Ex Hav Ali Hassan Khan vs UOI & Others on 9 September 2026

O R D E R

09.09.2026

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 after 11 years and ten months of recovery or any other earlier date as decided by the Hon’ble Tribunal.

2. Vide Reply Statement, the Respondents have submitted that the applicant was enrolled in the Army on 21.10.1988 and was discharged from service on 31.10.2012 on completion of his terms of engagement. He had rendered 24 years and 11 days 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 PCDA (P) Circular No 191 dt 23.03.2017, the commutation of pension is/was simultaneous with the retirement, the commuted portion of pension shall be restored after expiry of 15 years with effect from the date of retirement, if payment of commuted value of pension is made during the first month of retirement leading to appropriate reduction on account of commutation in first pension itself. Further, Hon’ble High Court of Delhi in its judgment dt 11.09.2024 in Writ Petition No 12781/2024 in the case of UOI &Ors Vs Ex Sub Trilok Chand & Anr has directed that the operation of impugned Order on stay of the recovery/reduction of the commuted portion from the Respondents pension by accepting their plea that their full pension was required to be restored after 12 years as against the initially agreed period of 15 years for restoration thereof, will remain stayed. In view of the aforesaid averments, the Respondents have reiterated that the OA is devoid of merit and deserves to be dismissed.

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. 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”.

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. 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. Pending Miscellaneous Application(s), if any, also stands disposed off

7. No order on costs.

(SANJIV MITTAL)

(GOVERDHAN BARDHAR) MEMBER (A)

MEMBER (J)

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