A certain amount of pension is deducted from your pension every month on account of recovery of Commutation for a continuous period of 15 years. But according to the rate of interest since last 20 years the deduction period of commutation recovery should not be more than 12 years. The matter has been realised by the judiciary body and various courts/tribunals has passed the order to stop recovery of commutation of the applicants once it completed 12 years of deduction by the pension disbursing authority. Such a case is reproduced here with grounds of appeal, consideration of the tribunal and the orders passed by the Tribunal.
Prayer of the applicants vide their OA No 2307/2024 filed before the AFT, Principal Bench, New Delhi , in the matter of Sub Trilok Chand & Ors Vs Union of India & Others are as under :-
The applicants have prayed to the Tribunal to direct the respondents to set aside/quash the following:-
(i) Regulation 1.6 (Page No. 182 of Regulation) on Restoration of Commuted Pension; of Pension Regulation for the Army, 1961 (Part-I), (Revised Regulation 163 of Pension Regulation for the Army 2008 Part-I)
(ii) Rule 10A on restoration of Commutation of Pension of 9.involved in this case is no longer res Integra, as the same had already been settled in the cases of Ram &swoop Tindal Vs. State of Punjab and Others (CWP No. 2490 of 2024 order dated 09.02.2024 passed by Hon’ble High Court of Punjab and Haryana, Om Prakash Aneja Vs. State of Punjab and Others (CWP No. 8222 of 2024 order dated 15.04.2024), Shila Devi Vs. State of Punjab and Others (CWP Na, 9426 of 2023 order dated 03.05.2023) and Dr. Kumud Ghai Vs. State of Punjab and Ors. (CWP No. 13770 of 2024 order passed on 31.05.2024 (Annexure A-7). And the amount wherever recovered beyond that the same be refunded alongwith interest @ 18% per annum and/or;
(iii) The applicant be granted any other relief which this Hon file Tribunal may deem appropriate, just and proper in the interest of justice and in the facts and circumstances of the case,
(iv) Award cost of the OA to the applicant.
Interim relief sought on the bais of the similar judicial orders
Direction to respondents to stay on further recovery from the applicants’ pension on commutation as the question involved in this case is no longer res Integra, as the same had already been settled in the cases of Ram Saroop Jindal Vs. State of Punjab and Others (CWP No. 2490 of 2024 order dated 09.02.2024 passed by High Court of Punjab and Haryana, Om Pralcaslz Aneja Vs. State of Punjab and Others (CWP No 8222 of 2024 order dated 15.04.2024), Shila Devi Vs. State of Punjab and Others (CWP No. 9426 of 2023 order dated 03.052023) and Dr. Kumud Ghai Vs. State of Punjab and Or (CWP No. 13770 of 2024 order passed on 31.05.2024 (Annex–um A-7).”
Along with the OA is MA 2732/2024 whereby the two applicants have sought to join together in term of Rule-4 (5) R/W 25 of the AFT (Procedure) Rules, 2008 seeking join together submitted to the effect that the present OA is instituted on similar cause of action with a similar relief prayed. The averments made in the OA indicate inter alia to the effect that the applicant submits to the effect that restoration of commuted portion of pension must be by 12 years and that the respondents seeking to restore commuted portion after 15 years is arbitrary with reliance having been, placed on behalf of the applicants on the order dated 09.02.2024 of Hon’ble High Court of Punjab & Haryana CWP No. 2490/2024 in Ram Saroop Jindal vs. State of Punjab and Others as also on order dated 15.04.2024 of the Hon’ble High Court of Punjab & Haryana in Om Prakash Aneja vs. State of Punjab and Others CWP No. 8222/2024, and the order dated 03.05.2023 in Shila Devi vs. State of Punjab and Others CWP No.9426/2023 as well as order dated 31.05.2024 in Dr. Kumud Ghai vs. State of Punjab and Others CWP No 13770/2024, copies of which are annexed as Annexure A-7 (Colly) to the present OA.
Decision of the Judicial members on the Prayer of the Applicants
In view of the said submission the prayer made vide MA 2732/2024 under Rule-4(5) VW 25 of the AFT (Procedure) Rules, 2008 filed by the two applicants seeking to join together to institute the present OA through applicant no. 1 has been allowed.
Judiciary Proceeding on the Original Applications file by the Applicants
Notice of the OA for both reliefs prayed is issued to the respondents. Pleadings in the matter be completed by either side within a time frame of three months. The matter be listed before the Principal Registrar on 12.08.2024 for completion of pleadings and before the Bench thereafter on 11.12.2024.
Orders Passed by the AFT on Commutation Deduction issue
As an interim measure till further directions, the further recovery of pension sought to be made by the respondents on the basis of commutation of pension involved is stayed, in as much as the applicants submit that they have
Discussion on the logic behind the approach.
The main issue to approach the Tribunal with a prayer to stop the commutation Deduction is as under –
commutation of pension means advance payment of a lump sum amount in lieu of portion of pension surrendered voluntarily by the pensioner based on the duration of period in relation to the age of pensioner. The pension of the pensioner is proportionately reduced to the extent of the commuted portion from the date of receipt of lump sum commuted value by the Petitioner.
The recommendations of 6th CPC were implemented by Govt of India Department of Pension & Pensioners’ Welfare vide letter No F. No. 38/37/08 P&PW(A) dated 2 Sep 2008 and revised commutation table was issued based on 8% interest. The provisions of this OM was made applicable to all central Govt to employees by the respective ministries including Min of Del Therefore at the time of retirement the commutation value has been disbursed the effected pensioners based on revised Table based on @ 8% interest.
Recently CWP No 2490-2024 Titled Ram Saroop Jindal Vs State of Punjab and others has been filed before Hon’ble Punjab and Haryana High Court with prayer to restore the commuted portion of pension after 10 years and 08 months (128 months) instead of 15 years (180 months) as the recovery of Commuted portion of pension along with interest thereon at the prescribed rate of 08% per annum stands already fully recovered in 128 months. The Hon’ble High court while issuing the notices of motion has also passed directions that “further recovery shall remains stayed.”
Rate of Bank Fixed Deposit Interest of last 20 Years is given here (Source – Bajaj Finserve) –
| 2022-2023* | 5.35-5.90 |
| 2021 – 2022 | 5.05 – 5.35 |
| 2020 – 2021 | 5.25 – 5.35 |
| 2019 – 2020 | 5.70 – 6.40 |
| 2018 – 2019 | 6.25 – 7.25 |
| 2017- 2018 | 6.25 – 6.70 |
| 2016 – 2017 | 6.50 – 6.90 |
| 2015 – 2016 | 7.00 – 7.50 |
| 2014 – 2015 | 8.50 – 8.75 |
| 2013 – 2014 | 8.75 – 9.10 |
| 2012 – 2013 | 8.75 – 9.00 |
| 2011 – 2012 | 9.00 – 9.25 |
| 2010 – 2011 | 8.25 – 8.75 |
| 2009 – 2010 | 6.50 – 7.50 |
| 2008 – 2009 | 7.75 – 8.50 |
| 2007 – 2008 | 7.50 -9.00 |
| 2006 – 2007 | 7.75 – 9.00 |
| 2005 – 2006 | 6.25 – 7.00 |
| 2004 – 2005 | 5.75 – 6.25 |
| 2003 – 2004 | 5.25 – 5.50 |
| 2002 – 2003 | 5.50 – 6.25 |