In Brief
A bank officer was served a charge sheet on the day he retired in September 2011 for loan disbursement irregularities. Disciplinary proceedings continued after his superannuation. He was found partly at fault for failing to ensure proper end-use of loans and received a penalty reducing his pay by three stages, affecting his pension. He challenged this as improper post-retirement punishment. The Supreme Court upheld the bank's action, holding that service regulations allowing continuation of disciplinary proceedings initiated before retirement can be enforced even after superannuation. The Court clarified that such penalties reducing (rather than forfeiting) pension are legally implementable post-retirement through pension adjustment.
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