Ex Naik Jagdeva Ram (Army) vs UOI & Others on 26 March 2026

1. 1. UOI, through the Secretary, Ministry of Defence, South Block, New Delhi – 110 011

2. 2. PCDA (P), Draupadi Ghat, Prayagraj, UP – 211 014

3. 3. The Managing Director, Army Group Insurance Fund, AGI Bhawan, Rao Tula Ram Marg, Post Bag No 14, PO Vasant Vihar, New Delhi – 110 057

4. 4. The OIC Records, AMC Records, PIN 900 450, c/o 56 APO

.... Respondents

सत्यमेव जयते

**For Applicant**

**For Respondents**

**Mr. Sunil Kumar, Advocate** **Mr. Shree Narayan Swami, Advocate (R1,2,4)** **Mr. BL Doot, Advocate (R3)**

**CORAM:**

**HON'BLE MR. JUSTICE GOVERDHAN BARDHAR, MEMBER (J)** **HON'BLE MR. SANJIV MITTAL, MEMBER (A)**


1. Under Section 14 of the Armed Forces Tribunal Act 2007, the applicant has filed this OA praying for directing the Respondents No 3 to release Army Groups Insurance Benefits for the 20% disability of the applicant alongwith interest @12% per annum from the date of discharge of the applicant. He has also prayed for grant of any other relief as applicable to the applicant as also award cost of the application.

2. Brief facts of the case as enunciated by the applicant are that the applicant was enrolled in the Army on 18/12/2004 and was discharged from service on 31/10/2020 after serving for 15 years, 10 months and 14 days of service, for which he was granted service pension for life. While in service the applicant suffered from a disability which was assessed @more than 20% for life at the time of his discharge from service. However, AGIF benefits for the disability has not been paid to the applicant. Having been aggrieved, the applicant has filed this OA praying for relief.


3. During the course of hearing, Counsel for the Respondent No 3, 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of Armed Forces Tribunal to adjudicate upon the claims of the applicant for grant of AGIF benefits have been withdrawn from the Apex Court and, therefore, AFTs can adjudicate upon the matters relating to AGIF.

4. While the Respondent Nos 1, 2 & 4 have not filed their reply statement, Respondent No 3, ie, Army Group Insurance Fund, has filed a detailed Reply Statement. At first, the AGIF has submitted that the applicant was discharged from service wef 31/10/2020 on compassionate grounds at his own request before completion of his terms of engagement under Rule 13 (3) item III (iv) of Army Rules 1954. He was neither discharged from service on any medical grounds nor invalided out from service. Hence, as per eligibility rules of the AGIF, ie, in terms of Paragraph 59 (c) 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. Moreover, the policy for payment of Disability Benefit has been modified from "AGIF Disability Benefit Scheme" to "AGIF Medical Benefit Scheme for Non pensioners" with effect from 01/5/2018 vide AGIF Policy letter No A/56271/R/AG/Ins (Coord) dated 24/4/2018, which primarily lays down that the individuals to be eligible to receive benefits from AGIF Medical Benefits Scheme for Non Pensioners should not be in receipt of any kind of pension, ie, Service Pension or Disability Pension. The applicant is in receipt of both service and disability pension and, hence, on such count also he is not entitled for grant of AGIF Medical Benefits Scheme for Non Pensioners, the AGIF policy applicable at the time of his discharge from service. 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 stated that 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. 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 the 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.

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

6. It is evident from the material on record that the applicant was discharged from service after rendering a little over 15 years at his own request on compassionate grounds under Rule 13 (3) item III (iv) of Army Rules 1954 for which he was granted service pension for life. The RMB assessed the disability of the applicant, "PIVD", @20% for life and considered it as aggravated by military service due to stress and strain of service. Accordingly, he was also granted disability element of disability pension for life. Perusal of record reveals that vide letter dated 24/4/2018 enacted and circulated by the Army Group Insurance Fund with the prior approval of Chairman Board of Governors, made effective wef 01/5/2018, wherein the existing "AGIF Disability Benefit Scheme" has been changed to "AGIF Medical Benefit Scheme for Non Pensioners", would be applicable to those invalided out from service by IMB and who are not in receipt of any pension and those individuals whose service is cut short on medical grounds and who are not in receipt of any pension. Further, as per the earlier policy for grant of Army Group Insurance Fund Disability Benefit circulated vide their letter dated 15/12/1989 was made eligible for personnel who were discharged in low medical category with 40% and above disability in Category BEE or CEE prior to completion of their service on the grounds of non availability of sheltered appointments or being surplus to sanctioned manpower. Also, as per the earlier policy, the benefit was also not admissible to personnel proceeding on discharge at own request or after expressing unwillingness to serve in sheltered appointment or due to any other reason.

7. In view of the foregoing and since the applicant was discharged from service at his own request wef 31/10/2020 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 modified disability scheme of AGIF. He has already been granted admissible insurance maturity benefits amounting to Rs 4,59,728/- (Rupees Four Lac Fifty Nine Thousand Seven Hundred and Twenty Eight) by the AGIF through NEFT on 31/10/2020. We, therefore, find no illegality or infirmity in this matter wherein AGIF disability benefit has been denied to the applicant, warranting our interference. The prayer of the applicant for grant of disability benefits under AGIF benefits has no merit and is, therefore, rejected.

8. The OA is dismissed. No order on costs.

Sd/-XXX

Sd/-XXX

(SANJIV MITTAL) MEMBER (A)

(GOVERDHAN BARDHAR) MEMBER (J)

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