Balan was 87 and died of old age related ailments, Kerala Cricket Association (KCA) said.
In a career spanning from 1946-70, Pandit played for Kathiawar, Travancore-Cochin besides the state team.
"Pandit's batting was sheer lyric. He cut and drove with the elan and perhaps, the only other name that comes to mind in the execution of this stroke is the great Vinoo Mankad," KCA said, condoling his death.
He played in 46 first class matches and scored 2317 runs, including five centuries.
In 1959, Balan Pandit made his highest score of 262 notout against Andhra at Palghat.
Balan served as the member of Indian junior selection committee and Chairman of Kerala senior selection panel.