The Supreme Court has ruled that arrears arising from broad-banding of disability pension in the Armed Forces cannot be restricted to three years prior to filing claims before the Armed Forces Tribunal (AFT). The Court clarified that eligible personnel are entitled to arrears from January 1, 1996, or from the date of retirement or grant of disability pension, whichever is later.
A Bench comprising Justice P.S. Narasimha and Justice Alok Aradhe dismissed the appeals filed by the Union of India against the decision of the Larger Bench of the AFT.
The Court also allowed civil appeals filed by certain ex-servicemen. It set aside AFT orders that had limited arrears to three years before filing the original applications. The Court held that the appellants are entitled to disability pension with the benefit of broad-banding from January 1, 1996 or January 1, 2006, as applicable, along with interest.
Background Before the Armed Forces Tribunal
The dispute arose from claims filed by former Armed Forces personnel who had already received disability pension. The key issue concerned the starting point for payment of arrears arising from broad-banding of the disability element.
The question before the Tribunal was whether arrears should be limited to three years before filing proceedings or paid from January 1, 1996, or from the date of retirement or grant of disability pension, whichever occurred later.
Although the Tribunal granted the benefit of broad-banding, its Members differed on the issue of arrears. One Member held that arrears must run from January 1, 1996. The other restricted arrears to three years preceding the filing of the application. Due to this disagreement, the matter went before a Larger Bench.
Findings of the Larger Bench
The Larger Bench examined the Ministry of Defence letter dated January 31, 2001, which introduced broad-banding of disability pension. It also considered earlier litigation that had challenged the condition limiting the benefit only to personnel invalided out of service.
The Tribunal noted that the AFT, Regional Bench, Chandigarh, in Vijay Oberoi/Ram Avtar v. Union of India, had struck down paragraph 8.2 of the January 31, 2001 letter. The Supreme Court dismissed the Union’s appeal against that decision on December 10, 2014.
The Larger Bench relied on the Supreme Court’s judgments in K.J.S. Buttar v. Union of India and Davinder Singh v. Union of India. In Davinder Singh, the Supreme Court modified a Tribunal order that had limited arrears to three years. It directed payment of arrears on account of rounding off from January 1, 1996, along with interest.
Relying on these precedents, the Larger Bench held that no surviving dispute remained regarding the commencement date of arrears.
Recurring Cause of Action and Limitation
On limitation, the Larger Bench held that pension gives rise to a recurring cause of action. It also recognised pension as property under Article 300A of the Constitution of India.
The Bench observed that once the Supreme Court settles a legal issue, similarly placed pensioners must receive the same benefit. Authorities cannot deny arrears merely because a pensioner approached the Tribunal later.
The Tribunal further stated that affected pensioners should not have to initiate repeated litigation to secure benefits already settled by higher courts.
Supreme Court’s Final Determination
The Supreme Court agreed with the Larger Bench. It dismissed the Union of India’s appeals and quashed the AFT orders that had restricted arrears to three years.
The Court declared that the concerned ex-servicemen are entitled to disability pension with the benefit of broad-banding from January 1, 1996 or January 1, 2006, as applicable, along with interest.
The case is titled Union of India v. Sgt Girish Kumar and Ors.
