Saturday 13 April 2013

Truth For Free - Part II: Additional Affidavit filed by UoI on 14.11.2011



Additional Affidavit filed by UoI 0n 14.11.2011
*****

IN THE SUPREME COURT OF INDIA

CIVIL ORIGINAL JURISDICTION

I.A. No. 9 OF 2010
IN
TRANSFER PETITION (CIVIL) No. 56 OF 2007

IN THE MATTER OF:

UNION OF INDIA & ORS                                      APPLICANTS/PETITIONERS

VERSUS

N.K. NAIR & ORS                                                    RESPONDENT


ADDITIONAL AFFIDAVIT OF BEHALF OF UNION OF INDIA

I, Paramjit Singh Walia, aged about 51 years, working as Under Secretary in the Ministry of Defence, Government of India, New Delhi, do hereby solemnly affirm and declare on oath as under:

1.      That I am working as an Under Secretary in the Ministry of Defence, Government of India, and am acquainted with the facts of the present case and hence, competent to swear the present affidavit.

2.      That the contents of the present affidavit are based on official records maintained by the department and knowledge derived there from.

3.      That during the course of hearing in the present matter on 1.8.2011, the Hon’ble Supreme Court sought the exact reasons/intentions behind the Fourth Central Pay Commission’s illustrative examples given in Para 28.113 where Rank Pay has been deducted during the fixation of revised pay whereupon the Government issued Special Army Instructions (SAI) 1/S/1987 dated 26.5.1987/23.6.1987. Para 28.113 and relevant extracts from Special Army Instructions 1/S/1987 are separately annexed herewith as ANNEXURE AA-1 and ANNEXURE AA-2.

The Respondents contend that Rank Pay was incorrectly being deducted as per SAI dated 23.6.1987 while fixing the initial pay in the revised integrated scale. It is the Union of India case that this was done in line with Para 28.113 of the Fourth Central Pay Commission’s recommendations read with illustrations thereto. The rationale for first deducting Rank Pay while calculating the pay in the integrated scale lies in the history behind the fixation of pay scales of Armed Forces officers which is explained as under.

4.      It is respectfully submitted that the Third Central Pay Commission was the first Pay Commission to enquire into the structure of emoluments of both the civilian employees as well as Armed Forces personnel of the Union. In the past the latter enquiry was entrusted to the departmental committees which included representatives of Armed Forces also (sic). Special Disturbance Allowance was given to the Defence Forces in 1950 as a temporary measure to improve their earnings without interfering with the pay scales introduced as per the recommendations of the Post War Pay Committee which had brought down the pay scales of many Indian Commissioned Officers (ICOs) when its recommendations were implemented w.e.f. 1.7.1947. At that time, many of the ICOs were being brought down from their wartime scales of pay to the new scales and the grant of this concession among others helped to afford some relief to these officers.         

5.      Thus, it is seen that immediately before the Third Central Pay Commission period, the Service officers up to the rank of Brigadier/equivalent in three Services were entitled to a Special Disturbance Allowance @ Rs 45/- per month in addition to the basic pay.

6.      The Services then proposed to the Third Central Pay Commission for revising the rates of Special Disturbance Allowance to Rs 100 per month for the officers in the ranks of Captain and below/equivalent and to Rs 150 per month for Major and above/equivalent in three Services. The Services justified their proposal due to the turbulence of service life and the liability to move at short notices which, due to its uncertainty, imposes emotional stresses and strains on the Service officer and his family.

7.      The Third Central Pay Commission examined the matter and recommended as under:

“…… the extent of turbulence offset by the facilities available does not provide sufficient justification for the retention of the Special Disturbance Allowance. We also have to point out that this allowance is not related to the degree of turbulence, but is being granted to all Service officers up to and including the rank of Brigadier, and no distinction is made as between officers serving in various branches or between married and single officers. We are convinced that the continuance of a Special Disturbance Allowance as a separate entity is unjustified because it is generally admissible to all but the highest ranks, and because of the other factors detailed above. We would, however, hesitate to recommend total abolition of this longstanding allowance as it may result in an immediate loss of emoluments. We have accordingly recommended a higher starting salary for Commissioned Officers as compared to Officers of the Civilian Class I Service, and have also taken the existing rate of this allowance into account in fixing the new scales of pay” (Extracts from Para 18 of Chapter 50 of the Report of the Third Central Pay Commission.)

8.      Further, in the matter of fixation of pay, The Third Central Pay Commission, in Para 2 of Chapter 54 of its Report, recommended that the rules for fixation of pay of the existing Armed Forces personnel should follow the pattern recommended by the Pay Commission for the civilian employees. In the next Para (Para 3 of Chapter 54), the Pay Commission very categorically stated that the ‘emoluments’ for the purpose of initial pay fixation for these Defence Forces officers in the revised scales should include basic pay of rank, dearness pay, dearness allowance, interim relief and Special Disturbance Allowance. The last component was not there in the case of corresponding civilian officers. Relevant extracts taken from the Report of the Third Central Pay Commission are collectively annexed as ANNEXURE AA-3.

9.      The above recommendations of the Third Central Pay Commission were accepted by the Government. The pay drawn by the Armed Forces officers and that drawn by correspondingly placed civilian officers are given below:-

Armed Forces Officers
Civilian Officers
Captain (with 10 years of service)  Rs  1400
Senior Time Scale (STS) Officer   Rs 1250
Major (with 12 years of service)     Rs  1550
STS Officer                                       Rs 1350
Lt Col (at minimum stage in the scale of pay)
                                                              Rs 1550
Junior Administrative Grade (JAG) Officer
                                                            Rs 1350
Colonel (at minimum stage in the scale of pay)                                                       Rs 1950
JAG Officer                                        Rs 1800
Brigadier                                               Rs 2300
Non-Functional Selection Grade (NFSG) officer                                                Rs 2250

It is, thus, abundantly clear that the pay as re-fixed for the Service officers upto the rank of Brigadier/equivalent in three Services on the basis of the recommendation of the Third Central Pay Commission was already higher than the pay drawn by the correspondingly placed officers on the civilian side. The difference was due to inclusion of an additional element in lieu of the Special Disturbance Allowance which till then was being granted separately.

10. It is respectfully submitted that at the relevant time (1986) where the Fourth CPC was examining the matter, there was the system of time scale promotion upto the rank of Lt Col (Time Scale) based on the length of service and subject to qualifying in prescribed examinations, etc and promotions to the higher ranks were done by selection and with reference to the availability of the posts. Before 1986, there were separate pay scales for the posts of Colonel, Brigadier, and Major General but the posts of Lt General and General were placed on fixed pay. The Services in their joint proposal to the Fourth Central Pay Commission proposed a running pay band for all officers covering a time span of 33 years with separate Rank Pay proposed for each successive rank on a cumulative basis. The Pay Commission gave careful consideration to the joint proposal and taking into account the organisation structure and requirements of services, an integrated pay scale (Rs 2300-100-4200-EB-100-5000) was recommended for all officers upto the rank of Brigadier and equivalent in the three Services with an additional element of Rank Pay. The Government examined the matter and further improved the integrated pay scale to Rs 2300-110-3900-150-4200-EB-150-5100) for these officers. Even the rates of Rank Pay recommended for Major, Lt Col and Col ranked officers were increased by the Government.

11.  As such, the concerned Defence Forces officers were already drawing their pay with an edge over their counterparts on the civilian side in the period before 1.1.1986 i.e. the date when the Fourth Central Pay Commission recommendations were implemented. It may also be added here that the Fourth Central Pay Commission after carefully considering the matter decided to fix a minimum of pay in the integrated scale for each rank from 2nd Lt (the first rank of the Commissioned Officer in the Army at the relevant time) to Brigadier/equivalent in three Services. No such minimum fixation of pay was provided in the case of civilian employees as they were instead given individual pay scales. These Services officers were then given an additional Rank Pay over and above the minimum scale of pay for the respective rank. Thus, the fact of granting them additional element of Rank Pay was also considered by the Fourth Central Pay Commission, while fixing the minimum pay of the officers from Captain to Brigadier/equivalent in three Services as brought out in Annexe 28.1 to the Paragraph 28.113 (ANNEXURE AA-1).

12.  I humbly state and submit that a perusal of the above would clearly show that the Service officers up to the rank of Brigadier/equivalent in three Services were already having an edge in the pay which was granted by the Third Central Pay Commission, in lieu of Special Disturbance Allowance which these officers were receiving since 1950s. Therefore, before granting another edge in the form of Rank Pay, it was imperative to remove the earlier edge, as recommended by the Fourth Central Pay Commission. Moreover, the methodology of fixing pay as prescribed in Para 28.113 of the Fourth Central Pay Commission’s Report cannot be held to (be) unjustified and did not place the concerned officers in any disadvantageous position as an amount representing 20% of the basic pay as fitment benefit was already added to the existing emoluments of an officer as per Para 30.2 of the Fourth CPC Report. Para 30.2 of the Fourth CPC Report is annexed herewith as ANNEXURE AA-4. Thus the grant of an additional element of Rank Pay, over and above the pay so fixed, would have resulted in double benefit to such officers, which was not obviously the intention of the Fourth Central Pay Commission. Further, this would result in undue advantage vis-à-vis the Personnel Below Officers Rank in the Defence Forces themselves who were also only granted fitment benefit of 20% of the basic pay at the time of revision of pay scales. In addition, the relativities in the pay structure of the armed forces officers vis-à-vis their civilian counterparts would have got disturbed to whom only a fitment benefit of 20% of basic pay was granted by the Fourth Central Pay Commission.

13.  It is also respectfully submitted that Rank Pay though paid separately in addition to the Basic Pay has been treated all along as part of the Basic Pay for payment of a number of allowances, i.e. House Rent Allowance, Dearness Allowance, etc. Rank Pay is also taken into account for payment of all retirement benefits, including pension. Hence, no financial harm happened to the concerned officers. It is further submitted that the Hon’ble High Court of Kerala has incorrectly directed on non-deduction of Rank Pay in the case of the illustrations appended to Para 28.113 in the Fourth Central Pay Commission Report. It is submitted that none of the Armed Forces officers including Respondents herein had challenged or ever have challenged the recommendations of the Fourth Central Pay Commission or the illustrations appended to Para 28.113 of its Report. It is well settled that no rectification contrary to law can be granted. In the instant case if the directions of the Hon’ble High Court are to be followed, it would amount to giving a go-bye to the illustrations annexed to Para 28.113 of the Fourth Central Pay Commission Report. It is for this reason, it is respectfully submitted that the directions of the Hon’ble Court dated 8.3.2010 be suitably modified/recalled, so that the Armed Forces officers may get their dues strictly as per recommendations of the Fourth Central Pay Commission which were accepted by the Government.

14.  The practice of granting Rank Pay in addition to the Basic Pay was continued even by the Fifth Central Pay Commission though the integrated pay scale was changed to individual pay scales for each rank. The methodology adopted by the Fifth Central Pay Commission for fixing the pay of the armed forces officers in the revised pay scales was identical to the one adopted by the Fourth Central Pay Commission as may be seen from the illustrations contained therein. Relevant extracts from the Fourth and Fifth Central Pay Commission Reports are annexed at ANNEXURE AA-4 and AA-5 respectively. It is clear therefrom that after adding 20% fitment benefit to the existing emoluments, the pay in the revised scales was fixed after deducting Rank Pay. The Rank Pay was then paid in addition to the Basic Pay.

15.  It is also respectfully submitted to the Hon’ble Court that the fact about converting Special Disturbance Allowance into an edge in the pay of Defence Forces officers vis-à-vis the civilian Group A officers by the Third Central Pay Commission has also been mentioned in Para 2.3.10 of the Report of the Sixth Central Pay Commission. On the introduction of Rank Pay by the Fourth Central Pay Commission, the Sixth Central Pay Commission observed as under:                                 

“The Fourth CPC had continued this edge in devising the running pay band for Defence Forces officers up to the rank of Brigadier and had revised the integrated pay scale taking in (to) account the time taken ….

The rest of page including Para 16 is missing from the Reply to RTI.

Para 17…………… continued  

Resolution dated 18.3.1987 wherein the Government took decision to implement recommendations of the Fourth Central Pay Commission for the officers of the Armed Forces. Relevant Extracts of the Resolution dated 18.3.1987 are annexed to this Affidavit as ANNEXURE AA-7. In this Resolution, wherever Govt. did not agree to the specific recommendation of the Pay Commission and improved/changed it, it (i.e. the change) was specifically indicated in column 3 of the statement appended to the Resolution. For example – in entry at S. No. 1 (a) relating to integrated scale of pay Rs 2300-100-4200EB-100-5000 as recommended by the Fourth Central Pay Commission , it has been indicated in column no.3 that this recommendation has been accepted by the Government with improvements at certain stages in the integrated scale of pay (accepted pay scale being Rs. 2300-100-3900-150-4200-EB-150-5100). Similarly, in the entry at S No. 1 (b) relating to Rank Pay, column 3 showed that Rank Pay amounts for Major, Lt Col and Col ranked officers were increased by the Govt by Rs 200. However, against entry at S No. 28 relating to fixation of pay (Para 28.113 of the Fourth Central Pay Commission Report) this particular Para has been shown to have been accepted by the Govt. without any change as is evident from column 3. Therefore, the acceptance of the Govt. covers the para(graph) in its entirety including the illustrative examples and statement given in Annexure 28.1 prescribing minimum pay for all ranks up to Brig/equivalent in three Services. Any other interpretation of the Government’s acceptance of this particular para(graph) would not seem proper and would also not go in line with the intention of the Fourth Central Pay Commission.

18.  Till date, six Pay Commissions have been appointed by the Government and they have given their reports which have been implemented. All these commissions have been headed by a retired judge of the Hon’ble Supreme Court as indicated below:

First (1947)                           The Hon’ble Sir Srinivasa  Varadachariar, ex-Judge of the Federal Court

Second (1957)                       Sh. Justice J Jagannadha Das, ex-Judge of the Hon’ble Supreme Court

Third (1970)                         Sh. Justice Raghubar Dayal, ex- Judge of the Hon’ble Supreme Court

Fourth (1983)                       Sh. Justice P.N. Shinghal, ex-Judge of the Hon’ble Supreme Court

Fifth (1994)                           Sh. Justice S. R. Pandian, ex- Judge of the Hon’ble (Supreme ) Court
Sixth (2006)                         Sh. Justice B. N. Srikrishna, ex-Judge of the Hon’ble Supreme Court

These Pay Commissions are a device by which an independent body investigates the demands of Central Government employees and submits its recommendations which are binding on both Government and its employees. They provide an opportunity for a periodic review by an outside body in whom both the Government and the employees have confidence.  Regarding the jurisdictions of the Pay Commission, the Hon’ble Supreme Court has repeatedly held the view that equations of job evaluations or equation of pay or determination of pay scales are the primary functions of expert bodies like the Pay Commission with which normally the Courts should not interfere except on any of the grounds of unjust and arbitrary state action or inaction or on any grave error having crept in while fixing the pay scales which may warrant the interference of the Court [Secretary, Finance Department & Ors Vs. West Bengal Registration Service Association & Ors 1993 (Supp) (1) SCC1]. In the instant case, the Government has faithfully examined the recommendations of the Fourth Central Pay Commission as contained in Para 28.113 of its Report, improved upon them and then accepting them. The change as ordered by the Hon’ble Court vide order dated 8.3.2010 will result in reopening other such cases. As the contents of this affidavit show the concerned Officers in the Armed Forces have not been financially harmed in any way and Rank Pay as recommended by the Fourth Central Pay Commission and then improved upon by the Government has been allowed to them w.e.f. 1.1.1986 itself in addition to their Basic Pay in the integrated scale as per the explicit recommendations of the Fourth Central Pay Commission. As such there was no error on the part of the Fourth Central Pay Commission while making the specific recommendations or on the part of the Government in faithfully implementing these recommendations to achieve the objectives intended by the Fourth Central Pay Commission. Interpreting the recommendations in another manner would result in re-calculating pay scales of all officers of the Armed Forces and pension of retired officers, Financial implications in respect of Armed Forces alone have been found to be more than Rs 1600 crore. Though Rank Pay is not applicable in respect of civilian personnel, certain changes in pay and pension admissible to them would also have to be carried out resulting (in) an additional outgo of Rs 6000 crore approximately from the public exchequer. Rather changing the equation now, would result in re-calculation of pay scales of Armed Forces officers as well as civilian officers since 1986 itself, entailing financial outgo of more than Rs 7600 crore from (the) national exchequer for no fault on Government’s part. Needless to say, implementing the Hon’ble Court’s order dated 8.3.2010 (which is sought to be modified/recalled in the instant IA) would bring up more of such cases from all Govt. personnel before Courts.

19.              It is, thus submitted that the Government has acted strictly in accordance with the recommendations of the Fourth Central Pay Commission which were duly accepted by the Government and no dilution whatsoever has been made. Rather the Government has carried out certain improvements in the matter of pay scales and the rates of Rank Pay as mentioned in Para 10 of this Affidavit.

20.             I further state that the facts as stated in the present affidavit are true and correct to the best of my official knowledge which in turn is based on records maintained and nothing material has been concealed therefrom.


DEPONENT
VERIFICATION:-

I, the above named deponent do hereby solemnly affirm and verify that the contents of the present affidavit are true and correct within my information gathered by me from the records nothing material has been concealed therefrom.
Verified on this 14th day of  November 2011 at New Delhi
                                                                                                                                    DEPONENT

                                 
ANNEXURE AA-1

Extracts from the Report of the Fourth Central Pay Commission

(Para 28.113)

Fixation of pay in the proposed scales

28.113:           In chapter 30 we have recommended the method for fixation of pay in proposed scales for civilian employees, we recommend that the same method may be adopted for fixation of pay of armed forces also. Since rank pay is a separate element for officers upto the rank of Brigadier and equivalent, the same may be taken into account while fixing pay in the integrated scale of pay recommended by us. An illustration showing the pay in the integrated scale of pay for army officers of different ranks is given in Annexe 28.1. The following illustrations indicate the manner in which pay should be fixed for armed Forces personnel.

Illustration No.1

1. Rank                                                                                               Captain
2. Existing basic pay                                                                                    Rs 1300.00
3. DP/ADA on basic pay at index average
608 and interim relief                                                                      Rs 1650.00
4. Existing emoluments                                                                   Rs 2950.00
5. Add 20% of basic pay                                                                  Rs   260.00
                                                            Total                                       Rs 3210
6. Pay to be fixed in integrated scale                     Rs 3100 + Rank pay Rs 200

Illustration No. 2

1. Rank                                                                                               Major
2. Existing basic pay                                                                                    Rs 1600.00
3. DP/ADA on basic pay at index average
608 and interim relief                                                                      Rs 1740.00
4. Existing emoluments                                                                   Rs 3340.00
5. Add 20% of basic pay                                                                  Rs   320.00
                                                            Total                                     Rs 3660.00
6. Pay to be fixed in integrated scale                    Rs 3400+ Rank Pay Rs 400/-      
                                                                                    (as minimum pay for rank of Major is
                                                                                    Rs 3400/- in integrated scale)      

Illustration No. 3

1. Rank                                                                                               Lt Col (Time scale)
2. Existing basic pay                                                                                    Rs 1900.00
3. DP/ADA on basic pay at index average
608 and interim relief                                                                      Rs 2037.00
4. Existing emoluments                                                                   Rs 3937.00
5. Add 20% of basic pay                                                                  Rs   380.00
                                                Total                                                 Rs 4317.00
6. Pay to be fixed in integrated scale                     Rs 4000/- + Rank pay 400/- for rank of Major                        

Illustration No. 4

1. Rank                                                                                               Brigadier
2. Existing basic pay                                                                                    Rs 2200.00
3. DP/ADA on basic pay at average index
608 and interim relief                                                                      Rs 2346.00
4. Existing emoluments                                                                   Rs 4546.00
5. Add 20% of basic pay                                                                  Rs   440.00
                                                            Total                                     Rs 4986.00
6. Pay to be fixed in integrated scale                     Rs 4600 + Rank pay 1200/- (as
the minimum pay admissible for the rank           of Brigadier is Rs 4600/- in integrated scale)         


ANNEXURE AA-2

Extracts from Special Army Instructions 1/S/1987


“6. Fixation of initial pay in the revised scales will be regulated as follows: -

(a) (i)  An amount representing 20 per cent of the basic pay in the existing scale shall be added to the ‘existing emoluments’ of the officer. 

(ii) After the existing emoluments have been so increased, an amount equivalent to the rank pay, if any, appropriate to the rank held by the officers on 01 January 1986 at the rates prescribed in Para 3 (a) (ii) above, will be deducted. Thereafter, the officer’s pay will be fixed in the revised scale at the stage next above the amount thus computed. In case the stage of fixation falls below the minimum pay for the rank held by the officer on 01 January 1986 as prescribed in the tables 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
Completed years of service
(aa) Officers of all Arms and Services (except AMC, ADC, RVC and MNS: - 
Lt
2500
2
Capt
2800
5
Major
3400
11
Lt Col (Selection)
3900
16
Colonel
4500
20
Brigadier
4950
23

*****
ANNEXURE AA-3

Extracts from the Report of the Third Central Pay Commission


CHAPTER 48

REFERENCE AND PROCEDURE

Terms of Reference

Our terms of reference in relation to the Armed Forces read as follows:-

            “The Commission will be required to enquire into and make recommendations on-

(v) the structure of emoluments including benefits in cash and kind and death-cum-retirement benefits of personnel belonging to the Armed Forces, having regard to their terms and conditions of service.” 

It is seen that these terms differ somewhat from the terms applicable to Central Government employees in general, and we are not required to make recommendations on the conditions of service of the Armed Forces personnel but are expected to take them as given. Accordingly, we have refrained from suggesting any changes for Service personnel as respects methods of recruitment, qualifications, training, terms f engagement, the rank structure, age of retirement, leave entitlements etc. Moreover, we have re-examined the various criteria attached to the grant of allowances and benefits only where we considered it necessary for proper scrutiny of specific proposals made by the Service Headquarters. Where an allowance or benefit appeared to us as being a general addition to pay, we have closely examined the desirability of its continuance as also the feasibility of including it in pay itself.

                        XX                                           XX                                           XX

Special Procedure Adopted for Armed Forces

5. It is for the first time that a Pay Commission has been asked to enquire into the structure of emoluments of both the civilian employees of the Government and the Armed Forces personnel. In the past, the latter enquiry was entrusted to departmental committees which included the representatives of the Services also.

6. While devising our procedure of work, we were keen that Services personnel, like civilian employees, should have the opportunity to represent their case before us. We, therefore, requested the Ministry of Defence to consider permitting Servicemen to submit memoranda in response to the press notices issued by us in June-July 1970 as also to tender evidence before us in their personal capacity. We were, however informed that the requirements of military discipline and tradition would not admit such an approach (emphasis by blog post author). In fact, the Defence Services Regulations specifically prohibit representations on military matters except through normal Service channels….. For the specific purpose of formulating proposals for our consideration, special Cells were therefore created in each Service Headquarters ……….Our examination of the proposals received from the Services and discussions with senior Service officers and the Services Chiefs have satisfied us that the Servicemen’s interest have not suffered on account of the absence of representations either individually or collectively by Servicemen.     

7. The Ministry of Defence also set up an Expert Cell in August 1970, comprising three senior Service officers of the level of Major General and two civilian officers from the Ministries of Defence and Finance. The Expert Cell was asked to “scrutinise, coordinate, and integrate proposals received from Service Headquarters …..into a common and comprehensive inter-services pattern, before their submissions to the Pay Commission.” 

            XX                                                       XX                                                       XX

8. Besides the official proposals formulated by the Services, we received valuable suggestions in the replies to our Questionnaire given by two former Service Chiefs – General P.P. Kumaramangalam and Admiral A.K. Chatterjee. At our request, they were good enough to meet the Commission for discussions. 

            XX                                                       XX                                                       XX

CHAPTER 50

SERVICE OFFICERS PAY

8. The Post War Committee had explained that they framed their proposals for Service officers “having regard to the recommendations of the Central Pay Commission and particularly to the scales proposed for the Class I and all-India Police Service.” There proposals were formally approved by the Service Headquarters. The Raghuramaiah Committee which was appointed after the Second Pay Commission mentioned as follows: -

“We consider that the accepted parallel between Defence Services officers and Class I Service of the Central Government, particularly the Indian Police Service should be continued.” We find that on both these bodies the Services were represented and it is thus evident that the existing relativity between Service officers and the officers of Class I and the IPS came to be established by bodies on which the Services were fully represented so that the Service Headquarters should be deemed to be parties to the conclusion arrived at. It is only from 1962 when the maximum of the Major’s scale was fixed at the same level as that of the senior scale of the IPS (which was made slightly higher than the senior scale of Class I Central Services) that this broad relativity acquired a new preciseness and modification of the IPS scales became the raison d’etre for changes in the Armed Forces scales at corresponding levels.

XX                                                                   XX                                                                   XX

11. We have earlier expressed our view that it is not necessary that each special factor of Service life should be recompensed by the grant of an allowance. Thus, the factors affecting Service officers generally should be compensated for in pay itself, unless there is considerable variation as between one group of officers and another. In this connection, we have examined in particular the need for continuing with the grant of Special Disturbance Allowance to all Service officers, whether married or single, up to and including the rank of Brigadier. The Special Disturbance Allowance, as its name implies, has been granted as a compensation for turbulence in Service life. The allowance was first introduced in 1950 at the rate of Rs 30 p.m. The rate was revised in the year 1970 to Rs 45 p.m as a measure of immediate relief to Service officers, without prejudice to the recommendations of the Pay Commission.    

12. The Services have asked for the grant of Special Disturbance Allowance at higher rates of Rs 100 per month for officers in the ranks of Captain and below and Rs 150 per month for Majors and above. The proposal has been unjustified because of the turbulence of Service and the liability to move at short notice which, due to  its uncertainty, imposes emotional stresses and strains on the Service officer and his family.

13. We have tried to ascertain the circumstances in which this allowance came to be granted and find that it was part of several concessions granted in the year 1950 as a temporary measure to improve the earnings of Service officers without interfering with the pay scales introduced on the recommendations of the Post War Pay Committee. At that time, many ICOs were being brought down from their war-time scales of pay to the new scales and the grant of this concession among others helped to afford some relief to these officers. 

14. To get a clear idea of the extent of turbulence in the life of a Service officer, we requested the Ministry of Defence to undertake a study on the basis of a random sample of officers having 20 to 23 years of service after 1947.

XX                                                                   XX                                                                   XX

16. We have also analysed the data relating to the period 1947-70 furnished by the Ministry of Defence to assess the length of time spent in the field areas by the Service officers in the different Services. In the Army, the average period of service in the field areas is the highest in the case of the Infantry, followed by the Corps of Signals and the Armoured Corps. In case of Infantry, the average period spent in the field areas, inclusive of the time spent by officer at home on 2 months annual leave, works out to less than one-third of the entire length of service. Thus, even in the case of the infantry officers more than two-third of the service period on an average is spent in a peace station. Army officers in certain Corps and Service, on an average, spend very little time in the field areas. In the Navy, officers of the Executive Branch serve at sea for longer periods than others and, on an average, the period spent in establishments afloat works out to more than one-third of the total length of service. In the case of Air Force, the period spent in field areas has not much meaning as it is only during operations or alert that an Air Force Station is generally declared as a filed area. Accordingly, the average time spent by Air Force officers in field areas is much less than the other two Services.         

17. It is of course true that the extent of turbulence of Service life depends largely on extraneous circumstances such as military postures of other countries and operational needs. During the period for which we have obtained data, the level, of operational activity has not been abnormally low, and it might be reasonable to assume that in future also there will be no great change. On this assumption, it would be difficult to say that the extent of turbulence in the Armed Forces is such as to justify an increase in the existing rate of Special Disturbance Allowance as has been demanded. It should also be recalled that when Service officers are posted to field areas they are entitled to certain special benefits, such as the grant of Separation Allowance for married personnel and provision of free food and accommodation in the field area. On transfer to a peace station, if married accommodation is not available at the new place of posting, the family can retain accommodation at the old station. Further, in such cases the officer himself is entitled to free single accommodation in the new station. We are of the view that the facilities available to the Service officers are additional factors which preclude any increase in the Special Disturbance Allowance.    

18. On the other had, it appears to us that, taken as a whole, the extent of turbulence offset by the facilities available does not provide sufficient justification for the Special Disturbance Allowance. We also have to point out that this allowance is not related to the degree of turbulence, but is being granted to all Service officers up to and including the rank of Brigadier, and no distinction is made as between officers serving in various branches or between married and single officers. We are convinced that the continuance of a Special Disturbance Allowance as a separate entity is unjustified because of the other factors detailed above. We would, however, hesitate to recommend total abolition of this longstanding allowance as it may result in an immediate loss of emoluments. We have accordingly recommended a higher starting salary for Commissioned Officers as compared to officers of the Civilian Class I Service, and have also taken the existing rate of this allowance into account in fixing the new scales of pay.      

XX                                                                   XX                                                                   XX

CHAPTER 54

FIXATION OF PAY IN THE PROPOSED SCALES AND COST OF RECOMMENDATIONS

XX                                                                   XX                                                                   XX

3. In the case of Service officer, “emoluments” for the purpose of initial pay fixation in the revised scales should include basic pay of rank, dearness pay, dearness allowance, interim relief and Special Disturbance Allowance ……………..    

4. Our recommendations in regard to the revised pay scales for the various groups of Service Officers are in the form of substitute tables, stage by stage, for the existing tables of pay scales for the corresponding categories………..

XX                                                                   XX                                                                   XX


ANNEXURE AA-4

Extracts from the Report of the Fourth Central Pay Commission
(Para 30.2)

“We have given careful consideration to all these suggestions. Taking all factors into account we recommend that pay of employees may be fixed in the proposed scales of pay in the following manner: -“ 

(i)                For all employees, an amount representing 20 per cent of basic pay in the existing scale subject to a minimum of Rs 50/- may be added to the “existing emoluments.” Pay may thereafter be fixed in the proposed scale at the stage next above the emoluments thus computed. If the minimum of the proposed scale is more than the amount so arrived at, pay may be fixed at the minimum of the proposed scale. For this purpose the term “existing emoluments” will include the following: -  

(a) basic pay in the existing scale,

(b) dearness pay, additional dearness allowance, and ad hoc dearness allowance appropriate to the basic pay admissible at index average 608 (1960 = 100), and

(c) amounts of first and second instalments of interim relief admissible on the basic pay referred to in (a) above

(ii) In case of employees who are in receipt of special pay in addition to pay in existing scale and where the existing scale of pay with special pay has been replaced by a scale without any special pay, pay may be fixed in the proposed scale in accordance with provisions of paragraph 30.2 (i) except ….. (c) DP/ADA/Ad hoc DA and special pay ……

(iii)In case of employees who are in receipt of special pay in addition to pay in existing scale and where the existing scale of pay with special pay continues in the proposed scale in accordance with provisions of paragraph 30.2 (i) above after excluding the existing special pay and the amounts admissible thereon such as DP/ADA/Ad hoc DA…….

(iv) In case of medical officers who are in receipt of non-practising allowance, pay may be fixed in the proposed scale in accordance with provisions of paragraph 30.2 (i) above except that in such cases the terms “existing emoluments” will not include NPA as existing rates and will comprise ……
In such cases, NPA at the new rates may be drawn in addition to pay in the proposed scale.

(v) If the pay of government employees gets bunched on fixation in the proposed scales, the pay in such cases may be stepped up in the manner provided under the Central Civil Services (Revised Pay) Rules, 1973.

XX                                                                               XX                                                       XX                  
ANNEXURE AA-5

Extracts from the Fifth Central Pay Commission Report

148
Fixation of Pay in Proposed Scales

148.1 Background. We have made recommendations with regard to fixation of pay in the proposed scales in respect of civilian employees in the relevant chapter The method of pay fixation on revision of pay adopted by earlier Pay Commissions for civilians and service personnel was more or less identical. The Fourth CPC while following a similar dispensation for civilian and Service Personnel had given specific illustrations of the manner in which pay for service personnel should be fixed especially in the context of the introduction of integrated pay scales for Service Officers,

148.2. Our recommendations. 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 maybe be taken into account but pay in revised scales be fixed after deducting the revised amount of rank pay. While the method of fixation and illustrations given for civilians would apply mutatis mutandis to PBOR and Service Officers of the rank of Major General and above, the following illustrations indicate the manner in which pay should be fixed for armed forces officers up to the rank of Brigadier: 

Illustration No.1

1. Rank                                                           Major
2. Pay + Rank pay (Rs 3400 + 600)                     Rs 4000
3. Stage in the scale                                      1st stage
4. DA at index avg 1510 + interim relief   Rs 5680
5. Existing emoluments                               Rs 9680
6. Add 20% of Pay +Rank pay                   Rs   800
7.                                             Total               Rs 10480
8. Pay after deducting revised                   Rs 9280
Rank pay of Rs 1200
9. Pay in Revised scale                                Rs 11600 + Rs 1200 Rank Pay

Illustration No 2

1. Rank                                                           Lt Colonel
2. Pay + Rank pay (Rs 4500 + 800)                     Rs 5300
3. Stage in the scale                                      7th stage
4. DA at index avg 1510 + interim relief   Rs 6513
5. Existing emoluments                               Rs 11813
6. Add 20% of Pay +Rank pay                   Rs   1060
7.                                             Total               Rs 12873
8. Pay after deducting revised                   Rs 1173
Rank pay of Rs 1600
9. Pay in Revised scale                                Rs 13900 + Rs 1600 Rank Pay

Illustration No.3

1. Rank                                                           Colonel
2. Pay + Rank pay (Rs 5100 + 1000)                   Rs 6100
3. Stage in the scale                                      5th stage
4. DA at index avg 1510 + interim relief   Rs 7370
5. Existing emoluments                               Rs 13470
6. Add 20% of Pay +Rank pay                   Rs   1220
7.                                             Total               Rs 14690
8. Pay after deducting revised                   Rs 12690
Rank pay of Rs 2000
9. Pay in Revised scale                                Rs 15550 + Rs 2000 Rank Pay

XX                                                                   XX                                                                   XX

ANNEXURE AA-6

Extracts from Sixth Central Pay Commission Report

Analysis

2.3.10                         The following facts emerge from the history of the rank structure of officers in the Defence Forces: -

(i) A broad parity has always existed between the pay scales of Defence Forces officers and civilian group A services in general and with IPS in particular.

(ii) Special Disturbance Allowance was given to the Defence Forces officers in 1950 as a temporary measure to improve their earnings without interfering with the pay scales introduced as per the recommendations of the Post War Pay Committee which had brought down the pay scales of many Indian Commissioned Officers (ICOs).

(iii) An edge was provided by the Third CPC in the Defence Forces officer’s pay scales because the Commission had converted the then Special Disturbance Allowance into an edge in starting pay vis-à-vis the civilian group A officers.

(iv) The Fourth CPC had continued this edge in devising the running pay band for Defence Forces officers up to the rank of Brigadier and had revised the integrated pay scale taking into account the time taken for promotion to different pay scales. The element of rank pay was carved out of the pay scales so revised after giving the edge vis-à-vis civilian group A officers.  

(v) The Fifth CPC maintained this edge even though it reverted from running pay bands to individual pay scales for various officers’ ranks in the Defence Forces,

(vi) The edge in the Defence Forces pay scales for their officers is on account of the Special Disturbance Allowance. Otherwise, the established relativity of the posts of the posts of Major General and Brigadier is with SAG and DIG pay scales of civilians/police forces respectively.

(vii) The Defence Forces had sought running pay band up to the post of Major General before the Fourth CPC. The Commission, however, conceded the running pay band only up to the post of Brigadier/equivalent.

(viii) The Fifth CPC had not recommended running pay in Defence Forces on account of the repercussions it would have had on civilian pay scales,

XX                                                                   XX                                                                   XX

ANNEXURE AA-7

Extracts from the Government Resolution dated 18.3. 1987

MINISTRY OF DEFENCE
New Delhi, the 18th March, 1987

RESOLUTION

No. 1 (E): - The decisions of the Government of India on the recommendations of the Fourth Pay Commission relating to personnel below officer ranks of the Armed Forces were notified in the Ministry of Defence Resolution No. 1 (E) dated 4th October 1986. Government have now given careful consideration to the recommendations of the Commission relating to structure of emoluments and allowances of Commissioned Officers and have decided that recommendations of the Commission in respect of these shall be accepted broadly, subject to the modifications mentioned below:-

            1. Pay Scales

(i) Integrated pay scale for officers up to the rank of Brigadiers (including AMC, ADC and RVC Officers, but, excluding Military Nursing Service Officers) and equivalent in the Navy and the Air Force would be Rs 2300-100-3900-150-4200-150-5100. In addition to pay in the integrated scale, rank pays will be admissible as under: -  

                       
Rank
Amount of Rank Pay
(Rs. Per month)
Captain
200
Major and equivalent
600
Lt Col (Selection ) and equivalent
800
Colonel and equivalent
1000
Brigadier and equivalent
1200

(ii) Officers commissioned in the AMC as Lieutenants will start at the stage Rs 2600/-; those appointed as Captains will start at Rs 2700. Officers commissioned in as Lieutenants in ADC and RVC will start at Rs 2600/-.

            (ii) Lt Gen and equivalent:- Rs 7300-100-7600

(iii) MNS Officers up to the rank of Colonel will have an integrated pay scale of Rs 2200-100-4200-EB-100-4500. Degree holders in Nursing will start at the stage of Rs 2300/- and Diploma holders will start at Rs 2200/-. Pay scale of Brigadier will be Rs 4600-100-5000 and that of Maj General will be Rs 5100-150-5700. There will be no rank pay for MNS officers. 

II. Recommendations relating to other matters.

(i) It has been decided to extend the scheme of stagnation increment, recommended by Pay Commission, to officers of the Defence Services maximum of whose pay scale does not exceed Rs 6700 in the revised scale subject to certain conditions.   

(ii) The recommendations of the Commission relating to fixation of pay, grant of allowances, date of effect, etc, shall be accepted broadly after extending, wherever applicable, to Service officers, the improvements which have been accepted in regard to personnel below officer rank.  

2. In view of the need for containing inflationary trends, Government hope that Service Officers will voluntarily make a special deposit of the arrears of pay on account to the above decisions for the period beyond March, 1986, also in their provident fund account.

3. The decisions taken by the Government accordingly on the various recommendations of the Commission in respect of Service officers are indicated in the statement annexed to this Resolution.

4. The recommendations made by the Commission, which are not included in the Annexure are being examined by Government and decisions thereon will be notified separately.

V.N. Bahadur, Jt Secy

Statement showing the recommendations of the Fourth Central Pay Commission relating to Armed Forces Officers and Government Decisions thereon (Figures referred in parenthesis pertain to Chapters and Paragraphs of the Pay Commission Report).

S. No.
Recommendations of the Pay Commission
Decisions of the Government
1
2
3
1
Pay Structure – Service Officers up to the rank of Brigadier & equivalent
(a) Integrated Pay Scale – An integrated pay scale of Rs 2300-100-4200-EB-100-5000 is recommended for all officers up to the rank of Brigadier and equivalent in the three Services including officers in the specialised cadres of AMC, ADC and RVC.                                 (28.12 and 28.14)  



(b) Rank Pay – in addition to pay in the integrated scale, the following rank pays may be given to officers in the Army and their equivalents in the other Services:

Rank                                    Amount of Rank
                                                     Pay
                                                         (Rs Per month)
1. Captain & equivalent                       200
2. Major & equivalent                         400
3. Lt Col (Select) & equivalent           600
4. Colonel & equivalent                      800
5. Brigadier & equivalent                  1200

In Navy, a Captain, on completion of three years service in that rank, will draw the rank pay of Rs 1200 p.m. recommended for Brigadier.                                            (28.13)



(a) Accepted with improvement as under: Rs. 2300-100-3900-150-4200-EB-150-5100







(b) Accepted with improvement as under:

Rank     Amount of Rank Pay

                               (Rs Per month)
1.Captain&equivalent              200
2.Major&equivalent                600
3. Lt Col (Select) & equivalent
                                                    800
4.Colonel&equivalent            1000
5.Brigadier&equivalent         1200

28
Fixation of Pay – Method of fixation of pay recommended for civilian employees in Chapter 30 of the Report should also be applied to the Armed Forces. Since Rank Pay is a separate element for officers up to the rank of Brigadier and equivalent, the same may be taken into account while fixing pay in the integrated scale.                            (28.113)
Accepted

******
Concluded







































      































































































































 

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