Smt Jajab Devi wdo Late Rect Khinwa Ram vs UOI & Others on 17 December 2025

O R D E R

17.12.2025

1. By way of this Application under Section 14 of the Armed Forces Tribunal Act 2007, the Applicant has prayed for directing the Respondents to grant interest @ 8% per annum on the delayed payment of arrears of Special Family Pension from January 2006 to July 2021 as per the guidelines issued vide Reserve Bank of India Master Circular dt 01.07.2013 and PCDA (P) Circular No 165 dt 22.02.2013.

2. The brief facts of the case as enunciated by the Applicant are that after expiry of her husband on 15.06.1985, the Applicant was granted Special Family Pension wef 16.06.1985 till remarriage or for life vide PPO No

F/364/86. On implementation of 6th CPC, the Special Family Pension has not been revised wef 01.01.2006 by the Pension Disbursing Agency (PDA), ie., Central Bank of India. After protracted correspondence for 15 years, the PDA revised her Special Family Pension in July 2021 and paid the arrears without interest. The Applicant contended that the PDA was duty bound to revise her Special Family Pension and granted her the same after a delay of 15 years, therefore, the PDA is liable to pay interest on arrears @ 8% in terms guidelines issued vide Reserve Bank of India Master Circular dt 01.07.2013 and PCDA (P) Circular No 165 dt 22.02.2013. The Applicant has also placed reliance on the judgment of Hon’ble Supreme Court in the case of State of Punjab Vs Iqbal Singh, AIR 1976 : [1976(1)SLR 525 (SC)] and State of Kerala Vs M. Padmanabhan, AIR 1985 SC 356 : [1985 (1) SLR 750 (SC)] and reiterated that the Respondents are liable to pay interest on arrears @ 8% per annum. The Applicant made representation for grant of interest on arrears but to no avail. Therefore, the aggrieved Applicant has filed present OA.

3. The Respondents (R1-3) have filed detailed Reply Statement and while not disputing the basic facts presented by the Applicant, they have submitted that on implementation of 6th CPC, the Applicant was eligible for revision of her Special Family Pension, however, the same was not revised by PCDA (P)/ CPPC/PDA. In terms of RBI Circular dt 02.07.2012 and PCDA (P) Circular No 165 dt 22.02.2013, the Applicant is eligible for grant of interest @ 8% on arrears. PCDA (P), Prayagraj, CPPC and PDAs are the sole authorities for revision of pension and release arrears thereof as per existing policies/circulars issued by the Govt of India from time to time. On receipt of representation, her case was examined by CPPC and the arrears have been released on 29.07.2021.

4. The Respondents (R4&5) in their Reply Statement have submitted that the duty to revise the Applicant’s Special Family Pension wef 01.01.2006 as per 6th CPC lies with the PCDA (Respondent No-2) and not the PDA (Bank). The PDA never received any instructions for such revision until the letter dt

28.06.2021. Even if any representation was submitted to the PDA, the PDAs role is limited to forwarding it to the Competent Authority, ie., PCDA (P) as the PDA itself cannot take any action on revision. The delay in payment of arrears was not on part of the PDA and on receipt of instructions vide PCDA (P) letter dt 28.06.2021, the payment of arrears amounting to Rs. 12,07,359/- was promptly processed and amount credited in the Applicant’s account on 29.07.2021. In view of the aforesaid averments, the Respondents (R4&5) have reiterated that the delay was not on their part and they are not liable to pay interest on arrears.

5. We have heard Learned Counsels for both the parties and perused the material placed before us.

6. On implementation of 6th CPC, Pension of Pre 2006 Armed Forces Pensioners/ Family Pensioners was revised vide Govt of India, Ministry of Defence, Department of Ex-Servicemen Welfare letter No 17(4)/2008(1)/ D(Pen/Policy) dt 11.11.2008, wherein detailed instructions on revision of pension were issued and the PDAs were authorized to revise the pension without any further authorization from the concerned Pension Sanctioning Authorities, the relevant paragraphs of which reads as under:-

“16. Methodology for Implementation and Reporting 16.1. All Pension Disbursing Agencies handling disbursement of pension to the Defence Pensioners are hereby authorized to pay pension/family pension to existing pensioners/family pensioners at the consolidated rates in terms of Paras 4.1 and 5 above without any further authorization from the concerned Pension Sanctioning Authorities.

16.2. For revision of pension/family pension in terms of Para 4.1 above, a table indicating the existing pension/ family pension with and without dearness pension, the consolidated pension/family pension and the monthly difference payable from 1.1.2006 of pension/family pension due upto 31.12.2008 is enclosed for ready reference as Annexure-I to these orders. Except for the category of pensioners mentioned at Para 11 above, this table may be used where the pensioner/family pensioner is in receipt of single pension only. The amount indicated under column 4 to 9 of Annexure-I may be used for payment of arrears upto the month upto which arrears will be paid after due check. Where a pensioner is not in receipt of dearness pension/dearness relief, the amount indicated under column 4 to 9 of the Annexure-I, will not be used and the PDAs will themselves workout the amount of difference payable as arrears in such cases.

16.3. For revision of pension/family pension in terms of the provisions as at Para 5 above, concordance tables as per Annexure – II for Pre-1.1.2006 commissioned officers pensioners/family pensioners and Annexure - III for PBOR pensioners/family pensioners are enclosed. Revision of pension/family pension in all cases where fixation of pension as at Para 5 above is more beneficial than the pension arrived at as per Para 4.1 above, will be carried out by all the Pension Disbursing Agencies (PDAs) handling payment of pension to Armed Forces pensioners in terms of these tables and the revised pension together with arrears thereof worked out and be paid immediately. Dearness relief at the rates notified from time to time will also be admissible on such revised pension.

16.4. A suitable entry regarding revised pension with effect from 1.1.2006 fixed in terms of Paras 4.1 and 5 above as the case may be, will be recorded by the Pension Disbursing Agencies in the Pension records of the pensioners viz. Pension Payment Order, Check register/Pension Payment scroll register. An intimation regarding disbursement of revised pension may be sent by the Pension Disbursing Agencies to the Office of PCDA (P), Allahabad in format prescribed as at Annexure-IV to these orders so that the later can update its records. A copy of the said Annexure-IV may invariably be provided by the PDAs to the pensioners concerned for their information. An acknowledgement shall be obtained by the Pension Disbursing Agencies from Office of PCDA (Pensions), Allahabad in token of receipt of the requisite Annexure-IV sent to PCDA(P) Allahabad.”

7. Further, PCDA (P) vide their Circular No 397 dt 18.11.2008 have authorised the Pension Disbursing Agencies (PDAs) to pay the pension to the existing pensioners/family pensioners at the consolidated rates in terms of Govt of India, Ministry of Defence letter dt 11.11.2008, the relevant Paragraphs of which read as under:- “14. Methodology for Implementation and Reporting.

14.1. The Government has authorised the Pension Disbursing Agencies to pay pension/family pension to existing pensioners/family pensioners at the consolidated rates in terms of Para 4.1 and para 5 of Ministry of Defence letter dated 11.11.2008 without any further authorization from the concerned Pension Sanctioning Authorities.

14.2. A suitable entry regarding revised consolidated pension wef 01.01.2006 will be recorded by the Pension Disbursing Agencies in the Pension records of the pensioners’ viz. Pension Payment Order, Check register/Pension Payment scroll register.

An intimation regarding disbursement of revised pension may be sent by the Pension Disbursing Agencies to Shri S.K. Bhatnagar, Sr. AO (AT), Office of PCDA (P), Allahabad in format prescribed as at Annexure-IV to these orders so that the later can update its records. A copy of the said Annexure- IV may invariably be provided by the PDAs to the pensioners concerned for their information. An acknowledgement shall be obtained by the Pension Disbursing Agencies from Office of PCDA (Pensions), Allahabad in token of receipt of the requisite Annexure-IV sent to PCDA(P) Allahabad.

20. In cases where the PDAs are in doubt about the entitlement on revision in individual cases or in regulation in minimum pension, revised pension for pensioners in receipt of more than one pension, the concerned cases with full detail of pensioner and PPO No may refer by name to Shri S.L. Pandey, Sr. AO, Grants Revision Cell, O/o the Pr. CDA (P) Allahabad for advice/further action.”

8. From the above, it is clear that on implementation of 6th CPC, the concerned PDAs were authorised to revise and pay the pension/family pension to the pensioners without further authorisation by the Pension Sanctioning Authority (PSAs). In the present case, the PDA was authorised to revise the family pension of the Applicant without any authorisation by the PCDA (P), ie., the Pension Sanctioning Authority, vide Govt of India letter dt 11.11.2008 and PCDA (P) Circular No 397 dt 18.11.2008 and it was duty bound to revise the family pension of the Applicant. If there was any doubt, the PDA should have sought clarification from the PSA in terms of Para 20 of PCDA (P) Circular No 397 dt 18.11.2008. In the present case, the PDA revised Special Family Pension of the Applicant only after raising the grievance by the Applicant and issuance of clarifications from PCDA (P) and paid the arrears after more than 15 years without any interest. The PDA should have revised the Special Family Pension of the Applicant on their own based on the authorisation by the Govt of India letter dt 11.11.2008 and PCDA (P) Circular No 397 dt 18.11.2008, which they failed to do. In view of the aforesaid facts, we are of the considered view that the Applicant is eligible for payment of interest on arrears @ 8% per annum by the PDA. However, it is also felt that some time is required to be given to PDAs to implement the orders dt 11.11.2008 and, accordingly, it is our considered opinion, the interest on arrears from time to time would be worked out wef 01.04.2009 only and not for the period prior to that date.

9. In-fine, the OA is allowed. Respondent Nos 4 & 5 are directed to calculate and pay the interest on arrears @ 8% per annum to the Applicant within a period of four months from the date of receipt of a certified copy of this Order.

10. The OA is disposed off, accordingly. Miscellaneous Application(s) pending, if any, also stand disposed off.

11. No order on costs.

(SANJIV MITTAL)

(GOVERDHAN BARDHAR) MEMBER (A)

MEMBER (J)

Ssy/-