Legal Question in Banking Law in India

Pensioner getting pension from a public sector bank. In this connection, the bank received a letter from pension disbursing authority i.e. EPF Department regarding the put the hold / lien on pension account.the reason is pension disbursing authority i.e. EPF department disbursed excess pension to pensioner.
The question is that, can pension disbursing authority having the authority to do this?
please guide in this matter.

Asked on 9/26/12, 12:00 am

2 Answers from Attorneys

J. Radhakrishnan independent Practice

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If the pensioner has the account with the bank from whom he is getting pension credited to his account with that bank, that bank has the right of set off for excess payment made by mistake. If on the other hand the pensioner has his account with a bank which is different from the bank from whom he is getting pension, that pension paying bank cannot ask the other bank to withhold any amount. In that case it has to settle with the payee/pensioner.

Answered on 9/26/12, 6:45 am

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