IN THE HIGH COURT OF JUDICATURE AT PATNA CWJC No 7142 of 2008 1 Rakesh Kumar Bajpai, son of late Gopal Bajpai, resident of village – Bishwambharpur, Police Station – Bihta, District – Patna 2 Prabha Devi, wife of Binod Kumar Tiwary, daughter of late Gopal Bajpai, resident of village – Bishwambharpur, Police Station – Bihta, District – Patna, at present residing at R X Bhawan, Bailey Road, Patna- Petitioners Versus 1 Union of India through the Secretary, Ministry of Finance, New Delhi 2 Central Bank of India, Central Office, Chander Mukhi, Nariman Point, Mumbai – 400 021 through its Managing Director 3 Zonal Manager, Central Bank of India, Zonal Office – Maurya Lok Complex, Patna 4 Regional Manager, Central Bank of India, Regional Office, P Box No 89, Jatin Chandra Path, Lalpur Chowk, Ranchi – 834 001 5 Branch Manager, Central Bank of India, Branch Office Sabra, District – Bokaro - Respondents ----------- 15 03.03.2010 This writ petition had been filed by the dependants of one Gopal Bajpai who died while working with the Central Bank of India. His wife had predeceased him. In course of these proceedings over last two years before this Court, all but one grievance has been settled. The primary grievance was with regard to terminal benefits which have now been settled. Now the petitioners make a grievance with regard to the various loans which the said Gopal Bajpai had taken from the Employees/Workers Cooperatives of the said Bank at different places where he was posted. Learned counsel for the petitioners submits that once Shri Gopal Bajpai died in the year 2005, the Bank was aware of the total terminal benefits that were payable, the calculation whereof did not depend upon any application to be made by the beneficiaries as the Cooperatives stopped receiving repayment schedules. They were also aware of death of Shri 2 Gopal Bajpai. As per Regulation 49 of the Central Bank of India (Employees’) Pension Regulations 1995, the Bank is entitled to deduct from the terminal benefit all amounts that are required to be paid by the late employee to the Cooperatives for loan obtained. It is, thus, submitted that immediately those amounts could have been and should have been paid by the Bank to the Cooperatives but they were not so paid. The amounts are deducted from the terminal benefits to be paid in the year 2009 and in some cases, they have not yet been paid by the Bank though the Bank is holding that money in trust. The result of this delayed action by the Bank is that during the period between the death of Shri Gopal Bajpai and non-payment by the Bank to the Cooperatives for several years, the Cooperatives charged interest on the outstanding amount. That ought not to be permitted because petitioners have nothing to do with it. It was an adjustment that had to be made as between the Bank and the Cooperatives directly in view of Regulation 49 aforesaid. Shri Ajay Kumar Sinha, learned counsel for the Bank submits that the Bank could not process the terminal benefits till the beneficiary thereunder made application for payment thereof. That, in my view, is of no consequence. As noted above, terminal benefits became quantified the day Shri Gopal Bajpai died. Its disbursement to the beneficiary got delayed because of late compliance by the beneficiaries. Once the amount was quantified, it was upto the Bank to exercise powers under Regulation 49, which they have now belatedly done, and saved 3 payment of unnecessary interest which has been charged to the beneficiaries. Under the aforesaid circumstances, in my view, it would not be just, fair and proper for the Bank to recover the amount of interest charged by the Cooperative in the period as aforesaid to the beneficiaries. This part of interest accrued solely because of delayed action by the Bank for which the beneficiaries cannot be penalised. The Bank must either seek waiver thereof from the Cooperative or pay the same but surely it cannot be permitted to let the beneficiaries suffer for its delayed action. The writ petition is, thus, finally disposed of with a direction that to the extent of accrued interest, after the death of Shri Gopal Bajpai, if Bank has withheld some amount from the beneficiaries, Bank would forthwith pay the same to the beneficiaries and, in its own turn, would seek exemption thereof from the Cooperatives or bear the same itself. The interest so deducted to the extent beneficiaries have been deprived of in respect of terminal dues should be paid to the beneficiaries within a period of three months from today. Petitioners, if they have any grievance with regard to any accounting, as reflected in respect of the loans taken by their father Shri Gopal Bajpai, may represent to the concerned authority of the Bank and/or the Cooperatives aforesaid for necessary correction. M.E.H./ (Navaniti Prasad Singh)