ORDER ON INTERIM RELIEF-Central Administrative Tribunal Mumbai Bench: Mumbai OA No. 860/2024 Order reserved on: 15th October 2024 Order pronounced on: 11th November 2024

 

1. Central Administrative Tribunal

   Mumbai Bench: Mumbai

   OA No. 860/2024

   Order reserved on: 15th October 2024

   Order pronounced on: 11th November 2024

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   Hon’ble Mr. Justice M.G. Sewlikar, Member (J)

   Hon’ble Mr. Santosh Mehra, Member (A)

   Hari N. Saste and others (Applicants)

   (By Advocate: Mr. D.M. Shukl)

   Versus

   Union of India and others (Respondents)

   (By Advocate: Mr. N.K. Rajpurohit)

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   ORDER ON INTERIM RELIEF

   By Justice M.G. Sewlikar, Member (J):

   1. Applicants’ Claim:

      • The applicants have sought interim relief that the respondents shall not recover the amount of commuted pension from those employees who have completed 12 years after retirement.

   2. Brief Facts:

      • All applicants are retired employees of the Department of Posts, having commuted 40% of their pension.
      • Annexure A-65 lists applicants who completed 12 years post-retirement.
      • Government of India rules currently mandate the restoration of commuted pension after 15 years of retirement (as per Rule 10A, CCS (Commutation of Pension) Rules, 1981).
      • Applicants argue for reducing the restoration period to 12 years, citing lower mortality rates and declining interest rates.
      • Representations made by applicants were rejected by the respondents.
      • Cited examples of state governments (Gujarat and Andhra Pradesh) adopting shorter restoration periods of 12 and 13 years.

   3. Rule 10A (Restoration of Commuted Pension):

      • “The commuted amount of pension shall be restored on completion of fifteen years from the date of reduction of pension on account of commutation becomes operative in accordance with Rule 6.”

   4. Applicants’ Relief Sought:

      • Declaration that Rule 10A is arbitrary and outdated, and should be amended to allow restoration after 12 years.
      • Set aside the respondents’ letters rejecting their request.
      • Refund excess recovery for applicants who completed 12 years, with 6% interest.
      • Stop recovery for applicants completing 12 years post-retirement in 2024 and beyond.

   5. Respondents’ Arguments:

      • Contended that the challenge to Rule 10A is barred by limitation (the rule was enacted in 1981, challenged in 2024).
      • Highlighted that applicants voluntarily opted for pension commutation, agreeing to recovery over 15 years.
      • Asserted that Rule 10A remains enforceable until amended or struck down.

   6. Tribunal’s Observations:

      • Noted recommendations of the 5th Central Pay Commission to reduce the period to 12 years.
      • Found no record disproving applicants’ claim that commuted pension can be recovered within 12 years.
      • Accepted that similar interim relief has been granted by other courts (e.g., Punjab and Haryana High Court).

   7. Order on Interim Relief:

      • Interim relief granted to applicants Nos. 10, 11, 13, 14, 15, 27, and 39.
      • Respondents prohibited from recovering commuted pension amounts from these applicants, pending final resolution of the case.

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   List the OA on: 19th December 2024.

   (Santosh Mehra)

   (Justice M.G. Sewlikar)

   Member (A)

   Member (J)

   
   

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