In case computation of pay exceeds last drawn pay in armed forces then, last drawn pay of such a personnel can be fixed: Supreme Court

The Supreme Court has recently held that in a case where the computation of pay exceeds last drawn pay in the armed forces then, in such a situation the last drawn pay of such a personnel can be fixed.

A bench of Justice MR Shah and Justice BV Nagarathna noted that the High Court has committed a grave error in observing and holding that the retired Armed Forces personnel on re­appointment in the government service would be entitled to the last drawn pay as Armed Forces personnel.

The judgment has been pronounced in a plea by the Central Government against a Delhi High Court judgment holding that the officer (petitioner) being a retired Army Force Personnel upon re­-appointment in the government service, would be entitled to his basic pay being fixed at par with his last drawn pay.

However, during the proceedings before the apex court, the Central Government argued that "Para 8 of the Central Civil Services (fixation of Pay of Re­employed Pensioners) Order, 1986 (CCS) on reappointment, an Emergency Commissioned Officer and Short Service Commissioned Officer who join the government service will be granted advance increments equal to the completed years of service rendered by him in the Armed Forces on the basic pay scale which will be equal to or higher than the pay scale of the re­employed organization i.e. the civil post/the government post and not on the last drawn pay by the personnel in the Armed Forces."

Additional Solicitor General Aishwarya Bhati appearing for the Government stated that Para 8 of the CCS Order does not speak about retaining of the last drawn basic pay or fixation at the rate of last drawn pay.

Whereas Senior Advocate Vinay Kumar Garg appearing for the officer submitted that on re­employment his pay scale was required to be fixed at par with the pay scale he was drawing while in the Indian Army Service and as per the last drawn pay.

"As per Para 8 of CCS Order, though the appellants granted six increments i.e. for the number of years the respondent served in the Indian Army, however, the same was granted on the pay wrongly fixed by the appellants which ought to have been fixed at Rs.28340 i.e. the pay last drawn by the respondent in the rank of Major in the Army," Garg added.

The bench was considering the issue of whether on re­-employment in the government service, an employee who was serving in the Indian Army/in the Armed Forces shall be entitled to his pay scales at par with his last drawn pay?

While answering the question the bench referred to the Para 8 of CCS Order and noted that "an employee working with the Armed Forces, on re-employment shall be entitled to advance increments equal to the completed years of service rendered by him in the Armed Forces on a basic pay equal to or higher than the minimum of the scale attached to the civil post in which he is employed."

The bench noted that Para 8 of the CCS Order makes a reference to two rates of pay in case of emergency commissioned officers and short-service commissioned officers being appointed in the government service.

In this regard, the bench opined that first is, they may be granted advance increment equal to the completed years of service rendered by them in the armed forces on a basic pay equal to or higher than the minimum of the scale attached to the civil posts in which they are employed.

Whereas, secondly, while computing the pay in the aforesaid manner it should not exceed the basic pay last drawn by them in the armed forces.

While applying the same to this case the bench opined that the officer was fixed at the entry-level of PB­3 (Rs.15,600–Rs.39,100) in the armed forces and six advance increments equal to the number of years the respondent served in the Indian Army was added to the basic pay i.e. Rs.15,600/-­ = Rs.19,600/­.

The Grade Pay fixed in the civil post is Rs.5,400/­ and hence a total of Rs.25,080/-­ was the computed pay in the civil post. The said pay of Rs.25,080/­- does not exceed the pay last drawn by the respondent in the armed forces. Hence, the pay so computed is just and proper, the bench added.

In addition to this, the bench opined that Para 8 does not provide that on re-employment in Government Services a retired Armed Force personnel would be entitled to his basic pay being fixed at par with his last drawn pay. Holding so will violate para 8 of the CCS Order.

Cause Title: Union of India & Ors. Vs. Anil Prasad