N.Muthu v. The Branch Manager
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 05.01.2026
CORAM
THE HON'BLE MR.JUSTICE R.VIJAYAKUMAR W.P.(MD)No.25324 of 2025 and W.M.P(MD)No.19861 of 2025 N.Muthu
...Petitioner
Vs
1. The Branch Manager, Canara Bank, Thamaraipadi Branch, Dindigul District.
2. The Superintendent, Settlement Section, Divisional Railway Manager Office, Southern Railway Department, Madurai.
3. The Canara Bank, Centralised Pension Processing Centre, Resources Wing, 29, KR Road, Dwarakanath Bhawan, Head Office-Annex, Basavanagudi, Bangalore - 560 004.
(R3 is suo motu impleaded vide Court order dated 01.12.2025 in WP(MD)No.25324 of 2025)
...Respondents
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PRAYER: Writ Petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorarified Mandamus to call for the records pertaining to the impugned recovery notice issued by the 1st respondent in his proceedings in Ref.No.HO/CPPC/2025-26/Railway dated 05.07.2025 and quash the same as illegal and arbitrary and consequently direct the 1st respondent to continue to pay the monthly Pension amount of Rs.35,688/- to the petitioner without detection.
For Petitioner : M/s.G.Gomathisankar For Respondents : M/s.C.Deepak for R1 and R3 Mr.H.Velavadoss for R2
ORDER
The present writ petition has been filed challenging the recovery notice issued by the first respondent Bank on 05.07.2025 seeking to recover a sum of Rs.11,52,906/-.
2. The petitioner herein is a retired employee of the Southern Railway who is maintaining a pension account with the first respondent Bank. According to the respondent Bank, the petitioner is eligible to receive only a sum of Rs.23,125/- per month as pension. However, by mistake, a sum of Rs.35,688/- was credited during the period between March 2020 and April 2025. This mistake has happened due to merger of Syndicate Bank with the Canara Bank. 2/6
Once this mistake was found out, the present notice seeking recovery has been issued.
3. The learned counsel appearing for the petitioner submits that he is a retired employee solely relying upon the pension credited to his account and there is no mistake or any misrepresentation on his part in receiving higher pension amount. The learned counsel appearing for the petitioner further submits that recovery from his pensionary amount would cause great prejudice.
4. Per contra, the learned Standing counsel for the respondent Bank relied upon a judgment of the Hon'ble Supreme Court reported in (2012) 8 SCC 417, especially paragraph No.16 which is extracted as follows:- "16. We are concerned with the excess payment of public money which is often described as "tax payers money" which belongs neither to the officers who have effected over-payment nor that of the recipients. We fail to see why the concept of fraud or misrepresentation is being brought in such situations. Question to be asked is whether excess money has been paid or not may be due to a bona fide mistake. Possibly, effecting excess payment of public money by Government officers, may be due to various reasons like negligence, carelessness, collusion, favouritism etc.
because money in such situation does not belong to the payer or the payee. Situations may also arise where both the payer and the payee are at fault, then the mistake is mutual. Payments are being effected in many situations without any authority of law and payments have been received by the recipients also without any authority of law. Any amount paid/received without authority of law can always be recovered barring few exceptions of extreme hardships but not as a matter of right, in such situations law implies an obligation on the payee to repay the money, otherwise it would amount to unjust enrichment."
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5. Considering the above said facts, this Court is inclined to pass the following orders:- a) a sum of Rs.5,000/- (Rupees Five Thousand only) alone shall be recovered from the pension account of the writ petitioner every month during his life time;
b) during the disbursement of family pension, a sum of Rs.2,500/- (Rupees Two Thousand Five Hundred only) per month alone can be recovered; c) the Bank shall not be entitled to recover any interest for the sum of Rs.11,52,906/-;
d) The petitioner shall be permitted to operate his account after retaining the above said sum; and e) the recovery shall start from January 2026 onwards.
6. With the above said observations, this writ petition stands disposed of. No costs. Consequently, connected miscellaneous petition is also closed. 05.01.2026 NCC : Yes/No Index : Yes/No Internet: Yes/No RJR To 4/6
1. The Branch Manager, Canara Bank, Thamaraipadi Branch, Dindigul District.
2. The Superintendent, Settlement Section, Divisional Railway Manager Office, Southern Railway Department, Madurai.
3. The Canara Bank, Centralised Pension Processing Centre, Resources Wing, 29, KR Road, Dwarakanath Bhawan, Head Office-Annex, Basavanagudi, Bangalore - 560 004.
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R.VIJAYAKUMAR , J.
RJR W.P.(MD)No.25324 of 2025 05.01.2026 6/6