Monday 8 April 2013

Part I of Reply dated 3.4.13. to RTI - TRIPAS and CGDA



Reply dated 3.4.2013 to RTI - TRIPAS CGDA

Encl 20A
Most Immediate
Court Case
Ministry of Defence
D(Pay/Services)

Subject: - Implementation of Hon’ble Supreme Court order dated 4.9.2012 given in IA No. 9 of 2010 in Transfer Petition (C) No. 56/2007 – UoI & Ors v/s N.K. Nair & Ors on Rank Pay case.
----

            TRIPAS is requested to intimate likely cash outgo as well as period during which this outgo will take place to honour the Hon’ble Supreme Court judgment dated 4.9.2012 in rank pay case so that budget provision could be projected accordingly.


                                                                                                            Sd/----------------------
                                                                                                            (Praveen Kumar)
                                                                                                            Director (AG.I)
                                                                                                            Tele: 2301 1593

DIRECTOR TRIPAS
MoD ID No. PC-34 (6)/2012 D (Pay/Services) dated 09th November 2012


Encl 21A
Most Immediate
Court Case
Ministry of Defence
D(Pay/Services)

Subject: - Implementation of Hon’ble Supreme Court order dated 4.9.2012 given in IA No. 9 of 2010 in Transfer Petition (C) No. 56/2007 – UoI & Ors v/s N.K. Nair & Ors on Rank Pay case.
----

            Reference CGDA letter No. AT.I/1483-Army/X(PC)/II dated 12.10.2012 on the above subject. CGDA is requested to intimate likely cash outgo as well as period during which this outgo will take place to honour the Hon’ble Supreme Court judgment dated 4.9.2012 in rank pay case so that budget provision could be projected accordingly.


                                                                                                            Sd/----------------------
                                                                                                            (Praveen Kumar)
                                                                                                            Director (AG.I)
                                                                                                            Tele: 2301 1593

Office of CGDA (Shri Mohinder Singh, Joint CGDA (AT.I)
MoD ID No. PC-34 (6)/2012 D (Pay/Services) dated 09th November 2012


                                                                                                                                                Encl 22/A
Urgent/Court Case

Office of the CGDA, Ulan Batar Road, Palam, Delhi Cantt-10

Subject: Implementation of Hon’ble Supreme Court Order dated 04/09/2012 on the matter of Rank Pay.

Reference: MoD, D (Pay/Services) ID No. 34 (6)/2012 – D (Pay/Services) dated 9th Nov 2012
*****

                                    Following is submitted with reference to MoD ID quoted above.

2.                  Likely cash outgo has already been intimated vide this office U Note of even No. dated 12/10/2012. Owing to the complexities and constraints in calculating the financial implication that have already been highlighted in Annexure ‘C’ to ibid UO, it is difficult to work out the exact financial implication at this stage. No MoD letter/instructions too have been received in this regard.
3.                    The time required to honour the Hon’ble Supreme Court judgment has also been commented upon in Para 4 of the above UO. The period during which the outgo will take place wil also be accordingly.
4.                  It may be pertinent to mention that expenditure which will be incurred would be a ‘charged expenditure.’
5.                  Copy of this office UO Note of even No. dated 12/10/2012 is again enclosed for ready reference.
Jt CGDA (AT-I) has seen.
 Sd/----------------
(K.L.Mound)
ACGDA (AT-I)
Phone no. 011-25665581
Shri Praveen Kumar
Director (AG-I)
MoD, D (Pay/Services)
Sena Bhawan
New Delhi
---------------------------------------------
UO No. AT/I/1483-Army/X (PC)/III Dated 09/11/2012
                                                                                                                                                Encl 22B
 Urgent/Court Case

Office of the CGDA, Ulan Batar Road, Palam, Delhi Cantt-10

Subject: Implementation of Hon’ble Supreme Court Order dated 04/09/2012 on the matter of Rank Pay.

Reference: MoD, D (Pay/Services) ID No. 34 (6)/2012 – D (Pay/Services) dated 11/09/2012
*****

The subject matter was taken up with the concerned Controllers offices for working out financial implications as desired by the MoD vide their ID referred above.

2.                  Although owing to various factors as also enumerated in Annexure ‘C’, the concerned Controllers have expressed their inability to work out the exact financial implications involved in regard to subject court order, but, however, they have made efforts to calculate the approximate/tentative financial implication based on the data available with them and also based on sample calculations in the affected ranks. The same is given below.

  (In Rs crore)
Pay

Arms
Pay arrears
Interest on pay arrears
Total
Rounded off to
Army
262.5
110.25
372.75
380
Navy
53.86
19.39
73.25
75
Air Force
113.42
44.23
157.65
158
Total
429.78
173.87
603.65
613

Pension

Arms
Pay arrears
Interest on pay arrears
Total
Rounded off to
Army
113.45
45.95
159.40
160
Navy
35.62
14.93
50.55
51
Air Force
26.51
1034
36.85
37
Total
175.58
71.22
246.80
248

Total Financial Implication:

Pay
Rs 613 crore
Pension
Rs 248 crore
Total
Rs 861 crore


3.                  The calculations for arriving at the above financial implication of pay and interest thereon for Army, Navy and Air Force officers are enclosed as Annexure ‘A.’ The details of calculations for arriving at pension arrears and interest thereon for Army, Navy ad Air Force officers are enclosed as Annexure ‘B.’

4.                  The Controllers have expressed certain constraints on the whole matter, which are summarised at Annexure ‘C.’ In this regard it may, however be highlighted that considering the huge volume and complexity of work, estimation of financial implications at this stage is very difficult. In fact, the implementation instructions along with detailed instructions are yet to be received from the MoD for proper estimation as well as implementation of the Hon’ble Supreme Court order. Further, payment of dues within 12 weeks period may not be practically feasible and, therefore, some more time, say 6 months, is required to be sought for proper implementation.  

5.                  Keeping in view the limitations being faced by the Controllers offices, it is once again stated that the above figures are approximate and may undergo substantial changes.

Addl CGDA (SB) has seen.
                                                                                                Sd/-----------------------------
                                                                                                (K. L. Mound)
                                                                                                ACGDA (AT-I)
                                                                                    Phone No. 011-25665581
Shri Praveen Kumar
Director (AG-I)
MoD, D (Pay/Services)
Sena Bhawan
New Delhi
---------------------------------------------
UO No. AT/I/1483-Army/X (PC)/III Dated 12/10/2012

                                                                                                                                    Encl 22 D
Annexure A
Calculations for arriving at the arrears of pay and interest thereon

(i)                 Army

The PCDA (O) Pune has worked out the financial implication based on sample cases in the rank of Capt to Brigadier, who were in service as on 01/01/1986 with reference to rank profile as on 08/1996. The estimates have been arrived at as under (This cadre strength excluded AMC/ADC/RVC officers.)


Rank
Approx arrears for each Rank (Rs.)
Cadre Strength
Amount estimated (Rs)
Capt
48,368
9406
45,49,49,408
Major
65,578
13,212
86,64,16,536
Lt Col
92,098
7295
67,18,54,910
Col
26,755
3900
10,43,44,500
Brig
2150
917
19,71,550
Total
34,730
209,95,36,904

Approx financial implication                                                                          =Rs 210 crore
Add 25% (considering NPA, DA, DP, IR etc thereon

AMC/ADC/RVC officers and arrears of leave encashment & TG                  Rs 52.5 crore
                                                                                                            Total = Rs 262.5 crore

Add 42% (interest of 7 years @ 6% p.a. w.e.f 01/01/2006                            Rs 110.25 crore                                                                                   Total estimate             Rs 372.75 crore                                                           Total financial implication (approx) = Rs 380 crore

            The above figure excludes percentage based/slab based allowances. However, this included DA, DP, & IT II with reference to the change in Basic Pay. The figures may substantially change with reference to the actual rank profile as on 01/01/1986 which is awaited from ADGPS, IHQ of MoD (Army).                  

(ii)               Navy

The NPO through PCDA (Navy) Mumbai has clarified that they are not in a position to calculate the financial implication as they have not received the “Terms and Conditions” for implementation of the Subject judgment from IHQ of MoD (N). Copy of NPO letter No. O/Auth/1108 dated 17 Sep 2012 is enclosed for read reference. Subsequently, NPO vide their letter dated 27/09/2012 (copy enclosed) have given only likely financial implication. Total financial implication for 4500 officers with interest works out as under:

Pay arrears & Rs 1,19, 680 per officer x 4500  
Rs 53,85,60,000
Interest arrears @ Rs 43,080 per officer x 4500
Rs 19,38,60,000
Total arrears
Rs 73,24,20,000
Total Pay & interest arrears (approx)
Rs 75,00, 00,000 i.e. Rs 75 crore 

(iii)             Air Force

The AFCAO has intimated through CDA (AF) New Delhi that they are unable to furnish the revised financial implications in absence of any clear cut directions (i.e. Govt orders) and the likely impact of Court directions on 4th, 5th, and 6th Pay Commissions. However, CDA (AF) has worked out tentative financial implications based on some sample cases. The same is as under:


Pay arrears 
Rs 113, 41, 68,348
Interest arrears
Rs 44,23,25,656
Total arrears
Rs 157,94,94,004
Total Pay & interest arrears (approx)
Rs 157.65 crore i.e. Rs 158 crore 

---------------------
Annexure B
Details of calculations of Pension

1. Army

PCDA (P) Allahabad has arrived at the figures of financial implications on account of pension in r/o army officers as under:

Rank
Cadre Strength
Amount Estimated (Rs)
Capt
833
5,98,36,243
Major
2753
18,80,17,821
Lt Col (TS)
5624
17,47,04,894
Lt Col
5867
34,57,37,082
Col
2511
15,01,83,060
Brig
1065
4,70,74,128
Total
18653
96,55,53,228

Total                                                                                        = Rs 96,55,53228
(#) Add                                                                                                = Rs 16,88,75,549
Interest                                                                                    = Rs 45,94,43,655
Total financial implication (approx)                                       = Rs 159,38,72,432
Approximate Total Financial Implication                               = Rs 160 crore

(#) This amount has been added on the following accounts
(i)                 Where pensioner died after 01/01/1986 and before 31/12/1995 and could not submit application for revision of pension under V CPC.
(ii)               Disabled & invalided out cases.
(iii)             Retiring & retirement gratuity cases
(iv)              PSU absorbees etc
(v)                Interim Relief
(vi)              Marginal increase in pension due to revision under V CPC in case of some officers

2.         Navy:

Total No. of affected officers                                                             = 2000 (approx)

Pension arrears                                                                       = Rs 32,32,00,000
Interest on pension arrears                                                    = Rs 11,63,52,000
Additional 15%                                                                        =Rs     6,59,00,000
Total pension + interest arrears (approx)                              = Rs 50.55 crore or 51 crore

3.         Air Force
Pension arrears                                                                       = Rs 26,50,97,000
Interest on pension arrears                                                    = Rs 10,33, 87,830
Total pension + interest (approx)                                           = Rs 36.85 or 37 crore

Annexure ‘C’
Complexities and Constraints brought out by concerned Controllers

1.                  PCDA (O) Pune

a.      Non availability of exact number of affected cases
b.      Non availability of exact number of affected officers in AMC, ADC and RVC entitled to get NPA
c.       Difference in completion of qualifying service of officers in service as on 01/01/1986 in the same rank due to various reasons
d.      Entitlement of Terminal Gratuity in respect of SSC officers and arrears of Leave Encashment on retirement/release
e.      In certain cases, there is change in pay due to this revision only upto the date of promotion in subsequent rank thereby reaching to the maximum of the integrated pay scale during IV Pay Commission. Further, in certain cases, the pay is fixed to the same stage as revised with reference to 5th and 6th Pay Commission orders.
f.        Non availability of records due to routine weeding out
g.      The date regarding revision of pay with reference to IV Pay Commission is not held in the system of PCDA (O) as the work was carried out manually at that time.
h.      The revision of pay as on 01/01/1986 involve consequent changes in pay on the dates of annual increments, promotions, and at the time of further revision as per 5th and 6th Pay Commissions orders, wherever required. It would involve collection of information/records and calculations of actual amount of arrears. This exercise is voluminous and time consuming.
i.        There is vast difference in approximate average amount of arrears worked out for different affected ranks and therefore, for correct calculation of financial implication, actual rank profile as on 01/01/1986 is required which is not available with PCDA (O) Pune and the same is awaited from IHQ of MoD (Army). 

2.         PCDA (Navy) Mumbai

a.                  Implementing the judgment involves three successive Pay Commissions. Therefore, development of one single automated solution is not likely to give the desired solution.
b.                  The data is in manual form and is required to be captured on system, thus requires examining the entire authorisation binder of an officer w.e.f. 01/01/1986 and analysing the impact on re-fixation on monthly basis, till the date of retirement.
c.                   In case of post 1986 retired personnel, in addition to arrears, Last Pay Certificate, Leave Encashment, gratuity and corrigendum PPO is required to be worked out to arrive at the final figure of financial outgo.
d.                  Necessary guidelines/directions for implementation from MoD are required for working out correct financial implication.

3.   CDA (AF) New Delhi

a.                  The task envisaged might entail re-doing pay fixation for the IV, V and VI CPC in respect of all officers of IAF, both retiring and serving, and thus, calculation of financial effect would be cumbersome and tile consuming process.
b.                  Necessary guidelines/directions for implementation from MoD is required for working out correct financial implication. 

4.         PCDA (P) Allahabad

a.      The record prior to 1990 was not computerised. As such, to count number of retirees rank-wise and year-wise is time taking as every case file will have to be checked. Even after this, the correct revised financial implication can be calculated only after receipt of revised pay details as per ibid judgment in r/o affected officers from the pay office.

--------
Encl  23/A
Air HQ/99141/7/AFPCC (Ty BM)
 
-1-
Judgement of Hon’ble High Court of Kerala dated 05 Oct 1998                               -1A

-2-

Judgment of Hon’ble Supreme Court dated 04 Sep 12                                              -2A

-3-
Counter Affidavit by MoD                                                                                           -3A

-4-
MoD ID No. 34 (6)/2012/D (Pay/Services) dated 05 Nov 12                                      -4A

-5-

1.                  Reference Encl 4A.

2.                  The case on file pertains to implementation of the Hon’ble SC order (Encl-2A) upholding the judgment of the Hon’ble Kerala HC in the case of Maj Dhanapalan (Encl-1A). The Court order while directing re-fixation of pay has also directed that the process of payment of arrears be completed within a period of 12 weeks. The DGLs as required by MoD are placed opposite.

Background

3.                  The Dhanapalan’s case refers to the extension of the relief given to Major Dhanapalan to all officers. The retired officer had challenged his pay fixation carried out under the provisions of the Pay Instructions issued for implementing the 4th CPC award.

4.                  The 4th Pay Commission gave a minimum increase of 20% over existing Basic Pay to all Central Govt employees including defence personnel including commissioned officers. But then, the rank pay which was introduced by 4th CPC was reduced from this 20% increase and the resultant figure was used for determining the new Basic Pay. The amount of rank pay was reduced both from the pay scale and the emoluments of officers used for pay fixation.

5.                  The case filed by Maj Dhanapalan was first heard by the Kerala High Court in Oct 98. The Court laid down the legal principle giving the rationale of their judgment as: -

“…..Under the circumstances, I am of the view that respondents 2 and 3 had completely misunderstood the scope of extending the benefit of the payment of rank pay to the Army officers. Rank pay is something which has been given to Army Officers in addition to the existing pay scales. That is not an amount which has to be deducted in order to arrive at the total emoluments which an Army officer is entitled to get.”

6.         Clearly, the court has held that the rank pay is in addition to the existing pay scales. Therefore, the pay scales have to be amended and enhanced by the amount of rank pay. For example, the Civilian Senior Time Scale pay of Rs 1100-1600 was given the replacement scale of Rs 3000-100-125-4000 while the Captains pay scale of Rs 1300-1550 (Flying branch officers) and Rs 1200-1550 (other than flying branch officers) was given the start scale at Rs 2800 in the integrated pay scale. The rank pay of Rs 200 was clearly deducted from the enhancement given to civilian pay scale. 

7.         Further, the amount of rank pay was also reduced from the emoluments of each individual. Applying the legal principle to the individual case of pay fixation of Maj Dhanapalan, the court has ruled: -

“Under these circumstances the respondents 2 and 3 are directed to re-fix the pay of the Petitioner with effect from 1.1.86 without deducting the rank pay of Rs 200/- as has been done by respondents 2 and 3. The petitioner is also entitled to get his pay re-fixed in accordance with the pay fixation of 1987 evidenced by Ext P1. Respondents 2 and 3 are  directed to complete the process of re-fixation of the Petitioner as directed above, within three months from date of receipt of a copy of this judgment.”  

8.         The Court held that the deduction of Rank Pay from the amount arrived at by the fixation formula was incorrect. It directed that the petitioner’s pay be re-fixed from 1.1.1986 without deducting rank pay as was specified in the Army Instructions. The appeal filed in the judgment by the MoD in the Supreme Court was dismissed and arrears paid to Maj Dhanapalan. Based on this judgment several other officers filed petitions in various High Courts which were consolidated and heard by the Supreme Court on a request by MoD. The order of the SC dated 08 Mar 10 is in relation to these myriad cases filed in various courts by officers. A three judges Bench of the SC has once again upheld the Kerala High Court judgment and has directed that all the affected officers be given relief similar to Maj Dhanapalan with interest.

SC Judgment

9.         The ibid case was listed on 04 Sep 2012 in court No. 7 of the Hon’ble Supreme Court. It was heard by a Bench comprising Hon’ble Justices R.M. Lodha, T.S. Thakur, and Anil R. Dave. 

10.              The UoI was represented by Solicitor General Mr. R. F. Nariman. After prolonged arguments the case was finally disposed off by the three Judge Bench on merit.

11.       The salient features of the judgment are: -

            (a)        The decision is applicable to all officers whether they have approached the court or not.

(b)               The Court has upheld Kerala High Court judgment that the Rank Pay which was deducted from the integrated pay scale and granted separately is not to be deducted from the Basic Pay as was done in the Govt orders. The Rank Pay will be in addition to the Pay fixed in the integrated pay scale i.e. after application of the fixation formula that pay so arrived at will be, in addition, enhances by the rank pay with effect from 1.1.1986.

(c)                The court has also directed payment of interest on arrears so calculated @6% which will be payable to all officers with effect from 01 Jan 2006.

(d)               The MoD has been given a period of 12 weeks to implement the court order.

(e)               It will also result in recalculation of pension of post 1986 retirees as well as revision modified parity for each rank.

Implementation Directive

12.       The ibid SC judgment will have to be implemented for all affected officers of the three Services, who will have to be paid the revised pay along with arrears. The pension of those retired after 01.01.1986 but affected by the judgment will have to be worked out afresh. The following issue are pertinent in this regard: -   

            (a)        The Govt, in its Additional Affidavit submitted to the Court has quoted the findings of a High Powered Committee comprising Def Secy, Secy Expenditure and FA (DS) which was set up to review the implementation of Kerala High Court order (Encl – 3A).  The Committee in its report has noted that the following actions were involved in the implementation of the order: -  

                        (i)         The pay of all officers affected will have to be re-fixed as on 1.1.1986, 1.1.1996, and 1.1.2006.        

                        (ii)        Revision of all pay linked allowances simultaneously.

                        (iii)       Revision of pension as on 01 Jan 86, 01 Jan 96, and 01 Jan 06.

                        (iv)       Revision of retirement benefits such as gratuity, encashment of leave in all                      the above cases.

                        (v)        Revision of Family pension.

(b)        The DGLs prepared by the Services are based on the premise at sub-Para (a) above as well as the impact of the SC judgment.

(c)        The Draft orders have included the changes and modification to the Pay Scale structure that are necessary to implement the court order in letter and spirit. 

(d)        The pay scales of the 4th, 5th, and 6th CPC would have to be re-drawn. This would entail changes in the SAI/SNI/SAFI for three Services  

(e)        The essential feature to be borne in mind is that the incorrect deduction of Rank Pay will have to be rectified. The Rank Pay, accordingly will have to be added back into the pay scale to determine the new pay.

(f)        The logical extension of the Judicial order to the 6th CPC also meets the long standing demand of the Armed Forces for enhancement of Grade Pay and Pay Fixation based on IAS scale of S-25 instead of Gp ‘A’ Services scale of S-24. The DGLs have been prepared keeping the same in mind.

(g)        The affected individuals will have to be re-fixed in the revise pay scales by using the approved fixation formula without deducting the Rank Pay.

(h)        The increments in the pay scales have also been increased if necessitated due to increase in the pay scales. These have been kept at the same level as given to similar civilian pay scales.

13.       The above stated issues have been borne in mind while formulating the draft implementation orders. Some of the fundamental benchmarks used are as stated below: -

(a)        The affected officers are of the rank of Capt to Brig & equivalent who were in service on 01.01.86 and those who were promoted to these ranks subsequently.

(b)        The pay scales of the 3rd CPC have been considered for determining the scale in the 4th CPC. These are then accordingly translated into new scales on 5th CPC and 6th CPC. The bottom line is that the pay scales as on 1.1.86, 1.1.96, and 1.1.06 have all been amended to give effect to the Court judgment and its letter and spirit.

            (c)        The principles that have been used for determining the revised pay scales are: - 

(i)         The replacement given to civilian pay scales on 01.01.86 has been used for determining the revised pay scale of similarly placed Armed Forces pay scales.

(ii)        The integrated pay scale has been tweaked at the top to ensure increment of Rs 500 at the stage of Rs 5900 onwards and parity in the pay of Brig ad equivalent and similarly placed civilians who drew the same pay.

                        (iii)       The minimum pay of officers of the rank of Capt to Brig & equivalent has                                     been amended by not deducting the rank pay attached to the rank.

(iv)       The revised minimum pay scale computed as on 01.01.86, for each rank has been used to revise and determine the Pay scale as on 01.01.96.

(v)        Similarly these revised pay scales of 5th CPC have been used to revise the pay scales as on 01.01.06. For the ransk of Lt Col to Brig & equivalent, S-25 scale of IAS has been used for pay fixation.

(vi)       The existing fixation formula in SAI/SNI/SAFI will ensure that re-fixation is carried out in the revised pay scales on 01.01.86, 01.01.96, and 01.01.06.

(vii)      The Grade Pay post -01 Jan 06 has been re-computed taking into account the revised pay scales and percentage of top of pay scale as applicable to similar civilian pay scales. 

(d)        In line with the above strategy the re-fixation will have to be carried out for affected officers for all three pay commissions.

(e)        The pension of those who have retired will have to be re-worked based on the revised pay.

(f)        Allowances such as HRA, which were linked to basic pay, will have to be recomputed for calculation of arrears.

Approval

14.              A DGL has been drafted keeping all the above factors in mind. It has the concurrence of the three Services HQ. The same is placed opposite for approval and issue. 

Sd/------------------------
(R Malhotra)
Air Cmde
Chairman AFPIC
07 Nov 12
Tele: 26197491
ADGPS & Member PARC, Army HQ

Para at Flag A may be incorporated in the DGL.
                                                                                    Sd/----------------- 07/11

ACOP (Adm & Civ) & Chairman PARC

   The DGL has been duly approved at TRISERVICES level incorporating views of the three services. Forwarded for approval of MoD and promulgation.
Sd/-------------------------
RAdm Jaywant Ko***
Chairman PARC
JS (E)  Pl examine
                                    Sd/--------------- 8/11/12
Dir (AG)           Urgent 9/11

SO (P/S)           Sd/----------- 9/11

Sh. S.M.

Encl 23/B

                                                                                                ……………………… D (AG)
                                                                                                Government of India
                                                                                                Ministry of Defence

                                                                                                New Delhi,
                                                                                                Dated         Nov  12

To,
            The Chief of the Army Staff
            The Chief of the Naval Staff
            The Chief of the Air Staff


Implementation of the Order dated 04 Sep 2012 of the Hon’ble Supreme Court  in IA No 9/2010 and Transfer Petition No 56/2007 (N.K. Nair & others Vs UoI)


1.         The undersigned is directed to refer to the operative part of the judgment in the case Maj Dhanapalan in the Kerala High Court affirmed by order of Hon’ble Supreme Court :-

“…..Under the circumstances, I am of the view that respondents 2 and 3 had completely misunderstood the scope of extending the benefit of the payment of rank pay to the Army officers. Rank pay is something which has been given to Army Officers in addition to the existing pay scales. That is not an amount which has to be deducted in order to arrive at the total emoluments which an Army officer is entitled to get.”

“Under these circumstances, the respondents 2 and 3 are directed to re-fix the pay of the Petitioner with effect from 1.1.86 without deducting the rank pay of   Rs 200/- as has been done by respondents 2 and 3.  The petitioner is also entitled to get his pay re-fixed in accordance with the pay fixation of 1987 evidenced by Extract. Respondents 2 and 3 are directed to complete the process of re-fixation of the pay of the petitioner as directed above, within three months from the date of receipt of a copy of this judgment”.

2.         In compliance of the order dated 04 Sep 2012 of the Hon’ble Supreme Court in IA No. 9/2010 and Transfer Petition No 56/2007 in the case of N.K. Nair and Others Vs UoI regarding status of Rank Pay in Pay fixation on 01.01.86, 01.01.96 and 01.01.2006 and payment of Non Effective benefits. The undersigned is hereby directed to convey the sanction of the President for payment of arrears computed after re-fixing the pay as provided in this letter. The provisions of this letter will be applicable to all commissioned officers except MNS and Honorary Commissioned Officers, who were in service on 01.01.86 and those who joined the service after 01.01.86.

3.         Accordingly, consolidated modalities modifying the existing SAIs/SNIs/SAFIs to the extent specified hereunder are being promulgated for the implementation of the ibid Court order.

Section-I : Modifications effective from 01 January 1986 to 31 December 1995 (SAI/SNI/SAFI 1/S/87)

4.         As the judgment is applicable to all officers upto the rank of Brigadier & equivalent the pay scale mentioned at Para 3 of SAI/SNI/SAFI 2/S/87 stands amended.  The following revised integrated scale will be admissible to officers of the rank of 2nd Lt to Brigadier and equivalents wef 01 Jan 1986.

2300-100-3900-150-5850-200-6450

5.         On 01 January 1986 the pay of all officers will be fixed again in the integrated pay scale in the following manner:-

(a)        For the purpose of re-fixation the pay drawn by an officer on 01.01.86 in the existing scale of 3rd CPC will be considered. The pay such drawn will be enhanced by the following fixation formula to arrive at the revised pay: -

(i)         An amount representing 20% of the basic pay in the scale drawn by officer on 01.01.86 shall be added to the “existing emoluments” of the officer.

(ii)        Thereafter, the officer’s pay will be re-fixed, without deducting the rank pay as was done earlier, in the integrated scale at para 4 above, at the stage next above the amount thus computed.

(iii)       In case the stage of fixation falls below the minimum pay for the rank held by the officer on 01 Jan 86 as prescribed in the table below, the pay will be stepped up to such minimum provided the officer has completed the length of reckonable commissioned service indicated in the same table.

Rank
Minimum pay in the integrated scale
Reckonable years of service for the purpose of pay

Lieutenant & equivalent
2500
2

Captain & equivalent
3000
5

Major & equivalent
4050
11

Lt Col & equivalent
4800
16

Colonel & equivalent
5500
20

Brigadier & equivalent
6250
23


(b)        Rank Pay.       In addition to the re-fixed pay in the integrated pay scales, the following Rank Pay shall be paid depending on the rank held :-

Rank
Rank Pay (Rs. Pm)

Captain & equivalent
200

Major & equivalent
600

Lt Col & equivalent
800

Colonel & equivalent
1000

Brigadier & equivalent
1200

(c)        The above stated pay scales shall be used for re-fixation of all officers who were in service on 01.01.86 and also those who came into service after that date.

            (d)        If the pay of an officer in the integrated scale on the date following the completion of the length of service indicated in the table at sub Para 4 (a) (iii) above is lower than the minimum pay for the rank held, as given in the same table, his pay will be stepped up to such minimum with effect from such date.

            (e)        Similarly in the case of an officer who, is promoted to the next higher rank after 01 Jan 1986, is in receipt of pay in the integrated scale which is less than the minimum pay prescribed in the table at sub Para 4 (a) (iii) above, the pay from the date of promotion shall be reckoned to be the minimum for that rank as shown, provided that he had completed the length of service indicated in the same table.

            (f)        From the date of promotion to the next higher rank, whether in a substantive or acting paid capacity, the officer will draw the rank pay appropriate to the rank to which he is promoted, in addition to the pay in the integrated scale.

Section-II : Modifications effective from 01 January 1996 to 31 December 2005

6.         The following changes are made to the SAI/SNI/SAFI 2/S/98:-

(a)        The revised regular pay scales will be admissible to officers of the rank of Lt and equivalents to Brigadier and equivalents from 01 Jan 1996.

Rank
Pay Scale (Rs)
Captain & equivalent
10000-325-11925
Major & equivalent
13125-375-16550
Lt Col & equivalent
15100-400-18700
Colonel & equivalent
17100-450-19350
Brigadier & equivalent
19100-500-20600

Note: The pay of officers commissioned in AMC, ADC and RVC as Lieutenants shall start at stage of Rs 9150/- and the pay of those appointed as Captains shall start at Rs 9450/-. However on completion of one year, the Capts will be entitled to a pay of Rs 10000/-  

(b) Rank Pay.  In addition to the pay in the above mentioned revised pay scales , the following Rank Pay shall be admissible depending on the rank held: -

            Rank                                                    Rank Pay (Rs p.m)
 
Captain & equivalent                                                  400
Major & equivalent                                                    1200
Lt Col & equivalent                                                     1600
Colonel & equivalent                                                  2000
Brigadier & equivalent                                               2400

7.         The pay scales at Para 6 above, shall be used for re-fixation of pay for all officers who were in service on 1.1.96 and also those who came into service after that date.

Fixation of Initial Pay in the Revised Scales

8.         The fixation of initial pay will be regulated as under:-

(a)        An amount representing 40% of the basic pay including stagnation increments, if any, and rank pay whenever applicable in the pre-revised scale, shall be added to the “existing emoluments” of the officer.

(b)        Thereafter, without deducting the amount equivalent to the rank pay, if any, the officers pay will be fixed in the revised scale at the stage next above the amount thus computed according Para 8 (a) above.

(c)        If the amount so computed as at Para 8 (a) above is more than the maximum of the revised scale, the pay will be fixed at the maximum of the revised scale.

(d)        If the Minimum of the revised scale is more than the amount so computed as at Sub Para 8 (a) above, the pay will be fixed at the minimum of the revised scale.

(e)        For computation of bunching increments, the first stage in the existing scale shall be w.r.t the minimum pay prescribed for each rank as given below:-
           
Lieutenant  & equivalent
2500
Captain & equivalent
3000
Major & equivalent
4050
Lt Col & equivalent
4800
Colonel & equivalent
5500
Brigadier & equivalent
6250

(f)        Provided also that the fixation thus made shall ensure that every officer will get one increment in the revised scale of pay for every three increments (inclusive of stagnation increment (s) if any) in the existing scale of pay.

Section-III : Modifications Effective from 01 January 2006

9.         The revised pay structure for commissioned officer is modified to the extent given below:-

REVISED PAY STRUCTURE
Ser No
Rank
Existing
Pay Band/
Scale
Corresponding
Pay Bands/Scales
(Rs)
Grade Pay (Rs)
MSP (Rs)

(2)
(3) Pay Scale
(4) Rank Pay
(5)
(6)
(7)
(8)
2
Capt & Equiv
10000-325-11925
400
PB-3
15600-39100
6600
6000
3
Maj & Equiv
12800-375-16550
1200
PB-3
15600-39100
7600
6000
4
Lt Col & Equiv
15100-400-18700
1600
PB-4
37400-67000
8700
6000
5
Col & Equiv
17100-450-19350
2000
PB-4
37400-67000
8900
6000
6
Brig & Equiv
19100-500-20600
2400
PB-4
37400-67000
10000
6000

10.       Fixation of Initial Pay in the Revised Pay Structure of Officers.   Initial pay fixation of all officers (other than those of AMC/ADC/RVC/MNS) is to be carried out as per tables given below:-

Rank -   Captain




Pre-revised Scale
Revised Pay Band PB-3 + Grade Pay + MSP
10000-325-11950
Rs 15600-39100 + Rs 6600 + Rs 6000
Pre Revised
Revised Pay
Basic Pay
Rank Pay
Pay in the Pay Band
Grade Pay
Military Service Pay*
Total Revised Pay
10000
400
19350
6600
6000
31950
10325
400
19950
6600
6000
32550
10650
400
20560
6600
6000
33160
10975
400
21160
6600
6000
33760
11300
400
21770
6600
6000
34370
11625
400
22370
6600
6000
34970
11950
400
22980
6600
6000
35580
*Military Service Pay is to be paid wef 01.09.2008 and no arrears for MSP shall be drawn.


Rank –   Major




Pre-revised Scale
Revised Pay Band PB-3 + Grade Pay + MSP
12800-375-16550
Rs 15600-39100 + Rs 7600 + Rs 6000
Pre Revised
Revised Pay
Basic Pay
Rank Pay
Pay in the Pay Band
Grade Pay
Military Service Pay *
Total Revised Pay
12800
1200
26040
7600
6000
39640
13175
1200
26740
7600
6000
40340
13550
1200
27440
7600
6000
41040
13925
1200
28140
7600
6000
41740
14300
1200
28830
7600
6000
42430
14675
1200
29530
7600
6000
43130
15050
1200
30230
7600
6000
43830
15425
1200
30930
7600
6000
44530
15800
1200
31620
7600
6000
45220
16175
1200
32320
7600
6000
45920
16550
1200
33020
7600
6000
46620
*  Military Service Pay is to be paid wef 01.09.2008 and no arrears for MSP shall be drawn.


Rank –   Lt Col
Pre-revised Scale
Revised Pay Band PB-4 + Grade Pay + MSP
15100-400-18700
Rs 37400-67000 + Rs 8700 + Rs 6000
Pre Revised
Revised Pay
Basic Pay
Rank Pay
Pay in the Pay Band
Grade Pay
Military Service Pay *
Total Revised Pay
15100
1600
42120
8700
6000
56820
15500
1600
42120
8700
6000
56820
15900
1600
43390
8700
6000
58090
16300
1600
43390
8700
6000
58090
16700
1600
44700
8700
6000
59400
17100
1600
44700
8700
6000
59400
17500
1600
46050
8700
6000
60750
17900
1600
46050
8700
6000
60750
18300
1600
47440
8700
6000
62140
18700
1600
47440
8700
6000
62140
19100
1600
48870
8700
6000
63570
19500
1600
48870
8700
6000
63570
19900
1600
50340
8700
6000
65040
*  Military Service Pay is to be paid wef 01.09.2008 and no arrears for MSP shall be drawn.

Rank –   Colonel & Equiv
Pre-revised Scale
Revised Pay Band PB-4 + Grade Pay + MSP
17100-450-19350
Rs 37400-67000 + Rs 8900 + Rs 6000
Pre Revised
Revised Pay
Basic Pay
Rank Pay
Pay in the Pay Band
Grade Pay
Military Service Pay *
Total Revised Pay
17100
2000
46050
8900
6000
60950
17550
2000
46050
8900
6000
60950
18000
2000
47440
8900
6000
62340
18450
2000
47440
8900
6000
62340
18900
2000
48870
8900
6000
63770
19350
2000
48870
8900
6000
63770
19800
2000
50340
8900
6000
65240
20250
2000
51850
8900
6000
66750
20700
2000
53410
8900
6000
68310
*  Military Service Pay is to be paid wef 01.09.2008 and no arrears for MSP shall be drawn.

Rank –   Brigadier
Pre-revised Scale
Revised Pay Band PB-4 + Grade Pay + MSP
18400-500-19900
Rs 37400-67000 + Rs 9500 + Rs 6000
Pre Revised
Revised Pay
Basic Pay
Rank Pay
Pay in the Pay Band
Grade Pay
Military Service Pay *
Total Revised Pay
19100
2400
48870
10000
6000
64870
19600
2400
50340
10000
6000
66340
20100
2400
51850
10000
6000
67850
20600
2400
53410
10000
6000
69410
21100
2400
55020
10000
6000
71020
21600
2400
56670
10000
6000
72670
22100
2400
58370
10000
6000
74370
*  Military Service Pay is to be paid wef 01.09.2008 and no arrears for MSP shall be drawn.

11.       Fixation of Initial Pay in the Revised Pay Structure of Officers.   Initial pay fixation of AMC / ADC / RVC is to be carried out as per tables given below :-

Rank –   Captain & Equiv
Pre-revised Scale
Revised Pay Band PB-3 + Grade Pay + MSP
10000-325-11950
Rs 15600-39100 + Rs 6600 + Rs 6000
Pre Revised
Revised Pay
Basic Pay
Rank Pay
DA on NPA @ 24%
Pay in the Pay Band
Grade Pay
Military Service Pay *
Total Revised Pay
9850
400
999
20930
6600
6000
33530
10000
400
1014
21230
6600
6000
33830
10325
400
1046
21900
6600
6000
34500
10650
400
1077
22560
6600
6000
35160
10975
400
1109
23220
6600
6000
35820
11300
400
1141
23890
6600
6000
36490
11625
400
1172
24550
6600
6000
37150
11950
400
1204
25210
6600
6000
37810
* Military Service Pay is to be paid wef 01.09.2008 and no arrears for MSP shall be drawn.

Rank –   Major & Equiv
Pre-revised Scale
Revised Pay Band PB-3 + Grade Pay + MSP
12800-375-16550
Rs 15600-39100 + Rs 7600 + Rs 6000
Pre Revised
Revised Pay
Basic Pay
Rank Pay
DA on NPA @ 24%
Pay in the Pay Band
Grade Pay
Military Service Pay *
Total Revised Pay
13125
1200
1365
28580
7600
6000
42180
13500
1200
1402
29350
7600
6000
42950
13875
1200
1438
30110
7600
6000
43710
14250
1200
1475
30880
7600
6000
44480
14625
1200
1511
31640
7600
6000
45240
15000
1200
1548
32410
7600
6000
46010
15375
1200
1584
33180
7600
6000
46780
15750
1200
1621
33940
7600
6000
47540
16125
1200
1658
34710
7600
6000
48310
16500
1200
1694
35470
7600
6000
49070
16875
1200
1731
36240
7600
6000
49840








*  Military Service Pay is to be paid wef 01.09.2008 and no arrears for MSP shall be drawn.

Rank –   Lt Col & Equiv
Pre-revised Scale
Revised Pay Band PB-4 + Grade Pay + MSP
15100-400-18700
Rs 37400-67000 + Rs 8700 + Rs 6000
Pre Revised
Revised Pay
Basic Pay
Rank Pay
DA on NPA @ 24%
Pay in the Pay Band
Grade Pay
Military Service Pay *
Total Revised Pay
15100
1600
1628
42120
8700
6000
56820
15500
1600
1667
42120
8700
6000
56820
15900
1600
1706
43390
8700
6000
58090
16300
1600
1745
43390
8700
6000
58090
16700
1600
1784
44700
8700
6000
59400
17100
1600
1823
44700
8700
6000
59400
17500
1600
1862
46050
8700
6000
60750
17900
1600
1901
46050
8700
6000
60750
18300
1600
1940
47440
8700
6000
62140
18700
1600
1979
47440
8700
6000
62140
19100
1600
2018
48870
8700
6000
63570
19500
1600
2057
48870
8700
6000
63570
19900
1600
2096
50340
8700
6000
65040








* Military Service Pay is to be paid wef 01.09.2008 and no arrears for MSP shall be drawn.

Rank –   Col & Equiv
Pre-revised Scale
Revised Pay Band PB-4 + Grade Pay + MSP
17100-450-19350
Rs 37400-67000 + Rs 8900 + Rs 6000
Pre Revised
Revised Pay
Basic Pay
Rank Pay
DA on NPA @ 24%
Pay in the Pay Band
Grade Pay
Military Service Pay *
Total Revised Pay
17100
2000
1862
46050
8900
6000
60950
17550
2000
1906
46050
8900
6000
60950
18000
2000
1950
47440
8900
6000
62340
18450
2000
1994
47440
8900
6000
62340
18900
2000
2038
48870
8900
6000
63770
19350
2000
2082
48870
8900
6000
63770
19800
2000
2126
50340
8900
6000
65240
20250
2000
2169
51850
8900
6000
66750
20700
2000
2213
53410
8900
6000
68310








* Military Service Pay is to be paid wef 01.09.2008 and no arrears for MSP shall be drawn.
Rank –   Brigadier & Equiv
Pre-revised Scale
Revised Pay Band PB-4 + Grade Pay + MSP
19100-500-20100
Rs 37400-67000 + Rs 10000 + Rs 6000
Pre Revised
Revised Pay
Basic Pay
Rank Pay
DA on NPA @ 24%
Pay in the Pay Band
Grade Pay
Military Service Pay *
Total Revised Pay
19100
2400
2096
48870
10000
6000
64870
19600
2400
2145
50340
10000
6000
66340
20100
2400
2194
51850
10000
6000
67850
20600
2400
2243
53410
10000
6000
69410
21100
2400
2291
55020
10000
6000
71020
21600
2400
2340
56670
10000
6000
72670
22100
2400
2389
58370
10000
6000
74370








* Military Service Pay is to be paid wef 01.09.2008 and no arrears for MSP shall be drawn.

Section – IV  : General

12.       The decision of the Court is applicable to all officers irrespective of the fact whether the officer had approached the courts or not. The provisions of these orders will, therefore, also be applicable to all officers.

13.       The pay of all officers who were in service on 01 Jan 1986 or joined thereafter is to be fixed again as per the pay scales given in these orders. The interest at the rate of 6% per annum on the arrears thus calculated is to be paid w.e.f. 01 Jan 2006 till the date of payment of arrears.

14.       All officers whose pay is revised consequent to these orders, will be entitled to avail of the option regarding the date of change to the revised pay scales/structure as was available to them when the pre-revised pay scales had come into force w.e.f. 01 Jan 86, 01 Jan 96 or 01 Jan 2006 as the case may be.

15.       The option available on promotion to change over to the next higher pay scale from a date subsequent to the date of promotion can also be exercised again by affected officers.

16.       In case no option is given by the officer in the stipulated time as envisaged in para 14 & 15 above, AFCAO, NPO and CDA will give fix the pay in a manner as is most beneficial to the officer.

17.       Fresh Last Pay Certificate and PPO revising the pension will be issued for all affected officers who have retired after 01 Jan 1986.

18.       All consequential enhanced benefits like allowances, terminal benefits, leave encashment, gratuity, non-effective benefits etc as admissible will be paid in addition. 

19.       To expedite payments of arrears, all officers have to give an undertaking at the time of disbursement of arrears as per Appendix ‘F’ to SAFI 2/S/08 to the effect that any excess payment that may be found to have been made as a result of incorrect fixation of pay in the revised pay scales will be refunded by him to the Govt either by adjustment against future payments or otherwise.

20.              All departments/offices involved in re-fixation of pay under these orders are hereby directed to process the cases at highest priority so that arrears, if any, are paid at the earliest keeping the interest component to the minimum. The Head of department/office will be personally accountable for any avoidable delay in revision of pay/pension or payment of arrears.

21.              In partial relaxation of Serial 3 of Appendix ‘A’ of MoD letter No. IC/1027/32/AS (J)/6864/2006 dated 01 Sep 06, for fast track implementation of the court judgment in this case wherein a large number of officers are affected, the payment will be made directly by PCDA (O)/AFCAO/ Naval Pay Office. Ex-post facto sanction will be granted by Ministry of Defence based on quarterly basis under Charged Expenditure based on audit reports rendered by PCDA (O)/AFCAO/Naval Pay Office and the cases will be processed by AG Branch/CoP/AOP with MoD.

22.              This issues with the concurrence of Finance Division of this Ministry vide their UO NO……….. dated ……………………..

Yours faithfully


(Praveen Kumar)
Director (Pay/Services)
******

To be continued

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