NEW DELHI: Recovery of excess amount paid to Class-III and Class-IV employees due to employer's mistake is not permissible in law, the Supreme Court has ruled saying that it would cause extremely harsh consequences to them who are totally dependent on their wages to run their family. The apex court said employees of lower rung service spend their entire earning in the upkeep and welfare of their family, and if such excess payment is allowed to be recovered from them, it would cause them far more hardship, than the reciprocal gains to the employer.
A bench of JS Khehar and Arun Mishra also directed that an employer cannot recover excess amount in case of a retired employee or one who is to retire within one year and where recovery process is initiated five years after excess payment.
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