Allahabad High Court Halts Excessive Pension Recovery for Retired IOB Manager

The Allahabad High Court has temporarily stopped the recovery of the commutation amount from the pension of a retired senior manager of the Indian Overseas Bank, Sudhir Kumar Agrawal. Advocate A K Gupta argued that the bank's recovery exceeded the stipulated amount. The court has ordered the bank to respond within four weeks.

In a significant move, the Allahabad High Court has stayed the recovery of the commutation amount from the pension of a retired senior manager of the Indian Overseas Bank. The court has directed the bank to file its response within four weeks.

The order, given by Justice Ajit Kumar, was in response to a writ petition submitted by retired bank official Sudhir Kumar Agrawal. Commutation of pension refers to a lump sum payment taken in lieu of a part of the pension, which the pensioner voluntarily surrenders based on a predetermined period.

Senior advocate A K Gupta, representing the petitioner, argued that the bank's recovery method, which extended beyond the agreed 10 years and eight months, led to an excessive deduction of Rs 1,95,810. This contradicts the employee's arrangement and is financially damaging. The court's directive seeks to re-evaluate this recovery process.

(With inputs from agencies.)