LI Network
Published on: December 19, 2023 at 15:08 IST
The Madhya Pradesh High Court has granted permission to the State Bank of India (SBI), the disbursing authority, to reclaim an overpaid pension from a retired teacher. The decision is based on the voluntary commitment made by the teacher herself and her inherent obligation not to breach trust.
Justice Gurpal Singh Ahluwalia, presiding over a single-judge bench, emphasized that the retired teacher, also a widow, had received an advanced sum of commuted pension and was obligated to reimburse the excess amount to the disbursing authority.
The court observed, “In the present case, the petitioner had already received the commuted portion of her pension and, although she was under an obligation to refund the same in easy installments of Rs. 4946/- per month for a period of 15 years… This conduct of the petitioner also amounts to a breach of trust because it was expected from the petitioner to bring it to the notice of the bank that excess payment is being paid to her for which she is not eligible.”
Referring to legal precedent in High Court of Punjab & Haryana & Ors. v. Jagdev Singh (2016), the judge asserted that the retired employee was bound by her voluntary undertaking to refund any excess payment related to retirement benefits.
While the petitioner’s counsel relied on State of Punjab & Others v. Rafiq Masih (White Washer) (2015) to argue that excess payments after retirement are not recoverable, the court distinguished this case, highlighting that the excess payment in question pertained to pension, not salary during service.
The court also noted that the employer, Kendriya Vidhyalaya Sangathan, had issued revised pension payment orders to both the bank and the employee in 2014, signaling an error by the disbursing authority in making excess payments.
Additionally, the court drew a parallel with Style (Dress Land) v. UT, Chandigarh (1999), asserting that the employee is required to pay interest at 6% per annum on the outstanding excess payment from May 22, 2020, as per an interim order obtained by the employee.
The judgment clarified that for further recovery of the outstanding excess amount, no interest would be charged.
The writ petition was filed by the retired pensioner against the bank’s order demanding a refund of Rs. 3,11,894/- in excess payment. The bank had requested the amount in a lump sum or in monthly installments. The court affirmed that the employee’s knowledge of the revised pension payment order, coupled with her failure to inform the bank about the commuted pension, amounted to a breach of trust.
Case Title: Anugrah Kiran Das v. SBI & Ors.