HC Rules Against Abrupt Pension Recovery Without Consent
Punjab and Haryana High Court has unequivocally stated that any recovery of excess amounts from a pension holder’s monthly payment cannot be made without their express written consent or without issuing a prior notice.
The court sternly observed that such abrupt, uncommunicated deductions “undermine the economic dignity and emotional stability” of post-retirement life.
The ruling was delivered by Justice Harpreet Singh Brar during the hearing of a petition. That petition was filed by Sajjan Kumar Goyal, a former executive officer of the Kaithal Municipal Council.
Sajjan’s bank account was unilaterally debited in March 2021 by authorities claiming a “clerical error” had led to him receiving double dearness allowance for nearly two years after his retirement in February 2016.
The recovery of over ₹6 lakh was made without any prior notification or consent.
Pension: A Right, Not a Bounty
The High Court firmly reiterated the established legal principle that pension is not a “bounty” or a gratuitous payment but a hard-earned statutory right of an employee.
Furthermore, it is protected as ‘property’ under Article 300-A of the Constitution of India.
Justice Brar observed that abrupt recovery disturbs the financial equilibrium of pensioners, even if administratively justified.
Pensioners often depend entirely on their monthly income for essential household and medical expenses.
The court noted: “The predetermined plans on the basis of legitimate expectation of a certain amount of pension suddenly become unfeasible.”
RBI Directed to Issue Strict Safeguards
To prevent such administrative overreach nationwide, the High Court issued a crucial direction to the Reserve Bank of India (RBI).
The RBI has been instructed to issue clear instructions to all agency banks.
These instructions must clarify that banks cannot recover excess pension funds without the pensioner’s knowledge and express consent, or without first issuing a show-cause notice.
The court highlighted that the absence of prior communication generates “shock, anxiety and a feeling of betrayal.”
This feeling is experienced by personnel after long years of service.
Moreover, such procedural insensitivity erodes public confidence in the fairness and credibility of the government departments.
This action also weakens the morale of both serving and retired personnel.
Legal Mandate for Express Consent
Dealing with the core legal question, the court confirmed the rules governing civil services in Punjab and Haryana.
These rules explicitly stipulate that recovery from a pensioner’s benefits can only be made upon the pensioner’s request or with their express written consent.
The bench found that the recovery made from Sajjan’s account was unilateral and violated the principles of natural justice and relevant service rules.
Therefore, the bench declared the action illegal.
Consequently, the High Court directed the Haryana government to refund the entire recovered amount to the petitioner.
This refund must include an annual interest rate of 12%.
The judgment serves as a robust check on arbitrary administrative action, ensuring dignity and financial security for retirees.
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