Please read in conjunction with previous post
The Background
From the Fifth Pay Commission Report, Part VII, – Armed Forces Personnel: Pay
Scales and Allowances: -
Our Approach in 114.10 ……………… We find that the Third CPC,
while considering the issue of shortfall in the intake of the officer cadre had
held that "the
quality of recruitment to the Armed Forces will be satisfactory
only if service pays are comparable to levels of remuneration in civilian employment."
Considering all these factors, we have
recommended a starting salary of Rs.8250/-
p.m. for Commissioned Officers of the Armed Forces giving them an edge
over the Civil Services.
Our Recommendations
in 145. 17……… However, we have recommended
continuance of all the existing concessions and have also recommended an edge in the
starting scale to compensate for the special features of military life.
The Present Position in 147.12
Armed
Forces officers up to the rank of Brigadier are presently
paid on the basis of an integrated pay scale introduced on
the recommendations of the Fourth CPC so as to provide reasonable career progression to
service officers. To compensate
for ranks attained, rank pay is also granted which attracts dearness allowance
and is reckoned for pensionary benefits.
Our Recommendations 148.2. We have deliberated over the manner in
which service pays should be fixed and in order to ensure equality of treatment
suggest that the method of fixation of pay on revision recommended for civilian
employees may also be adopted for service
personnel. For Service Officers upto the rank of Brigadier who are
to be brought on to
regular scales of pay from the existing integrated scale, we suggest that for fixation of
pay the existing rank pay may be taken into account but pay in revised scales
be fixed after deducting the revised amount of rank pay.
Extracted from the Order of the Govt No. 50(1)/IC/97.
The Fifth Central Pay Commission was set
up by the Government of India by Resolution No. 5(12)/E. III/93 dated 9th
April, 1994 as amended by Resolution No. 5(12)/E. III/93 dated 12th
January, 1995, No. 5(12)/E. III/93 dated 17th July, 1996, No.
5(12)/E, III/93 dated 24th October, 1996 and No. 5(12)/E. III/93
dated 19th November, 1996. The Commission submitted on the 30th
January, 1997, its Report relating to structure of emoluments, allowances,
conditions of service and retirement benefits of Central Government employees
including Union Territories, members of All India Services and personnel
belonging to the Armed Forces.
2. The
Commission also submitted its Supplementary Report No. 1 on Improving the motivation
Level and Supplementary Report No. 2 on Cabinet Secretariat on 28th
February, 1997. The Government have given careful consideration to the
recommendations of the Commission in respect of civilian employees of the
Central Government in Groups 'A', 'B', 'C' and 'D', as also those in the All
India Services and have decided that the recommendations of the Commission in
respect of these categories of Central Government employees and All India
Services shall be accepted broadly subject to the modifications mentioned
below: -
(i) The following six scales of pay (S-1, S-2,
S-3, S-4, S-5 and S-13 grades), recommended by the Commission will be
improved…………………
(ii)
With regard to fixation of pay in the revised scales, the percentage of
pre-revised basic pay to be added as fitment shall be 40% as against 20%
recommended by the Fifth Central Pay Commission. The other recommendation of
the Commission in this regard including the recommendation of one increment as
a result of "bunching" (for the fifth stage) has been accepted;
however, the fixation shall be made in the manner that every employee will get
at least one increment in the revised scale of pay for every three increments.
3..............
4. The Commission's recommendations and
Government decision thereon with regard to revised scales of pay and dearness allowance
for civilian employees of the Central Government and personnel of the All India
Services as detailed in the Part A of the Annexure shall be made effective from
1-1-1996.
5. The revised allowances, other than dearness
allowance, will be effective from 1st day of August, 1997……
6.................
7. Department specific recommendations which arc
not included in this Resolution shall be processed by the concerned
Department/Ministry and approvals of the Government obtained in consultation
with the Ministry of Finance and/or Department of Personnel and Training………….
8. The other recommendations of general nature
made by the Commission which are not included in the Annexure are being
examined by the Government and decisions thereon will be notified separately.
11. The Government of India wish to place on record their appreciation of the
work done by the Commission.
9........................
ORDER
Ordered
that the Resolution be published in the Gazette of India, Extraordinary.
Ordered that a copy of the Resolution be
communicated to the Ministries/Departments of the Government of India, State
Governments, Administrations of Union Territories and all others concerned.
Assessment: - By the time the Gazette notification was to take place, the UoI/MoD etc must have known that Maj A.K. Dhanapalan had filed OP 2448 in 1996 alleging that Rank Pay has been wrongly/wrongfully deducted from the re-fixation on transition from 3rd CPC to 4th CPC.
(a) February 1996 – Maj AK Dhanapalan (retd)
files OP 2448 of 1996 in High Court of Kerala,
(b)
end 1997 – Govt of India approves Report of the Fifth Central Pay Commission
(c) 19th
December 1997 – MoD, with concurrence of Min of Finance issues SAI/SNI/SAFI
2/S/1997 being aware that Maj Dhanapalan has challenged the deduction of Rank
Pay etc before re-fixation in transition from 3rd CPC to 4th
CPC. It also communicated vide M of D I.D. No. 1(2)/95/D (pay/Sers)
dated the same date that due to inability of DMR & F, the printing
authority to suffix year 1997 and can only be printed in year 1998.
(d) Copies
are addressed to 1. COAS Office, 2. CNS Office, 3. CAS Office, 4. Pay
Commission Cell, Army, 5. Pay Commission Cell, Navy, 6. Pay Commission Cell,
Air Force, 7. Director, PS-3, Army HQrs, 8. Director, DPA/NHQ, 9. Director, DPP&R/Air
HQrs, 10. DFA (AG), 11. DFA (Navy), 12. DFA (Air P&W), 13. O/O CGDA, 14.
All CDAs.
(e) 5th
October 1998 - Single Judge of the High Court of Kerala passes judgment in OP
2448 of 1996, that deduction of Rank pay for re-fixation is wrong and asks Respondents
2 (COAS) and 3 (CDAO) to re-fix his pay without deducting Rank Pay.
(f) 1999
– Union of India files a Writ Appeal 518 of 1999 challenging the judgment in OP
2448 of 1996
Query:
So, did some one in the Concerned Ministries forget (and it is quite possible,
especially where matters concern the Armed Forces) to consider the implications
of the judgment of the Single Judge of the High Court of Kerala and commit a
contempt of court by continuing with deducting Rank Pay for the re-fixation because the Special Leave to Appeal was not filed till 2005 SLP (CC) 5908/2005 ?
(g) Govt
of India’s Definition of Rank Pay in the Fifth CPC (reproduced fully)
No. 1(26)/97/I/D(Pay/Services)
Government of India,
Ministry of Defence,
New Delhi-110 011, dated the 29th February,
2000.
To
The
Chief of the Army Staff, New Delhi.
The
Chief of the Air Staff, New Delhi.
The
Chief of the Naval Staff, New Delhi.
Subject : Removal of
anomalies arising from the implementation of the revised pay scales and
allowances consequent to the V CPC recommendations – definition of Rank Pay –
reg.
Sir,
I
am directed to refer to Instructions No. SAI, SNI and SAFI No. 2/S/98 dated
19.12.1997 and to state that the issue of merger of Rank Pay with the pay
scales of the Defence Service officers upto the rank of Brigadier and
equivalent has since been reconsidered by the Government in the light of the
recommendations of a Committee specially constituted on the above subject and in view of the fact that the Rank Pay
cannot be merged with the pay scales for the Defence Service officers and also
keeping in view the difficulties being faced by the Defence Service officers
with regard to interpretation of Rank Pay, it is clarified that:
"Rank Pay is admissible to the
Commissioned Officers of the three Services, holding their rank either in a
substantive or acting capacity. It is that element of their pay identified with
their Rank, which, in turn, has a relationship with their scale of pay. It is granted separately in recognition of
the specific needs of their conditions of service and command structure. It
will consequently be taken into account for determining their entitlement to
such of those financial benefits, concessions, etc, including retirement
benefits, as are directly related to the basic pay or their pay scales."
3. The Army/Navy/Air Force Instructions would
be amended accordingly
4.
This issues with the concurrence of Ministry of Defence (Fin) vide their
U.O.No.
1/77/99-PA
dated 23.2.2000.
Yours faithfully.
Sd/- x x x x x x
(RK Grover)
Under Secretary to the Government of India.
DISTRIBUTION
: As per standard list of distribution.
(h) 2003 – Division Bench of the High Court of
Kerala disposes of WA 518 of 1999 upholding judgment of the Single Judge of the
High Court of Kerala in OP 2448 of 1996.
(j) 2005
- UoI/MoD files a Special Leave to Appeal (CC) 5908 of 2005 in the Hon’ble
Supreme Court which is dismissed in July 2005.
The Cumulative Consequences for 5th
and 6th Pay Commission
Did the Concerned Ministries forget to discuss this aspect, that if the Hon’ble Supreme
Court dismisses UoI’s SLP that Rank Pay can be deducted for re-fixation in OP
2448 of 1996, this has applicability to all matters where Rank pay is
concerned, whether in the 5th CPC or later?
If
the Basic Pay itself has been reduced by the extent of the Rank Pay on
1.1.1986, then the fixation as on 1.1.1996 will be reduced by 40% of the
difference i.e. difference between the correct interpretation brought out in
the court’s orders and the incorrect interpretation by Concerned Ministries.
Its
impact would continue to be felt when the lower figure is multiplied by a
factor of 1.86 to arrive at the pay fixation from 1.1.2006. It would adversely
affect the Pay Band, Grade Pay, Military Service Pay, and, leave encashment,
gratuity as well as pensionary benefits.
So
what is the obstinacy displayed by Concerned Ministries in correctly
implementing the order of the Hon’ble Supreme Court dated 4.9.2012 instead of making
loopholes where they don’t exist?
So why the prevailing confusion created by the GoI/MoD letter dated 27.12.2012?
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