Armed Forces Tribunal
Cdr Mukut Bihari (Retd) vs UOI & Others on 26 February 2026
ARMED FORCES TRIBUNAL, REGIONAL BENCH, JAIPUR
7.
OA 301/2024
No 88591T Cdr Mukut Bihari (Retd), S/o Late Shri Mishri Lal, Resident of Village and Post Dhikoliya, Tehsil Uniara, District Tonk, Rajasthan, PIN 304
…. Applicant
Versus
1.
UOI, through the Secretary, Ministry of Defence, Govt of India, New Delhi – 110 011
2.
The PCDA (P), Draupadi Ghat, Prayagraj, UP – 210 114
3.
The Commodore, Dte of Pay and Allowances (DPA), IHQ of MoD
(Navy), Room No 108, NHQ Annexe, Talkatora Stadium, New Delhi –
110 001
…. Respondents
For Applicant
: Mr DR Choudhary, Proxy for
Mr. Rameshwar Lal, Advocate
For Respondents
: Mr. Sudesh Chand Sharma, Advocate
CORAM:
HON’BLE MR. JUSTICE GOVERDHAN BARDHAR, MEMBER (J)
HON’BLE MR. SANJIV MITTAL, MEMBER (A)
Citations and Judicial Treatment
Cited by
0
Decisions in the index citing it
Cites
0
Decisions referred to
In this index
0
Of the decisions it cites
Overruled / Questioned
0
No negative treatment found
Loading the citing and cited decisions…
This judgment in the centre: on the left the decisions it cites, on the right the decisions citing it. Colour is the treatment; choose a decision to open it.
O R D E R
26.02.2026
1. Under Section 14 of the Armed Forces Tribunal Act 2007, the Applicant has filed this OA praying for directing the Respondents to refrain from further recovery of commuted value by way of granting stay on recovery. He has further prayed for directing the Respondents to restore commuted value with effect from Aug 2023, taking 31/1/2012 as absolute value date and that Respondents to refund the excess amount recovered over and above the commuted value from the applicant. Also direct the Respondents to pay the arrears with permissible interest @12% per annum as well as costs of the litigation.
2. Brief facts of the case as enunciated by the applicant are that the applicant was commissioned in the Navy on 01/4/1986 and retired from service on superannuation on 31/12/2011, after rendering 35 years, six months and three days of qualifying service, which includes nine years, nine months and three days of Pre-commissioning service. He was granted service pension for the qualifying service. On retirement, the applicant commuted part of his pension and received a sum of Rs 16,29,986/- as the commuted value of pension for which recovery @Rs 15,745/- per month is being made from his pension account wef January 2012. The commuted value is to be fully recovered in 180 equal instalments @Rs 15,745/- pm in 15 years wef absolute date, ie, 31/1/ 2012. Hence, the recovery towards the commuted value will continue to be made till 01/2/2027 as per the Pension Slip and old commutation table. Based on the implementation of 6th CPC and letter dated 02/9/2008, revised commutation table was issued fixing interest on commuted value @8% per annum, which was made applicable to all Central Govt employees irrespective of ministries. As per mechanical calculation, the commuted value of Rs 16,29,986/- and interest thereon with monthly recovery of Rs 15,745/- stands fully recovered by 31/7/2023 in 11 years and six months (138 months). However, despite several representations and legal notice to the Respondents praying for restoration of commuted value and refund the amount already recovered after July 2023 over and above the authorized Rs 3,386/- pm interest @12% per annum has been rejected by the Respondents. In support of his arguments, the applicant has placed reliance, inter alia, on the Order dated 03/5/2023 passed by the Hon’ble High Court of Punjab and Haryana in the case of Shila Devi &Ors Vs State of Punjab and Others, in WP No 9426/2023. Having been aggrieved, the applicant has filed this OA praying for relief.
3. We have heard the counsels for the parties and perused the material on record.
4. Perusal of record reveals that while the Respondents have not filed their Reply Statement in this matter, it is evident that the applicant retired from Naval service on superannuation wef 31/12/2011. He had rendered more than 35 years of service for which he was granted service pension for the qualifying service. The applicant had voluntarily opted to avail lumpsum amount of Rs 16,29,986/- as the commuted Value of his pension, which as per the policy in vogue is to be refunded in equated monthly instalments of Rs 15,745/- pm for a period of 15 years, ofwhich the applicant was fully cognizant of at the time of exercising his option to commute his pension.
5. In view of the foregoing and since the applicant availed the lumpsum amount at the time of his superannuation and given the fact that grant of commutated value of pension at the time of retirement of Central Govt employees and its recovery over a period of fifteen years are a policy matter of the Govt of India, which has also been asserted by the Hon’ble Apex Court, we do not find it expedient to interfere in this matter till the Govt enacts a change in policy so far as reduction in duration of recovery from the existing 15 years is concerned. Therefore, the prayer of the applicant is rejected.
6. The OA is disposed off accordingly. No order on costs.
(SANJIV MITTAL)
(GOVERDHAN BARDHAR) MEMBER (A)
MEMBER (J)
cda/-