Withholding pension of retired employee illegal, rules KSHRC

The Kerala State Human Rights Commission has ruled that the action of the Vithura Service Cooperative Bank withholding the pension and other retirement benefits of a retired employee is illegal and in violation of both Supreme Court and High Court rulings.

Commission chairperson Alexander Thomas stated that banks cannot withhold or divert the pension benefits of retired employees as such actions contravene judicial rulings.

The commission’s observation came while considering a complaint filed by Vithura native K. Jayakumar, a retired driver of Kerala State Road Transport Corporation (KSRTC). In his complaint, the petitioner claimed that during his service he had stood as a guarantor for a loan availed of by another person. As the borrower defaulted on repayment, the cooperative bank allegedly began to withhold the complainant’s monthly pension.

The secretary of the Cooperation department has been instructed to examine relevant court judgments and obtain a report from the Joint Registrar (General). Thereafter, the secretary must hear both the complainant and the secretary of the Vithura Service Cooperative Bank and take appropriate decision in accordance with the law. It was further directed that the complaint be resolved within two months.