RANK PAY CASE - SUPREME COURT VERDICT

Tuesday, March 9, 2010


Rank Pay is a part of basic pay : SC upholds verdict in Dhanapalan case

As many would be aware, after the 4th CPC, an integrated pay scale of Rs 2300-5100 was implemented for officers from the rank of 2/Lt to Brig. In addition, rank pay was authorised to officers from the rank of Capt to Brig ranging from Rs 200 to 1200 which was to be added into the basic pay for all intents and purposes.

However, while fixing the pay in the new scales, an amount equal to the rank pay was deducted from the emoluments resulting in financial loss to all affected officers. Hence all officers holding the rank of Capt to Brig as on 01-01-1986 suffered cumulative losses.

The Hon’ble Kerala High Court in a case filed by Maj AK Dhanapalan had termed illegal this deduction of rank pay. The SLP filed by the Union of India was also dismissed, albeit not on merits but on technical grounds of limitation. Soon thereafter, many similar petitions were filed in various Hon’ble High Courts all over the country which were clubbed together and transferred to the Hon’ble Supreme Court to be heard alongwith an SLP of similar nature which had arisen out of a case that was allowed on the basis of Dhanapalan judgement.

The Hon’ble Supreme Court has yesterday (08 March 2010) upheld the said verdict and granted relief to all similarly placed officers alongwith an interest of 6%. I shall officially confirm the judgement with all details once I get the copy.

Posted by Navdeep / Maj Navdeep Singh at 4:23 AM