High Court of Himachal Pradesh, in State of H.P. vs. Nitya Nand & Ors. (LPA No. 457 of 2025), dismissed the employer’s claim for recovery of overpaid salaries made more than 5 years ago, ruling that such recovery is impermissible where there is no misrepresentation by the employees. The Court observed that the excess payment arose from an erroneous pay fixation in 1993, but no prior notice was issued before re-fixation or initiation of recovery proceedings. Noting that the recovery was sought after over 5 years of continued payment and without adherence to the principles of natural justice, the bench found no illegality in the single judge’s decision. The appeals were therefore dismissed, reinforcing that employees cannot be penalised for administrative errors committed by the employer.
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