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Mar 15, 2010

BRIEF ON PAY FIXATION AS ON 01-01-86 MAJ DHANAPALAN CASE

BRIEF ON PAY FIXATION AS ON 01-01-86 CONSEQUENT TO JUDGMENT


OF KERALA HIGH COURT IN RESPECT OF MAJ DHANAPALAN (RETIRED)



1. The success of Maj AK Dhanapalan (Retd), in getting arrears of pay, based on a case filed by him, in the Kerala High Court, is one that has engendered considerable, interest among serving and retired service Officers. The case pertains to refixation of Pay, post 4th CPC, as on 01 Jan 86 and its carry forward effects, thereafter.

2. This note has been prepared to bring out the Salient aspects of the issues involved and the present status vis-a- vis officers, who are/were similarly placed.

3. Genesis of the Problem The fourth Pay Commission appreciating the pyramidcal and truncated careers of Service Officers sought to correct the anomaly, by including an element of Rank Pay, for Officers of the rank of Captain (Army) up to Brigadier. The Pay Commission envisaged, that whilst changing over from the 3rd CPC scale to the 4th CPC scales, the fixation was to be done in the same manner as that of civilians. Rank pay, would be a separate element of pay, that was to be added to the basic pay for switching over the 4th CPC scales.

4. Government Resolution In the Govt resolution that followed, the recommendations of the Fourth CPC, on one hand indicated that Rank Pay would from part of Basic Pay. However, on the other hand, in the methodology of fixing pay, Rank pay, Rank pay was to be deducted from the revised consolidated pay and thereafter pay fixed in the next higher slab of pay. This method of consolidating pay, after deducting the Rank pay, was the issue that Major Dhanapalan contested in the Kerala High Court.

5. The High Court of Kerala, upheld the contention of the officer and directed the Union of India to refix the pay of the petitioner, with effort from 01 Jan 86, without deducting the Rank pay.

6. The Govt filed and appeal to this judgment, which was dismissed by a Divisional Bench of the same Court.

7. Thereafter, an SLP was filed in the Supreme Court, which was dismissed not on the merits of the arguments given in the SLP, but owing to an inordinate delay in filing the SLP. Accordingly Maj Dhanapalan was given arrears based on the judgment of the Keral High Court.

8. Present Status Since Maj Dhanapalan's case was decided in his favour, there have been a number of representations and even 2 separate writ petitions, filed in the Kerala High Court. These have all been referred to the MoD.

9. The issues are being examined by the MoD, in consultation with Finance. Simultaneously the Services are also working out the financial implications, in case the Govt decides, after due consideration of the facts, to extend the benefits to other similarly placed serving and retired officers.

10. The Directorate of Ex-Servicemen Affairs (DESA) will keep you apprised of the position from time to time.


Col NK Balakrishnan (Retd)

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