7th CPC Pension Revision: Restoration of full pension of
absorbee pensioners in view of the order dated 01.09.2016 of Hon'ble
Supreme Court in Civil Appeal No. 6048/2010 and Civil Appeal No.
6371/2010.
F.No. 4/34/2002-P&PW(D).Vol.II
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners Welfare
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi
Dated the 23rd June, 2017
OFFICE MEMORANDUM
Subject:
Restoration
of full pension of absorbee pensioners in view of the order dated
01.09.2016 of Hon'ble Supreme Court in Civil Appeal No. 6048/2010 and
Civil Appeal No. 6371/2010.
The undersigned is directed
to say that in accordance with the instructions which existed before
31.03.1995, a Government servant, on absorption in a Public Sector
Undertaking or an Autonomous Body, had the option to draw pro-rata
gratuity and a lump sum amount in lieu of pension. The option regarding
payment of lump sum amount in lieu of monthly pension on absorption in a
PSU or autonomous body was available in terms of the instructions
issued vide Department of Expenditure's O.M. No. 26(18)-E.V(B)/75 dated
08.04.1976, Department of Personnel Training's O.M. No.
28016/5/85-Estt.(C) dated 31.01.1986 and Department of Pension &
Pensioners' Welfare' O.M. No. 4(12)/85-P&PW dated 31.03.1987. This
option was also available to Government employees on absorption in
PSUs/autonomous bodies of the State Governments and Joint Sector
undertakings in terms of this Department's O.M. No. 4/43/88-P&PW(D)
dated 16.10.1989. The terms and conditions for absorption of Government
employees consequent on conversion of a Government Department into a PSU
or autonomous body issued vide this Department's O.M. No.
4/18/87-P&PW(D) dated 5.7.1989 also provided for a similar option of
lump sum payment in lieu of monthly pension.
2. In accordance
with Rule 37-A of the Central Civil Services (Pension) Rules, 1972,
incorporated vide Department of Expenditure's Notification No.
44(l)-E.V./71 dated 09.04.1973, on exercise of the above option, an
employee was entitled to a lump sum amount not exceeding the commuted
value of one-third of the pension and terminal benefit equal to twice
the aforesaid lump-sum amount, subject to the condition that the
Government servant surrendered his right of drawing two-thirds of his
pension.
3. The option to draw a lump sum amount in lieu of
pension was withdrawn vide this Department's O.M. No.
4/42/91-P&PW(D) dated 31st March, 1995. Accordingly, the erstwhile
Rule 37-A was omitted from the CCS(Pension) Rules, 1972 vide
Notification No. 4/42/91-P&PW(D) dated 25.06.1997.
4. In
implementation of the Order dated 15.12.1995 of Hon'ble Supreme Court in
WP(C) No. 11855/85, instructions were issued vide this Department's
O.M. No. 4/3/86-P&PW(D) dated 30.09.1996 for restoration of
one-third commuted portion of pension of Government servants who had
drawn lump sum payment on absorption in a PSU/autonomous body. Further
instructions were issued, from time to time, for computation and
revision of the one-third restored pension of such absorbee pensioners
and for payment of the attendant benefits like dearness relief, etc. to
such absorbee pensioners. Orders for revision of the one-third restored
pension w.e.f. 01.01.2006 of such absorbee pensioners were issued vide
this Department's O.M. No 4/38/2008- P&PW(D) dated 15/09/2008, O.M.
No. 4/30/2010-P&PW(D) dated 11/07/2013. and O.M. No.
4/38/2008-P&PW(D) dated 04/08/2016. These absorbee pensioners were,
however, entitled to dearness relief and age-related additional pension
based on the notional full pension.
5. Hon'ble High Court of
Judicature of Madras, in its judgement dated 02-08-2007 in Writ Petition
no. 22207/2002 filed by one Sh. K. Ganesan, an officer in the office of
Controller General of Accounts, held that surrendering of the right for
drawal of 2/3rd of Pension after its commutation, as provided under
Rule 37-A (b), was repugnant to Section 12 of the Pensions Act, 1871 and
that the petitioner was lawfully entitled for the restoration of his
pension after the expiry of the period of commutation of 2/3rd pension.
Hon'ble High Court, accordingly, directed restoration of 2/3rd pension
and payment of arrears accordingly.
6. An SLP(Civil) No. 4054/2008
(converted into Civil Appeal No. 6048/2010) was filed by the Union of
India challenging the aforesaid order dated 02-08-2007 of Hon'ble High
Court of Judicature of Madras. In its order dated 1.9.2016, Hon'ble
Supreme Court found no justification to interfere with the order dated
02.08.2007 of Hon'ble High Court directing restoration of 2/3rd pension
in respect of the respondent (Shri K. Ganesan), after the expiry of the
requisite period of commutation. The Civil Appeal No. 6048/2010 was
accordingly dismissed by Hon'ble Supreme Court. In the said judgement
dated 1.9.2016, similar direction was passed by Hon'ble Supreme Court in
the Civil Appeal No. 6371/2010 for restoration of 2/3rd pension in
respect of the petitioners, Shri K.L. Dhall, an absorbed employee of
Ministry of Civil Aviation and member pensioners of Welfare Association
of Central Government Officers, CAD Absorbed in PSU.
7. Review
Petitions No. 465/2017 and No. 472/2017 were filed by Union of India in
the Supreme Court against the aforesaid order dated 1.9.2016.
Instructions were separately issued to the office of Controller General
of Accounts and the Ministry of Civil Aviation vide OM
No.4/34/2002-P&PW(D).Vol.ll dated 21-12-2016 and OM No.
4/34/2002-P&PW(D).Vol.II dated 21-12-2016 respectively, for
implementation of the orders of Hon'ble Supreme Court in respect of the
petitioner/respondent pensioners in the aforesaid Civil Appeals, subject
to the final outcome of the Review Petitions. The aforesaid Review
Petitions No. 465/2017 and No. 472/2017 have been dismissed by Hon'ble
Supreme Court on 22.03.2017.
8. The matter has been examined in
consultation with the Department of Legal Affairs and the Ministry of
Finance (Department of Expenditure). It has been decided to extend the
benefit of order dated 02-08-2007 of the Hon'ble Madras High Court and
the Order dated 01-09-2016 of the Hon'ble Supreme Court to all similarly
placed absorbee pensioners. Accordingly, all such absorbee petitioners
who had taken 100% lump-sum amount in lieu of pension on absorption in
PSUs/Autonomous Bodies in accordance with the then existing Rule 37-A
and in whose case 1/3 pension had been restored after 15 years, may be
allowed restoration of full pension after expiry of commutation period
of 15 years from the date of payment of 100% lump-sum amount.
9.
The absorbee pensioners whose full pension is restored in terms of the
above instructions would also be entitled to revision of their pension
in accordance with the instructions issued from time to time in
implementation of the recommendations of the Pay Commissions, including
the 7th Central Pay Commission.
10. In their application to the
persons belonging to the Indian Audit and Accounts Department, these
orders issue in consultation with the Comptroller and Auditor General of
India.
11. Ministry of Agriculture etc. are requested to bring
the contents of these Orders to the notice of Controller of Accounts/Pay
& Accounts Officers and Attached subordinate Offices under them on a
top priority basis and for taking necessary action for implementation
of the above instructions. All pension disbursing offices are also
advised to prominently display these orders on their notice boards for
the benefit of pensioners.
12 This issues with the approval of
Ministry of Finance (Department of Expenditure) vide their ID Note
No.1(11)/EV/2017 dated 26-05-2017 and dated 13-6-2017.
13. Hindi version will follow.
Sd/-
(Harjit Singh)
Director
Source:
Pensioners Portal
