Employees Must Return Excess Salary if Overpayment is Knowingly Accepted: Punjab & Haryana High Court

The Punjab & Haryana High Court ruled that employees who knowingly retain salary or financial benefits beyond their entitlement must return the excess amount.

Justice Harsimran Singh Sethi highlighted that the Supreme Court’s precedent in State of Punjab v. Rafiq Masih (2015) does not apply where there is conscious acceptance of overpayment.

The case involved Chanchal Mehbub Singh, who received ₹1.38 lakh extra between October 2005 and January 2007 while also drawing a pension.

The Court held recovery was justified, stating that misrepresentation, even by silence, removes protection against recovery.