Pension or Gratuity Attachable ?

banks have no right to recover the amount from the family pension or gratutity. Bank has to proceed legally by filing suit for recovery of the amount.

No. Pension and gratuity cannot be atached for recovery of debts.

It is correct that the pension and gratuity cannot be attached. Even the court will not issue any directions for attachment of pension or gratuity. But beware of risk - once the gratuity is received, the cash from the hands of the receiver can be attached, if the bank is too technical and has an attachment ready when the gratuity is received. Hence precaution needs to be taken to ensure independent bank accounts for the same.

vasudevan

SC recently held-

Attachment of Fix deposit in bank made out of the pension and gratuity- Barred under Proviso of Sec 60(1) proviso (g) of C.P.C.- Gratuity payable, not liable to attachment for satisfaction of court decree- Retiral benefits, pension and gratuity, not lose their character, even after they received on retirement and continue to be covered by Proviso of Sec 60(1) proviso (g)- The fact that gratuity and pensionary benefits had been received in cash by beneficiary and converted in to Fix deposits- It could not be said that they could no longer be identified as such retiral benefits paid to him- SC-UAD-2009-232.

Dear Arvind Sir,

Thanks very much for this useful citation. This is a crucial issue and banks use to take law into their own hands which now can be prevented.

vasudevan

Thanks to Arvind for the CITATION, 

ARVIND  VERY GOOD CITATION.

Thanks to Arvind for the CITATION,

very well said by mr. Arvind

Arvind gave good citation, but that citation cited in Air or SCC has not been clarified.

I have a query pertaining to same.... can a department(PUNJAB GOVT.) at the time of making payments(like gratuity/Ex-Gracia/PF and other payments) to the family of deceased can recover any outstanding payment pending against the deceased employee.... the dept. has marked a recovery mentioning that some wrong increments were imposed in salary of deceased since 1990 and so the recovery of same is pending.....

Dear Arvind Sir & experts,

Pls respond.

Arvind gave good citation, but that citation cited in Air or SCC has not been clarified.

I have a query pertaining to same.... can a department(PUNJAB GOVT.) at the time of making payments(like gratuity/Ex-Gracia/PF and other payments) to the family of deceased can recover any outstanding payment pending against the deceased employee.... the dept. has marked a recovery mentioning that some wrong increments were imposed in salary of deceased since 1990 and so the recovery of same is pending.....

Aftab

Please find the attachment and go through the para 24,25,26,.