PRESS RELEASE MAJ DHANAPALAN CASE

PRESS RELEASE


Sub: 4th Pay Commission: Grant of Rank Pay

In accordance with the recommendations of the 4th Pay commission and the Govt. decision thereon, as promulgated under Gazette of India (Extra ordinary) Notification No 91 dated 18.3.1987, officers of the Army. Navy and Air Force were granted an integrated pay in the scale of Rs.2300-100-3900-150-5100. .

In addition to the pay in the integrated scale as above, Rank Pay for Captain, Major, Lt Colonel, Colonel and Brigadier and equivalent in the Navy and Air Force, were also granted @ Rs.200/-, 600/- , 800/-, 1000/-, and Rs. 1200/- PM respectively.

Although the Rank Pay was sanctioned in addition to the basic pay, while fixing the pay in the integrated scale: an amount equal to the Rank Pay was deducted from the total emoluments and the pay was fixed. This has resulted in heavy financial loss to the officers which have also cumulative effect on pay, D.A. Pension, Gratuity, etc.

Having failed to get a proper consideration of the ease, Major A.K.Dhanapalan, now retired had approached the Hon’ble High Court or Kerala for justice. in the case or Major .A.K Dhanapalan Vs Union of India in O.P 2448/96, the Hon’ble High Court or Kerala was pleased to allow the plea of the officer and held that the deduction of the Rank Pay from basic pay is NOT correct and directed to re-fix the Basic Pay with effect from 1.1.1986.

However the Union of India preferred an appeal before the larger Bench of the High Court against the judgment. Larger bench of High Court has been pleased to dismiss the appeal but the Union of India again filed an SLP in the Hon’ble Supreme Court of India. This appeal was also dismissed on 10-7-05.

Officers (Serving/Retired) of the Armed Forces who were in service on 1-1-86 in the Rank of Captain, Major, Lt Col, Col, Brigadier are affected by the above judgment. According to the judgment, Pay of Major A.K Dhanapalan has been re-fixed with effect from 1-1-86 and Govt. sanction for payment of arrears was issued, whereas the benefit has not been extended to other similarly placed Officers of the Army, Navy & Air Force. This is in justice to the affected Officers of the Army, Navy and Air Force. Officers are eligible to receive minimum* arrears after re-fixation will be as under:-

Captain and Equivalent Rs. 55,000/

Major and Equivalent Rs. 1,50,000/-

Lt. Colonel and Equivalent Rs. 2,00,000/-

Colonel and Equivalent Rs. 2,50,000/-

Brigadier and Equivalent Rs. 3,30,000/-

*This is subject to length of service from 1-1-86

Fwd By Brig (Retd) CS Kamboj

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)