JHARKHAND HC DISMISSES EX-BANKER’S PLEA; PNB RIGHTLY ADJUSTED RETIRAL DUES AGAINST ₹93 LAKH HOUSING LOAN
W.P. (S) No. 4730 of 2025
By Sandhya Kaika
The Jharkhand High Court has dismissed a writ petition filed by a retired Punjab National Bank Manager, Ajay Kumar Singh, who sought reversal of a ₹35.69 lakh deduction from his retiral benefits towards an outstanding housing loan.
The petitioner, who retired in December 2023, challenged the bank’s decision to appropriate his gratuity amounting to ₹20,00,000 and pension commutation of ₹15,69,561 to partially settle his housing loan dues. He contended that pension and gratuity constitute personal property and cannot be attached. He also argued that the bank failed to issue a mandatory demand notice prior to recovery.
Punjab National Bank opposed the plea, stating that the petitioner’s total housing loan liability exceeded ₹93 lakh at the time of his retirement. The bank placed reliance on a written authorization signed by the petitioner in June 2023, wherein he had expressly permitted the bank to utilize his provident fund, gratuity, and other retiral dues to clear any outstanding loan upon retirement.
The bank further highlighted the petitioner’s financial position, noting that his monthly pension was approximately ₹45,000, while the loan EMI stood at ₹61,474. It argued that he lacked the financial capacity to service the loan through pension alone.
Justice Deepak Roshan upheld the bank’s action, observing that the recovery was supported by the petitioner’s own consent and legal authorization. The Court noted that it would have been impractical for the petitioner to repay the loan through his pension income, and therefore, the adjustment of gratuity and commuted pension was justified.
Finding no illegality in the bank’s decision to recover its dues, the High Court dismissed the petition and affirmed that the adjustment was a valid exercise of the bank’s rights based on the agreements executed by the petitioner.
Court: High Court of Jharkhand at Ranchi
Petitioner: Ajay Kumar Singh
Respondent: Punjab National Bank
Date of Order: April 9, 2026
