New Delhi, Nov. 14 -- A retired government employee who guarantees someone else's loan could face recovery proceedings if the borrower defaults. But can a bank directly deduct the outstanding loan amount from the guarantor's pension account after retirement? The Jammu and Kashmir and Ladakh High Court has restrained Jammu and Kashmir Bank from doing so in a case involving a retired police personnel, highlighting the importance of protecting pension income that supports retirees and their families.

In its 13 November 2026 judgment in Nazir Ahmad Kuchay v. Jammu and Kashmir Bank Limited, Justice Moksha Khajuria Kazmi set aside a trial court order and restrained the bank from recovering loan dues from the retired employee's pension account....