Saurabh Malik
Tribune News Service

Chandigarh, December 3
The Punjab and Haryana High Court has ruled that excess travelling allowance (TA) paid to employees is not recoverable after the pay scales are revised with retrospective effect.

Taking up a petition by Harbhajan Singh and others against the chairman of Bhakra Beas Management Board and another respondent, Justice MM Kumar asserted: The short issue raised in the instant appeal filed under Section 100 of the Code of Civil Procedure, 1908, is whether the excess amount of travelling allowance was recoverable after the pay scales were revised with retrospective effect.

The board after the revision of pay scales paid the arrears of fixed travelling allowance from a retrospective effect on the basis of the salary drawn by the plaintiffs. Thereafter, the board ordered for the recovery of the amount on the plea that they were not entitled to allowance after the revision of pay scales.

Thus, the complainants filed a civil suit which was decreed vide order dated January 3, 1984, and the board was restrained from deducting any amount from salaries. Against the order, the board preferred an appeal. Ropar additional district judge then set aside the court’s order. Harbhajan and others then filed a petition.

“I am of the view the question of law has to be answered in favour of the plaintiff-appellants and against the defendant-respondents.”

In this case, payment of fixed travelling allowance was not on account of fraud. The amount was paid in accordance with the revised scale and arrears were paid as calculated with retrospective effect. There was no question of recovery because arrears were mistakenly paid after calculating them from a retrospective effect.

While answering question of law in favour of the plaintiff- appellants, it is held that the judgment of the lower appellate Court is set aside and that of the trial Court is restored. Accordingly, the travelling allowance already paid to the plaintiff-appellants shall not be recovered by deducting the same from their salary,” said Kumar.

Source Link: http://www.tribuneindia.com/2009/20091204/punjab.htm