The Hon’able Apex Court on their decisions dated 18.12.14 in the case of State of Punjab vrs. Rafiq Masih ( Civil Appeal No. 11527 of 2014) have decided that in the following cases wherein recoveries from the employees , would be impermissible in law:

1.      Recovery from employees belonging to Class-III & Class-IV service ( or Group-C and Gr-D service)

2.      Recovery from retired employees or employees who are due to retire within one year of the order of recovery.

3.      Recovery from employees, when excess payment has been made for a period in excess of five years, before the order is issued.

4.      Recovery in cases where an employee has wrongfully been required to discharge duties of a higher post and has been paid accordingly, even though he should have rightfully been required to work against an inferior post.

5.      In any other case, where the Court arrives at the conclusion, that recovery if made from the employees, would be iniquitous or harsh or arbitrary to such an extent as would far outweigh the equitable balance of the employer’s right to recover.