Delhi HC: Bank Must Reassess Anil Malhotra's Pension Reduction Due to Unproven Losses

On December 16, 2025, the Delhi High Court made a decision about Anil Malhotra's pension argument with the Bank of Baroda. The court canceled an earlier decision that cut his pension to two-thirds, asking the bank to look at the issue again.

Background of the Case

Anil Malhotra used to work for the Bank of Baroda and was forced to retire on May 27, 2016. His pension was later set at two-thirds of the full amount on July 14, 2020. Anil Malhotra disagreed with this decision and took the case to court, which initially ruled in his favor on December 8, 2022. The court told the Bank of Baroda to rethink the pension decision, but the bank stuck to its decision on August 28, 2023.

Allegations of Financial Misconduct

The Bank of Baroda accused Anil Malhotra of issuing Letters of Credit worth about Rs. 15 crores without following the right steps, suggesting a possible loss of Rs. 14.95 crores. However, Anil Malhotra's lawyer argued that there was no proof of an actual loss.

"The argument is that this very fact was used while making the challenged decision, but so far there is no calculation of the loss caused nor a decision that an actual loss was caused."

Rule 33 and the Board's Role

The case is about Rule 33 of the Bank of Baroda (Employees’) Pension Rules, 1995. This rule allows for a reduced pension if the Board of Directors (BoD) agrees. The court noted that the bank got BoD approval by mentioning unverified losses.

Court's Decision

Justice Avneesh Jhingan pointed out that the Bank of Baroda's decision to reduce the pension was based on claims of financial loss that weren't proven. The court stressed the lack of evidence and ordered the bank to look at the pension issue again, making sure to follow Rule 33 and give Anil Malhotra a fair chance to explain his side.

What's Next?

The court has required the Bank of Baroda to review the pension decision within four months, giving Anil Malhotra a chance to present his case.

"The court case is approved... a quick decision by the Bank is appreciated."

The court's decision highlights the need for fair treatment and evidence in work-related disagreements. The case will go back to the Bank of Baroda for further review, focusing on being open and fair.