Pension is a constitutional right that cannot be reduced without prior consultation with the Board, as mandated by the relevant regulations.

JUDGMENT :

Joymalya Bagchi, J.

1. Delay condoned. Leave granted.

2. Appeal is directed against judgment dated 22.04.2024 passed by the Patna High Court to the extent the Court upheld reduction of one­third of the pension payable to the appellant under the Central Bank of India (Employees’) Pension Regulations, 1995¹[Hereinafter, Pension Regulations.].

3. Appellant while working as Chief Manager, a scale IV officer in the respondent No.1bank was served with a Memorandum of Charge alleging that, during his tenure as Branch Manager, Dhanbad Branch he sanctioned loans in respect of 12 accounts, inter alia, without proper appraisal of income, non­ verification of KYC compliance, without post­sanction inspection etc. exposing the bank to potential financial loss of huge amount.

4. A.K. Roy, Assistant General Manager (a scale V officer) was appointed as the Inquiry Authority (IA). During the inquiry, appellant attained superannuation on 30.11.2014 but the enquiry was continued under Regulation 20(3)(iii) of Central Bank of India (Officers’) Service Regulations, 1979²[Hereinafter, Service Regulations]. He submitted inquiry report holding the appellant failed to discharge his duties with utmost integrity and honesty which was unbecoming of a Bank officer and exposed the Bank to huge financial loss for his pecuniary gain. Inquiry report was served on the appellant, and he replied to it. After considering his reply disciplinary authority i.e., Deputy General Manager (a scale VI officer) upheld the findings of the inquiry officer and imposed major penalty of compulsory retirement under Rule 4(h) of Central Bank of India Officer Employees’ (Discipline and Appeal) Regulations, 1976³[Hereinafter, Discipline and Appeal Regulations.] with effect from date of superannuation. Appellant submitted an appeal before appellate authority i.e., Field General Manager (a scale VII officer).

5. During pendency of the appeal, Regional Manager, Purnea, a scale IV officer, i.e., equivalent to scale of the appellant, on 05.08.2015 recommended minimum payable pension under compulsory retirement i.e., two­third pension to the appellant. Field General Manager by order dated 07.08.2015 concurred with the Regional Manager and recommended award of two­ third compulsory retirement pension. Thereafter, on 30.12.2015 the said Field General Manager as the appellate authority dismissed the appellant’s appeal and upheld the penalty imposed on the latter.

6. The appellant initially approached the High Court challenging validity of Regulation 20(3)(iii) of Service Regulations which enabled the Bank to continue disciplinary proceedings even after superannuation and for setting aside the order of compulsory retirement including disbursal of full retrial benefits but subsequently he restricted his challenge only to disbursal of full retiral benefits.

7. During hearing High Court was informed while the Bank had not passed any order forfeiting gratuity, it had taken decision to award two­third of the pension payable to the appellant. In these circumstances, High Court while directing release of gratuity upheld the decision of the Bank to reduce one­third of the pension payable to the appellant.

8. Being aggrieved by the reduction of one­third pension, appellant has approached this Court. Bank has contested the appellant’s plea and produced additional documents, namely, recommendation letter of Regional Manager, Purnea for grant of minimum pension and the sanction letter of such pension by Field General Manager awarding two­third pension to the appellant.

9. Mr. Neeraj Shekhar contended pension is not a bounty and appellant’s right to pension is constitutionally protected under Article 300A. Such right could not be taken away save and except by a clear prescription of law. High Court erred in holding that a compulsorily retired employee is not entitled to pension at all unless an order under regulation 33(1) of the Pension Regulations is passed. Regulation 33 (1) and (2) must be harmoniou