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Finance Ministry to reclaim funds paid on overturned court orders

Businessmen Team news 23 August 2025 09:23 PM
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Finance Ministry to reclaim funds paid on overturned court orders

Ministry of Finance has issued a new directive, Circular No. 38 of 2025, obligating administrative bodies to reclaim funds previously disbursed under judicial rulings that were later overturned.

Tax expert Dr. John Saad confirmed the new directive, stating that it aligns with a ruling by the Supreme Administrative Court on March 4, 2025, which grants administrative bodies the right to reclaim financial differences paid out based on a Court of Administrative Justice ruling that was subsequently annulled by the Supreme Administrative Court.

According to the legal reasoning, once the Supreme Administrative Court nullifies a lower court's decision to pay financial differences to an employee, the administrative body has the right to reclaim those funds. The ruling asserts that the money paid to the employee is no longer rightfully theirs and must be returned to the administrative body.

Dr. Saad added that administrative bodies are bound by the legal force of the final judgment, which supersedes public order considerations. He stressed that these bodies must act to enforce the ruling and not fail to apply any of its effects. He explained that failing to reclaim these unentitled funds effectively obstructs the legal force of the final judgment and undermines its purpose.