Maruti Vitthal Phalke vs Zilla Parishad Pune Throu. Chief Executive Officer and Anr. — Bombay HC (2025) — LawSathi Research

Maruti Vitthal Phalke vs Zilla Parishad Pune Throu. Chief Executive Officer and Anr. — Bombay HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

All writ petitions partly allowed; Rule made partly absolute. Gratuity amounts deducted as recovery of excess salary to be returned to the Petitioners without interest if repaid within 45 days, failing which with interest @ 5% p.a. from dates of deduction; liberty to the Zilla Parishad to re-fix pension prospectively (per actual payable salary) after individual notice and 15 days for explanation, with no recovery of pension already paid.

Issue for consideration

Whether excess salary of a Principal, paid inadvertently to Petitioners who were reverted/transferred as Primary Teachers, can be recovered from them post-retirement by deduction from gratuity/retiral benefits. +1 more

Court's answer

Considering the law laid down by the Hon'ble Supreme Court in Sayed Abdul Qadir and Rafiq Masih, recovery of inadvertently paid excess salary from retirees cannot stand: the amounts deducted from the Petitioners' gratuity shall be returned without interest if repaid within 45 days, failing which the amounts gather interest at 5% per annum from the dates of deduction from gratuity.

Ratio / Principle

If an undertaking was not taken from the employee at the time of making the excess payment or granting increments (though inadvertent), the act of extracting an affidavit or undertaking post-retirement, or at the time of retirement, amounts to duress and coercion; undertakings said to have been voluntarily executed after retirement therefore do not sustain the recovery.

Key takeaways

If the Petitioners' pension was wrongly calculated on the last-drawn (Principal-scale) salary, the Zilla Parishad is granted liberty to issue individual notices, call for explanations within 15 days of receipt, and re-fix pension per the actual salary payable; the correction applies prospectively from the date of this Judgment, and there is no recovery of pension amounts already paid (unless that exercise is already concluded).ratio¶110

Detailed headnote1 paragraphs

High Court of Judicature at Bombay (Civil Appellate Jurisdiction), Coram: Ravindra V. Ghuge and Ashwin D. Bhobe, JJ. (Oral Judgment per Ghuge, J.), 10 December 2025 — Group of eight writ petitions (WP Nos. 14383, 14131, 14443, 13951, 13962, 14149, 14293 and 14124 of 2025) by retired Primary Teachers of Zilla Parishad, Pune. The Petitioners, appointed as Primary Teachers (Class-III) from 1986 onwards, were promoted as Principals; a verification under the Right of Children to Free and Compulsory Education Act, 2009 found 35 Principals in excess of 389 sanctioned posts, and they were demoted/transferred back as Primary Teachers (first Petitioner's demotion willingness allegedly forcibly obtained, approved 01.08.2014; transfers 14.08.2014). They were nonetheless inadvertently paid Principal-scale salary until retirement, and post-retirement the Deputy Chief Auditor and Finance Officer, Zilla Parishad, Pune ordered deduction of the excess (Rs.3,21,200/- for the first Petitioner) from gratuity, without hearing. HELD: (i) where an undertaking was not taken at the time of the inadvertent excess payment/increment, extracting an affidavit or undertaking post-retirement or at retirement amounts to duress and coercion, and post-retirement voluntary undertakings cannot justify recovery; (ii) relying on Sayed Abdul Qadir v/s. State of Bihar, (2009) 3 SCC 475 and State of Punjab and Ors. v/s. Rafiq Masih (White Washer), (2015) 4 SCC 334, and on the Aurangabad Bench ruling in Shaikh Amir Shaikh Kadar (Writ Petition No.3320 of 2023, decided 23.03.2023), the deducted gratuity amounts must be returned — without interest if repaid within 45 days, failing which with interest @ 5% p.a. from the dates of deduction; (iii) any pension wrongly fixed on the inadvertently drawn Principal-scale salary may be re-fixed per actual payable salary only prospectively, after individual notice and 15 days for explanation, with no recovery of pension already paid. Writ petitions partly allowed; Rule made partly absolute. Judgment corrected/modified as per speaking-to-minutes order dated 24th April, 2026.

907-WP-14383-2025(speaking).odt

Digitally signed GAYATRI by GAYATRI RAJENDRA RAJENDRASHIMPI SHIMPI Date: 2026.04.30 09:56:56 +0530

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

WRIT PETITION NO. 14383 OF 2025

Bajarang Shankar Supe Age. 60 years, Occ. Retired as a Principal R/at. Post Wada, Taluka Khed, Rajgurunagar, District Pune 412402 … Petitioner

Versus

Zilla Parishad, Pune Through Chief Executive Officer Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001

Deputy Chief Accounts and Finance Officer Zilla Parishad, Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001 … Respondents

WITH

WRIT PETITION NO. 14131 OF 2025

Dnyaneshwar Punaji Mormare Age. 61 years, Occ. Retired as Primary Teacher R/at. Post Tokawade, Taluka Khed, Rajgurunagar District Pune 412402 … Petitioner

Versus

Zilla Parishad, Pune Through Chief Executive Officer Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001

Deputy Chief Accounts and Finance Officer Zilla Parishad, Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001 … Respondents

Gayatri Shimpi

This Judgment is corrected/modified as per Speaking to the Minutes of order dated 24^th April, 2026.

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907-WP-14383-2025(speaking).odt

WITH

WRIT PETITION NO. 14443 OF 2025

Raghunath Shantaram Kavale Age. 63 years, Occ. Retired as Primary Teacher R/at. Post Nayphad, Taluka Khed, Rajgurunagar District Pune 412402 … Petitioner

Versus

Zilla Parishad, Pune Through Chief Executive Officer Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001

Deputy Chief Accounts and Finance Officer Zilla Parishad, Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001 … Respondents

WITH WRIT PETITION NO. 13951 OF 2025

Gangaram Mahadev Damse Age. 61 years, Occ. Retired as a Primary Teacher R/at. Panchale Khurd, Taluka Ambegaon, District Pune 412402 … Petitioner

Versus

Zilla Parishad, Pune Through Chief Executive Officer Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001

Deputy Chief Accounts and Finance Officer Zilla Parishad, Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001 … Respondents

Gayatri Shimpi

This Judgment is corrected/modified as per Speaking to the Minutes of order dated 24^th April, 2026.

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907-WP-14383-2025(speaking).odt

WITH

WRIT PETITION NO. 13962 OF 2025

Tarachand Devram Talpe

Age. 61 years, Occ. Retired as a Primary teacher R/at. Torne Khurd, Post Amboli, Taluka - Khed Rajgurunagar, Pune 410505 … Petitioner

Versus

Zilla Parishad, Pune Through Chief Executive Officer Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001 2. Deputy Chief Accounts and Finance Officer Zilla Parishad, Yashwantrao Chavhan Bhavan

1, Wellesley Road, Camp Pune 411001 … Respondents

WITH

WRIT PETITION NO. 14149 OF 2025

Suryakant Govind Kengale

Age. 61 years, Occ. Retired as Primary Teacher R/at. Post Jambhori, Taluka Ambegaon, District Pune - 410509 … Petitioner

Versus

Zilla Parishad, Pune Through Chief Executive Officer Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001

Deputy Chief Accounts and Finance Officer Zilla Parishad, Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001 … Respondents

Gayatri Shimpi

This Judgment is corrected/modified as per Speaking to the Minutes of order dated 24^th April, 2026.

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907-WP-14383-2025(speaking).odt

WITH

WRIT PETITION NO. 14293 OF 2025

Maruti Vitthal Phalke

Age. 61 years, Occ. Retired as a Primary Teacher R/at. Goregaon, Post Aavhat, Taluka Khed Rajgurunagar, District Pune - 412402 … Petitioner

Versus

Zilla Parishad, Pune Through Chief Executive Officer Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001

Deputy Chief Accounts and Finance Officer Zilla Parishad, Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001 … Respondents

WITH

WRIT PETITION NO. 14124 OF 2025

Dattatray Panghaji Milkhe

Age. 63 years, Occ. Retired as a Primary Teacher R/at. Post. Nayphal, Taluka Rajgurunagar, Khed District Pune 412402 … Petitioner Versus

Zilla Parishad, Pune Through Chief Executive Officer Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001

Deputy Chief Accounts and Finance Officer Zilla Parishad, Yashwantrao Chavhan Bhavan 1, Wellesley Road, Camp Pune 411001 … Respondents

Gayatri Shimpi

This Judgment is corrected/modified as per Speaking to the Minutes of order dated 24^th April, 2026.

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907-WP-14383-2025(speaking).odt

****

Mr. Sandeep Dere a/w Ms. Tanvi D., Ms. Sonali Pawar, Ms. Pooja Mankoji, Advocates for the Petitioners in WP Nos. 14383 of 2025, 13951 of 2025, 13962 of 2025, 14293 of 2025, 14149 of 2025, 14443 of 2025, 14131 of 2025, 14124 of 2025.

Mr. Ashwin R. Kapadnis, Advocate for Respondents in all matters.

CORAM : RAVINDRA V. GHUGE AND ASHWIN D. BHOBE, JJ.

DATE : 10^th DECEMBER, 2025

ORAL JUDGMENT : (PER : RAVINDRA V. GHUGE, J.)

Leave to correct the prayer clause (a), in all the matters.

Correction be carried out forthwith.

Call for papers in Writ Petition No. 14124 of 2025, which is

not listed in this group, though ordered on 5^th December, 2025.

Rule . Rule made returnable forthwith and heard finally, with

the consent of the parties.

A short issue emerges from this Petition, for our consideration. The Petitioners were appointed as Primary Teacher - class-III on the dates mentioned in the pleadings (1986 onwards). They

Gayatri Shimpi

This Judgment is corrected/modified as per Speaking to the Minutes of order dated 24^th April, 2026.

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907-WP-14383-2025(speaking).odt

were promoted to the post of Principal and posted at Valad College, Khed, Pune on 16.10.2009 (the first Petitioner) and on similar dates. As per the verification exercise conducted under the Right of Children to Free and Compulsory Education Act, 2009, 389 posts of Principals were sanctioned as against 424 candidates already working as Principals as in June, 2014. 35 Principals were found to be in excess of the sanctioned posts. The Petitioners were some of them. The first Petitioner claims that his willingness for demotion was forcibly obtained and the same was approved by the Zilla Parishad on 01.08.2014. Similar are the submissions of the other Petitioners.

On 14.08.2014, the first Petitioner was transferred from Valad School to Dagadiwadi School as a Primary Teacher. The other Petitioners were also similarly transferred as Primary teachers at various locations. While working as Primary Teachers, all were inadvertently paid the salary of a Principal. The first Petitioner continued to draw the salary of a Principal until his retirement on 30.04.2024. On 28.05.2024, his service book was verified by the Pension Department and a query was raised that he was inadvertently paid excess salary of Rs.3,21,200/-. Without a hearing, post retirement, an order was passed by the Deputy Chief Auditor and Finance Officer, Zilla Parishad, Pune directing

This Judgment is corrected/modified as per Speaking to the Minutes of order dated 24^th April, 2026.

Gayatri Shimpi

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907-WP-14383-2025(speaking).odt

deduction of Rs.3,21,200/- from the retiral benefits towards the gratuity amount. All the other Petitioners are similarly affected by the impugned action initiated after their retirements.

The learned Advocate for the Zilla Parishad has strenuously opposed these Petitions and submits that the same deserve to be dismissed with heavy costs. The Petitioners ha indulged in unjust enrichment and if they are permitted to retain the amount of Rs.3,21,200/- and similar amounts, it would amount to a grave loss to the State exchequer, which is the tax-payers money.

The learned Advocates for the Petitioners rely upon Sayed Abdul Qadir v/s. State of Bihar¹ and State of Punjab and Ors. v/s. Rafiq Masih (White Washer)² . They also rely upon a judgment dated 23^rd March, 2023 delivered by this Court at the Aurangabad Bench in Writ Petition No.3320 of 2023 (Shaikh Amir Shaikh Kadar V/s. The State of Maharashtra Through its Secretary And Others) and connected group of cases, wherein this Court has dealt with the aspect of extracting an affidavit or an undertaking from an employee post retirement for permitting the employer to deduct excess amounts from the retiral

1 (2009) 3 SCC 475

2 (2015) 4 SCC 334

Gayatri Shimpi

This Judgment is corrected/modified as per Speaking to the Minutes of order dated 24^th April, 2026.

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907-WP-14383-2025(speaking).odt

benefits.

The learned Advocate for the Zilla Parishad submits that the Petitioners have voluntarily executed undertakings after their retirements. However, this Court has concluded that if an undertaking is not taken from the concerned employee at the time of making the excess payment or granting increments, though inadvertently, the act of extracting an affidavit post retirement or at the time of retirement would amount to duress and coercion.

In view of the above, and considering the law laid down by the Hon’ble Supreme Court in Sayed Abdul Qadir v/s. State of Bihar and State of Punjab and Ors. v/s. Rafiq Masih (White Washer) (supra), all these Writ Petitions are partly allowed . The amounts deducted from the gratuity amounts, shall be returned to all these Petitioners without interest, if they are repaid within 45 days, failing which the amounts would gather interest @ 5% p.a. from the dates they were deducted from the gratuity amounts of these Petitioners.

In the event the pension of these Petitioners is wrongly calculated on the quantum of the last drawn salary which was inadvertently of the scale payable to the Principal, or as the case may be,

Gayatri Shimpi

This Judgment is corrected/modified as per Speaking to the Minutes of order dated 24^th April, 2026.

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907-WP-14383-2025(speaking).odt

we grant liberty to the Zilla Parishad to issue individual notices to these Petitioners, call for their explanations within 15 days from the receipt of the notices and thereafter pass appropriate orders for re-fixation of the pension as per the actual salary payable. This order shall apply prospectively and the correction of the pension emoluments would be applicable prospectively from the date of this Judgment. In short, there would be no recovery of the pension amounts already paid, though inadvertently. Needless to state, that the above directions will not be applicable, if the above exercise is already concluded.

Rule is made partly absolute in the above terms.

(ASHWIN D. BHOBE, J.) (RAVINDRA V. GHUGE, J.)

Gayatri Shimpi

This Judgment is corrected/modified as per Speaking to the Minutes of order dated 24^th April, 2026.

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