Sunday 11 March 2018

First Part of the File Notings leading to OROP letter of 07 Nov 2015



RTI Request No. DEXSW/R/2018/50005
for File Notings and other Information relating to Para 3 of the
MoD letter dated 07 Nov 2015 for One Rank One Pension
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Note:  

1. For brevity, information available on other websites is not re-produced here but the name of the website is given in the appropriate places viz. Hon’ble Supreme Court for orders pertaining to Case numbers mentioned. Readers are requested to go to that/those website(s) for necessary information.

2. Due to the excessive anticipation of readers, and the haste in typing out, there may be errors of spelling. The syntax is unchanged from the photocopies made available.

Enjoy
  
Reply of Department of Ex-Servicemen Welfare
Reference No. 237/RTI/D (P/P)/2014 dated 1st March 2018

*          *          *          *          *          *

Ministry of Finance
Department of Expenditure

            Subject:        One Rank One Pension (OROP)

MoD Finance may please refer to their proposal on the subject cited above received in ths Ministry on their F No. 10 (11)/2012/Fin/Pen.

2.        The     proposal of the Ministry of Defence, Department of ESW, as worked out in para 4 and 5 of their note on pages 46-55/n of their F No. 12(01)/2014/D(P/P), as commented upon by MoD Finance in their referring note of the file mentioned  in para 1 above, has been under active consideration of this Ministry for carrying out OROP in an appropriate manner.  

3.        In the meanwhile, however, this Ministry has come to know of an order passed by the Hon’ble Supreme Court as recently as 16.2.2015 in Civil Appeal No. 2966/2011 in the case between SPS Vains and others Vs Union of India. The Hon’ble Supreme Court has passed this order as under:

            “Heard.

Ms Pinki Anand, Learned Additional Solicitor General, prays for and is granted three months time finally to work out the modalities for the One Rank One Pension principle on which the Tribunal has passed impugned judgment. The principle is also, it appears, covered by the decision of this Court in Union of India and Anr Vs SPS Vains (retd) and others – (2008) 9 SCC 125.”    

4.        It follows from the above order of the Hon’ble Supreme Court dated 16.2.2015 that the principle of One Rank One Pension is apparently covered in earlier judgment of that Court in the cited case of 2008, namely Union of India & Anr Vs SPS Vains (retd) and others.

5.        Therefore, considering that the Hon’ble Supreme Court in their order of 16.2.2015 have observed that the principle of One Rank One Pension is apparently covered in their said previous order, it is a moot legal point as to whether the proposal now worked out by the MoD/MoD (Finance) on the principle of One Rank One Pension would ensure compliance with the ratio of the decision of the Hon’ble Supreme Court in the said case, namely Union of India & Anr Vs SPS Vains (retd). There is no mention in this regard in the proposal made out by MoD. 

6.        Since the order referred above has been passed by the highest Court of the Land, it is felt that Government would be well legally advised to ensure full compliance therewith and it would not be legally appropriate to work out modalities in infringement thereof in any respect whatsoever. 

7.        Accordingly, Ministry of Defence (Finance) may like to offer their comments on this point, bringing out, at the same time, in what respects, if any, the present proposal is in deviation of the principle laid down by the order of the Hon’ble Supreme Court and whether such a deviation could be legally construed as compliance with the same without any infringement whatsoever.    

8.        Furthermore, since the present order of the Hon’ble Supreme Court of 16.2.2015 states that the principle of OROP is apparently covered in their previous Orders in the case of Union of India and Anr Vs SPS Vains (retd), MoD (Finance) may also offer comments if the principle for OROP as enunciated by the Hon’ble Supreme Court in the said case may be adopted as the guiding principle for OROP across ranks at this juncture and if so, whether such a course of action would lead to higher financial impact than that on the present proposal. The financial impact on this count may also be indicated.    

9.        The matter will be examined further after receiving the considered views of MoD.

10.            This has the approval of Secretary (Expenditure).
Sd/----------
(Amar Nath Singh)
Deputy Secretary
Ministry of Defence (Finance) (kind attention: Ms Vandana Srivastava (FA-DS)
D/o Expenditure’s ID Note No. 1(6)/EV/2015 dated 1.4.2015

Sd/------------- 1/4
Addl FA (DR) 06/04
DFA (Pension) Immediate Action    
MOST IMMEDIATE
Ministry of Defence
Finance (Pension)

            Subject: - One Rank One Pension (OROP) – proposal for implementation

            Please find enclosed herewith a copy of Department of Expenditure, Ministry of Finance ID Note No. 1 (6)/E-V/2015 dated 01/04/2015, along with copy of Apex Court judgment dated 16/02/2015 on the above subject.

2.        Department of ESW is requested to furnish their comments in the matter urgently specially on para 5 & 7 of the ibid letter, so as to enable this Division to provide the same to the DoE, Ministry of Finance. DESW may also like to get the comments of office of CGDA including financial impact as desired by MoF in para 8 of the ibid letter.           

3.                 This has the approval of FA (DS).

Sd/----------------
(Virendra Kumar)
DFA (Pen)
Encl as above

DS (PENSION, D/o ESW
MoD (Fin/Pen) ID No. part file to No. 10 (11)/2012/FIN/PEN dated 07/04/2015

Copy to: US (Pen/Legal) – may kindly offer comments on para 5 & 7 as referred at A above and provide relevant documents immediately.                Sd/-------- 07/4/15

MoD D (Pen/Legal)

            No comments are offered as it is purely a policy matter. However, copies of SC judgment dated 9.9.2008 in SPS Vains and MoD letter dated 15.7.2009 and its corrigendum dated 30.9.2009 and 8.10.2009 are forwarded herewith for necessary action.
Sd/-------------
8/4/15
SO – D (P/L)
D (Pen/Policy)

D (Pen/Policy)

Ref preceding note.

2.        Policy letter in the matter has been issued by D (Pen/Legal vide letter No. 4 (110) 07/D (Pen/Legal) dated 15th July 2009 and corrigendum dated 30 Sep 2009 and 8 Oct 2009. Civil Appeal No. 2996/2011 was also filed by D (Pen/Legal) in the matter (copies already enclosed).CGDA office is working on th task of preparing comments for Ministry of Finance  have desired to have  copy of Appeal filed bu UOI as a result of which an interim order dated 16.2.2015 has been made by the Hon’ble Supreme Court of India,

3.        Kindly provide the copy to Shri Rajesh Kumar, AO, CGDA (FAX No. 25674811) immediately.
Sd/-------10/4/15
SO (Pen/Legal)                    Sd/------- 10/4/15

Office of the Controller General of Defence
Accounts, Ulan Batar Road, Palam
Delhi Cantt – 110010
Phone: (011) 25665529, 25665576-78
Fax: (011) 25674811, 25675493

            Subject: One Rank One Pension
Reference: Ministry of Finance, Department of Expenditure’s ID No. 1(6)/EV/2015 received vide MoD (Fin/Pen) ID No. Part file No. 10 (11)/2012/FIN/PEN dated 7th April 2015.

            Para wise comments on the Department of Expenditure’s above quoted ID note dated 1.4.2015 are as follows: -

Para 3:           No comments being matter of facts. It is, however, mentioned here that MoD vide their letter No. 4 (110)/07/D (Pen/Legal) dated 15th July 2009 have already issued orders to implement the judgment dated 9.9.2008 of the Hon’ble Supreme Court in Civil Appeal No. 5566 of 2006 and SLP (Civil) No. 12357 of 2006 in case of UoI Vs SPS Vains and others. The same has been fully implemented in all affected cases. We are, however, not aware why the Civil Appeal No. 2966/2011 in case of SPS Vains and others Vs UOI has been filed by UoI against which the judgment dated 16.2.2015 has been passed by Hon’ble Supreme Court. 

Para 4:           Ministry may be intimated that the judgment of Honourable Supreme Court dated 9.9.2008 passed in Civil Appeal No. 5566 of 2008 and SLP (Civil) No. 12357 of 2006 in case of UoI Vs SPS Vains and others, was in the matter for removal of anomaly in case of revision of pension of the rank of Major General vis-à-vis Brigadier while implementing the recommendations of Fifth CPC. However, while deciding the matter, the Apex court also considered the disparity in payment of pension to officers of the same rank, who had retired prior to the introduction of the revised pay scales with those who retired thereafter. It was observed by the Apex Court that on applying stepping up of pension under Fundamental Rules for pre-1996 Major Generals with Brigadier, disparity was created within the same class as the officers who retired prior to 1.1.1996 were same pension as payable to a Brigadier and other set of officers who retired after 1.1.1996 were getting higher amount of pension as they were entitled for the benefit of the revision of pay scales after 1.1.1996. Hon’ble Supreme Court, therefore, held the classification invalid under Article 14 of the Constitution and also as per judgment of a Constitution Bench in the case of D S Nakra and directed to notionally fix the pay of all the pensioners in the rank of Major General at the rate given to similar officers of the same rank after revision of pay scales with effect from 1.1.1996 and compute their revised pension accordingly from a prospective date. 

            In view of above, it is intimated to the Ministry that a principle was evolved by the Hon’ble Supreme Court by their decision in UoI Vs SPS Vains (retd) and others (2008) 9 SSC 125, to bring pre and post 1996 retiree Major General officers on par with a background to remove the anomaly in pension of pre-1996 retiree officers of the rank of Major Generals. It is pertinent to mention that the principle enunciated in the judgment by the Hon’ble Apex Court, was not regarding implementation of One Rank One Pension. 

Para 5:           Ministry may be intimated the methodology finalised for implementation of One Rank One Pension for Defence Forces is with reference to determine a standard rate of pension in order to achieve principle of  ‘one pension’ for ‘one rank.’ Since methodology pronounced by the Hon’ble Supreme Court in the earlier decision dated i.9.2008 in Civil Appeal No. 5566/2008 was regarding removal of anomaly in pension between the rank of Major General and Brigadier, the same was not considered at the time of formulating principle to implement One Rank One Pension for Defence Forces. 

Para 6:           Decision taken by Ministry for implementation of Hon’ble Supreme Court above said judgment dated 16.2.2015 is not available at our end, hence no comments are offered on the same. It is, however, intimated that the proposal formulated for One Rank One Pension have no linkage with the modalities pronounced by the Hon’ble Supreme Court in their above said judgment, it is felt that there should not be any infringement of Hon’ble Court decision if the proposal of One Rank One Pension is implemented for Defence Forces.

Para 7:           No comments in view of the comments on para 4, 5 and 6 above.

Para 8:           If the principle enunciated in Hon’ble Supreme Court judgment in UoI and others Vs SPS Vains (retd) is adopted, notional pay in every case as on 1.1.2006 has to be fixed before determining revised pension. For this purpose, pay fixation formulae approved by the Government under Revised Pay Rules for implementation of various Pay Commissions or Committees or due to general revision of scale of pay/financial upgradation/Court orders etc allowed from time to time, has to be taken into account. The Record Offices/Pay Accounting Offices will need to carry out notional fixation of pay as on 1.1.2206 based on which corrigendum PPOs would be issued by the Pension Sanctioning Authorities. The exercise would involve review of 18 lakh cases and take lot of time. Further, extraction of pay related data from old records of non-effective personnel pertaining to manual periods by administrative authorities would be a Herculean task as their availability could also not be confirmed due to retention period prescribed for maintenance of these records. Ministry mat also be intimated that since notional pay varies from case to case, the financial implication involved could not be determined at this point of time. 

Sd/---------
(C K Bhatjiwale)
ACGDA (Pen)
Sh Virendra Kumar
DFA (Pen)
Government of India, MoD (Finance)
Sena Bhawan, New Delhi – 110 011
UO No. 5699/AT-P/Vol-IV
Dated: 13th April 2015

Copt to

Shri Prem Prakash
Under Secretary (Pen/Policy)
Government of India
Ministry of Defence
Deptt of Ex-Servicemen Welfare,
Sena Bhawan, New Delhi – 11 ….. for information with reference to MoD I D No. 12
                                                (1)/2014-D (Pen/Policy) (Part II) dated 7th April 2015
Sd/---------
(C K Bhatjiwale)
ACGDA (Pen)

            Submitted for kind information of Secretary at Dak stage                        Sd/--------

File No. 12 (01)/2014/D (Pen/Pol) (Part – I)

Ministry of Defence
Department of Ex-Servicemen’s Welfare
D (Pen/Pol)

Subject:        One Rank One Pension – Information sought by MoD (Finance)

S No. 1-5 (R/I) – p.1-34/c


            MoD (Fin/Pen) have requested to furnish comments on para 5 and 7 of Min of Finance, Department of Expenditure ID Note placed at p 3/c. It has been further desired to get comments of O/o CGDA including financial impact as desired by MoF in para 8 of their ID Note.

2.        In their ID Note, Min of Finance have stated that while considering this department proposal on OROP it has come to knowledge of an order passed by Hon’ble Supreme Court on 16.02.2015. The said order is as under:
           
“Heard.

Ms Pinki Anand, Learned Additional Solicitor General, prays for and is granted three months time finally to work out the modalities for the One Rank One Pension principle on which the Tribunal has passed impugned judgment. The principle is also, it appears, covered by the decision of this Court in Union of India and Anr Vs SPS Vains (retd) and others – (2008) 9 SCC 125.”    

3.        Min of Finance has stated that it follows from the above order of the Hon’ble Supreme Court dated 16.2.2015 that the principle of One Rank One Pension is apparently covered in earlier judgment of that Court in the cited case of 2008, namely, Union of India and Anr Vs SPS Vains (retd) and others. Therefore, considering that the Hon’ble Supreme Court in their order of 16.2.2015 have observed that the principle of One Rank One Pension is apparently covered in their said previous order, it is a moot legal point as to whether the proposal now worked out by MoD/MoD (Finance) on the principle of One Rank One Pension would ensure compliance with the ratio of the decision of the Hon’ble Supreme Court in the said case, namely, Union of India and Anr Vs SPS Vains (retd) and others. There is no mention in this regard in the proposal made out by the MoD.

4.        It has been further stated by Min of Finance that since the order referred to above has been passed by the highest Court of the Land, it is felt that the Government would be well legally advised to ensure full compliance therewith and it would not be legally appropriate to work out modalities in infringement thereof in any respect whatsoever. Accordingly, it has been requested to offer comments on these points, bringing out, at the same time, in what respects, if any, the present proposal is in deviation of principle laid down by the order of the Hon’ble Supreme Court and whether such deviation could be legally construed as compliance with the same without any infringement whatsoever.   

5.        Min of Finance have also stated that since the present order of the Hon’ble Supreme Court dated 16.2.2015 states that the principle of OROP is apparently covered in their previous orders in the case of Union of India and Anr Vs SPS Vains (retd) and others. Comments may also be offered if the principle for OROP as enunciated by the Hon’ble Supreme Court in the said case may be adopted as the guiding principle for OROP across ranks at this juncture and if so, whether such a course of action would lead to higher financial impact than that on the present proposal. The financial impact on this count may also be indicated.

6.        Comments of CGDA have been obtained in the matter. CGDA have furnished their comments as p 32/c as under:

“Para 3:         No comments being matter of facts. It is, however, mentioned here that MoD vide their letter No. 4 (110)/07/D (Pen/Legal) dated 15th July 2009 have already issued orders to implement the judgment dated 9.9.2008 of the Hon’ble Supreme Court in Civil Appeal No. 5566 of 2006 and SLP (Civil) No. 12357 of 2006 in case of UoI Vs SPS Vains and others. The same has been fully implemented in all affected cases. We are, however, not aware why the Civil Appeal No. 2966/2011 in case of SPS Vains and others Vs UOI has been filed by UoI against which the judgment dated 16.2.2015 has been passed by Hon’ble Supreme Court. 

Para 4:           Ministry may be intimated that the judgment of Honourable Supreme Court dated 9.9.2008 passed in Civil Appeal No. 5566 of 2008 and SLP (Civil) No. 12357 of 2006 in case of UoI Vs SPS Vains and others, was in the matter for removal of anomaly in case of revision of pension of the rank of Major General vis-à-vis Brigadier while implementing the recommendations of Fifth CPC. However, while deciding the matter, the Apex court also considered the disparity in payment of pension to officers of the same rank, who had retired prior to the introduction of the revised pay scales with those who retired thereafter. It was observed by the Apex Court that on applying stepping up of pension under Fundamental Rules for pre-1996 Major Generals with Brigadier, disparity was created within the same class as the officers who retired prior to 1.1.1996 were same pension as payable to a Brigadier and other set of officers who retired after 1.1.1996 were getting higher amount of pension as they were entitled for the benefit of the revision of pay scales after 1.1.1996. Hon’ble Supreme Court, therefore, held the classification invalid under Article 14 of the Constitution and also as per judgment of a Constitution Bench in the case of D S Nakra and directed to notionally fix the pay of all the pensioners in the rank of Major General at the rate given to similar officers of the same rank after revision of pay scales with effect from 1.1.1996 and compute their revised pension accordingly from a prospective date. 

In view of above, it is intimated to the Ministry that a principle was evolved by the Hon’ble Supreme Court by their decision in UoI Vs SPS Vains (retd) and others (2008) 9 SSC 125, to bring pre and post 1996 retiree Major General officers on par with a background to remove the anomaly in pension of pre-1996 retiree officers of the rank of Major Generals. It is pertinent to mention that the principle enunciated in the judgment by the Hon’ble Apex Court, was not regarding implementation of One Rank One Pension. 

Para 5:           Ministry may be intimated the methodology finalised for implementation of One Rank One Pension for Defence Forces is with reference to determine a standard rate of pension in order to achieve principle of  ‘one pension’ for ‘one rank.’ Since methodology pronounced by the Hon’ble Supreme Court in the earlier decision dated i.9.2008 in Civil Appeal No. 5566/2008 was regarding removal of anomaly in pension between the rank of Major General and Brigadier, the same was not considered at the time of formulating principle to implement One Rank One Pension for Defence Forces. 

Para 6:           Decision taken by Ministry for implementation of Hon’ble Supreme Court above said judgment dated 16.2.2015 is not available at our end, hence no comments are offered on the same. It is, however, intimated that the proposal formulated for One Rank One Pension have no linkage with the modalities pronounced by the Hon’ble Supreme Court in their above said judgment, it is felt that there should not be any infringement of Hon’ble Court decision if the proposal of One Rank One Pension is implemented for Defence Forces.

Para 7:           No comments in view of the comments on para 4, 5 and 6 above.

Para 8:           If the principle enunciated in Hon’ble Supreme Court judgment in UoI and others Vs SPS Vains (retd) is adopted, notional pay in every case as on 1.1.2006 has to be fixed before determining revised pension. For this purpose, pay fixation formulae approved by the Government under Revised Pay Rules for implementation of various Pay Commissions or Committees or due to general revision of scale of pay/financial upgradation/Court orders etc allowed from time to time, has to be taken into account. The Record Offices/Pay Accounting Offices will need to carry out notional fixation of pay as on 1.1.2206 based on which corrigendum PPOs would be issued by the Pension Sanctioning Authorities. The exercise would involve review of 18 lakh cases and take lot of time. Further, extraction of pay related data from old records of non-effective personnel pertaining to manual periods by administrative authorities would be a Herculean task as their availability could also not be confirmed due to retention period prescribed for maintenance of these records. Ministry mat also be intimated that since notional pay varies from case to case, the financial implication involved could not be determined at this point of time.” 

7.        We may furnish chronology of event in legal cases of Maj Gen SPS Vains (retd) along with calculation sheets in the legal case of Major General SPS Vains (retd) to CGDA office and request them to furnish their comments on the issues raised in Min of Finance ID Note at p.3/c.
Sd/-----------
16/4/15
(Prem Prakash)
Under Secretary (Pen/Pol)
16.04.2015 
DS (Pension)                        Sd/-------------T R Singhal 16/4/15
JS (ESW)        CGDA vide Para 2 of U.O. No. 5699/AT-P/Vol IV dated 13.4.2015 has informed that CGDA is not aware as to whay Govt has filed appeal and they are not aware. The perusal of the file relating to CA No. 2996/2011 clearly reveals that CGDA was consulted from time to time. In fact, imputs from CGDA and PCDA in their calculations of pensions have come and these were filed in the Supreme Court. The above related information along with details may please ben informed to the CGDA by reviewing the draft.         Sd/------------------- 16/4/15   

DS (Pensions)          As per the directive of JS (ESW), fair letter to CGDA seeking calculation sheets is placed below which may be issued by FAX as well as Special Messenger immediately and the file be resubmitted for perusal of JS (ESW) after issue. Sd/--------- 22/4/15 
SO (P/P)        Letter issued to CGDA. File resubmitted for perusal of JS (ESW)
Sd/------ (Veena) SO (P/P) 22.4.15

US (P/P)        Sd/------ 22/4/15
DS (pension) – on leave
JS (ESW) Sd/-------- 22/4
DS (Pension) Sd/----- 27/4/15
US (P/P)

Immediate
By Special Messenger

Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare

Subject: One Rank One Pension – Information sought by MoD (Finance)

            Reference UO No. 5699/AT-P/Vol-IV dated 13th April 2015 from ACGDA (Pension) on the subject.

2.        It has been stated in U O Note under reference that CGDA is not aware as to why Civil Appeal No. 2966/2011 in case of Maj Gen SPS Vains (retd) and others has been filed by UoI. In this connection, it is clarified that C. A. No. 2966/2011 was filed challenging judgment delivered by AFT, Chandigarh in O.A. No. 100/2010 filed by Maj Gen SPS Vains & Others against the orders issued by Government relating to Sixth Pay Commission. CGDA office has been consulted in the matter from time to time. Inputs were sought from CGDA and PCDA (P). Calculation sheets were also furnished by PCDA in the matter. 

3.        One copy of the following documents is enclosed:

            (i)        MoD I D No. 4 (140)/D (Pen/Legal)/2010 dated 8.4.2010.         

            (ii)       UO No. 5669/AT-P/Ministry dated 31.3.2011 from CGDA.

            (iii)      Letter No. G1/M/1042/XI dated 13.5.2011 from PCDA.

            (iv)      MoD ID No. 4 (140)/D (Pen/Legal)/2010 dated 7.6.2011.

4.        Chronology of events in legal cases of Maj General SPS vains (retd) alongwith calculation sheets in the legal case of Major General SPS Vains (retd) is enclosed.

5.        It is requested that further comments, if any, on the issues raised in Ministry of Finance, Department of Expenditure I D Note. No. 1(6)/EV/2015 dated 1.4.2015 may kindly be furnished immediately.
Sd/---------------
(Prem Prakash)
Under Secretary (Pension/Policy)
Telefax: 23012973
Encl: as above
ACGDA (Pension), Office of CGDA
MoD I. D. No. 12 (1)/2014- D (P/P) (Part-II) dated 21st April 2015.

Chronology of Maj Gen SPS Vains (retd) case

1978-96                    Respondents retired in the rank of Major Generals and one of them retired as Air Vice Marshal. Pension being paid to the Respondents was being revised from time to time as per recommendations of 4th & 5th Central Pay Commissions.

01/01/86                  Pursuant to the recommendations of 4th Central Pay Commission, a running pay scale was introduced from the rank of Lieutenant to Brigadier on the basis of number of years of servie rendered by them and it did not depend upon promotion earned except that the rank pay varied with each rank. The rank pay was payable to the officers holding rank of Captain, Major, Lt Colonel, Colonel and Brigadier. However, no rank pay was payable to the officers holding rank of Major General and above. 

01/1/96                    The 5th Central Pay Commission recommended the revised pay scales for service and the pay for the rank of Brigadier was recommended at Rs 15350-450-17600/- with rank pay of Rs 2400/-. As per the 5th Pay Commission, Major General and equivalent were recommended to be placed in the scale of Rs 18400-500-22400/-. 

07/06/09                  Based on General Principle, pension and family pension of all pre-1996 retirees commissioned officers was revised, based on a formula known as modified parity. It was decided that w.e.f. 1.1.1996 Pension of all Armed Forces pensioners shall not be less than 50% of the minimum pay in the revised scale of pay introduced w.e.f. 1.1.1996 of the rank and group held by the pensioner, same as for civilian pensioners.

2001                          Government of India, Ministry of Defence letter was issued stipulating that family pension of an officer of the rank of Major General and equivalents shall not be less than the family pension which would have been admissible to the family of the officer as Brigadier or equivalent had he not been promoted to the rank of Major General and equivalent.

As per existing provisions (MoD letter dated 3.2.1998) the pension of all pre-96 retiree Major Generals has been stepped up to Rs 9550/- p.m. i.e. equal to that of Brigadier. But the demand of pre-96 retiree Major Generals has been to get more pension than that of Brigadier. There are estimated to be 800 Service pensioners of this rank and 122 Family pensioners. Maj Gen SPS Vains and others filed CWP No. 17233/2001 in Punjab & Haryana High Court. 

2005                          Hon’ble High Court passed otder dated 26.5.2005 in CWP 17233/2001 directing respondents i.e. Union of India to fix the minimum pay scale of Major Generals above that of the Brigadiers and grant pay above that of Brigadiers as has been done in the case  of post 1.1.1996 retirees and consequently fix the pension and family pension accordingly.

2006                          As the steps have been taken to address the anomaly by fixing the minimum pension of Major Generals who retired prior to 1.1.96 upto Rs 9550/-, an SLP 12357/2006 was filed in the Hon’ble Supreme Court by UoI.

2008                          Hon’ble Supreme Court dismissed the SLP No. 12357/2006 (Civil Appeal No. 5566 of 2008) vide its order dated 9.9.2008 directing that the pay of all pensioners in the rank of Major General and its equivalent rank in the two other Wings of the Defence Services be notionally fixed at the rate given to similar officers of the rank after revision of pay scales w.e.f. 1.1.96, and thereafter, to recomputed their pensionary benefits on such basis with prospective  effect from the date of filing of the writ petition and to pay them the difference within 3 months from date with interest of 10% per annum.  

Feb 2009                  Contempt Case No. 64/2009 in CA No. 5566 of 2008 filed by Maj Gen SPS Vains (retd) and others for non-implementation of the order. In the meantime, review petition filed by the Government in CA 5566 of 2008 was dismissed by the Hon’ble Supreme Court on 24.2.2009. Accordingly, Government implemented the Hon’ble Supreme Court order dated 9.9.2008 vide Government letter dated 15.7.2009 duly prescribing the methodology for re-fixation of their pay on notional basis and corrigendum dated 30.09.2009 and 8.10.2009. When the Court was informed of the action taken by the Government, the Petitioners raised certain additional issues and the comments were also filed.   

2010                          In the meantime, orders of VI CPC were issued. Aggrieved by it, OA No. 100/2010 was filed by Maj Gen SPS Vains in AFT, Chandigarh challenging the various instructions issued by the Govt stating that a similar anomaly has occurred in the fixation of pay of those officers after the 6th CPC. Hon’ble AFT, Chandigarh, vide its order dated 4.3.2010 directed the respondents to implement the decision of the Constitution Bench as well as Supreme Court’s decision rendered in SLP (Civil) No. 12357/2006 (UoI and Anr Vs SPS Vains (retd) and others) in letter and spirit in the matter of fixation of pension of the petitioner within three months from the date of the impugned order. Views of the Department of Expenditure, Ministry of Finance and Deptt of P & PW were obtained.    

Deptt of Expenditure vide OM No. C-47/EV/2010 dated 30.06.2010 has stated that after implementation of 6th CPC recommendations, some sections of pre 1.1.2006 pensioners, particularly those who retired in the grade/rank of Joint Secretary/Major General and Addl Secy/Lt General have complained that the percentage increase in the case of their revised pension is much lesser than that of Directors/Colonels as well as pensioners who retired in HAG+ grade. Consequently, they demanded that in order to grant them parity vis-à-vis the existing Govt servants in the grade/rank of Joint Secretary/Maj Gen and Addl Secy/Lt Gen, their pension should be fixed not with reference to the minimum of the pay Band, but with reference to a notional stage in PB-IV which could be the stage where the pay of the existing officer of their grade/rank has been fixed. This demand cannot be conceded as this would have far reaching consequences for pre 1.1.2006 pensioners of all grades/ranks and it would also entail huge financial implications.  

2011                          In view of the reservations expressed by Ministry of Finance to implement order dated 4.3.2010 in 100/2010 of AFT, Chandigarh, CA No. 2966 of 2011 titled Union of India and Others vs SPS Vains and Others was filed by the Government challenging the above order of AFT, Chandigarh on the grounds mentioned in the Annexure. The case came up for hearing in 2011. As directed by the Hon’ble Court, Government filed calculation sheets for computation of the pensions in the Court.     

2014                          The case came up for hearing in October 2014 and Court gave 3 months time.

2015                          Contempt Petition No. 64/2009 in Civil Appeal No. 5566/2008 and CA No. D 2966/2011 came up for hearing on 16.2.2015 and the Hon’ble Supreme Court granted 3 months time to finalise, work out the modalities for implementation of One Rank One Pension (OROP) principle on which the Tribunal has passed the impugned judgement.   

March 2015             OROP proposal was sent to the Ministry of Finance

April 2015                Deptt of Expenditure, Ministry of Finance vide ID Note No. 1(6)/EV/2015 dated 1.4.2015 has referred the Judgment of the Supreme Court and called for views of the Ministry.

“This Ministry has come to know of an order passed by the Hon’ble Supreme Court as recently as 16.2.2015 in the Civil Appeal No. 2966/2011 in the case between Union of India Vs SPS Vains and others.

It follows from the Hon’ble Supreme Court order dated 16.2.2015 that the principle of One Rank One Pension is apparently covered in earlier judgment of that Court in the cited case of 2008, namely, Union of India & Ors Vs SPS Vains (retd) and others.  

Therefore, considering that the Hon’ble Supreme Court, in their order of 16.2.2015 have observed that the principle of One Rank One Pension is apparently covered in their said previous order, it is a moot legal point as to whether the proposal now worked out by the MoD/MoD (Finance) on the principle of One Rank Pension would ensure compliance with the ratio of the decision of the Hon’ble Supreme Court in the said case, namely, Union of India and Ors Vs SPS Vains (retd). There is no mention in this regard in the proposal made out by the MoD.      

Since the order referred to above has been passed by the highest Court of the land, it is felt that Government would be well legally advised to ensure full compliance therewith and it would not be legally appropriate to work out modalities in infringement thereof in any respect whatsoever.             

The Ministry of Defence (Finance) has been asked to offer their comments on this point, bringing out, at the same time, in what respect, if any, the proposal is in deviation of the principle laid down by the order of the Hon’ble Supreme Court and whether such a deviation could be legally construed as compliance with the same without any infringement whatsoever.     

Furthermore, since the present Order if the Hon’ble Supreme Court dated 16.2.2015 states that the principle of OROP is apparently covered in their previous Orders in the case of Union of India Vs SPS Vains (retd), MoD (Finance) may also offer comments if the principle for OROP as enunciated by the Hon’ble Supreme Court in the said case may be adopted as the guiding principle for OROP across ranks at this juncture and if so, whether such a course of action would lead to higher financial impact than that on the present proposal. The financial impact on this count may also be indicated. The matter will be examined further after receiving the considered view of MoD.

The matter is currently under examination in consultation with CGDA.
*          *          *          *          *
Calculation sheets for Maj Gen SPS Vains (retd) and other Petitioners/Respondents are not provided as they are not relevant to the issue of OROP.
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Office of the Controller General of Defence
Accounts, Ulan Batar Road, Palam,
Delhi Cantt - 110010

Subject: One Rank One Pension (OROP) – Information sought by MoD (Finance) reg
Reference: MoD ID No. 12 (1)/2014-D (P/P) (Part – II) dated 21st April 2015

            Ministry may be intimated that the reference made in MoD’s above said ID dated 21.4.2015, are with reference to OA No. 100 of 2010 filed by Major General SPS Vains & others Vs UoI in AFT, Chandigarh regarding fixation of pay/revised pension as on 1.1.2006 in the line of Hon’ble Supreme Court earlier decision dated 9.9.2008 in Civil Appeal No. 5566 of 2008. It has been observed that the petition was allowed by the Tribunal vide their judgment dated 4.3.2010 in favour of petitioners. As per MoD’s previous ID No. 4 (140)/2010/D (Pen/Legal) dated 29.3.2011, Civil Appeal No. 2910/2011 was filed to challenge the said judgment of AFT. There is no reference regarding Civil Appeal No. 2996/2011 in all the correspondence received earlier form Ministry and referred in their ID dated 21.4.2015. It is further intimated that Hon’ble Apex Court judgment dated 16.2.2015 deliberated in the Civil Appeal No. 2966 of 2011 have a reference to Contempt Petition (C) No. 64/2009 filed in the Civil Appeal No. 5566 of 2008, which has already been implemented by issue of MoD letter No. 4 (110)/07/D (Pen/Legal) dated 15.7.2009. It is also intimated that the website of Hon’ble Supreme Court is showing status of Civil Appeal No. 2910/2011 converted to Civil Appeal No. 2966/2011. Therefore, it appears that only one Civil Appeal in both cases viz. Contempt proceeding filed by respondents against implementation of earlier Hon’ble Apex Court earlier judgment dated 9.9.2008 and fresh OA for fixation of pay/revised pension as on 1.1.2006 is being heard by Hon’ble Supreme Court.   

2.        Regarding our earlier comments on the queries raised by the Deptt of Expenditure, it is submitted that the same still holds good as the previous judgements passed in the case of Major General SPS Vains and others, are regarding removal of anomaly in pay/pension of Major Generals vis-à-vis Brigadier and not for grant of One Rank One Pension. Ministry may, therefore, take necessary action at their end.  
Sd/--------------
(C K Bhatjiwale)
ACGDA (Pen)
Sh Prem Prakash
Under Secretary (Pen/Pol)
Government of India, Ministry of Defence
Sena Bhawan, New Delhi - 110011
UO No. 5699/AT-P/OROP/Vol-IV
Dated: 23rd April 2015

To be continued

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