Hony Lt Dharampal Singh Janu (Army) vs UOI & Others on 29 October 2025

O R D E R

29.10.2025

1. Under Section 14 of the Armed Forces Tribunal Act 2007, the Applicant has filed this OA praying for grant of :- (a) Two annual increments for the year 2016 and 2017 and pay and pension be re-fixed in Pay Band of Rs 82,400/-.

(b) Group X Pay @Rs 6200/- pm.

(c) Arrears of Third ACP with interest @24% wef 22/8/2011.

(d) Military Service Pay of the level 10 @ Rs 15,500/- pm.

(e) The action of the Respondents in deducting the amount of Rs 2,94,000/- in lieu of loan of Rs 90,000/- taken in the year 1990 may be declared as illegal.

(f) LTC and Luggage.

(g) Further, the Respondents may be directed to issue amended PPO and all the consequential benefits be paid alongwith arrears and interest @12% per annuam.

(h) Cost of litigation may also be imposed.

2. Brief facts of the case as enunciated by the applicant are that the applicant was enrolled in the Army on 22/8/1987 as a direct entry Nb Sub and was discharged from service on 31/8/2017. He was granted third MACP of the rank of Hony Lt and was placed at Level 10 and the pay was fixed accordingly. While fixing the pay at the time of retirement the applicant was considered as ACP Hony Lt in Pay Matrix 10 and was placed in the pay band of Rs 77,700/- and Grade Pay of Rs 3600/- with Military Service Pay of Rs 5200/- and the arrears were payable wef 01/1/2016, but no increments for the years 2016 and 2017 were granted and scale of Grade Pay and MSP were also not fixed correctly. Further, against the incorrect fixation of pay and pension, the applicant submitted a Representation which was not replied to by the Respondents and the pay was not revised according to the entitlements of the applicant. While issuing the final statement of accounts, the Respondents deducted an amount of Rs 2,94,000/- for a loan of Rs 90,000/- taken by the applicant in the year 1990 as a temporary fund withdrawal without any prior information and the compound interest @24% per annam was imposed. The Respondents in their reply dated 27/10/2017 admitted the claim of the applicant and attributed the wrong fixation and recovery to the system and non availability of policy letter, Annexure A/5. Having been aggrieved, the applicant has filed this OA, praying for relief.

3. While not disputing the basic facts, the Respondents, in their Reply Statement, have submitted that the applicant was discharged from service on 31/8/2017 and the LPC was issued as per 6th CPC with Basic Pay of Rs 26,630/-,

Grade Pay Rs 5400/-, MSP @Rs 2000/- and X Group Pay of Rs 1400/-. Further, the applicant was granted Third MACP wef 22/8/2011 which has also been reflected in the PPO dated 01/9/2017 issued by the PCDA (P) as per the 6th CPC. Revision of pay as per 7th CPC has also been carried out in the month of December 2017. Sinced the programme was received from ITSDC, Secunderabad in Feb 2018 in respect of non effective personnel, pay of the applicant has been fixed in the level 10 with basic pay of Rs 82, 400/-, MS Pay @Rs 5200/- and Rs X Pay @Rs 3600/- and accordingly, LPC was forwarded to the PCDA (P) vide their letter dated 27/12/2017. Thus, all the dues as per the entitlement of the applicant have alreay been paid to the applicant in March 2018 after generation of arrears through the prevailing system. As regards the withdrawal of Rs 90,000/- as temporary advance from the AFPP Fund in 1999, the same could not be recovered due to some reasons. At the time of Final Settlement of Accounts, the same was noticed and an amount of Rs 294,230/- was recovered which included interest. Respondents also submit that it was the duty of the applicant to intimate the PAO (OR) about the non recovery of the said loan amount.

4. We have heard the counsels for the parties and perused the material placed on record.

5. It is evident from the reply statement filed by the Respondents that all due amount as entitled to the applicant have been paid in March 2018 after rectification of technical problem. As regards the contention of the counsel for the applicant that a hefty interest has been levied on the temporary advance taken from the AFPP Fund of the Applicant, Senior Panel Counsel appearing for the Respondents submits that annual compound interest @10% has been charged on the borrowed sum but 10% interest has also been paid to the applicant on the accumulated fund balance as this was not payable to the applicant and had been paid on the amount of withdrawal from the Fund which was not due to him. Hence, it is clear that no amount of interest has been recovered without any valid reasons. As regards any pending claim of the applicant, it is directed that the applicant may make a Representation to the Record Office within a period of one month from the date of receipt of a copy of this Order.

6. During the course of hearing, the Counsel for the Applicant stated that the arrears of his corrected pay and pension were paid in the year 2020 whereas the Respondents have mentioned that the arrears were to be paid in March 2018. Respondents are directed to verify the actual date of disbursement of arrears at their end and if it is found that the payment of arrears was made in 2020, the Respondents shall pay a lumpsum compensation of Rs 10,000/- (Rupees Ten Thousand only) to the applicant within a period of four months from the date of receipt of a copy of this Order.

7. The OA is disposed off accordingly.

8. Pending application, if any, also stands disposed off.

(SANJIV MITTAL)

(GOVERDHAN BARDHAR) MEMBER (A)

MEMBER (J)

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