Supreme Court Quashes Bihar Government’s Retrospective Pay Cut and Recovery

The Supreme Court of India has quashed a 2009 order from the Bihar government to retroactively reduce the pay scale and recover excess amounts from a retired employee. The court ruled that such actions are punitive and cannot be applied after a long delay, causing civil and 'evil consequences'.

The Supreme Court of India has rendered a significant verdict, nullifying a 2009 order by the Bihar government that aimed to retrospectively reduce the pay scale of a retired employee and recover excess payments.

A bench of Justices Sandeep Mehta and R Mahadevan ruled that such actions are equivalent to punitive measures due to their severe civil and 'evil consequences'. The court highlighted that the contested decision cannot be applied retroactively, especially after a substantial time gap.

The apex court's judgment overturned both the Bihar government's resolution and the subsequent Patna High Court order that had upheld it. The retired employee had initially been promoted multiple times over his tenure, ending his service as a senior selection grade marketing officer-cum-assistant district supply officer. Upon retirement in 2001, he was retrospectively informed in 2009 about an error in his pay fixation, demanding Rs 63,765 in recovery.