Topic

Illegal recovery after retirement

1 articleLatest July 2026
Recovery from Retired Employees After One Year Violates Natural Justice & State Circulars : MP HC Quashes Rs. 80,463 Deduction
Case Law Analysis
|Madhya Pradesh High Court

Recovery from Retired Employees After One Year Violates Natural Justice & State Circulars : MP HC Quashes Rs. 80,463 Deduction

Madhya Pradesh High Court rules that recovery from retired employees beyond one year of retirement is illegal, relying on Supreme Court precedent in State of Punjab v. Rafiq Masih and state circulars. The court quashed an Rs. 80,463 deduction from a retired employee's leave encashment, reinforcing that post-retirement recoveries without prior notice violate principles of natural justice and state policy.