Allowed¶59

Shambhu Datt Sati v. State of Uttarakhand

Uttarakhand HC26 Nov 2025WPSS/893/2023

Case brief

AI extract

What is this about?

Recovery of excess payment; ACP (Assured Career Progression) benefits; time scale of pay; daily-wage service prior to regularization; supernumerary post; scalar and chowkidar; Group D employees; Uttarakhand Forest Development Corporation; erstwhile U.P. Forest Corporation; audit objection; undertaking to refund; judicial propriety; coordinate Bench precedent W.P. No. 446 of 2020 (SS); Government Order dated 27.05.2019; Surendra Mohnot (2014) 14 SCC 77; Jagdev Singh (2016) 14 SCC 267; Special Appeal No. 790 of 2018; refixation of pay; retirement/superannuation.

What did the court decide?

Impugned recovery order set aside; competent authority not precluded from refixing pay of the petitioners at appropriate level as per applicable rules/policy. ¶59

Shambhu Datt Sati Vs State of Uttarakhand — Uttarakhand HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Impugned recovery order set aside; competent authority not precluded from refixing pay of the petitioners at appropriate level as per applicable rules/policy.

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Issue for consideration

Whether the competent authority was justified in ordering recovery of the excess amounts (time scale of pay and ACP benefits) paid to the petitioners by taking into account service rendered as daily wager prior to regularization. +1 more

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Court's answer

The writ petitions are allowed and the impugned order providing for recovery of the excess amount from the petitioners is set aside.

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Ratio / Principle

Since the coordinate Bench dealt with the identical issue in Writ Petition No. 446 of 2020 (SS) and quashed the audit report as well as the subsequent Government Order dated 27.05.2019, judicial propriety demanded that this writ petition also be decided in terms of that judgment.

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Key takeaways

The setting aside of the recovery order will not preclude the competent authority from refixing the pay of the petitioners at the appropriate level as per applicable rules/policy.ratio¶59

Detailed headnote1 paragraphs

Common judgment of the High Court of Uttarakhand at Nainital (Manoj Kumar Tiwari, J., 26.11.2025) disposing of Writ Petition No. 421 of 2025 (SS) (Ram Ujagir v. State of Uttarakhand and others) together with numerous connected writ petitions. Petitioners, initially engaged as Scalars and Chowkidars by the erstwhile U.P. Forest Corporation on daily wages and later regularized against Group D posts on supernumerary posts (regularization order dated 23.12.2002 in the lead case), had been granted time scale of pay and 2nd/3rd ACP benefits (w.e.f. 19.09.2007 and 19.09.2017) by counting pre-regularization daily-wage service; the Managing Director, Uttarakhand Forest Development Corporation, acting on an audit objection, passed recovery orders for the excess payments. State counsel invoked Surendra Mohnot (2014) 14 SCC 77, Jagdev Singh (2016) 14 SCC 267 (recovery justified where refund undertaking given) and a Division Bench judgment dated 21.08.2024 in Special Appeal No. 790 of 2018; the petitioner relied on an Allahabad High Court judgment in W.P. (S/S) No. 4209 of 1988. Holding that judicial propriety required deciding the petitions in terms of the coordinate Bench judgment dated 12.02.2025 in W.P. No. 446 of 2020 (SS), which had quashed the audit report and the Government Order dated 27.05.2019 on the identical issue, the Court allowed the writ petitions and set aside the impugned recovery order, clarifying that the competent authority may still refix pay at the appropriate level as per applicable rules/policy.

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2025:UHC:10527

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HIGH COURT OF UTTARAKHAND AT NAINITAL HON’BLE SRI JUSTICE MANOJ KUMAR TIWARI

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Writ Petition No. 421 of 2025 (SS)

Ram Ujagir

--Petitioner

Versus

State of Uttarakhand and others -Respondents With

¶8

Writ Petition No. 891/2023(SS) Writ Petition No. 893/2023(SS) Writ Petition No. 897/2023(SS) Writ Petition No. 928/2023(SS) Writ Petition No. 1273/2023(SS) Writ Petition No. 1370/2023(SS) Writ Petition No. 424/2025(SS) Writ Petition No. 430/2025(SS) Writ Petition No. 431/2025(SS) Writ Petition No. 454/2025(SS) Writ Petition No. 469/2025(SS) Writ Petition No. 470/2025(SS) Writ Petition No. 498/2025(SS) Writ Petition No. 506/2025(SS) Writ Petition No. 516/2025(SS) Writ Petition No. 517/2025(SS) Writ Petition No. 551/2025(SS) Writ Petition No. 553/2025(SS) Writ Petition No. 554/2025(SS) Writ Petition No. 559/2025(SS) Writ Petition No. 560/2025(SS) Writ Petition No. 561/2025(SS) Writ Petition No. 613/2025(SS) Writ Petition No. 619/2025(SS) Writ Petition No. 629/2025(SS) Writ Petition No. 653/2025(SS) Writ Petition No. 708/2025(SS) Writ Petition No. 718/2025(SS) Writ Petition No. 727/2025(SS) Writ Petition No. 730/2025(SS) Writ Petition No. 780/2025(SS)

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2025:UHC:10527

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Writ Petition No. 793/2025(SS) Writ Petition No. 797/2025(SS) Writ Petition No. 798/2025(SS) Writ Petition No. 904/2025(SS) Writ Petition No. 906/2025(SS) Writ Petition No. 925/2025(SS) Writ Petition No. 964/2025(SS) Writ Petition No. 1018/2025(SS) Writ Petition No. 1019/2025(SS) Writ Petition No. 1230/2025(SS) Writ Petition No. 1233/2025(SS) Writ Petition No. 1241/2025(SS) Writ Petition No. 1305/2025(SS) Writ Petition No. 1413/2025(SS) Writ Petition No. 1414/2025(SS)

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Advocates: Mr. Sanjay Bhatt, Advocate for the petitioner.

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Mr. Narayan Dutt, Standing Counsel for the State.

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Mr. Rajesh Sharma, Advocate for respondent No. 3 to 5

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Mr. M.C. Kandpal, Senior Advocate assisted by Mr. Devesh Kandpal, Advocate for petitioner in connected writ petitions Mr. Vinod Tiwari, Advocate for petitioners in connected writ petitions.

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JUDGMENT

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Petitioners were initially appointed as Scalar and Chowkidar in erstwhile U.P. Forest Corporation on daily wages in different years. They were subsequently regularized against Group D post on different dates by creating supernumerary post. Certain monetary benefits including time scale of pay was granted to petitioners by taking into account services rendered by them as daily wager. Petitioners are aggrieved by recovery orders passed by Managing Director, Uttarakhand Forest Development Corporation.

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Since common questions of law and fact are involved in these petitions, therefore they are heard together and are being decided by a common judgment.

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2025:UHC:10527

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However, for the sake of brevity, facts of Writ Petition No. 421 of 2025 (SS) alone are being discussed and considered.

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Petitioner in Writ Petition No. 421 of 2025 (SS) was appointed on daily wages as Scalar on 08.12.1986 and he retired from service on 31.01.2020 upon completing age of superannuation.

¶23

According to petitioner, he was granted benefit of 2^nd ACP w.e.f. 19.09.2007, while 3^rd ACP was granted to him w.e.f. 19.09.2017 however, the said benefit has been ordered to be recovered from petitioner without any reason or justification.

¶24

Learned counsel for petitioner contends that benefit of 2^nd and 3^rd ACP was given to him as per decision taken by the management of the corporation. He refers to a judgment rendered by Hon’ble Allahabad High Court in Writ Petition (S/S) No. 4209 of 1988 (U.P. Van Nigam Karmchari Kalyan Sangh Vs. U.P. Forest Corporation) for contending that the benefits given to petitioner were in terms of the said judgment.

¶25

Learned counsel for the petitioner relies upon a judgment dated 12.02.2025, rendered by coordinate Bench of this Court in Writ Petition No. 446 of 2020 (SS) and submits that since identical issue was decided by coordinate Bench, therefore, this writ petition also deserves to be decided in terms of the said judgment.

¶26

Per contra, Mr. Narayan Dutt, learned State Counsel submits that services of the petitioner were regularized on the post of scalar vide order dated 23.12.2002 after creating a supernumerary post; he submits that service

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2025:UHC:10527

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rendered by petitioner as daily wager were wrongly taken into account for grant of time scale of pay and benefit of A.C.P., therefore, the Competent Authority was well within his right to order of recovery of excess amount wrongly paid to petitioner.

¶30

In support of this contention, Mr. Narayan Dutt, learned State Counsel relies upon judgment rendered by Hon’ble Supreme Court in the case of State of Rajasthan and another Vs. Surendra Mohnot and others, reported in (2014) 14 SCC 77. Para 15 and 16 of the said judgment are extracted below:

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“15. At the very outset, we may clearly state that the decision in Chandra Shekhar [ Chandra Shekhar v. State of Rajasthan , Special Appeal Writ No. 377 of 1996, order dated 6-1-1998 (Raj)] pertains to grant of increments for the period prior to regularisation. It has nothing to do with the grant of selection grade. The circulars which we have reproduced hereinbefore relate to grant of selection grade. In this backdrop, it is to be seen what has been laid down by this Court in Jagdish Narain Chaturvedi [ State of Rajasthan v. Jagdish Narain Chaturvedi , (2009) 12 SCC 49 : (2010) 1 SCC (L&S) 105] . In the said case, a two-Judge Bench was dealing with the issue whether ad hoc appointments or appointments on daily wages or work-charge basis could be treated as appointments made to the cadre/service in accordance with the provisions contained in the recruitment rules as contemplated by the Government Orders dated 25-1-1992 and 17-2-1998. It was contended on behalf of the State that stagnation benefits were given from the date of regularisation and for the said purpose reliance was placed on the authority in State of Haryana v. Haryana Veterinary & AHTS Assn. [(2000) 8 SCC 4 : 2000 SCC (L&S) 1043] Reference was made to the language used in the circulars which uses the words “appointments relatable to the existing cadre/service”. The Court referred to the provisions of the Rajasthan Absorption of Surplus Personnel Rules, 1969 and various paragraphs from the Haryana case [(2000) 8 SCC 4 : 2000 SCC (L&S) 1043] and the decision in Ram Ganesh Tripathi v. State of U.P. [(1997) 1 SCC 621 : 1997 SCC (L&S) 186] and came to hold as follows: ( Jagdish Narain Chaturvedi case [ State of Rajasthan v. Jagdish Narain Chaturvedi , (2009) 12 SCC 49 : (2010) 1 SCC (L&S) 105] , SCC pp. 57-58, para 18)

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“ 18 . In order to become ‘a member of service’ a candidate must satisfy four conditions, namely, ( i ) the appointment must be in a substantive capacity;

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( ii ) to a post in the service i.e. in a substantive vacancy;

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( iii ) made according to rules;

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( iv ) within the quota prescribed for the source.

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Ad hoc appointment is always to a post but not to the cadre/service and is also not made in accordance with the provisions contained in the Recruitment Rules for regular appointment. Although the adjective ‘regular’ was not used before the words ‘appointment in the existing cadre/service’ in Para 3 of the G.O. dated 25-1-1992 which provided for selection pay scale the appointment mentioned there is obviously a need for regular appointment made in accordance with the Recruitment Rules. What was implicit in the said paragraph of the G.O. when it refers to appointment to a cadre/service has

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2025:UHC:10527

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been made explicit by the clarification dated 3-4-1993 given in respect of Point 2. The same has been incorporated in Para 3 of the G.O. dated 17-2- 1998.”

¶40

Proceeding further, the Court ultimately held thus: ( Jagdish Narain Chaturvedi case [ State of Rajasthan v. Jagdish Narain Chaturvedi , (2009) 12 SCC 49 : (2010) 1 SCC (L&S) 105] , SCC p. 61, para 22)

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“ 22 . Apart from Haryana Veterinary case [(2000) 8 SCC 4 : 2000 SCC (L&S) 1043] the position in law as stated in State of Punjab v. Ishar Singh [(2002) 10 SCC 674] and State of Punjab v. Gurdeep Kumar Uppal [(2003) 11 SCC 732 : 2004 SCC (L&S) 444] clearly lays down that while reckoning the required length of service the period of ad hoc service has to be excluded.”

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16. From the aforesaid enunciation of law it is quite vivid that the period for grant of selection grade has to be reckoned from the date of regularisation in service and not prior to that. Thus, the aforesaid judgment of this Court pertains to the same circular and is a binding precedent from all spectrums.”

¶43

He also relies upon a judgment dated 21.08.2024, rendered by Division Bench of this Court in Special Appeal No. 790 of 2018. Para 2 of the said judgment is extracted below:

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“2) After going through the impugned judgment, the facts which are not in dispute between the parties are that the service of the petitioner / respondent No. 1 was regularized w.e.f. 07.02.2005, and he can only get the benefit of this regular service after 07.02.2005 for the purpose of seniority, ACP and any increment benefits. However, the service rendered by the petitioner / respondent No. 1 w.e.f. 18.07.1988 till 07.02.2005 can only be counted for the purpose of pension, and this issue has already been decided by this Court in Writ Petition (S/S) No. 441 of 2022, Suresh Chandra Kandwal Vs State of Uttarakhand and others, decided on 20.08.2024.”

¶45

Learned State Counsel further submits that reliance placed by petitioner upon judgment rendered by Hon’ble Allahabad High Court in Writ Petition (S/S) No. 4209 of 1988, is misplaced as that judgment is silent regarding regularization and the only direction issued was to grant minimum of pay scale and other monetary benefits to persons engaged on daily wages.

¶46

He further submits that petitioners had given an undertaking that they will refund the amount paid to them if it is found that they are not entitled to the monetary benefits, which were paid to them. Thus he

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¶48

2025:UHC:10527 submits that in view of the judgment rendered by Hon’ble Supreme Court in the case of High Court of Punjab and Haryana and others Vs. Jagdev Singh, reported in (2016) 14 SCC 267, order for recovery, is justified . Para 10, 11 and 12 are extracted below:

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“10. In State of Punjab v. Rafiq Masih [ State of Punjab v. Rafiq Masih , (2015) 4 SCC 334 : (2015) 2 SCC (Civ) 608 : (2015) 2 SCC (L&S) 33] this Court held that while it is not possible to postulate all situations of hardship where payments have mistakenly been made by an employer, in the following situations, a recovery by the employer would be impermissible in law : (SCC pp. 334-35)

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( i ) Recovery from employees belonging to Class III and Class IV service (or Group C and Group D service). ( ii ) Recovery from retired employees, or employees who are due to retire within one year, of the order of recovery .

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( iii ) Recovery from employees, when the excess payment has been made for a period in excess of five years, before the order of recovery is issued. ( iv ) Recovery in cases where an employee has wrongfully been required to discharge duties of a higher post, and has been paid accordingly, even though he should have rightfully been required to work against an inferior post. ( v ) In any other case, where the Court arrives at the conclusion, that recovery if made from the employee, would be iniquitous or harsh or arbitrary to such an extent, as would far outweigh the equitable balance of the employer's right to recover.

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(emphasis supplied)

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11. The principle enunciated in Proposition ( ii ) above cannot apply to a situation such as in the present case. In the present case, the officer to whom the payment was made in the first instance was clearly placed on notice that any payment found to have been made in excess would be required to be refunded. The officer furnished an undertaking while opting for the revised pay scale. He is bound by the undertaking. 12. For these reasons, the judgment of the High Court which set aside the action for recovery is unsustainable. However, we are of the view that the recovery should be made in reasonable instalments. We direct that the recovery be made in equated monthly instalments spread over a period of two years.”

¶54

Learned State Counsel thus submits that competent authority is justified in ordering for recovery of the excess amount paid to petitioner. He submits that the issue of excess payment was flagged by the audit team and in view of the objection raised by audit team, the competent authority ordered for recovery of the excess amount from the petitioners.

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Be that as it may, since coordinate Bench has dealt

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2025:UHC:10527

¶58

with identical issue in Writ Petition No. 446 of 2020 (SS) and has quashed the audit report as well as subsequent Government Order dated 27.05.2019, therefore, judicial propriety demands that this writ petition be also decided in terms of the said judgment.

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Accordingly, writ petitions are allowed. Impugned order providing for recovery of the excess amount from the petitioners is set aside. It is made clear that this order will not preclude the competent authority from refixing pay of the petitioners at appropriate level, as per applicable rules/policy.

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_______________________________ MANOJ KUMAR TIWARI, J.

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Dt: 26.11.2025 Mahinder

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MAHINDER SINGH Digitally signed by MAHINDER SINGH DN: c=IN, o=HIGH COURT OF UTTARAKHAND, ou=HIGH COURT OF UTTARAKHAND, 2.5.4.20=da6212e6e78d94ed3134842bc6a8d6ca168979ca7b8c2f031a92d1a18b08923c, postalCode=263001, st=UTTARAKHAND, serialNumber=AB77B7C5B240908B392BE84F5CDD4C2AF35DC4626D305B1BC9EA4BABA43D2B8F, cn=MAHINDER SINGH Date: 2025.11.26 19:31:03 +05'30'

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Shambhu Datt Sati v. State of Uttarakhand

Case brief

What is this about?

What did the court decide?

Shambhu Datt Sati v. State of Uttarakhand

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

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