BOMBAY HIGH COURT DECIDES CASE OF OVER RECOVERY DUE TO ERROR OF BANK AUTHORITY IN FAVOUR OF PENSIONERS – GOOD JUDGMENET.
Sri Naini Gopal vs SBI CPPC & others in Bombay High Court (August 2020)
CASE HISTORY BRIEF
In the month of August 2019, the basic pension of the petitioner was reduced from Rs 25634 to Rs 25250 (from 01-01-2016) and CPPC SBI directed recovery of Rs 369035 from the pension payable in instalments of Rs 11400 i.e 1/3 of monthly pension from 01-08-2019.
An amount of Rs 872 was erroneously paid in excess from October 2007 due to technical error.
The stand taken by employer, the competent authority has stated that fixation of pension was correct and proper and supported the claim of the pensioner and intimated that pension at the rate of Rs 26000 has been correctly notified.
In the result, this petition is allowed and the following order is passed : The action of the Bank in deducting an amount of Rs.11,040/- per month with effect from October, 2019 is hereby quashed and set aside.
We direct the Bank to immediately credit an amount of Rs.3,27,045/-, recovered from the pension account of the petitioner, along with interest at the rate of 18% per annum from the date of recovery of each of the installments, till the date of credit of this amount in the pension account of the petitioner. Bank is restrained from recovering any amount from the pension payable to the petitioner on the basis of the action, which we have quashed and set aside. We direct the Bank to pay the compensation of Rs.50,000/- to the petitioner and credit the said amount in the pension account of the petitioner within a period of eight days from today, failing which the additional costs of Rs.1,000/- for each day’s delay will have to be paid.
CLICK FOR JUDGMENT: 15.09.2020 Bombay High Court Judgement on Recovery of Pension