Ex Nb Sub Radhey Shyam Yadav (Army) vs UOI & Others on 26 March 2026

O R D E R

26.03.2026 MA No 77/2019

1. The applicant has filed this MA praying for condonation of delay of five years, six months and five days involved in filing the OA. The MA would be considered alongwith the main OA.

OA No 70/2019

2. Under Section 14 of the Armed Forces Tribunal Act 2007, the applicant has filed this OA praying for directing the Respondents to grant rounding off benefits ofdisability element of disability pension to the applicant from 20% to 50% wef 01/5/2012 for life and release Army Group Insurance Benefits for the disability of the applicant alongwith interest @12% per annum from the date of his discharge/invalidation from the service. He has also prayed for grant of any other relief which the Hon’ble Tribunal deem fit as also award of cost to the applicant.

3. Brief facts of the case as enunciated by the applicant are that the applicant was enrolled in the Army on 08/4/1986 and was discharged from service on 30/4/2012 under rule 13 (3) Item III (i) and was granted service pension for life. At the time of his dischargedfrom service, since the applicant was in low medical category, the disability of the applicant was assessed @20% for life and considered it as aggravated by military service. However, rounding off benefits and AGIF benefits for the disability have not been paid to the applicant. Having been aggrieved, the applicant has filed this OA praying for relief.

4. The Respondents have filed their respective Reply Statements. The Respondent Nos 1, 3 and 4 have stated that the applicant was discharged from service wef 01/5/2012 on fulfilling the conditions of his enrolment under Rule 13

(3) item III (i) (a) of Army Rules 1954. He had rendered 26 years and 23 days of service and was granted service pension for the qualifying service, which has been revised from time to time. Since the applicant was in low medical category for his disability, “Segmental FractureRt Leg Tibia Fibula with delayed Union (Optd)”, the RMB assessed the said disability @20% for life and considered it as attributable to military service and accordingly, he was granted disability element of disability pension for life. The Respondents have further submitted that in terms of Govt of India, Ministry of Defence letter dated 23/1/2018, since the applicant was discharged from service on completion of his terms of engagement, he is eligible for grant of broadbanding benefits wef 01/1/2016, for which the PDAs are authorized to revise it without any further authorization or issuance of PPO. However, the applicant has neither made any complaint nor had approached the PDA for getting the needful done. Further, in terms of extant policy, the applicant is not eligible for grant of AGIF benefits as he was discharged from service on completion of his terms of engagement and not invalided out from service.

5. Respondent No 2, ie, Army Groups Insurance Fund, has also filed a detailed Reply Statement and has submitted that since the applicant was discharged from service on completion of his terms of engagement and not on any medical grounds nor invalided out from service, as per eligibility rules of the AGIF , ie, in terms of Paragraph 59 (a) and (e) of Army Order No 23/2002/AGI, the applicant is not entitled for grant of disability benefit under disability benefit scheme of Army Group Insurance Fund. The applicant is in receipt of both service and disability pension. Moreover, AGIF functions under its own Rules and Bye-Laws of the Society which are approved by the Board of Governors and the Army Act, 1950 has no application on AGIF. It is not even registered with Insurance Regulatory and Development Authority (IRDA) and the AGIF is not carrying out insurance business but it is carrying out a social responsibility for the upkeep of morale and well being of Army personnel. The Group scheme was designed to be run by pooling in money from all the members of the scheme and giving payouts to eligible members out of such money and continues to do so even today. The Govt approved deductions of monthly subscription for the scheme from the pay and allowances of the members under Rule 205 (b) of the Army Rules, 1954. To buttress their view point, they have cited Order dated 30/8/2017 passed by the Chandigarh Bench of the Armed Forces Tribunal in the case of Major Manmohan Krishnan (Retd) Vs UOI &Ors, wherein the contention of the AGIF that the disability benefit under the Scheme is not applicable to an applicant who was discharged/released at his own request in Low Medical Category was upheld. The appeal filed by the applicant therein before the Hon’ble Apex Court in Civil Appeal No 1667 of 2018, was also dismissed by the Hon’ble Apex Court vide Order dated 08/5/2020, giving finality on the issue. Review Petition No 823/2020 in CA No 1667/2018 was also dismissed by the Hon’ble Apex Court vide Order dated 08/5/2020.

6. During the course of hearing, Counsel for the Respondent No 2, ie, Army Group Insurance Fund has placed on record copies of Orders passed by the Principal

Bench and other coordinate Bench of the Armed Forces Tribunal, wherein plea of the applicants therein was rejected on the ground that the applicants were not invalided out from service, but were discharged from service and, hence, not entitled to the benefit of disability benefits under Army Group Insurance Scheme. The Counsel has also stated that the Appeal No 35935/2015 filed by them before the Hon’ble Apex Court against the Order dated 19/2/2014 passed by the Chandigarh Bench of the Armed Forces with regard to jurisdiction of Armed Forces Tribunal to adjudicate upon the claims of the applicant for grant of AGIF benefits have been withdrawn from the Apex Court and, therefore, AFTs can adjudicate upon the matters relating to AGIF.

7. We have heard the counsels for the parties and perused the material placed on record.

8. It is evident from the material on record that the applicant was discharged from service on completion of his termsof engagement after rendering more than 26 years of service for which he was granted service pension for life. The RMB assessed the disability of the applicant, “SegmentalFracture Rt Leg Tibia Fibula with delayed Union (Optd)” @20% for life and considered it as attributable to by military service. He was granted disability element of disability pension for life. Perusal of record reveals that the AGIF scheme is not admissible to such personnel :- (a) whose disability is detected at the time of proceeding on normal pension/discharge/release on completion of terms of engagement or service limits for the rank/age of superannuation; and (b) who serves upto the laid down age of retirement or service limit for the rank even though with disability (20% and above).

9. In view of the foregoing and since the applicant was discharged from service wef 01/5/2012 on fulfilling the conditions of his enrolment under Rule 13 (3) item III (i) of Army Rules 1954 and is in receipt of service pension and disability element of disability pension for life, the applicant is not eligible for grant of any disability benefits under the scheme of AGIF. He has already been granted admissible insurance maturity benefits amounting to Rs 2,23,347/- (Rupees TwoLac Twenty Three Thousand Three Hundred and Forty Seven only) at the time of his discharge from service by the AGIF. We, therefore, find no illegality or infirmity in this matter wherein AGIF disability benefit has been denied to the applicant. The prayer of the applicant for grant of disability benefits under AGIF benefits has no merit and is, therefore, rejected. However, the applicant is eligible for grant of benefit of broadbanding of his disability element of disability pension from the existing 20% to 50% for life, if not already granted. Even if the broadbanding benefit has been extended to the applicant already wef 01/1/2016 as stated by the Respondents in their Reply Statement, further revision, if eligible, shall be done in terms of Judgment dated 12/2/2026 passed by the Hon’ble Apex Court in the case of UOI through its Secretary &Ors, Vs Sgt Girish Kumar &Ors. Etc with others, in Civil Appeal No 6820-6824 of 2018. The arrears, if any, shall be paid to the applicant within a period of six months from the date of receipt of a copy of this Order, failing which, the applicant shall be entitled to receive interest @6% per annum till the date of its actual payment.

10. The OA is disposed offwith the above directions. No order on costs.

11. Pending application, if any, also stands disposed off.

(SANJIV MITTAL)

(GOVERDHAN BARDHAR) MEMBER (A)

MEMBER (J)

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