J&K Bank Barred from Pension Deductions

High Court of Jammu & Kashmir and Ladakh at Srinagar

13 November 2026

Parties: Appellant Nazir Ahmad Kuchay, a retired police personnel and guarantor for respondent No. 4; Respondent No. 2 – Jammu & Kashmir Bank Limited; Respondent No. 4 – borrower (unnamed).
Background: The appellant stood as guarantor for a loan obtained by respondent No. 4. Upon default, the bank deducted instalments from the appellant’s pension bank account (Account No. 0134040600000184) despite the appellant’s retirement and reliance on pension.
Procedural History: The appellant filed a civil suit for recovery of money and an application for interim injunction. The trial court (3rd Additional District Judge, Srinagar) dismissed the interim relief on 02.11.2020.
Legal Submissions: Counsel for the appellant relied on Radhey Sham Gupta v. Punjab National Bank (AIR 2009 SC 930) and High Court judgments (Farooq Ahmad Khan v. Mehbooba Khan, J&K Bank Ltd. v. Chander Udey Singh) establishing protection of pension and retiral benefits from attachment. The bank argued joint‑and‑several liability of guarantor, citing Union of India v. Jyoti Chit Fund and Finance (AIR 1976 SC 1163).

The High Court set aside the impugned order dated 02.11.2020, thereby granting the appellant’s appeal.
The bank is restrained from recovering any amount from the appellant’s pension bank account towards the loan taken by respondent No. 4.
The appellant is permitted to pursue a refund of any amounts already deducted before the trial court, which must decide the matter on its merits without being influenced by this judgment.
The order does not prejudice the substantive suit for recovery against the principal borrower.

Pension Protection, Banking Law