Ex Sub Shambu Singh Rajawat vs UOI & Others on 28 April 2026

**ORDER**

**28.04.2026**

1. Under Section 14 of the Armed Forces Tribunal Act 2007, the applicant has filed this OA praying for directing the Respondents to stop further deduction on account of recovery of commuted value of pension with immediate effect and refund the extra instalments recovered from the Applicant wef 01.10.2024, ie., after 12 years and one month of recovery or any other earlier date as decided by the Hon'ble Tribunal.

2. Brief facts of the case as enunciated by the Applicant are that the Applicant was enrolled in the Army on 02.08.1984 and after rendering more than 28 years of service, he was discharged from Service on 31.08.2012 for which he has been granted Service Pension for life wef 01.09.2012. At the time of discharge, the Applicant opted for commutation of pension which was calculated to be Rs. 6,40,132/-. In terms of law settled by the Hon'ble Supreme Court vide their Judgment dated 09.12.1986 in *Writ Petition Nos 3958-61 of 1983, "Common Cause" Society and Others (Petitioners) Vs UOI (1987) (1) SCC 142 in 1986*, the period of recovery was retained at 15 years with recovery in 180 equal monthly instalments. It is an undisputed fact that the rate of interest since year 2001 has been slashed considerably. At the time of retirement of the Applicant, the prevailing rate of interest was @ 8% per annum which shows that the commutation amount disbursed to the Applicant has not been at the subsidized rate. By the interest rate prevailing at the time of his discharge, the commuted amount along with interest would be refunded in 12 years and one month only and, hence, recovery of the above amount after 12 years and one month is exploitation of the Applicant, especially considering that ours is a welfare state. The Applicant submits that India being a welfare state is expected to be considerate to the genuine and legitimate aspirations of its citizens, particularly senior citizens but contrary to these facts, the Respondents continued to charge higher rate of interest which is arbitrary, unfair, illegal and unconstitutional and against the principles of natural justice. The Applicant has placed reliance on Hon'ble Punjab & Haryana High Court Order dt 09.02.2024 in CWP No 2490/2024 in the case of **Ram Saroop Jindal Vs State of Punjab & Ors** and submits that further recovery of the commuted portion from their pension has been stayed. In view of the aforesaid averments, the Applicant has filed present OA.

3. The Respondents have filed a detailed Reply Statement and while not disputing the basic facts presented by the Applicant, they have submitted that the Applicant was paid capitalised value of pension portion @ 50% as per his willingness. As per Para 163 of Pension Regulations for the Army, 2008 (Part-1), the pensioners who have commuted the admissible portion of pension are entitled to have the commuted portion of pension restored after 15 years. The restoration may be reckoned from the date of discharge itself only in cases where commutation of pension was notified simultaneously with any kind of pension. In all other cases where commutation of pension led to a reduction in second or subsequent months, 15 years will be reckoned from the date of commutation, i.e., from the date on which reduction in pension on account of commutation became effective. Further, as per Para 33.1 of Defence Pension Payment Instructions (DPPI), 2013, the commuted portion of pension of a pensioner will be restored by the Pension Disbursing Agency (PDA) on completion of 15 years from the date of reduction in pension, without waiting for any formal application from the pensioner. In the present case, the Applicant had willingly opted for commutation of his pension and, accordingly, the same stands notified in the PPO issued by the PCDA (P), Allahabad in favour of the Applicant under the existing provisions on the subject and the deduction of the same has correctly been shown in the PPO of the Applicant. In view of the aforesaid averments, the Respondents have reiterated that the OA is devoid of merit and deserves to be dismissed.

4. We have heard Counsels for both the parties and perused the record placed before us.

5. In this context, relevant portion of the Office Memorandum No 4/1/2025-P&PW(D)-Part (2)/E-10640 dated 23/7/2025 issued by Govt of India, Department of Pension and Pensioners Welfare reiterates that at present the period of recovery of commuted period stands at 15 years. This OM is based on Hon'ble Supreme Court orders and all the petitions filed to the contrary have since been dismissed by the Hon'ble Apex Court which has been depicted in the Govt of India, Department of Pension and Pensioners Welfare letter *ibid* as follows:- *"the law regarding commutation has been well settled by the Hon'ble Supreme Court vide their Judgment dated 09/12/1986 in Writ Petition Nos 3958-61 of 1983, "Common Cause" Society and Others (Petitioners) Vs UOI (1987) (1) SCC 142 in 1986. The Hon'ble Supreme Court considered all relevant factors like interest rate, mortality rate etc and the commutation table in existence in 1986 and gave a decision that the commuted period should be fixed at 15 years. The Hon'ble Delhi High Court in their judgment dated 17/1/2019 in WP (C) No 1222/2015 filed by the Forum of Retired IPS Officers (FORIPSO) Vs UOI & Anr observed that the pension, commutation of pension etc are policy matters, which are examined and decided on the basis of recommendations of the Pay Commissions by the authorities. Further, the Hon'ble Supreme Court of India in its judgement dated 15/4/2019 in Petition(s) for Special Leave to Appeal (C) No(s) 8852/2019 (arising out of the Impugned final judgment and Order dated 17/1/2019 in WP (C) No 1222/2015 passed by the Hon'ble High Court of Delhi at New Delhi) delivered that "we have no reason to entertain this petition. Accordingly, the special leave petition is dismissed".*

6. In view of the foregoing, it is crystal clear that restoration of full pension after a certain period, which is 15 years at present, is a matter of Govt Policy which entails deduction of commuted portion of pension for 15 years from the date of discharge/retirement or from the date of such commutation, as the case may be, of an individual. Moreover, the applicant retired from service on 31.08.2012 on completion of terms of engagement and the mandated 15 years of deduction of commuted portion of pension would be over only in August 2027. Therefore, we are not inclined to entertain this OA and the OA is dismissed being devoid of merit. However, any benefit, if any, that may accrue to the retired/ discharged personnel with regard to period of recovery of the commuted amount, based on the subsequent policy decision by the Govt of India, in future, the same will also be implemented for the Applicant, if eligible, under those orders.

7. The OA is dismissed. Pending Miscellaneous Application(s), if any, also stand disposed off.

8. No order on costs.

SNXXXX

SDXXXX

(SANJIV MITTAL) MEMBER (A)

(GOVERDHAN BARDHAR) MEMBER (J)

Ssy/-