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2024 Supreme(Online)(CAT) 16825

CENTRAL ADMINISTRATIVE TRIBUNAL
Dr. Lata Baswaraj Patne, J, Ms. Shalini Misra, A
A.A. Rama Rao Choudary – Appellant
Versus
The Union of India – Respondent
O.A. No. Not Specified



Advocates:
For the Appellants/Petitioners: Mr. G Raman Goud
For the Respondents: Mrs. B Gayatri Varma, Sr.CGSC, Ms. S Anuradha, SC for Telangana, Ms. Rachna Kumari, SC for IA&AD

The existing 15-year period for pension commutation restoration is upheld as lawful, with no justifications for its reduction.

Headnote:The Tribunal addresses the legality of Regulation 4(A) of the All India Services (Commutation of Pensions) Regulations, 1959, contending its arbitrary nature and violation of Articles 14, 16, and 21 of the Constitution. The court affirms prior judicial findings and the established 15-year rule without modification, emphasizing applicants' knowledge of the pension system at the time of commutation. The court ultimately dismisses the appeal due to a lack of jurisdiction.

Table of Content
1. overview of applicants' argument against pension commutation regulation. (Para 1 , 2 , 3)
2. judicial precursors supporting the 15-year commutation rule. (Para 9 , 10 , 11)

ORAL ORDER

(As per Hon’ble Dr. Lata Baswaraj Patne, Judicial Member)

The O.A. is taken up for consideration at the admission stage. The relief prayed therein is as follows:

“ This Hon'ble Tribunal may be pleased to declare the Regulation 4(A) of All India Services (Commutation of Pensions) Regulations, 1959 prescribing period of commutation of pension which states that "the members of All India Services who have commuted a portion of their pension and on 1st April,1985 or thereafter, have completed or will complete 15 years from their respective dates of retirement will have their commuted portion of pension restored" which is arbitrary, unjust and violative of Article 14, 16 & 21 of Constitution of India and consequently direct the respondents first and second to amend Rule 4(A) of All India Services (Commutation of Pensions) Regulations, 1959 and restrict recovery of commuted pension to number of years of purchase as per observations by the Hon'ble Supreme Court in the case of "Common Cause" a registered society and others vs. Union of India dated 09.12.1986 and restrict recovery to 10, 20 years in respect of all applicants or alternatively charge simple interest of 8% on commuted value of pension and restrict recovery to 11 years in case of all applicants and consequently set aside Rule 4(A) by holding it as arbitrary and violative of Article 14, 16 & 21 of Constitution of India as well as on the ground that the same is causing undue enrichment of the State at the cost of pensioner and it also does not have any rational objective and intelligible differentia to be achieved and pass such other order or orders as this Hon'ble Tribunal may deem fit and proper in the circumstances of the case.”

The interim relief prayed by the applicants in the O.A. is as follows:

“This Hon’ble Tribunal may be pleased to direct the respondents not to further recover Commuted Portion of Pension in view of the applicants’ repayment of entire principal amount with 8% interest and also in view of further suffering recurring financial loss every month in pension, pending disposal of the O.A. and pass such other order or orders as this Hon’ble Tribunal deem fit and proper in the circumstances of the case.”

2. The main thrust of the argument of the learned counsel for the applicants is that the applicants who are the Officers of All India Services joined Indian Forest Services (IFS) and retired on superannuation on their respective dates of retirement. Upon retirement from the year 2011-13, they had opted for commutation of 40% in their pension at the time of retirement.

3. Now, the applicants have challenged the Regulation 4(A) of All India Services (Commutation of Pensions) Regulations, 1959 prescribing the period of commutation of pension of the members by stating that the members of All India Services who have commuted a portion of their pension as on 1st April, 1985 or thereafter, have completed or will complete 15 years from their respective dates of retirement will have their commuted portion of pension restored" which is irregular, arbitrary, unjust and violative of Article 14, 16 & 21 of Constitution of India and also in view of guiding principle laid by the Hon'ble Supreme Court of India in order dated 09.12.1986 in the case of "Common Cause" a registered society and others vs. Union of India in W.P. No. 3958-61 of 1983. Even after complete recovery of commuted value of pension along with interest in 11 years, recovery for the period of further 4 years is not justified.

4. The learned counsel for the applicants, referring to the Schedule-B under Regulation 7(2) for Commutation Table made as per the 6th CPC’s recommendations, submits that, after recovering the Commuted pension amount along with interest within 11 years, further recovery thereafter is not justified

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