Ex Nk Parta Ram Kumhar vs UOI & Others on 8 April 2026

O R D E R

08.04.2026

1. Under Section 14 of the Armed Forces Tribunal Act 2007, the applicant has filed this OA praying for directing the Respondents to refrain from further recovery of commuted value of pension, restore commuted value of pension on completion of 138 months wef Nov 2021 and return extra instalments recovered from the Applicant wef Nov 2021 along with interest on arrears @ 12% per annum and also to pay the costs of litigation.

2. Brief facts of the case as enunciated by the Applicant are that the Applicant was enrolled in the Army on 04.06.1987 and after rendering more than 22 years of service, he was discharged from Service on 31.03.2010 for which he has been granted Service Pension for life wef01.04.2011. At the time of discharge, the Applicant opted for commutation of pension which was calculated to be Rs. 6,36,372/- and the same has to be refunded in 180 equated monthly instalments @ 12% per annum, as against the existing interest @ 8% per annum. The Hon’ble

Punjab and Haryana High Court in its judgment dt 03.05.2023 in the case of Shila Devi Vs State of Punjab &Ors in WP (CWP) No 9426/2023 and judgment dt 09.02.2024 in the case of Ram Saroop Jindal Vs State of Punjab &Ors in WPC No 2490/2024 held that commuted portion of the pension to be restored after 10 years and 8 months (128 months) instead of 15 years (180 months) as the recovery of commuted value of pension along with prescribed interest thereon @ 8% per annum stands already fully recovered in 128 months. Further, Hon’ble High Court of Kerala in WPC No 22753/2024 (T) in the case of All India Gref Ex Servicemen Welfare Association &Ors Vs UOI &Ors also adjudicated the identical matters and allowed the relief to the petitioner. Based on the aforesaid judgments, Coordinate Bench of Hon’ble AFT (PB), New Delhi in its judgment dt 24.07.2024 in OA No 2307/2024 in the case of Sub Trilok Chand Retd&Anr Vs UOI &Orshas stayed further recovery from the Applicant from the commuted value of pension. In view of the aforesaid averments, the Applicant has reiterated that non-restoration/withholding of commuted value of pension by the PDAs is wholly illegal and arbitrary and the Applicant is entitled for refund the excess amount recovered from the Applicant wef Nov 2021 on account of commuted value of pension along with interest @ 12% per annum. The Applicant issued Legal Notice to the Respondents for the above relief but to no avail. Therefore, the aggrieved Applicant has filed the 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 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 pension in second or subsequent months, 15 years will be reckoned from the date of commutation, ie., 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 made 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 Learned Counsels for both the parties and perused the record placed before us.

5. Hon’ble High Court of Delhi at New Delhi in its judgment dt 11.09.2024 in WP (C) 12781/2024 in the case of Union of India &Ors Vs Sub Trilok Chand Retd&Anrhas granted interim stay on operation of AFT (PB), New Delhi Order dt 24.07.2024 in OA No 2307/2024 in the case of Sub Trilok Chand Retd&Anr Vs UOI &Ors. Therefore, the Order passed by Hon’ble AFT (PB), New Delhi has not attained finality.

6. 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 which 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”.

7. 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 of an individual. Moreover, the applicant retired from service on 31.03.2010 and mandated 15 years of deduction of commuted portion of pension would be over only in April 2025. 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 decision by the Govt of India in due course of time the same will also be implemented for the Applicant, if eligible under those orders.

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

9. No order on costs.

(SANJIV MITTAL)

(GOVERDHAN BARDHAR) MEMBER (A)

MEMBER (J)

Ssy/-