Recovery of excess pension payments is impermissible without fraud or misrepresentation, emphasizing equitable treatment for pensioners.

JUDGMENT :

Jyotsna Rewal Dua, J.

Petitioner’s husband late Sh. Durga Ram Tanwar was an employee of National Academy of Audit and Accounts, Chaura Maidan, Shimla, H.P. He retired as Senior Auditor on 30.04.2011 on attaining the age of superannuation. After retirement of the petitioner’s husband, respondent-Bank (respondents No. 1 to 4) released pension to him under aspecific PPO number. All due retiral benefits were also released in his favour. Sh. Durga Ram Tanwar died on 01.12.2017. Petitioner brought this fact to the notice of the respondent-Bank and also furnished death certificate of her husband. Respondent-Bank approved and granted family pension to the petitioner being legally wedded wife of late Sh. Durga Ram Tanwar under a specific PPO number. Pension was continuously paid to the petitioner till 31.10.2023. Petitioner’s grievance is that for no rhyme and reason, respondent-Bank stopped releasing pension in her favour from the month of November 2023 onwards. No notice was ever issued to the petitioner for stopping the family pension. Hence, this petition.

2. Learned counsel for the respondents, on the basis of reply, does not dispute employment of petitioner’s late husband and his superannuation on 30.04.2011 as also the fact that pension was being paid to him till his death on 01.12.2017. According to the respondents, petitioner as legally wedded wife of late Sh. Durga Ram Tanwar, was erroneously paid full pension instead of family pension due to her. Upon a detailed scrutiny conducted by the Central Pension Processing Centre, it was discovered that the petitioner was entitled only to family pension, but instead had been paid full pension, resultantly there was an overpayment of Rs.5,75,993/- to her as full pension amount. This discrepancy was communicated to the respondents on 04.07.2024; Petitioner was also informed about overpayment made to her. On this account, recovery of the overpaid pension was to be made from her; Petitioner had also furnished her written consent, authorizing respondent-Bank to recover excess amount paid to her from her future pension payment. It is for this reason, petitioner’s pension has been stopped; Recovery of overpayment of Rs.5,75,993/- is still being effected form her monthly pension; The pension can be paid to her only after recovery of the entire overpaid amount.

3. Respondents have placed on record an office memorandum dated 16.05.2018 issued by the Government of India, Ministry of Finance, Department of Expenditure, Central Pension Accounting Office on the subject ‘Recovery of Excess Payment made to the pensioner’. This office memorandum, inter-alia states that:- (i) As soon as the excess/wrong payment made to a pensioner comes to the notice of the paying branch, the branch should adjust the same against the amount standing to the credit of the pensioner's account to the extent possible including lump- sum arrears payment; (ii) In case the pensioner expresses his inability to pay the amount, the same may be adjusted from the future pension payments to be made to the pensioners. For recovering the over-payment made to pensioner from his future pension payment in instalments 1/3rd of net (pension plus relief) payable each month may be recovered unless the pensioner concerned gives consent in writing to pay a higher instalment amount.

In view of office memorandum dated 16.05.2018 action of respondent-Bank’s decision to completely stop releasing monthly pension to the petitioner, cannot be justified. In the given facts and circumstances of the case, respondent-Bank should have considered the desirability for recovering the overpayment made to the petitioner from her future pension payment in installments as per office memorandum dated 16.05.2018 instead of outrightly and completely stopping her monthly pension. The respondents are directed to issue necessary instructions to all concerned quarters for adherence to the aforesaid office memorandum, which is admittedly applicable to them.

4. The