The Delhi High Court has directed the State Bank of India (SBI) to refund the amount deducted from a widow's family pension, along with 6% annual interest, after observing that the alleged excess payment was solely due to errors in pension processing and not because of any misrepresentation or concealment on her part.
Background of the Case
The petitioner, Indra, is the widow of a government employee who died in service in 2003. Following his death, a family pension was sanctioned in her favor through a pension payment order issued by the Delhi government and disbursed through an SBI branch. The pension was being paid regularly until she noticed a sharp reduction in her monthly pension amount.
Upon inquiry, she was informed that an excess pension amounting to over Rs 2.5 lakh had allegedly been paid due to a wrong 'enhance date' in the pension records. Subsequently, SBI recalculated the alleged excess amount at Rs 3.6 lakh and began monthly deductions from her pension without prior notice.
Petitioner's Argument
Distraught by the unilateral action, Indra challenged the recovery in the Delhi High Court. She argued that she had neither furnished false information nor played any role in the alleged overpayment. The deductions were initiated unilaterally without any prior notice or opportunity to be heard. She emphasized that the error was entirely on the part of the bank and the pension processing system.
Court's Observations
Justice Sanjeev Narula, who heard the plea, agreed with the petitioner and made several critical observations against SBI. The court noted that there was nothing on record to suggest that the petitioner knew, or ought reasonably to have known, that she was receiving amounts beyond her lawful entitlement. The judge further observed that the petitioner had 'no role in configuring the software or dates' and could not reasonably be expected to detect errors in the bank's internal calculations.
The court faulted SBI for initiating the recovery without furnishing the details of the alleged overpayment or the proposed mode of recovery to the petitioner. It emphasized that the entire excess payment occurred due to errors in processing and not due to any fault of the pensioner.
Court's Order
Justice Narula allowed the plea and directed SBI to refund the amount already deducted from her family pension along with 6% annual interest from the date of each deduction until the date of repayment. The court also restrained the bank from making any further recoveries from her pension. The order provides significant relief to the widow, who had been struggling with reduced pension amounts.
This judgment reinforces the principle that pensioners cannot be held responsible for administrative errors committed by banks or government departments. It also underscores the need for banks to follow due process before initiating recoveries from pensioners, especially when the pensioner is not at fault.
