RTI to MoF and Reply: Comments of MoF
Please see table below and co-relate for information
available else where on Aerial View which is not typed here
|
Page No(s)
|
Subject
|
Annexure No
|
Whether
included in this post
|
|
546-566
|
MoF, Deptt of Expenditure ID Note No. 187654/E.IIIA/2012
dated 5.7.2013
|
-
|
Yes
|
|
567-569
|
Resolution 9E of the GoI approving 4th CPC
recommendations
|
3
|
No
|
|
570-590
|
SAI No. 1/S/87
|
4
|
No
|
|
591-600
|
O. P. No, 2448 of 1996
|
5
|
Yes
|
|
601-605
|
Judgement of Ld Single Judge of Hon’ble Kerala High Court
dated 5.10.1998
|
6
|
No
|
|
606-617
|
Judgement of Ld Division Bench of Hon’ble Kerala High
Court dated 4.7.2003
|
7
|
|
|
618
|
Exhibits P1, P2, P3
|
8
|
Yes
|
|
619-621
|
Order of Hon’ble Supreme Court in TP (C) 56 of 2007
|
9
|
No
|
|
622- 627
|
Order of Hon’ble Supreme Court in IA No. 9 of 2010
|
10
|
No
|
|
628
|
Blank
|
Blank
|
Blank
|
|
629-634
|
MoD letter of 27.12.2012
|
11
|
No
|
|
635-638
|
O/o CGDA UO Note AT/1/1483-Army/X/(PC)/V dated 23.5.2013
|
12
|
Yes
|
|
639-642
|
Working sheets attached to the above
|
13
|
Yes
|
|
643
|
Working sheet of O/o CDA (P) Allahabad
|
14
|
Yes
|
|
644-645
|
Extracts from CCS (RP) Rules 1986
|
15
|
Only Para 7 (1) (A)
|
|
646-647
|
Extracts of 6th CPC – Para 1.2.6, 1.2.7,
1.2.8, 1.2.9,.1.2.10.1.2.11, 2.2.4, 2.2.5, 2.2.6, 2.2.7
|
16
|
No
|
* * * * *
Reply dated 05 Nov 13 received by Speed Post on 08 Nov 13 : 102 pages
F. No.
7/1/2013-E.III-A/531
Government of India
Ministry of Finance
Department of
Expenditure
North Block, New Delhi
Dated: 5 November,
2013.
To,
Sh. S. Y.
Savur,
141 Jal
Vayu Towers,
NGEF
Layout,
Indira
Nagar (PO),
BANGALORE -560038
Sub: Application
seeking information under RTI Act, 2005 – regarding
Sir,
Please
refer to your RTI application dated 23.9.2013 received in this Branch on
4.10.2013 through RTI Cell of this Department vide their OM No.
11(643)/2013-RTI dated 3.10.2013 & 30.10. 2013 on the above mentioned
subject.
2. A copy of
this Department’s I.D. Note No. 187654/E.III-A/2012 dated 5.7.2013 with
enclosures, containing 102 pages, sent to Ministry of Defence conveying the
comments of Deptt of Expenditure, is enclosed.
Yours faithfully,
Sd/---------------
(S.K. Biswas)
Under Secretary &
CPIO
Copy to: US (RTI) Deptt of Exp. W.r.t. O.M. No. 11
(643)/2013-RTI dated 30.10.2013
* * * * *
Pages 547 to 566
Ministry of Finance
Department of Expenditure
* * * *
Subject: Rank
Pay case arising out of the order dated 5.10.1998 passed by the Hon’ble Kerala
High Court in respect of Maj. A. K. Dhanapalan – its extension to similarly
placed persons.
The
Ministry of Defence has referred the file to this Ministry, seeking its
comments on the reference to be made to learned Attorney General for his
opinion whether the orders issued by the Government on 27.12.2012 are in
complete compliance with the order of the Hon’ble Kerala High Court dated
5.10.1998, delivered in case of Maj. Dhanapalan, for its extension to similarly
placed persons, as ordered by the Hon’ble Supreme Court in their order dated
4.9.2012.
2. It is seen that Ministry of Defence has not prepared any
draft reference to be made to the learned Attorney General. The Note 55 of the
Ministry of Defence, refers to the views of Office of CGDA in their note dated
23.5.2013 and MoD Finance as contained in their note dated 4.6.2013 in respect
of 4 issues raised by the Services Headquarters in their Statement of Case
referred to Ministry of Defence vide their note No. Air HQ/19141/7/AFPCC dated
2.4.2013.
3. The four issues raised by the Services Headquarters in their
aforesaid Statement of Case dated 2.4.2013 have been considered in detail in
this Ministry based on the views of CGDA and MoD Finance.
4. Accordingly, a detailed note containing comments of this
Department in the matter is attached. This Note may be referred to the learned
Attorney General as part of the reference to be made by the Ministry of
Defence.
(A few annexures referred to in
the Note, especially those relating to the petition of Maj. A. K. Dhanapalan
and the orders of the Hon’ble High Court dated 5.10.1998 and 4.7.2003, have
been taken from the documents earlier provided by the Ministry of Defence.
Since these documents were typed versions, Ministry of Defence may ensure that
the correct versions of these documents are sent to the office of the learned
Attorney General).
5.
This has the approval of Finance Minister.
Sd/-------------------------
(Amar Nath Singh)
DS (E-IIIA)
Ministry of Defence (Sh. Sameer Kumar Khare, JS (E/PG)
and CVO
MOF, DOE, ID Note No. 187654/E.IIIA/2012 dated 5.7.2013
* * * *
Page 548
Views of the Ministry of Finance on the reference of the Ministry of
Defence to the learned Attorney General on the issues raised by the Service
Headquarters in the matter of implementation of the Order dt. 5.10.1998 passed
by the Hon’ble Kerala High Court of similarly placed Officers of Armed
Forces
Background
1. The issue relates to fixation of pay arising out of fitment
of Armed Forces’ officers drawing pay in the pay scales obtaining immediately
prior to the implementation of the recommendations of the 4th
Central Pay Commission into pay scales implemented based thereon with effect
from 1.1.1986. Thus, the issue relates to the formula for fitment of Armed
Forces’ officers commissioned prior to 1.1.1986 and holding a particular rank
from Captain to Brigadier as on 1.1.1986 into the revised Integrated scale made
effective with effect from 1.1.1986 consequent upon switch-over from the
pre-revised structure to the revised structure on the cut-off date of 1.1.1986.
1.1. Thus, the context of the issue relates to revision of pay
scales for Central Government employees including Armed Forces personnel on the
basis of the recommendations of the 4th Central Pay Commission, as
accepted by the Central Government. The revised pay structure recommended by 4th
Central Pay Commission and as accepted by the Government was made effective
with from 1.1.1986.
2. So far as the
Armed Forces personnel are concerned, the recommendations of the 4th
Central Pay Commission contained in Chapters 28 and 30 of its Report are
relevant for the issue under consideration. The relevant Extracts are placed at
Annexure 1 & 2.
4th Pay
Commission’s recommendations in regard to Armed Forces Personnel
3.1.
In Chapter 28, the 4th Central Pay
Commission dealt with the revised pay structure to be made applicable to these
personnel in revision of the pay structure then obtaining based on 3rd
Central Pay Commission system. The 4th Central Pay Commission,
taking all factors into account, recommended the following integrated pay scale
for all officers up to the rank of Brigadier and equivalent in the three
services: -
Rs, 2300-100-4200-EB-100-5000
3.2. In addition to pay in the above integrated scale, the
Commission also recommended for the introduction of the concept of Rank Pay to
officers in the Army and their equivalents in the other services as the
following rates: -
|
S No.
|
Rank
|
Amount of Rank Pay
(Rs. p.m.)
|
|
1.
|
Captain and equivalent
|
Rs 200
|
|
2.
|
Major and equivalent
|
Rs 400
|
|
3.
|
Lieutenant Col (Selection) equivalent
|
Rs 600
|
|
4.
|
Colonel and equivalent
|
Rs 800
|
|
5.
|
Brigadier and equivalent
|
Rs 1200
|
Formula for fixation
of pay in the revised structure from 1.1.1986
4. In Chapter 30, the 4th Central Pay Commission
made recommendations regarding the manner in which pay of the existing
employees (drawing pay in the 3rd Pay Commission scales as on
1.1.1986) should be fixed in the scales of pay proposed by the 4th
Central Pay Commission, which were implemented with effect from 1.1.1986. This
fitment of employees from pre-revised to revised pay scales meant
fixation/fitment of pay in the revised pay scales as on 1.1.1986 (the cut-off
date) based on emoluments drawn by them in the pre-revised scales. This fitment
is based on the formula recommended by the 4th Pay Commission. Once
revised pay is fixed in the revised pay scales in respect of employees as on
1.1.1986, based on the method/formula recommended by the 4th Central
Pay Commission and as accepted by the Government, the revised pay so fixed is effective with effect from 1.1.1986 for
all purposes for which the pay is so counted.
4.1. The
Commission in para 30.2. of its Report recommended that pay of employees may be
fixed in the proposed scale 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, the 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) (this was index as on 1.1.1986 to which the
revised scales were related) and
(c) Amounts of first and second instalments
of interim relief admissible on the basic pay referred to in (a) above.
4.2. The extracts from Chapter 30 of the Report of the 4th
Central Pay Commission is placed at Annexure
2.
Formula for fixation of pay in the revised structure in case of Armed
Forces
5. So far as method for fixation of pay in the proposed scale
in respect of the Armed Forces Personnel is concerned, the 4th Pay
Commission recommended in para 28.113 that the same method of fixation of pay
as in case of civilian employees may be adopted for fixation of pay of Armed
Forces personnel also. The Commission
further recommended that 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 of pay recommended by the Commission.
The Commission also gave illustrations for fixation of pay of the officers of
various ranks drawing pay in the pre-revised pay scale into the revised
integrated scale of pay. A copy of the said recommendations and the
illustrations is placed at Annexure 1.
5.1. It may be seen from the illustrations given by the Pay
Commission for fixation (fitment) in the revised pay scale that the Commission
recommended for fixation of pay in the revised integrated scale of pay as
under: -
Illustration No. 1
1. Rank Captain
2. Existing Basic Pay Rs
1300.00
3, DP/ADA on Basic Pay at index avg 608 Rs 1650.00
608
and interim relief
4. Existing emoluments Rs
2950.00
5. Add 20% of Basic Pay Rs 260.00
Total Rs
3210.00
6. Pay to be fixed in integrated scale Rs 3100/-** + Rank Pay
Res 200/-
(** The next stage in the Integrated scale is Rs 3300. But, the fact
that the Commission quoted the amount of Rs 3100, meant that the Rank Pay of Rs
200 was deducted for fixation of initial pay in the integrated scale and then
it was separately given. Rank pay of Rs 200 was in case of Captain holding this
rank as on 1.1.1986, the cut-off date.)
Illustration No. 2
1. Rank Major
2. Existing Basic Pay Rs
1600.00
3, DP/ADA on Basic Pay at index avg 608 Rs 1740.00
608
and interim relief
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
Res 400/-
(** The next stage in the
Integrated scale is Rs 3700. But, the fact that the Commission quoted the
amount of Rs 3400, meant that the Rank Pay of Rs 200 was deducted for fixation
of initial pay in the integrated scale and then it was separately given. Rank
pay of Rs 200 was in case of Captain holding this rank as on 1.1.1986, the
cut-off date.)
5.2. It may be seen from the illustration giving the method and
manner of fixation of pay as recommended by the 4th Central Pay
Commission that the total existing emoluments (emoluments drawn in the
pre-revised pay scales + 20% of basic pay) in case of Captain worked out to Rs
3210. Thus, the pat at the stage in the integrated pay scales just above this
works out to Rs 3300. However, the Pay Commission deducted the Rank Pay of Rs
200 as appropriate to a Captain as on 1.1.1986 and then added Rank Pay of Rs
200 in the integrated pay scale. That is why the Pay Commission mentions the
pay of Rs 3100 in the integrated pay scale + Rank pay of Rs 200.
Modification by the
Government
6.1. As part of
the decision of the Government to accept the recommendations of the 4th
Central Pay Commission in respect of Armed Forces personnel in its Resolution
dated 18.3.1987, the Government modified/improved the integrated pay scale up
to the rank of Brigadier as under: -
Rs.
2300-100-3900-150-4200-EB-EB-150-5100
6.2. Thus, the
Government enhanced the rate of annual increment from Rs 100 as recommended by
the 4th Central Pay Commission to Rs 150 from the stage of Rs 3900
onwards. Also, the maximum of the integrated scale was enhanced from Rs 5000
recommended by the Commission to Rs 5100.
6.3. The
Government also enhanced the amount of Rank Pay as under: -
|
S. No.
|
Rank
|
Amount of Rank Pay
|
Amount of Rank Pay as recommended by the
Commission
|
|
1.
|
Captain and equivalent
|
Rs 200
|
Rs 200
|
|
2.
|
Major and equivalent
|
Rs 400
|
Rs 600
|
|
3.
|
Lieutenant Colonel (Select) and equivalent
|
Rs 600
|
Rs 800
|
|
4
|
Colonel and equivalent
|
Rs 800
|
Rs 1000
|
|
5.
|
Brigadier and equivalent
|
Rs 1200
|
Rs 1200
|
6.4. This, the Government enhanced the amount of Rank Pay in case of
Major, Lt Colonel and Colonel and their equivalent.
6.5. A copy of
extracts from the Resolution dated 18.3.1987 is at Annexure 3.
7. Further, the rules/regulations relating to revision of pay
scales, fixation of initial pay in the revised scales and regulation of pay on
promotion in case of officers of Army etc, on the basis of the recommendations
of the 4th Central Pay Commission, was notified as per Special Army
Instructions No. 1/S/87 dated May, 26, 1987. A copy of the Special Army
Instruction is at Annexure 4.
Special Army
Instructions dt 26.5.1987 containing regulations for fixation of pay etc, based
on the 4th Pay Commission
7.1. Para 1 of the Special Army Instructions dt. 26.5.1987 provides
that in pursuance of the recommendations
of the 4th Central Pay Commission and the Government decision
thereon, the existing scales of pay (pre-revised pay scales in operation prior
to 1.1.1986) admissible to Army officers will be revised with effect from 1st January 1986 and pay fixed in the
scales in accordance with the provisions of the said instructions. It provides that these instructions will
apply to officers who were on the effective strength of the Army as on 1st
June 1986 and those hwo joined the Army thereafter.
7.2. The following definitions contained in the said Army
Instructions are relevant for appreciating the issue under consideration: -
(i) “Existing scale” in relation to an
officer means the present scale of pay whether fixed or otherwise of the Rank
applicable to him as on 1st
January 1986 (Para 2(b).
(ii) “Revised Scale” in relation to officers up to the Rank of
Brigadier means the respective integrated pay scales…….(para 2(c)
(iii) “Rank Pay” means the pay admissible to an
officer appropriate to the rank, in addition to the pay in the revised scale.
Rank pay forms part of basic pay (para 2(d).
(iv) “Existing emoluments” shall include basic
pay in the existing scale, dearness pay, additional dearness allowance
appropriate to the basic pay admissible at average index 608 (1960=100) under
the relevant orders, Flying pay, Specialist pay, Qualification ay and Technical
Pay, etc (Para 6 (e) and (g)). Thus, it
meant emoluments drawn in the pre-4th Pay Commission scales as on
1.1.1986.
7.3. Rank Pay was not part of
the ‘existing emoluments.’ This is because Rank Pay did not exist prior to the
implementation of the recommendations of the 4th Central Pay
Commission. The concept of rank pay was recommended and introduced by the 4th
Central Pay Commission.
7.4. Section II of the said Army Instructions relates to fixation
and regulation of pay of officers commissioned prior to 1st January 1986. Para 6 thereof is relevant
for fixation of initial pay in the revised scales. It provides that fixation
of initial pay in the revised scale will be regulated as follows: -
(a) (i) An amount representing 20% of the basic pay in
the existing scale shall be added to the existing emoluments of the officers.
(a) (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 officer on 1st
January 1986 at the rates prescribed in para 3 (a) (ii) will be deducted.
(This is in accordance with the illustration f fixation of pay given by the 4th
Central Pay Commission). Thereafter, the officer’s pay will be fixed in the
revised scale at the stage next above the amount thus computed……
7.5. Para 6 (l) further provides that in addition to the pay so
fixed in the integrated scale, officers shall be eligible to the Rank Pay, if any, appropriate to the rank
held on 1st January 1986.
Different formula for fixation of initial pay in the revised scale as
on 1.1.1986 and promotion subsequent to 1.1.1986
7.6. Para 13 of the Special Army Instruction relates to regulation
of Pay subsequent to 1st January 1986. It provided that on promotion
to the next higher rank, the officer will be granted the rank pay appropriate
to the rank to which he is promoted. This
does not provide for deduction of rank pay at the stage of promotion subsequent
to 1.1.1986.
7.7. Accordingly, the said Special Army Instructions of 26.5.1987
provides for different method for fixation of pay in the revised scale by
bringing over an officers from the pre-revised scale, who was commissioned
prior to 1.1.1986 and holding a rank as on 1.1.1986 vis-Ã -vis the fixation of
pay of an officer promoted to the next higher rank subsequent to 1.1.1986. In
case of former, it provides for deduction of rank pay appropriate to the rank
held on 1.1.1986 from the “existing emoluments” for the purpose of fixing
initial pay in the revised scale effective with effect from 1.1.1986. This is
because the 4th Pay Commission recommended such a deduction of rank
pay appropriate to rank held on 1.1.1986. However, in case of the latter, i.e.,
promotion taking place subsequent to 1.1.1986, there was no provision of
deduction of rank pay.
7.8. A copy of
Special Army Instructions dt. 26.5.1987 are placed at Annexure 4.
THE CASE OF MAJOR
DHANAPALAN
8. Maj. A. K. Dhanapalan filed a petition – OP No. 2448/96 – in
the Hon’ble High Court of Kerala challenging the deduction of Rank Pay from the
pre-revised emoluments for the purpose of fixation of initial pay in the
revised pay scales effective from 1.1.1986.
8.1. Maj. Dhanapalan was commissioned on 27th July 1981,
i.e. prior to 1.1.1986 and was in service as on 1.1.1986. He was, thus, drawing
pay in the pre-revised pay scales, i.e. he was drawing “existing emoluments” as
on 1.1.1986. He was Captain as on 1.1.1986 and thus, the Rank Pay admissible to
him as on 1.1.1986 was Rs 200 pm. Thus, Section II of the Special Army
Instructions dt. 26.5.1987 (erroneously stated as 26.5.2013), as mentioned in
paras 7.1 to 7.5 above, was applicable to him for the purpose of fixation of
his initial pay from the “existing emoluments” as on 1.1.1986 appropriate to
his rank as on 1.1.1986 in the revised scale with effect from 1.1.1986.
8.2. In terms of the said para 6 (a) (ii) of the Special Army
Instructions, his initial pay in the revised scale effective with effect ftom
1.1.1986 was fixed after deduction of Rank pay of Rs 200 appropriate to his
rank of Captain as on 1.1.1986 from the “existing emolument.”
8.3. Maj. Dhanapalan mentioned in the petition that his total
existing emoluments as per formula for fixation of pay in the revised pay scale
as per the Special Army Instructions dated 26.5.1987 (erroneously mentioned as
23.6.1987) worked out to Rs 3145. Thus, he contended that his pay should have
been fixed at Rs 3200 (the stage next above Rs 3145) and in addition he was
entitled to the Rank Pay of Rs 200 as Captain. (Thus, he challenged the deduction
of Rank pay as per the principle of fixation given in the Illustration by the 4th
Pay Commission). In other words, he
challenged that part of para 6 (a) (ii) of Section II of the Special Army
Instructions dt. 26.5.1987 which provided for deduction of rank pay appropriate
to his Rank as on 1.1.1986 from “existing emoluments” for the purpose of
fixation of initial pay in the revised integrated scale as on 1.1.1986.
8.4. He, therefore, prayed, inter-alia, that his pay should be fixed
in the revised pay at Rs 3200 w.e.f 1.1.1986, i.e. without deducting Rank pay
of Rs 200 applicable to him as on 1.1.1986. In other words, he prayed for
fixation of pay in the revised scale effective from 1.1.1986 without
application of that part of para 6 (a) (ii) of the Special Army Instruction dt
26.5.1987 (erroneously mentioned as 23.6.1987), which provides for deduction of
Rank Pay appropriate to him as on 1.1.1986 from the “existing emoluments.”
8.5. A copy of
this petition is at Annexure 5.
Order of 5.10.1998
passed by the Hon’ble Kerala High Court
9. This petition was upheld by the Hon’ble Kerala High Court
vide their order dated 5th October 1998. In this order, the Hon’ble
High Court took into account the following: -
(i) There cannot be any doubt that an
officer is entitled to get Rank Pay in addition to pay in the revised scale.
(ii) But, in paragraph 6 (a) (ii), it has been stated that the Rank pay could be
deducted in order to fix in the revised scale of pay at the stage next above
the amount arrived at.
(iii) The Court noted that it was not explained
in the counter-affidavit as to why Rs
200 was deducted from the total emoluments of the petitioner, when both Ext
SP 1 and R 1(a) speak about the entitlement of the Army Officers to Tank pay in
addition to the existing pay and as such there is no reason to deduct the
amount from the pay of the petitioner.
(iv) The Court observed that the Respondent 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 the 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.
9.1. Accordingly, in the operative
part of its judgment dt. 5.10.1998, the Hon’ble High Court directed as
under: -
“Under the
circumstances, respondents 2 and 3 are directed to re-fix the Pay of the
petitioner w.e.f 1.1.1986 without deducting Rank Pay of Rs 200, as has been
done by Respondents 2 and 3. The petitioner is also entitles to get the pay
re-fixed in accordance with pay fixation of 1987 evidenced by Ext P1.
Respondents 2 and 3 are directed to complete the process of re-fixation of the
pay of the petitioner as directed above within 3 months from the date of
receipt of a copy of this judgment. The original petition is disposed of as
above.”
9.2. A copy of the
order dt. 5.10.1998 passed by the Hon’ble Kerala High Court is placed at Annexure 6.
9.3. The Writ Appeal (actually mentioned as Writ Petition) filed by
the government (WA No. 518 of 1999) (year erroneously mentioned as 1989) was
dismissed by the Hon’ble Kerala High Court as per order of 4th July
2003. A copy of the said Order dt. 4.7.2003 is placed at Annexure 7.
Implementation of
Court order in case of Major Dhanapalan
9.4. The order of the Hon’ble Kerala High Court dt 5.10.1998
(erroneously mentioned as 1988) was implemented in case of the petitioner, Maj
Dhanapalan. The re-fixation of pay done in his case as on 1.1.1986 in pursuance
of the Court order is at Annexure 8.
It may be seen that instead of the pay of Rs 3100 fixed in the integrated scale
as on 1.1.1986 after deduction of Rank pay of Rs 200 appropriate to his rank as
Captain as on 1.1.1986 from “existing emoluments” (earlier done as per para 6
(a) (ii) of Section II of the Army Instructions dt 26.5.1987), his pay as on 1.1.1986 was re-fixed in the
integrated scale at Rs 3200 (without deduction of rank pay of Rs 200). In
addition, he was paid the Rank pay of Rs 200 as on 1.1.1986. This re-fixation
was with effect from 1.1.1986.
Order dt 8.3.10 (erroneously mentioned as 5.10.10) and 4.9.2012 passed
by the Hon’ble Supreme Court
10. Taking a cue, a number of petitions were filed in various High
Courts, seeking similar benefit. The Defence Ministry filed a Transfer Petition
(56 of 2007) in the Supreme Court for transfer of all such petitions to the
Supreme Court. Additionally, a few more petitions were filed directly in the
Supreme Court. All these petitions were tagged together and the Supreme Court disposed off all vide its
order dated 8.3.2010, agreeing with the reasoning given in the judgment dt.
5.10.1998 passed by the Kerala High Court and also ordering interest @ 6% on
arrears from 1.1.86.
10.1. A copy of the order dt 8.3.2010 passed by the Hon’ble Supreme
Court is placed at Annexure 9.
11. Later, an IA No. 9/2010 was filed by the Ministry of Defence
before the Supreme Court for recall of their aforesaid order of 8.3.2010. The Supreme Court passed an Order on
4.9.2012, observing that its order of 8.3.2012 does not require any
modification, except in regard to the interest part. The Court has ordered
interest @6% from 1.1.2006 and not from 1.1.86, as earlier ordered. The Court has also ordered that this will
govern all similarly placed officers who have not approached the Court, as also
those who have filed petitions before various High Courts/Armed Forces
Tribunal.
11.1. A copy of the order dt 4.9.2012 passed by the Hon’ble Supreme
Court is placed at Annexure 1o.
What the benefit to
similarly placed persons amounts to
12. Thus, the Hon’ble Supreme Court, vide its order dt 8.3.201
read with subsequent Order dt 4.9.2012, has agreed with the Order of the
Hon’ble Kerala High Court dt 5.10.1998 in case of Major Dhanapalan and this
benefit is to be extended to officers similarly placed as Major
Dhanapalan.
12.1. Accordingly, issue involves extension of the same benefit as
ordered by the Hon’ble Kerala High Court vide its order of 5.10.1998 in case of
Major Dhanapalan to similarly placed officers i.e. officers who were
commissioned prior to 1.1.1986 and held a particular rank from Captain to
Brigadier as on 1.1.1986 from their “existing emoluments” for the purpose of
fixation of initial pay in the “revised scale” (scale based on 4th
Pay Commission and effective with effect from 1.1.1986) due to operation of
para 6 (a) (ii) of Section II of the Special Army Instructions dt 26.5.1987.
12.2. Thus, the extension of the same benefit as ordered by the Hon’ble
Kerala High Court dt 5.10.1998 in case of Major Dhanapalan to similarly placed
persons meaning non-deduction of Rank pay appropriate to rank held by them as
on 1.1.1986 from the “existing emoluments” and to re-fix their initial pay in
the revised integrated scale with effect from 1.1.1986 without such deduction.
12.3. It thus means that extension of the benefit ordered by the
Hon’ble Kerala High Court vide its order of 5.10.1998 to similarly places
persons amounts to as under: -
a) In case of all those officers
commissioned prior to 1.1.1986, who were drawing emoluments in the pre-revised
pay scales as on 1.1.1986 before the implementation of the 4th
Central Pay Commission recommendations, o deduction of Rank Pay, appropriate to
the rank held by them as on 1.1.1986, from the “existing emoluments”
(pre-revised emoluments) was to be made.
b) Initial pay in the revised pay scale is
to be re-fixed without deductions of Rank pay from the ‘existing emoluments’
i.e. by ignoring para 6 (a) (ii) of Section II of the Special Army Instructions
dt. 25.6.1987 (erroneously indicated as 23.6.1987) which provided for such
deduction from the existing emoluments, and
c) Such a re-fixation of initial pay is to
be effective with effect from 1.1.1986.
Implementation of the
Court Order to similarly placed persons
12.4. This is exactly what has been done by way of the order of the
Government issued on 27.12.2012 for implementation of the aforesaid Court
order. A copy of the Order dt. 27.12.2012 is at Annexure 11. This order
has the following main elements: -
a. It modifies para 6 (a) (ii) of Section
II of the Special Army Instructions of 26.5.1987 insofar as it relates to the
deduction of Rank Pay appropriate to the rank as on 1.1.1986 from the “existing
emoluments” drawn by an officer as on 1.1.1986. It is only to this extent that
para 6 (a) (ii) has been modified. The complete para as it existed prior to the
issue of the OM dated 27.12.2012 and as it exists now are as under: -
|
Para 6 (a) (ii) before issue of the order dated
27.12.2012
|
Para after issue of the OM dated
27.12.2012
|
|
After the existing emoluments have been so increased,
amount equivalent to the Rank Pay, appropriate to the Rank held by the
Officer on 1st January 1986 at the rates prescribed in para 3 (a)
(ii) above, will be deducted.
Thereafter, the officers pay will be fixed in the revised
scale at the stage next above the amount this computed. In case the stage of
fixation falls below the minimum pay for the Rank held by the Officer on 1st
Jan 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…….
|
Deleted
Thereafter, the officers 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 1st
Jan 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….
|
b. After deduction of Rank Pay based on
modification of the para 6 (a) (ii), as mentioned above, the order dated 27.12.2012
further provides for re-fixation of the initial pay in the revised scale
(integrated scale) as on 1.1.1986 as per para 6 of those Instructions without
deduction of Rank Pay appropriate to the rank held by the officer as on 1st
Jan 1986.
Thus, the pay
will be re-fixed in respect of those officers who were drawing “existing
emoluments” as on 1.1.1986 in the revised scale (integrated scales) effective
from 1.1.1986 without deduction of Rank Pay appropriate to the rank held as on
1.1.1986 and the impact of this re-fixation is as under: -
|
Pay fixed as on
1.1.1986 before issue of the order dated 27.12.2012
|
Pay now re0fixed as
on 1.1.1986 after issue of the order dated 27.12.2012
|
|
Rank Captain
Existing Basic Pay
= Rs 1300.00
DP/ADA on Basic Pay
At Index average 608 and
Interim relief = Rs 1650.00
Existing emoluments
= Rs 2950.00
Add 20% of Basic Pay
= Rs 260.00
Total = Rs 3210.00
Pay to be fixed in
Integrated scale after
Deduction of Rank Pay
Of Rs 200 = Rs 3100.00
+ Rank Pay = Rs 200.00
Net Pay = Rs 3300.00
|
Existing Basic Pay = Rs 1300.00
DP/ADA on Basic Pay
At Index average 608 and
Interim relief = Rs 1650.00
Existing emoluments
= Rs 2950.00
Add 20% of Basic Pay
= Rs 260.00
Total = Rs 3210.00
Pay to be fixed in
Integrated scale after
Deduction of Rank Pay
Of Rs 200 = Rs 3300.00
+ Rank Pay = Rs 200.00
Net Pay = Rs 3500.00
|
It may be seen
that this is exactly what has been done in case of Major Dhanapalan. This is
what was ordered by the Hon’ble Kerala High Court in their order dated
5.10.1998.
c. Para 7 of the order dated 27.12.2012
further provides that except to the extent of the modification of the provision
contained in para 6 (a) (ii) of the aforesaid Army Instruction, in all respects there shall be no change in
the provisions of the aforesaid Special Army Instructions.
Now, Para 1 of
the aforesaid Army Instructions clearly provides for revision of existing
scales of pay, etc with effect from 1st
January 1986 and pay fixed in the revised scales accordingly. In other words, except to the modification
of the para 6 (a) (ii) by deleting its clause relating to deduction of Rank
Pay from the “existing emoluments” for the purpose of fitment (fixation) in the
revised scales effective from 1.1.1986, there
is no change whatsoever from the provisions of the said Special Army
Instructions and since these instructions already provide for revision of
existing scales etc with effect from 1.1.1986, the clause “with effect from
1.1.1986” stands unaltered and gets embedded in the Order dt. 27.12.2012.
Hence, the
Orders issued by the Government on 27.12.2012 automatically gets effect “with from 1.1.1986.” Accordingly, the
initial pay re-fixed as on 1.1.1986 without deduction of Rank Pay appropriate
to rank held as on 1.1.1986 from the “existing emoluments” drawn by officers as
on 1.1.1986, shall be with effect from
1.1.1986, as ordered by the Hon’ble Kerala High Court.
d. The order dated 27.12.2012 also
provides that if such a re-fixation of pay as on 1.1.1986 necessitate
re-fixation as on 1.1.1996 and 1.1.2006 due to pay becoming higher with effect
from 1.1.1986, then such a re-fixation will be allowed. This clearly means that
re-fixation of initial pay, as ordered by the Court, has been given effect with
effect from 1.1.1986.
12.5. It is clear from the above exposition of the entire facts of the
case that the order dated 27.12.2012 issued by the Government is in exact and
complete implementation of the order passed by the Hon’ble Kerala High Court on
5.10.1998 – in letter and spirit – as upheld by the Hon’ble Supreme Court, in
case of similarly placed persons, i.e. persons similarly placed as Major
Dhanapalan as on 1.1.1986.
COMMENTS ON THE ISSUES RAISED BY SERVICE HEADQUARTERS IN THEIR
STATEMENT OF CASE DT. 2.4.2013 SENT TO THE MINISTRY OF DEFENCE
13. The Services Headquarters in their Statement of Case have,
however, felt that the order issued by
the Government on 27.12.2012 does not fully implement the Order of the Hon’ble
Kerala High Court dt. 5.10.1998. They have raised four issues, stating that the
order dt 27.12.2012 does not cover these four issues for implementation of the
Order of the Hon’ble Kerala High Court.
13.1. The Office of
the CGDA has given their comments on these four issues as contained in their
Note No. AT/I/1483-RB/X(PC)/V dated 23.5.2013 (Annexure 12). These comments are relevant for the purpose.
ISSUE No. 1: “WITH EFFECT FROM 1.1.1986 OR “AS ON
1.1.1986”:
Arguments of the
Service Headquarters
14.1. It has been mentioned by the Services Headquarters that the Court
in its judgment of 5.10.1998 has used the term “with effect from 1.1.1986”, which has been changed to “as on
1.1.1986”in the Government order dated 27.12.2012.It has been argued that this
is only partial implementation of the Court judgment. They have stated that words “with effect from 1.1.1986” should be used
in these orders.
14.2. Service Headquarters have felt that the term “with effect from”
connotes an “ongoing application,” whereas the term “as on” implies onetime
application of the directions of the Court. According to them, the term “as on”
restricts only to one time application for those officers who held the rank of
captain to Brigadier and equivalent as on 1.1.1986. They have stated that the
term “with effect from” will require re-fixation of pay of all officers on
1.1.1986 and, thereafter, on promotion as well.
Services Headquarters argue that the Order does not apply to fixation
of pay on promotion subsequent to 1.1 1986
14.3. In support of their point, Service Headquarters have quoted the
first para of the judgment of the Hon’ble Kerala High Court dated 5.10.1998. In
this para, the Court has mentioned that “The
amount of rank pay for officers of the rank of major is Rs 600. This is pay revision of 1987. In an earlier
pay revision with which we are concerned the above amount is Rs 200. But the
petitioner was not granted the benefit of the above Rank pay. Instead of that,
what respondents 2 and 3 did was to deduct rank pay from total emoluments of
the petitioner.”
14.4. The service Headquarters have, therefore, mentioned that the
Court has talked about two revisions of pay for Maj. Dhanapalan, i.e. when the
Rank Pay was Rs 200 and when it became Rs 600. The Services Headquarters have
argued the Court has directed for the second re-fixation on promotion to Major
Dhanapalan from the rank of Captain (erroneously mentioned as Major), but
Government order dt. 27.12.2012 has not provided the pay re-fixation again on
promotion. The Service Headquarters have
stated that this is due to the phrase “as on” instead of “with effect from.”
COMMENTS
How the term “as on 1.1.1986” flows from the Court Order
15.1. As explained in detail above, the order passed by the Hon’ble
Kerala High Court on 5.10.1998 in case of Major Dhanapalan is for re-fixation
of his initial pay in the revised scale effective from 1.1.1986 without
deduction of rank pay appropriate to him as on 1.1.1986 (Rank pay of Rs 200
appropriate to his rank of Captain as on 1.1.1986) from the “existing
emoluments” as on 1.1 1986. Therefore, the term “as on 1.1.1986” is of
significance because “existing emoluments” were relevant for officers in
position as on 1.1.1986 and deduction of rank pay was also relevant for the
rank as on 1.1.1986, the cut-off date for switch over to the revised scales
effective with effect from 1.1.1986.
15.2. Further, such a deduction of Rank pay from the “existing
emoluments” was made in pursuance of para 6 (a) (ii) of Section II of the
Special Army Instructions dt. 26.5.1987. Para 6 (a) (ii) thereof provides for
deduction of rank pay appropriate to the rank held by the officers on 1st
January 1986 (erroneously stated as 2006), from the “existing emoluments”
arrived at after an amount representing 20% of “basic pay” in the “existing
scale” is added to the “existing emoluments.” The terms “basic pay” &
“existing scale” have been defined in para 2 (a) and 2 (b) of the said Army
Instructions and “existing emoluments” have been defined in para 6 (e). This
clearly refers to emoluments drawn in the pre-revised scale as on 1st January 1986 (again
erroneously stated as 2006) and the
deduction of rank pay is also as appropriate to the rank held on 1.1.1986. Thus,
deduction of rank pay is relevant only in case of those whose initial revised
pay was to be fixed as on 1.1.1986 with reference to the “existing emoluments”
drawn by them appropriate to the rank held by them as on 1.1.1986.
15.3. Thus, the term “as on 1.1.1986” is of vital significance for the
purpose of not deducting Rank pay appropriate to the rank as on 1.1.1986 from
“existing emoluments” for the re-fixation of initial pay in the revised scale
effective from 1.1.1986, in pursuance of
the Order of the Hon’ble Kerala High Court dt 5.10.1998 in case of
similarly placed officers to Major Dhanapalan. This is exactly what has been
done by the Order dt 27.12.2012 by way of deleting that part of para 6 (a) (ii)
of the Special Army Instructions which provided for deduction of rank pay appropriate
to rank held as on 1.1.1986 from the “existing emoluments” drawn as on
1.1.1986.
How the re-fixed pay
is “with effect from 1.1.1986”
15.4. However, the effect of re-fixation so done is very much effective
with effect from 1.1.1986, as the terms “with effect from 1.1.1986” is already
given effect by that Order dt 27.12.2012, as
the date of effect of 1.1.1986, mentioned in the said Special Army Instructions
of 26.5.1987, has not been altered. In fact, except that part of para 6(a0
which provides for deduction of rank pay from “existing emoluments” as on
1.1.1986, no other provision of the Special Army Instructions has been deleted,
as clearly mentioned in para 7 of the Order dt 27.12.2012. Thus, re-fixation of
pay as per the Order dt 27.12.2012 is effective from 1.1.1986. Therefore, it is
not a fact that the term “with effect
from 1.1.1986” has not been included in the order dated 27.12.2012. It is
very a part thereof.
15.5. The initial pay in the revised scale effective from 1.1.1986 has
been re-fixed for officers drawing pay in the “existing emoluments” without
deducting rank pay appropriate to them as on 1.1.1986 and this re-fixation is with effect from 1.1.1986, as also
re-fixation of pay as on 1.1.1996, 1.1.2006 and on promotion. In this connection,
an illustrative statement for re-fixation of pay, as provided by the Office of
CGDA is at Annexure 13.
15.6. Also, wherever necessary, pension has also been revised in view
of the re-fixation of pay with effect from 1.1.1986. In this connection, an illustrative case of revision in pension, as
provided by the office of CGDA, is at Annexure 14.
15.7. Thus, it is obvious that the effect of the Order dt 27.12.2012 is
continuous from 1.1.1986 for all the consequential purposes for which “pay” including
rank pay is reckoned as pay. It is due
to this that the office of the CGDA has paid arrears with effect from 1.1.1986
both in case of serving and retired officers. As per the information given by
the CGDA, arrears amounting to Rs 317, 44, 35, 586 (Rs 317.4 crore) has so far
been paid. Had this not been effective with effect from 1.1.1986, arrears would
have been far less as would be computed differently.
FIXATION OF PAY ON
PROMOTION SUBSEQUENT TO 1.1.1986
How Court Order does
not cover fixation on promotion subsequent to 1.1.1986
16.1. Para 13 of the Special Army Instruction relates to regulation of
Pay subsequent to 1st January 1986. It provides that on promotion to
the next higher rank, the officer will be granted the rank pay appropriate to
the rank to which he is promoted. This
does not provide for deduction of rank pay at the stage or promotion subsequent
to 1.1.1986.
16.2. Thus, the fixation of pay on promotion taking place in the
revised structure subsequent to 1.1.1986 was never after deduction of rank pay.
This is clearly brought out in the Note of CGDA Note No. AT/I/1483-RB/X (PC/V
dated 23.5.2013, where they have commented upon this issues (Annexure 12). This being so, there is
no issue of re-fixation on promotion without deducting rank pay, as rank pay in
any case was not deducted at the time of promotion.
16.3. As regards the reference by the Service Headquarters to the first
para of the judgment of the Hon’ble Kerala High Court dated 5.10.1998, where
they have mentioned Ran Pay of Rs 600 for Major and equivalent as per the pay
revision of 1987 and also to an earlier pay revision of the amount of Rs 200,
it is submitted that it is not relevant, because there was no deduction of rank
pay at the stage of promotion. Maj. Dhanapalan was Captain on the cut-off date
of 1.1.1986. Rank pay of Rs 200 was applicable to Captain. In the case of Major
the Rank Pay was Rs 600 and Maj. Dhanapalan was promoted to Major in December
1991. It is in this context that the Hon’ble Kerala High Court mentioned the
Rank Pay of Rs 600 and also Rank Pay of Rs 200 in its judgment of
5.10.1998.
16.4. More importantly, it is to be noted that in this particular para
only the Court has very clearly mentioned “in earlier
pay revision with which we are concerned, the above amount was Rs 200.” This
observation by the Court clearly brings out that the Court dealt only with the
issue of non-deduction of the Rank Pay of Rs 200 as on 1.1.1986 at the time of
fitment of Maj. Dhanapalan, who was Captain as on 1.1.1986, from pre-revised to
revised pay scales. This was the issue agitated before the Court and, that is
why, the Court observed “with which we
are concerned.” Thus, it clearly implies that the Court was looking into
the issue of fixation of pay only at the stage of deduction of rank pay and
that stage was on 1.1.1986 for the purpose of fixation of pay in the revised
scale.
16.5 and 16.6 are missing or the paragraphs are incorrectly
numbered.
16.7. Furthermore, in the operative part of the judgment dt 5.10.1998,
the Court has clearly ordered for re-fixation of pay of the petitioner with
effect from 1.1.1986 without deducting the rank pay of Rs 200. The rank pay of
Rs 200 was applicable to Major Dhanapalan as on 1.1.1986 as he held the rank of
a Captain as on 1.1.1986 (erroneously types as 1.1.986). Thus, it is crystal
clear that it is only the deduction of rank pay appropriate to rank held as on
1.1.1986 from the “existing emoluments’ drawn as on 1.1.1986 that is no longer
to be deducted and this is exactly what has been done in the Order dt
27.12.2012 in case of similarly placed officers.
16.8. Therefore, there is no question of deduction of Rank Pay of Rs
600 for fixation on promotion from Captain to Major at the time of promotion,
as the Special Army Instruction did not provide for any deduction at the time
of promotion and, hence, no issue of re-fixation of pay on promotion in the
light of the Court Order dt 5.10.1998 is involved.
16.9. Thus, this point of Service Headquarters is
completely unfounded.
ISSUE No. 2: REVISION
OF MINIMUM PAY OF RANKS IN THE INTEGRATED SCALE
17. The Ministry of Finance agrees with the views of the office of
the CGDA on this issue as contained in their Note No. AT/I/1483-RB/X (PC)/V
dated 23.5.2013 (Annexure 12).
17.1. This issue
does not form part of the Order of the Hon’ble Kerala High Court dt 5.10.1998.
ISSUE No. 3: REVISION
THE TOP OF THE INTEGRATED SCALE
Why the proposal of
Defence Ministry for grant of Personal pay to protect the difference by which
pay in integrated scale exceeds the maximum, does not flow from the Court order
18. This Ministry agrees agrees with the views of the office of
the CGDA on this issue as contained in their Note No. AT/I/1483-RB/X (PC)/V
dated 23.5.2013 (Annexure 12).
18.1. However, it has been mentioned in the said Note of the CGDA that
in cases where emoluments (revised pay) computed without deducting rank pay
crossed the maximum of the revised integrated scale, the Ministry of Defence
had proposed that the difference by which the revised pay in the integrated pay
scales exceeds the maximum of the integrated pay scale, may be protected by way
of Personal pay to be absorbed in the stagnation increments or pay on
promotion, but the same was agreed to by the Ministry of Finance. The Ministry
of Finance did not agree to the same for the following reasons: -
(i) At the outset, this issue was neither
prayed for by Major Dhanapalan in his petition nor was it considered by the
Hon’ble Kerala High Court nor is it covered in the order passed by the Hon’ble
Court dt 5.10.1998.
(ii) Para 6 (c) of Section II of the Special
Army Instruction dated 26.5.1987 already provided that if the amount so
computed as at para 6 (a) (ii) is more than the maximum of the revised scale,
the pay will be fixed at the maximum of the revised scale. In other words, if
the initial pay fixed in the revised integrated scale exceeds the maximum
thereof, pay cannot be more than the said maximum. Thus, now that the clause
pertaining to deduction of rank pay (part of para 6 (a) (ii) from “existing
emoluments” (pre-revised emoluments) as on 1.1.1986 has been removed, the
amount computed without deduction for the purpose of fixation of initial
pay/fitment in the revised pay scale as on and w.e.f 1.1.1986, also cannot exceed
the maximum of the revised integrated scale effective from 1.1.1986, as the
principle laid down in said para 6 (c) is not part of the judicial
pronouncement based on which the Order of 27.12.2012 has been issued.
18.2. Thus, this demand of the Service Headquarters does not flow from
the judicial pronouncement in this case. This being so, its implementation as
part of the Order dt 27.12.2012 does not arise.
Why this proposal is
not admissible on merits
19. Apart from
the above, the proposal of the Ministry of defence for Personal Pay in such
case is not justified on merits also, as brought out below: -
i. A person drawing pay in a particular
scale of pay attached to the post held by him, cannot draw pay in excess of the
maximum of the concerned scale of pay. This is the concept of a specific pay
scale. Of course, since the rank pay is a separate element, the total pay (pay
in the integrated scale + rank pay) can very well exceed the maximum of the
integrated pay-scale and this is exactly what is happening here. It is being
well appreciated that Rank Pay is a separate element in addition to the pay in
the integrated scale and, as such, Pay + Rank Pay is not being restricted to
the maximum of the integrated scale. It is only the pay in the integrated scale that is not to exceed
the maximum thereof.
ii. A similar provision existed in proviso
(b) to Rule 7 (1) (A) of the CCS (RP) Rules, 1986 relating to fixation/fitment
of initial pay of civilian Government servants in the revised pay scale as on
1.1.1986. A copy of the relevant extract from the said Rule is at Annexure 15. Therefore, no special
dispensation can be allowed in this case now that the pay to be fixed in the
integrated pay scale as on and w.e.f. 1.1.1986 exceeds the maximum of the integrated
pay scale.
[Aerial View: - What
about para 2 of the DOPT O.M dated 10 Apr 1987? Both CGDA and MoF are silent
about that!]
iii. In case a person stagnates at the maximum
of the scale, stagnation increments in the concerned pay scale as per approved
Rules are applicable. Office of the CGDA has confirmed that Stagnation
increments are admissible to Armed Forces officers as per orders of 11.9.1987.
iv. In fact, the phenomenon of initial pay
fixed in a revised pay scale at the maximum from the very date of
implementation of the revised pay scales has been specially taken note of by the 6th
CPC. The 6th Central Pay Commission noted that many of the pay
scales recommended by the 5th Central Pay Commission got “burst” at
the time of initial fixation where revised pay of some of the employees became
higher than the maximum of the revised pay scales and these employees,
therefore, had started to stagnate right from the time of implementation of the
5th Central Pay Commission pay scales. It is for this reason that
the 6th Central Pay Commission has recommended the concept of
running pay band instead of specific pay scales. The Commission noted that
since the individual pay scales have a limited span, it often leads to
stagnation. The Commission, therefore recommended the concept of Running pay
bands to address these issues. In this connection, the recommendations of the
Pay Commission contained in para 1.2.7, 1.2.8, and 2.2.4 are placed at Annexure 16.
[Aerial View: This was
not an issue placed before the Hon’ble Kerala High Court. So what is the
relevance?]
v. Thus the situation as it existed up to
1.1.2006 was that there were cases of the employees reaching the maximum of the
individual pay scale and this did not by itself mean allowing them to draw pay
more than the maximum of the pay scale by way of Personal pay. They were only
allowed stagnation increments and this is admissible in case of Armed Forces
personnel also. Therefore, any benefit in the form of personal pay in this is
against normal and general policy.
vi.
Also, the initial pay fixed in this as on
1.1.1986, which is of course w.e.f. 1.1.1986, after the issue of the order
dated 27.12.2012 in implementation of the judicial pronouncement in this case,
does not fall below the initial pay earlier fixed in the integrated pay scale
before issue of the order dt 27.12.2012 and, therefore, there is not actual
loss in the initial pay and, hence, there is no basis for grant of personal pay
in such cases.
ISSUE No 4: APPLICATION OF COURT ORDERS TO SUBSEQUENT PAY
COMMISSIONS
20. The Ministry of Finance agrees with the views of the office of
the CGDA on this issue as contained in their Note No. AT/I/1483-RB/X (PC)/V
dated 23.5.2013 (Annexure 12).
20.1. This issue
does not form part of the Order of the Hon’ble Kerala High Court dt 5.10.1998.
Conclusion
21. It is clear that the Orders issued by the Government on
27.12.2012 are in full and complete compliance with the order of the Kerala
High Court dt 5.10.1998 for its extension to similarly placed officers i.e. the
officers as placed as Major Dhanapalan. The re-fixation of initial pay in the
revised integrated scale effective from 1.1.1986 is without deduction of Rank
Pay appropriate to the rank held as on 1.1.1986 from the “existing emoluments”
drawn as on 1.1.1986 and this re-fixation of pay is effective with effect from
1.1.1986 for all purposes for which the pay is so reckoned. There was never any
deduction of rank pay for fixation of pay on promotion taling place subsequent
to 1.1.1986 and as such, this point is outside the purview of the Court Order
dt 5.10.1986.
21.2. The other issues, namely (i) revision of minimum pay of ranks in
the integrated scale, (ii) revising the top of the integrated scale, and (iii)
application of Court Orders to subsequent Pay Commissions, do not form part of
the Court order dt 5.10.1998 and, hence, are outside the scope thereof.
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