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Supreme Court of India

WG CDR A U TAYYABA (RETD) & ORS.versusUNION OF INDIA & ORS.

Citation
2024 INSC 311
Decided
15 April 2024
Disposal
Disposed off

Holding

Pensionary payments to women Short Service Commissioned Officers shall be computed on the basis of the salary as of the deemed completion of twenty years of service, with notional increments for the intervening period, and arrears of pension payable from that date.

Summary

The petitioners are women Short Service Commissioned Officers who were released from the Armed Forces after fourteen years of service. They sought one‑time pensionary benefits on the basis that, under a Supreme Court order of November 2022, they should be deemed to have completed the twenty‑year qualifying period for pension. The Government computed the pension on the last drawn salary at the date of release and denied any increments between release and the deemed completion date. The Court held that the pension must be calculated on the salary as of the deemed completion of twenty years, with notional increments for the intervening period, and that arrears of pension are payable from that date. It also clarified the method for computing the commuted value, the entitlement to encashment of up to 300 days of annual leave, and the right to ECHS benefits, directing that the revised payment be made by 15 June 2024. Consequently, the miscellaneous application was disposed of.

Issues considered

  • Whether the pension for women Short Service Commissioned Officers should be computed on the basis of the last drawn salary at the date of release or on the salary as of the deemed completion of twenty years of service.
  • Whether the officers are entitled to notional increments for the period between release and the deemed completion of twenty years.
  • How the commuted value of the one‑time pensionary payment is to be calculated.
  • Whether the officers are entitled to encashment of accumulated annual leave up to 300 days.
  • Whether the officers are entitled to ECHS benefits as retired officers.

Subjects

Pensionary benefitsWomen Short Service Commissioned OfficersOne time pensionary benefitsMinimum qualifying service required for pensionArrears of salaryArrears of pensionLast drawn salaryDate of the releaseIncrementsNotional incrementsComputation of the commuted value of the pensionary paymentEncashment of annual leaveGrant of ECHS benefits

Judgment

             [2024] 4 S.C.R. 518 : 2024 INSC 311

             Wg Cdr A U Tayyaba (retd) & Ors.
                            v.
                  Union of India & Ors.
      (Miscellaneous Application Diary No. 8208 of 2024)
                            15 April 2024
[Dr. Dhananjaya Y Chandrachud, CJI, J B Pardiwala and
                   Manoj Misra, JJ.]

                       Issue for Consideration
  Matter pertains to clarification of the order passed by this Court as
  regards grant of pensionary benefits to the women Short Service
  Commissioned Officers in Armed Forces.

                              Headnotes
  Armed Forces – Women Short Service Commissioned
  Officers – Pensionary benefits – Order by this Court granting
  one time pensionary benefits to the women Short Service
  Commissioned Officers on basis that they have completed
  the minimum qualifying service of twenty years, required
  for pension – Eligible officers in terms thereof, not entitled
  to any arrears of salary, but the arrears of pension payable
  with effect from the date on which the officers are deemed to
  have completed twenty years of service – Pursuant thereto,
  women officers were released from service at the end of the
  fourteenth year and for computing the pension, salary was
  taken as the last drawn salary as of the date of the release,
  and no increments were granted to the applicants between the
  date of release and the date on which they are deemed to have
  completed twenty years service in terms of the aforesaid order
  – Applicants case that directions not correctly interpreted,
  once the applicants have been treated to have completed
  the minimum qualifying service required for pension, the last
  drawn salary must be taken as on that date and increments
  have to be computed for pension:
  Held: Order by this Court granting one time pensionary benefits
  to the women Short Service Commissioned Officers clarified –
  Pensionary payments would have to be computed on the basis
  of the salary on the date of the deemed completion of twenty
  years – Women SSCOs entitled to notional increments between
[2024] 4 S.C.R.                                                         519

          Wg Cdr A U Tayyaba (retd) & Ors. v. Union of India & Ors.


     the date of release and the date on which they have completed
     the minimum qualifying period for pension, namely, the deemed
     completion of twenty years – On basis thereof, the one time
     pensionary payment due in terms of the previous order revised and
     arrears due and payable to be paid within the stipulated period –
     Issues as regards the computation of the commuted value of the
     pensionary payment, encashment of annual leave, and grant of
     ECHS benefits also clarified. [Paras 11]

                             List of Keywords
     Pensionary benefits; Women Short Service Commissioned
     Officers; One time pensionary benefits; Minimum qualifying
     service required for pension; Arrears of salary; Arrears of
     pension; Last drawn salary; Date of the release; Increments;
     Notional increments; Computation of the commuted value of
     the pensionary payment; Encashment of annual leave; Grant
     of ECHS benefits.

                             Case Arising From
     CIVIL APPELLATE JURISDICTION: Miscellaneous Application Diary
     No. 8208 of 2024
     In
     Civil Appeal Nos. 79-82 of 2022
     From the Judgment and Order dated 16.11.2022 of the Supreme
     Court of India in C.A. No. 79, 80, 81 and 82 of 2012
                          Appearances for Parties
     Ms. Pooja Dhar, Ms. S. Ambica, Ms. Anshula Vijay Kumar Grover,
     Advs. for the Appellants.
     R Bala, Sr. Adv., Santosh Kr, Akshay Amritanshu, Mohd. Akhil, Sachin
     Sharma, Alankar Gupta, Dr. Arun Kumar Yadav, Dr. N. Visakamurthy,
     Arvind Kumar Sharma, Advs. for the Respondents.
                  Judgment / Order of the Supreme Court
                                   Order
1    We have heard Ms Pooja Dhar, counsel appearing on behalf of the
     appellants and Mr R Balasubramanian, senior counsel appearing
     on behalf of the respondents.
520                                                            [2024] 4 S.C.R.

                            Digital Supreme Court Reports


2      Delay in filing the Miscellaneous Application is condoned.
3      These proceedings arise from a judgment dated 16 November 2022
       in Wg Cdr A U Tayyaba (retd) & Ors v Union of India & Ors1. The
       specific directions which form the subject matter of these proceedings
       are set out below:
             "i.    All the women SSCOs governed by the present batch
                    of cases shall be considered for the grant of one-
                    time pensionary benefits on the basis that they have
                    completed the minimum qualifying service required
                    for pension;
             ii.    The cases of the appellants shall be evaluated on the
                    basis of the HRP dated 19 November 2010 bearing
                    Part No 5; and
             iii.   The officers who are found eligible for the grant of
                    pensionary benefits in terms of the present direction
                    shall not be entitled to any arrears of salary, but the
                    arrears of pension shall be payable with effect from
                    the date on which the officers are deemed to have
                    completed twenty years of service;”
4      In terms of the above directions, the Union government has issued
       Pension Payment Orders2 for the officers.
5      During the course of the hearing, it has emerged before the Court
       that the women officers were released from service at the end of
       the fourteenth year and the salary for the purpose of computing the
       pension was taken as the last drawn salary as of the date of the
       release. No increments have been granted to the applicants between
       the date of release and the date on which they are deemed to have
       completed twenty years service in terms of the judgment of this Court
       dated 16 November 2022.
6      According to the applicants, the authorities have not correctly
       interpreted the operative directions; once the applicants have been
       treated to have completed the minimum qualifying service required
       for pension, the last drawn salary must be taken as on that date and
       increments have to be computed for pension.


1   Civil Appeal Nos 79-82 of 2012
2   PPOs
[2024] 4 S.C.R.                                                             521

            Wg Cdr A U Tayyaba (retd) & Ors. v. Union of India & Ors.


7     The first direction which was issued by this Court was that all the
      women Short Service Commissioned Officers3 governed by the batch
      of cases would be considered for the grant of one time pensionary
      benefits “on the basis that they have completed the minimum qualifying
      service required for pension”. The minimum qualifying service for
      pension is twenty years.
8     Hence:
      (i)      The pensionary payments would have to be computed on the
               basis of the salary on the date of the deemed completion of
               twenty years; and
      (ii)     The women SSCOs would be entitled to notional increments
               between the date of release and the date on which they have
               completed the minimum qualifying period for pension, namely,
               the deemed completion of twenty years.
9     The above directions clearly flow out of the first direction contained
      in paragraph 34 of the judgment dated 16 February 2022. This was
      subject to the further stipulation in direction (iii) that they will not be
      entitled to any arrears of salary, but the arrears of pension would
      be payable with effect from the date on which they are deemed to
      have completed twenty years of service.
10    Based on the clarification, the one time pensionary payment due in
      terms of the judgment dated 16 November 2022 shall be revised
      and arrears that remain due and payable shall be paid on or before
      15 June 2024.
11    Apart from the above direction, further clarifications of this Court are
      necessary on the following issues:
      (i)      The computation of the commuted value of the pensionary
               payment;
      (ii)     Encashment of annual leave; and
      (iii) Grant of ECHS benefits.
12    As regards (i) above, the commuted value shall be computed as on
      the date of the deemed completion of twenty years. The commutation



3    SSCOs
522                                                            [2024] 4 S.C.R.

                        Digital Supreme Court Reports


       factor shall, therefore, be that which was applicable on the date of
       the deemed completion of twenty years. The arrears that remain to
       be paid shall be paid over on or before 15 June 2024.
13     As regards the encashment of annual leave, in the event that any
       of the officers is found to have accumulated the maximum of 300
       days in respect of which encashment is allowable, the difference
       between the encashable quantum of 300 days and the amount which
       has already been released shall be computed and paid over on or
       before 15 June 2024.
14     The officers governed by this batch and other similarly placed officers
       would be entitled to ECHS benefits as retired officers.
15     Apart from the above directions, Mr R Balasubramanian clarifies that
       while the PPO indicated that it will be for “life”, this would not in any
       way debar the appellants from the benefit of any revised fixation of
       pension as and when it becomes due and payable. The PPOs, it
       has been submitted, shall also be corrected, since they erroneously
       referred to the applicants as having been ‘released’. This shall be
       corrected in terms of the judgment dated 16 November 2022 before
       15 June 2024.
16     The above directions resolve the grievances of the appellants-
       applicants. Accordingly, the Miscellaneous Application shall stand
       disposed of.
17     Pending application, if any, stands disposed of.


       Headnotes prepared by: Nidhi Jain                     Result of the case:
                                                         Application disposed of.


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WG CDR A U TAYYABA (RETD) & ORS. versus UNION OF INDIA & ORS. — 2024 INSC 311 - Legal Desk AI