Armed Forces Tribunal
Ex Hav Kanhiya Lal Dhakar vs UOI & Others on 25 March 2026
ARMED FORCES TRIBUNAL, REGIONAL BENCH, JAIPUR
15.
OA 367/2024
Army No 13971087M Ex Hav Kanhaiya Lal Dhakar, S/o Shri Madho Lal Dhakar, Resident of Village Nahara, Post Uniara, Tehsil Uniara, District Tonk, Rajasthan
…. Applicant
Versus
1.
UOI, through the Secretary, Ministry of Defence, Govt of India, New Delhi – 110 011
2.
The Finance Secretary, Ministry of Finance, Govt of India, Room No 129A, North Block, New Delhi – 110 001
3.
The PCDA (P), Draupadi Ghat, Prayagraj, UP – 210 114
4.
The Officer in Charge, Army Medical Corps Record Office, PIN 900
450, c/o 56 APO
…. Respondents
For Applicant
: Mr. Rameshwar Lal, Advocate
For Respondents
: Mr. Anil Bhardwaj, Advocate
CORAM:
HON’BLE MR. JUSTICE GOVERDHAN BARDHAR, MEMBER (J)
HON’BLE MR. SANJIV MITTAL, MEMBER (A)
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O R D E R
25.03.2026
1. Under Section 14 of the Armed Forces Tribunal Act 2007, the applicant has filed this OA to direct the Respondents :- (a) To refrain from the further recovery of commuted value of pension; (b) Restore commuted value on completion of 11 years and six months (138 months), counting from absolute value date;
(c) Refund extra instalments recovered from the applicant after 138 months from absolute date;
(d) Pay the arrears with permissible interest @12% pa and
(e) Pay the cost of the application and any other orders/directions which the Hon’ble Tribunal deem just and proper in the facts and circumstances of the case in favour of the applicant.
2. Vide Reply Statement, the Respondents have submitted that the applicant was enrolled in the Army on 29/11/1986 and was discharged from service 30/11/2010 on completion of his terms of engagement under Rule 13 (3) item I
(i) of Army Rules, 1954. He had rendered 24 years and one day of service and was granted service pension for life. Further, commuted value of pension shall be recovered in a period of 15 years from the date on which reduction in pension on account of commutation become effective. As per the ePPO issued by the PCDA (P), the restoration period of commuted value of pension of the account is 02/12/2025, -03/12/2025 and 02/1/2027 respectively.
3. During the course of hearing, Counsel for the Applicant submits that the issue regarding restoration of commuted value of pension is at present pending for adjudication before the Hon’ble Apex Court in the case of Ravinder Nath Sharma & Ors Vs State of Punjab & Ors against the Order dated 27/11/2024 passed by the Hon’ble Punjab and Haryana High Court. Notwithstanding the statement of the counsel for the applicant, the issue pending at present for adjudication before the Hon’ble Apex Court with regard to restoration of commuted value of pension pertains to the employees of Govt of Punjab whereas, the applicant herein is a Central Govt pensioner for whom 15 years is the mandated period for recovering the commuted value of pension and the Orders of the Hon’ble Apex Court in the ibid matter will not affect the employees of Govt of India.
4. With regard to recovery of commuted value of pension in respect of Central Govt employees, the relevant extract of 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, reads 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”.
5. 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, as stated by the Respondents vide their Reply Statement, the third tranche of commuted portion of pension of the applicant would be over on 02/1/2027. Therefore, we are not inclined to entertain this OA and the OA is dismissed being devoid of merit. However, any
additional benefit, if any, that may accrue to the applicant, shall only be based on the decision taken by the Govt of India in due course of time.
6. The OA is disposed off accordingly. No order on costs.
7. Pending application, if any, also stands disposed off.
(SANJIV MITTAL)
(GOVERDHAN BARDHAR) MEMBER (A)
MEMBER (J)
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