If people had always understood the lessons of history, there would be
no history.
- Talleyrand
*****
F. No.
B/25511/AKDP/AG/PS 3 a
Partial Reply dated 8
April 2013 to RTI of 26 March 2013
******
-81-
The SAI 1/S/87
provides inter-alia that after the existing emoluments viz. basic pay plus DA
plus ADA plus IR plus 20% of basic pay have been worked out, an amount
equivalent to Rank pay appropriate to the Rank held by the officer on 1-1-86 at
the rates prescribed in the SAI will be deducted. Thereafter the officer’s pay
will be fixed in the revised scale at the stage next above the amount thus
computed. The pay of Major Dhanapalan was fixed under the said provisions and
he was allowed Rank Pay of Rs 200 in addition. He had filed a petition in the
High Court of Kerala stating that his pay be re-fixed in the rank of Captain as
on 1.1.86 without deducting the amount
of rank pay of Rs 200 from his emoluments and that rank pay appropriate to
his rank should be paid to him over and above the pay so fixed.
The
Hon’ble High Court in its order dated 5-10-98 held that the respondents have
completely misunderstood the scope of extending the benefit of rank pay to the
Army Officer. Rank Pay is something which has been given to the officer in
addition to his existing pay scale. That is not an amount which has to be
deducted in order to arrive at the total emoluments. The Court directed the
respondents to refix the pay of the petitioner from 1-1-86 without deducting
the rank pay of Rs 200. An appeal was filed in the High Court against the
judgment and as per the directions of the Court, an additional affidavit was
also filed on 1-12-2000 with the approval of the then Defence Secretary. The
Division Bench of the High Court of Kerala, Ernakulam in its judgment dated 4th
July 2003 upheld the judgment of the Single Bench of the High Court and
dismissed the appeal filed by the Union of India.
The issue of
filing of SLP in the above matter has been considered vide Note 64-70 ante. The
matter was placed before the Additional Solicitor General who ruled that this
is not a fit case for filing SLP.
Under
the circumstances, it is proposed that the Court’s judgment dated 5-10-98 be
implemented forthwith. Since the judgment may have wide ranging financial
implications in terms of pay fixation of serving as well as retired officers
whose pay was fixed as on 1-1-86 in terms of SAI 1?s/87 necessitating revision
of their pension and other terminal benefits also, the matter may subsequently
be taken up with Ministry of Finance appropriately.
Submitted
please.
Sd/-----------------
CHITRALEKHA MUKHERJEE
DIRECTOR (AG)
27-2-04
JS (E)
-82-
In light of the
above, please seek views of Def (Fin). Quickly pl.
Sd/--------------
1/3/04
Director (AG) Sd/- 3/3
US (P/S) – on leave
-83-
Ref
preceding notes.
Min of Def
(Fin) may kindly see for further n/a pl. Their earlier note 78 ante and the
directions of JS (E) vide note 82 refer.
Sd/-----------
3/3/04
MDF/AG/PA
-84-
Ref
preceding notes.
2.
The relevant file of the MoD dealing with the
issuance of SAI 1/S/87 in respect of Army and the files dealing with issuance
of similar instructions in respect of Navy and Air Force, may kindly be linked.
Sd/-------------------
5-03-04
AFA (AG/PA)
Dir (Fin/Q/AG)
Dir (AG) MoD
****
Ministry of Finance
Department of Expenditure
EIII (A) Branch
Reference:
Notes of Ministry of Defence on p.10-13 ante.
The matter
has been examined in this Ministry. However, before for taking a final view,
the case was referred to DOP&T for their views/comments/advice. However,
DOP&T wants clarification/information on certain points as indicated in
their UO No. C-57/04/Pay-I dated 08.04.04 (copy placed below).
2. Ministry of
defence may kindly clarify the above points to DOP&T alongwith the
requisite information requested for by them at appropriate level for their
specific views before the case is considered further for taking a decision.
Sd/--------------------
(V. KRISHNASWAMY)
Under Secretary
(EIII-A)
FA (DS),
Ministry of Defence
MoF (Exp) U.O. No. C-67/E.IIIA/2004 dated 15.04.04
****
Deptt of Personnel
& Trg
Estt. (Pay-I) Section
Reference
preceding notes from D/Expenditure regarding the proposal from Ministry of
Defence for implementation of an order of the Kerala High Court in a case
regarding pay fixation of a retired army officer in pursuance of the IV CPC
recommendations.
Before we consider the matter,
D/O Expenditure may be requested to clarify whether the Rank Pay in pursuance
of the 4th CPC recommendations was introduced in Ministry of Defence
in consultation with Ministry of Finance and this Department. Further, it may
also be clarified whether the criteria of pay fixation in revised scale, by
deducting the equal amount from the ‘existing emoluments’ and the allowing Rank
pay, was adopted in consultation with M/O Finance and this Department. Whether
there was also any recommendation by the VI CPC regarding pay fixation when
they recommended for Rank Pay.
Sd/------------------
2/4/04
DS (Pay)
D/O Expenditure (EIIIA Branch)
DOP&T U.O. No. C-57/04/Pay-I dt 8/4/04
*****
-85-
Reference
preceding notes.
2.
The case has been examined in consultation with
MOF/DOP & T. A copy of MoF’s U.O. Note No. C-67/E.III (A)/2004 dated (?)
April 2004 and a copy of DOP & T’s U.O. Note No. C-57/04/Pay-I dated
8.4.2004 is placed alongside. MoD are requested to furnish the requisite
clarifications expeditiously so as to facilitate further examination of the
case in consultation with MoF/DOP & T.
Sd/------------------
(A.K.
Gambhir)
AFA
(AG/PA)
19-04-04
US D (Pay/Ser)
Sd/------- 20/4/04
SO
Sd/-------
-86-
Ministry of Defence
D (Pay/Services)
***
Reference
note 85/ante and queries of MoF/DOP & T.
2.
As per the recommendations of the IV-CPC, an
integrated pay scale (Rs 2300-100-3900-150-4200-EB-150-5100) for officers upto
the rank of Brig was introduced. In addition to the Basic pay, officers were
also entitled to Rank Pay for holding a particular rank. The Rank Pay was in
the range of Rs 200 to Rs 1200 for the officers of the level of Capt to
Brigadier. Some illustrations were also provided by the CPC for guidance, in
fixing the pay of the officers in the revised pay scale.
3.
Following is sample of illustrations for fixing
the pay of Major (sic):
1.
Rank Captain Major
2.
Existing basic pay Rs
1300/- Rs
1600/-
(As
per III CPC scale)
3. DP/ADA
on basic pay Rs 1650/- Rs 1740/-
At index
average 608 and
Interim
Relief
4. Existing
emoluments Rs 2950/- Rs 3340/-
5. Add 20%
of basic pay Rs 260/- Rs 320/-
(20% of
item 2 above)
Total Rs 3210/- Rs 3400/-*
6. Pay in
the integrated Rs
3100/-* Rs
3400/*
Scale (minimum
pay for rank of Major
In
integrated scale)
PLUS RANK
PAY Rs 200/- Rs 400/-
* This was arrived at after
deducting the equal amount of Rank Pay from the emoluments then fixing the pay
in the integrated pay scale and further showing Rank Pay separately.
4. Further,
it is seen from the notes portion in the file that the Finance Division were
consulted, as usual, before the issue of Special Army Instructions in May,
1987. There is no indication on the file that the Ministry of Finance and/or
DOP & T were also consulted at that time of issuing SAI, introducing
integrated pay scale and also the element of Rank Pay while implementing the
recommendations of IV CPC. There is a possibility that the Finance Division may
have consulted the MoF/DOPT, on their own file.
5. The above
facts may be submitted to our Finance Division, for further action at their
part.
Sd/---------------
29/4/04
AFA (AG/PA)
Copy
of relevant extracts of the Report of IV CPC are placed opposite.
Sd/-------------
30/4/04
US D (Pay/Ser) Sd/----------
Def Fin (AG/PA) Recd 6/5
DO(AG/PA)
Department of Personnel & Training
Estt. (Pay-I) Section
********
Reference
preceding notes.
2. It is observed that the formula
adopted in fixing pay in the revised scale w.e.f. 1.1.86 was that Rank Pay was
deducted from the total emoluments admissible on 1.1.86 and then the pay was fixed
in the revised scale and Rank Pay allowed in addition to the pay so fixed,
though the Rank Pay was introduced w.e.f. 1.1.86. It may therefore be
clarified:
a)
as to why the Rank Pay was being
deducted from the pre-revised emoluments and if the same was not admissible on
the pre-revised emoluments.
b) If
it was deducted from the revised emoluments what was the purpose for the same
because first deducting it and then adding it to the pay fixed in the revised
scale as that would tantamount to the same.
c) Whether the pay
fixation formula was adopted in consultation with the Department of Personnel
& Training/Ministry of Finance.
d) As para 5 of Note 67/N
of the Linked File, wherein it has been mentioned that Rank Pay was not to be
deducted from the total emoluments while fixing the pay in the revised scale,
is contradictory to para 3 of p.10/ante an also to the p.86/N of the Linked
File, it is requested to indicate the exact formula adopted by the
Ministry/recommended by the Pay Commission with an illustration of the method
of
fixation of pay in the revised scale w.e.f. 1.1.86.
Sd/-------------------
Rita
Mathur
Deputy
Secretary (Pay)
Dt:
31-5-05
M/Defence (Finance) (AG/PA)
DOP & T U.O. No. 1/22004-Estt
(Pay – I) dt 31.5.04
-87-
MINISTRY OF DEFENCE (FIN/AG/PA)
Reference
preceding note.
2.
The proposal has been examined in consultation
with DOP & T. A copy of DOP&T/Estt. Pay.I section note No.
1/2/2004-Estt (Pay. I) dated 31st May 2004 is placed opposite. M/O
Defence are requested to furnish the clarifications asked for by DOP &T.
3.
Dir (Fin/AG) has seen.
Sd/--------------
(A.K.
GAMBHIR)
AFA
(AG/PA)
1.6.2004
US/D (PAY/SERS)
Pl
spk
Sd/--- 2/6/04
SO
Dir (Fin/AG)
AFA (AG/PA)
Send to MoD IMM.
-88-
Ministry
of Defence
D
(Pay/Services)
Reference
observations/query of DOP&T.
2.
The IV CPC in Para 26.13 of their report had
recommended the Rank Pay in addition to the pay in the integrated pay scale for
all officers upto the rank of Brig and equivalent in the three services. The
CPC had recommended integrated pay scale of Rs 2300-100-4200-EB-100-5100, which
was revised to Rs 2300-100-3900-150-4200-EB-5100 by the Government. The
Commission further in Para 28.113 of their report had recommended that the
method for fixation of pay in the proposed scales for civilian employees will
be adopted for fixation of pay of Armed Forces officers. Since Rank Pay is a separate element for officers upto the rank of Brig
and equivalent, the same may be taken into account while fixing pay in the
integrated pay scale recommended by them. In the illustrations No.1 to 6
the Pay Commission has outlined the procedure to be adopted while fixing pay.
It may be seen from the said illustrations that the Rank Pay has been treated
as a separate element. Presumably for this reason the same has been deducted
from the revised emoluments arrived after taking into account the existing pay,
DP, ADA on basic pay, Interim Relief ad weightage of 20% of basic pay. Copies
of relevant extracts from the report of the IV CPC are placed opposite for
perusal.
3.
Para 5 referred by DOP&T is from note 64 and
NOT from note 67 in the linked file [No. BM/25511/AKDP/AG/PS-3(a)] as stated by
them. This contains the views of Army HQ in the matter. The views expressed by
the office of the CGDA vide para 3 of Note 10 in the PC No.
B/25511/AKDP/AG/PS-3(a), reiterate the stand taken by the Govt. Hence there is
contradiction in the views. The illustrations regarding method of pay fixation
may seen on pages 662-3 of the Report of IV CPC, extracts of which are placed
opposite.
4.
The
DOP&T/Ministry of Finance were not consulted while notifying the revised
pay scales and Rank Pay etc.(underlined for emphasis by Aerial View).
Sd/---------------
25/06/04
Under Secretary (Pay/Services)
-89-
Defence (Finance)
(AG/PA)
Reference
preceding notes,
2.
The matter has been examined in consultation
with the Ministry of Finance. A copy of that Department’s ID. Note No. 7
(16)/E.III/2004 dated 6.8.2004 containing their advice in the matter is placed
opposite. MoD are advised to take necessary follow up action, immediately.
3.
FA (DS) has seen and observed that early action
will be needed in this matter.
Sd/-------------------
(G.K. Padhay)
Director (Fin/AG)
11/8/04
Director (CP), MoD
Sd/---- 11/8
US (P/S)
Sd/------
12/8
ILLUSTRATIVE EXAMPLE
Pay Fixation of Captain in the running pay scale of Rs
2300-100-1900-150-4200-EB-150-5100 applicable for the rank from 2nd
Lt to Brig
With deduction of Rank Pay Without deduction
of Rank Pay
Existing Basic Pay Rs 1300
DA/ADA on BP at
Index average 608
& IR Rs 1650
Existing emoluments Rs 2950
Add 20% of BP Rs 260
Total Rs
3210 Total
emoluments Rs 3210
Less Rank Pay Rs 200
Pay fixed in the
scale Rs 3100 Pay fixed in the scale Rs
3300
Net Benefit Rs
3100+200 (RP) -2950 Net
benefit Rs 3300+200 -2950
= Rs 350 = Rs 550
Based on SAI 1/S/1987, Para 6 As decided by the Court
(High
Court of Kerala)
Note: the above is
part of the Note of MOD – D (Pay/Services)
********
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