• Appointment order

Sir
I was working in an organisation since 2009.In 2021 august there was a call for higher post ,i applied,shortlisted.Minutes recorded as Appointment order to be issued with continuity of service and pay scale to be fixed by 2 persons.The 2 persons signed approved the scale Appointment order given with same employee id.In 2026 i applied for another job in same organisation. Resigned from the previous post 2 months back Took new job.Now from 2009 to 2026 settlement,they say ,in 2021 your appointment should have been with a break and all dues settled.Since that was not done,we will settle accordingly in 2021 pay,and then 2021 to 2026 pay.Difference amount i need to repay.this is demand now.should i give back for not a mistake of mine.?

Next in 2021 october again in an informal meeting they recorded as ,the basuc pay should not be increased ,instead give allowance.The same was not communicted to me at any point of time.
Now they say that i need to pay difference amount.

My interview minutes and my appointment oreders are clear.After that i was unaware of any discussion. I resigned and dues settled.
Since i am continuing in other post ,they are forcing me.
Kindly suggest sir.
Asked 1 day ago in Labour

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5 Answers

Supreme court in its ruling has stated that an employer cannot legally recover excess payments made to an employee if the error was made solely by the organization and there was no fraud or misrepresentation on the employee's part.Since your official appointment orders, selection committee minutes, and pay fixation were duly signed and issued by designated authority figures in 2021 without any fraud or deceit by you, the employer cannot hold you responsible for their internal accounting or administrative errors. Therefore you should not give back the money.

You may send a written representation by  a letter/email stating that the pay fixation in 2021 was carried out by the authorized officers of the organization based on official selection minutes and there  was no misrepresentation or fraud on your part. As per Supreme Court rulings regarding recovery of excess payments, an employee cannot be forced to refund amounts paid due to administrative errors after years of service."

If HR asks you to sign an agreement agreeing to salary deductions or recovery, refuse to sign. Signing can be treated as voluntary consent.

Since you are currently working in a new post in the same organization, they may attempt to deduct the money directly from your current monthly salary or withhold dues. A legal notice issued by a lawyer referencing Rafiq Masih guidelines usually stops organizations from taking coercive recovery steps.

T Kalaiselvan
Advocate, Vellore
91108 Answers
2525 Consultations

recovery of excess pay from an employee is impermissible if the payment was made due to an error by the employer without any misrepresentation or fraud by the employee.


2)Your 2021 interview minutes, approval by a 2-person committee, and your final appointment order explicitly granted you continuity of service and fixed your pay scale. You even retained the same employee ID.

3) The organization formally issued these orders. Under the principle of estoppel, they cannot retroactively change the rules 5 years later just because they realized their internal policy should have required a "break in service." Since you did not misrepresent any facts or commit fraud to get that pay scale, the mistake is entirely theirs, and they must bear the administrative cost.

Ajay Sethi
Advocate, Mumbai
100903 Answers
8242 Consultations

First, your formal appointment order and interview minutes expressly granted continuity of service and a specific pay scale, approved by competent authorities. A subsequent internal meeting that was never communicated to you cannot override this binding official document.

Second, the Supreme Court's Rafiq Masih doctrine (2015) prohibits recovery of excess payments made due to administrative error when the employee committed no fraud or misrepresentation. Courts have barred recoveries even after 17 years of erroneous payments. Recovery is especially impermissible when payments exceed five years.

Third, the doctrine of estoppel applies—you relied in good faith on the official appointment order for years. Without any undertaking from you regarding refund, recovery is unjustified.

Finally, your resignation and final settlement were already concluded. The employer cannot now reopen settled matters, particularly when you bear no fault.

Lalit Saxena
Advocate, Sonbhadra
445 Answers

You don’t have to pay the same you can dispute it

Prashant Nayak
Advocate, Mumbai
35277 Answers
257 Consultations

Sir/Madam, 

it is suggested that you are not at all responsible for the fault on the part of the management and you are not required to pay anything because it is a well settled case that the pay and allowances given to an employee (even if by mistake) can not be recovered by the management. There are various case laws of the High Courts and Supeme Court of Bharat supporting the case.  

Ganesh Singh
Advocate, New Delhi
7342 Answers
16 Consultations

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