Armed Forces Tribunal’s order staying recovery of commuted pension put on hold by High Court

An order passed by the Armed Forces Tribunal (AFT) staying the recovery of the commuted portion of pension of defence personnel by the government has been put on hold by the High Court.

Several retired defence personnel had moved the AFT’s Principal Bench, averring that restoration of commuted portion of pension must be by 12 years and that the authorities seeking to restore commuted pension after 15 years was arbitrary.

The petitioners had placed reliance on directions of the Punjab and Haryana High Court in four different cases concerning similar issues where the state government is among the respondents.

“As an interim measure till further directions, the further recovery of pension sought to be made by the respondents on the basis of commutation of pension involved is stayed, in as much as the applicants submit that they have completed with the period of 12 years of commutation of pension,” the AFT’s Bench directed while fixing the mater for next hearing on December 11, 2024.

Taking up a petition filed by the Central Government challenging the AFT’s order, a Division Bench of the Delhi High Court considered the ramifications of the interim order and observed that over 100 pensioners have already moved the AFT seeking restoration of the commuted portion of pension after 12 years, where identical interim orders have been passed.

The High Court also observed that the pensioners did not deny that while exercising their option for commutation of pension, they were made aware that the commuted portion of their pension, would be restored only after 15 years, the AFT had, by way of the interim order, directed restoration thereof before completion of the 15-year period.

Pointing out a similar claim for restoration of the commuted portion of pension after 12 years as against the agreed term of 15 years, was rejected by this High Court earlier in another case, the High Court, in its orders passed last week, said that the grant of this interim relief to the pensioners would amount to the grant of final relief as sought by them from the AFT.

“Grave prejudice will be caused to the petitioners (government) in case the operation of the impugned order is not stayed as they would, under the impugned order, be compelled to restore the commuted portion of the pension after 12 years itself. It is, therefore, directed that till the next date of hearing, the operation of the impugned order will remain stayed,” the High Court directed.