          A
The mistake, if any, can be said to be that of the Department/State, who
issued the circular dated 23.05.2009 under which the members of the
association were given certain benefits till the same was withdrawn in
the year 2012. Therefore, in the peculiar facts and circumstances of the
case, the State was not justified in ordering recovery of the excess amount
                                                                                 B
paid along with the interest. It is true that stricto sensu, the decision of
this Court in the case of State of Punjab and others Vs. Rafiq Masih,
(2015) 4 SCC 334 may not be applicable. However, at the same time,
as observed hereinabove, and in the facts and circumstances of the
case, the State was not justified in ordering recovery of the excess amount
paid with interest, more particularly, when it is reported that some of the      C
doctors/dentists – members of the association have retired on attaining
the age of superannuation and the recovery shall be from their pension/
pensionary benefits. However, at the same time, their pay fixation and
the pension shall have to be as per the order dated 26.08.2008.
      6. In view of the above and for the reasons stated above, all these        D
Appeals Succeed in part. The impugned judgment and order passed by
the Division Bench of the High Court upholding the recovery of the
excess amount paid alongwith interest is hereby quashed and set aside.
      In result, there shall not be any recovery of the excess amount
paid pursuant to the circular dated 23.05.2009 till the same was withdrawn       E
on 30.05.2012. However, for all other purposes including the pay fixation
and pension etc., the same shall be now worked out as per the order
dated 26.08.2008, as if, the circular dated 23.05.2009 was never issued.
      Present appeals are accordingly partly allowed to the aforesaid
extent. However, in the facts and circumstances of the case, there shall         F
be no order as to costs.

Divya Pandey                                           Appeals partly allowed.
(Assisted by : Roopanshi Virang, LCRA)

                                                                                 G




                                                                                 H