In CIVIL APPEAL NO.4073 OF 2022-SC- Retired Armed Forces personnel on re-appointment in government service will not be entitled to his last drawn pay; No entitlement of pay protection exists under para 8 of CCS(Fixation of Pay of Re-employed Pensioners) Order, 1986: SC Justices M.R. Shah & B.V. Nagarathna [20-05-2022]

Read Judgment: UNION OF INDIA AND ORS.Vs. ANIL PRASAD

Mansimran Kaur

New Delhi, May 24, 2022:  The Supreme Court has opined that Para 8 of the Central Civil Services (fixation of Pay of Re-employed Pensioners) Order, 1986, does not provide that a retired Armed Force personnel on reemployment in Government Services, would be entitled to his basic pay being fixed at par with his last drawn pay.

A Division Bench of Justice M.R. Shah and Justice B.V. Nagarathna observed that an Emergency Commissioned Officer and a Short Service Commissioned Officer working in the Armed Forces on his employment to a civil post shall be entitled to advance increments equal to the completed years of service rendered in the Armed Forces. However, the Bench clarified that the pay arrived at should not exceed the basic pay last drawn by them in the Armed Forces.

Facts in brief were that the original petitioner was a Major in the Indian Army who was discharged from service on July 15, 2007. He was appointed as an Assistant Commandant in the Central Reserve Police Force.  It was the case of the petitioner that on the day of his discharge, he was drawing pay of Rs. 28340 with grade pay of Rs.6600, the same was entitled to be protected in terms of Para 8 of the CCS Order. Thereafter, he made a representation which was rejected. Consequently, he preferred an appeal before the Delhi High Court claiming that he was entitled to his basic pay being fixed at par with his last drawn pay.  The High Court held that the petitioner, being a retired Armed Force Personnel, shall be entitled to basic pay being fixed at par with his last drawn pay.  Being aggrieved thereof, the Union of India and others filed the present appeal.

Noting that the manner of computation of pay as envisaged under para 8 clearly stipulates that the pay so arrived at should not exceed the basic pay (including the deferred pay but excluding other emoluments) last drawn by the respondent in the armed force, the Division Bench said, “Para 8 of the CCS Order does not indicate that the pay last drawn by the respondent in the armed forces should be the pay to be computed when he joined the civil post. There is no entitlement of pay protection under para 8 of the CCS.”

Adverting to the facts of the present case, the Court noted that the respondent was in the pay scale of Rs.15600-39100. The post on which he was re-employed in the government service also carried the pay scale of Rs.15600-39100 and he was allowed advance increments of six years as he completed six years of service in the Armed Forces. However, his grade pay had been fixed at Rs.5400, being the grade pay which is available for the civil post. Thus, according to the Apex Court the pay fixation of the respondent in the government service was absolutely in consonance with para 8 of the CCS Order. 1986.

Observing that the High Court committed a grave error in holding that the retired Armed Forces personnel on re-appointment in the government service would be entitled to the last drawn pay as Armed Forces personnel, the Bench quashed the impugned judgment because it was contrary to para 8 of the CCS Order, 1986.