Pension is a Constitutional Right, Cannot Be Cut Arbitrarily: Supreme Court

The Supreme Court ruled that a pension is a constitutional right under the right to property and cannot be reduced arbitrarily without following due procedure. 

The court quashed the Central Bank of India’s decision to cut by one-third the pension of an ex-employee compulsorily retired for misconduct, noting a violation of Regulation 33 of the 1995 Pension Regulations.

The Court clarified that prior consultation with the Board of Directors is mandatory before reducing pension; post-facto approval is not valid.

The Court set aside the Patna High Court’s order and directed the Bank to reconsider the case within two months after hearing the employee.