Course Code: BSL 605 | 5 min Presentation |

Pension a fundamental right, cannot be

deducted without authority of law: HC

News Source: Hindustan Times | Date: 21st August 2020

 Course Code: BSL 605 | 5 min Presentation |

Introduction to the Case

• In this case an amount of INR 782 was mistakenly being paid in
excess to the plaintiff Mr. Naini Gopal by Bank since October
2007, due to a technical error. 
• Mr. Naini Gopal (85-year-old senior citizen), a Nagpur resident who
retired as an Assistant Foreman in October 1994.
• Employer - Ordnance Factory Board

News Source: Hindustan Times | Date: 21st August 2020

 Course Code: BSL 605 | 5 min Presentation |

Parties
• Plaintiff - Naini Gopal
• Defendant - State Bank of India
• Any other Party - Ordnance Factory Board

News Source: Hindustan Times | Date: 21st August 2020

 Course Code: BSL 605 | 5 min Presentation |

Issue (Situation/details of Case)

• The petitioner complaining of action by the Centralised Pension

Processing Centre.
• State Bank of India in recovering an amount of Rs 369,035 from his
pension by deducting it in monthly installments of Rs 11,400.
• SBI argued that it was because the petitioner’s pension was fixed,
treating him as a personnel below officer rank, instead of a civil
pensioner, and claimed that the Reserve Bank of India had
authorised it to recover the excess pension paid mistakenly.

News Source: Hindustan Times | Date: 21st August 2020

 Course Code: BSL 605 | 5 min Presentation |

Rule of Law
• “Pension payable to employees upon superannuation is ‘property’
under Article 300-A of the Constitution of India and it constitutes a
fundamental right to livelihood under Article 21 of the Constitution
of India. The deprivation, even a part of this amount, cannot be
accepted, except in accordance with and authority of law”.
• “We, therefore, hold that the action of the bank to reduce the
pension of the petitioner is unauthorised and illegal”.
• HC has also imposed a cost of Rs 50,000 on the bank in 8 days,
failing have to pay a fine of Rs 1,000 for every day of delay.

News Source: Hindustan Times | Date: 21st August 2020

 Course Code: BSL 605 | 5 min Presentation |

Analysis
• This was a “insensitive” approach of the bank towards a senior
citizen.
• Bank is a trustee of its account holders like the petitioner, and has no
authority in the eyes of law to dispute the amount of pension
payable to an employee.
• The grounds on which SBI justified their action of deduction has no
strong basis.
• Ordnance Factory pointed that there was no error in fixing the 85
year old’s pension. 

News Source: Hindustan Times | Date: 21st August 2020

 Course Code: BSL 605 | 5 min Presentation |

Conclusion
• In given case, The plaintiff is a aged person with a specially abled
child whose medical expenses are on him and hence emotional part
is on the side of the petitioner.
• HC connected the case to the violation of Fundamental Rights.
• Compensation and Costs

News Source: Hindustan Times | Date: 21st August 2020