Madhya Pradesh High Court restores ‘retired’ Central Bank branch manager’s pension

The Madhya Pradesh High Court has overturned Central Bank of India's decision to reduce a retired branch manager's pension to two-thirds, ruling that the mandatory consultation with the board of directors was not proven. The court ordered the full pension to be granted prospectively, with arrears limited to three years preceding the petition.

The former branch manager, who had served for 36 years, was compulsorily retired in 2011 as a penalty for irregularities. He had sought full pension, backdated pay fixation with interest, and interest on delayed leave encashment following the improper reduction of his pension. The court noted that the bank's pension reduction did not have proper administrative reasons and failed to comply with Regulation 33(2) of the Employees Pension Regulations, 1995, which mandates prior consultation with the board of directors when an employee's pension is reduced below the full admissible amount.