Employment & Service

Overpaid by previous employer

I was previously working with another private limited company. I went on 2 months of sick leave for an operation. I did not join the company back. I have not received the exit letter from them. By mistake the company deposited 2 months extra salary in my account. I did not realise it as I was hospitalized during that period. My wife was operating the account and she used the money for my home loan repayment. The company is asking me to refund the extra money, which they paid to me out by error. Can you please advise what should I do? Whether they can do anything legally if I do not refund the extra pay to me?

Expert Advice


You have to pay back the money to your ex employers. They can file civil suit against you for recovery of money. It was a mistake on part of the company and you cannot take advantage of that. So please refund the money to avoid any legal action against you.

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The company may issue a legal notice to you demanding to refund the excess amount paid to you. If you do not adhere to the demand within notice period, then company may file a money recovery suit against you under section 37 CPC.

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