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)

RANK PAY ANOMALY

Dear Friends,



We get arrears of rank pay from 01 Jan 1986. 

Monday, March 8, 2010

JUDGMENT:IV PAY COMMISSION RANK PAY ANOMALY CASE

The case was heard in the court of Justice Katju & Justice RM Lodha on 08 Mar 2010. Hon'ble Justice Katju gave the judgment as:

We are in full agreement with the judgment given by the Kerela High Court and stand by the judgment and that it should be extended to all officers.He further gave a relief of 6% interest.

Fine print awaited.

Information recieved from Col Rajesh Mathews.. 09 Mar 10
--

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

HOUSE TAX EXEMPTION FOR ESM

A querry recieved from Col Georgy Joseph is reproduced below. If anybody is aware of the order regarding extension of concession for property held by spouse of ESM please send the details to the Officer and to dowacochin@gmail.com for info of others. Thanks
-Col Nair
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On Tue, Feb 23, 2010 at 4:26 PM, georgy joseph wrote:

Dear Sirs,

We had applied to the Corporation Office in Vyttila for exemption from house tax (house is my wife's name) about a year back. My wife was told today by the concerned person that the exemption is only if the house is in the name of the ESM. He is citing a Government Order of Aug 2009- says ESM and widows are exempted from paying house tax for the house they are staying in. The house should be on the name of the ESM or widow.

I tried to explain to him that there was a subsequent clarification that the exemption is valid even if the house is in the name of the wife. He is asking for a copy of the order or clarification. I wanted to check if anyone has a copy of the relevant order or at least the number and date.

with regards, Col (retd) Georgy Joseph

Monthly Meeting

The meeting scheduled for Feb 10 has been rescheduled for 07 Mar 10. Please make a note

OBITUARY

With profound grief DOWA announces the demise of Mrs.Maheswari Nayar, wife of our Patron Brig RB Nayar. May her soul rest in peace.

REVISED DISABILITY PENSION

Dear Friends,
Jai Hind.
Revised orders regarding Disability/War Injury Element of Pension have been issued by Government of India vide their letter dated 19th Jan 2010.
The copy of the letter and its annexure floating on the internet is not very legible. I have typed this letter and its annexure for the benefit of affected personnel.

While lot of care has been taken by me to check and recheck the contents of the version typed by me but some minor error somewhere cannot be ruled out.
I have the MS Word version of this letter now available with me. Those who need the MS Word version may kindly write to me.

Please give widest possible publicity to this letter. Kindly have it displayed at ECHS Polyclinics, CSD Canteens, Officers Clubs and Community Centres etc.

If you need any clarifications on the subject, you may kindly refer it to the IESM Pension Cell - pension@iesm.org .
I am not in a position to give any clarifications on the subject


In service of Indian Military Veterans
Chander Kamboj
-------------


No.10 (01)/D (Pen/Pol)/2009/Vol.II
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
New Delhi
Dated 19th Jan, 2010.
To,
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

Subject: Revision of Disability/War Injury Element of pension in respect of Armed Forces Officers and PBOR pensioners based on the recmmendations of Cabinet Secretary Committee Report.

Sir,
The undersigned is directed to state that the in order to considre various issues on pension of Armed Forces Pensioners, Government had set up a Committee headed by the Cabinet Secretary. The reommendations of the said Cabinet Secretary’s Committee on disability/war injury pension have been considered by the Government and the President is pleased to decide that with effect from 1.7.2009, the concept of broad bandiing of percentage of disability/war injury, as provided in Para 7.2 of this Ministry’s letter No 1(2)/97/D(Pen-C) dated 31.01.2001, shall be extended to Armed Forces Officers and PBOR who were invalided out of service prior to 1.1.1996 and are in receipt of disability/war injury pension as on 1.7.2009. Wherever, the disability being accepted as less than 20% at initial stage or subsequent stage on reassessment of disability, the same will continue to be disallowed and such cases will not be re-opened.

2. Further, the President is also pleased to decide tht the cap on war injury pension with reference to emoluments last drawn in the case of disabled pensioners belonging to categor ‘E’ of Para 4.1 of this Ministry’s above mentioned letter dated 31.1.2001, shall stand removed with effect from 1.7.2009 for Armed Forces Officers and PBOR pensioners. The provision contained in Para 8 of this Ministry’s letter No PC 1(2)97/D(Pen-C) Dated 16.5.2001, Para 10.1(b). of this Ministry letter No. 1(2)/97/D(Pen-C) dated 31.1.2001 and para 6.4 & 7.4 of this Ministry’s letter No. 16(6)/2008(2)/D(Pen/Pol) dated 5.5.2009, shall stand modified to that extent.

3. The disability/war injury element of pension in all such cases shall be recomputed accordingly under these orders by the Pension Sanctioning Authorities (PSAs) concerned for rgulating payment under this Ministry’s letter No. 16(6)/2008(1)/ D(Pen/Policy) dated 4.5.2009 and letter No. 16(6)/2008(2)/D(Pen/Policy) dated 5.5.2009. For this purpose, each affected Armed Forces pensioner who is in receipt of disability/war injury element of pension as on 1.7.2009 will submit an application in the format enclosed as Annexure to this letter to PSAs concerned for revision of disability/war injury element of pension in terms of Para 1 and 2 above, as the case may be. Further implementation instructions to all concerned will be issued by PCDA(Pensions) Allahabad immediately on reeipt of these orders.

4. Revision of war injury element of pension in respect of those who have been retired/discharged/invalidated out of service on or after 1.7.2009 under category ‘E’ and in whose case war injury pension has already been notified in terms of this Ministry’s above mentioned letter dated 5.5.2009, will be carried out suo-moto by PSAs concerned by issue of corrigendum PPOs without any application from the concerned pensioners.

5. This issues with the concurrenc of Finance Division of this Ministry vide their U.O.No. 51/Fin/Pen dated 08.01.2010.
Hindi versoin will follow.
Yours faithfully,
Sd xxx
(Harbans Singh)
Director (Pension Policy)
Encl: a/a
Copy to : - As per standard distribution list.
----------
Annexure
(Referred to Para 3 of MOD letter No 10(1)/2009/D(Pen/Policy) dated 19.1.2010)
FORM OF APPLICATION
(To be submitted IN TRIPLICATE by Armed Forces disability pensioners invalided out prior to 1.1.1996 and war injury pesnioners invalided out prior to 1.7.2009 and those released after 1.1.2008 but before 1.7.2009 and drawing disability/war injury element of pension as on 1.7.2009)
To (Pension Disbursing Authority)
.....................................
.....................................

Sub: Recomputation of disability/war injury element of pension drawing pension as on 1.7.2009
Sir,
Wit a view to recompute my disability/war injury element of pension in terms of Ministry of Defence letter No 10(1)/2009/D(Pen/Policy) dated ........ 2009, the requisite particulars are given below : -
1. Name of the pensioner
2. Rank/group and Regt No/IC No
3. Date of Enrolment/Commission
4. Date of invalidment
5. Type of pension admissible
6. PPO No/Corr.PPO No underwhich
disability/war injury element of pension
on invalidment was notified.
7. Percentage of disability for which
disability/war injury element is being
drawn as on 1.7.2009
8. Amount of existing disability/war
injury element being drawn as on 1.7.2009
9. Amount of existing service element of
disability/war injury element being drawn
as on 1.7.2009
10. Pension Disbursing Agency (Paying
bank branch with SB/Current A/c No/
Treasury/DPDO/PAO
11. Name of applicant if the application is
being made on behalf of pensioner for
Life-Time Arrears (LTA)
12. Address of the family pensioner/applicant
Date:
(Signature of Pensioner/Applicant)
..... 2

-2-
PART II
(To be completed by the PDA of the pensioner)
The particulars mentioned above are verified with reference to pension account held and forwarded to the Record Office .............................................. (full address) in the case of PBOR and PSAs concerned ............................................... (full adress) in the case of commissioned officers.
No ......
Date .....

(SIGNATURE)
Rubber stamp of Pension Disbursing Authority
PART III
(To be completed by the Record office of the pensioner)
Verified and forwarded to the PSAs concerned .................................................
(full address)
No ......
Date .....
(SIGNATURE)
Rubber stamp of Pension Disbursing Authority

Address of Pension Sanctioning Authorities:
Army, Navy & Air Force Officers
1. The Principal Controller of Defence Accounts (Pensions)
Draupdighat, Allahabad – 211014.
For such Naval and Airforce officers who retired from service on or after 1.11.1985
2. The Principal Controller of Defence Accounts (Navy)
2, Cooper Road, Mumbai – 400039.
3. Jt Controller of Defence Accounts (AF)
Subroto Park, Delhi Cantt – 110010.