Enter Keyword and Search

Restoration of full pension of absorbee pensioners - DoPT

with 0 Comment
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

Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners Welfare

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi
Dated : 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(1)-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 The option to draw a lump sum amount in lieu of pension was withdrawn vide this Department’s O.M. No. 4/42/91-P&PW(D) dated 31st March, 1995.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. No4/38/2008- 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 02-08­2007 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 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.II dated 21-12­2016 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 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.

(Harjit Singh)

Authority: http://www.pensionersportal.gov.in/
Related Posts...


Post a Comment

Recent Stories...


90Paisa - Dedicated to Central Government Employees and Pensioners. As and when orders amending the rules are published by the Government, the amendment orders will be published in our blog immediately. Readers are requested to refer to the source link is given at the end of the post.
All efforts have been made to ensure accuracy of the content on this blog, the same should not be construed as a statement of law or used for any legal purposes. 90paisa accepts no responsibility in relation to the accuracy, completeness, usefulness or otherwise, of the contents. Users are advised to verify/check any information with the relevant department(s) and/or other source(s), and to obtain any appropriate professional advice before acting on the information provided in the blog.
Links to other websites that have been included on this blog are provided for public convenience only.
90paisa is not responsible for the contents or reliability of linked websites and does not necessarily endorse the view expressed within them. We cannot guarantee the availability of such linked pages at all times.
10 crore viewers…90 Paisa Blog touches new heights
Making a Mark Achieved 100 Million Page Views - "Central Government Employees News" Blog
We are proud of our latest accomplishment – 90Paisa Blog, the first ever blog for Central Government employees, has now crossed 10 crore hits!!!
From the bottom of our hearts, we express our sincere gratitude to all our patrons who have been supporting us all along.

Civilian Pay Matrix

Defence Pay Matrix

Popular Posts

Ever Green Posts

Ever Remembering Pots..!

Recent Posts