Chandigarh: In a ruling that will impact tens of thousands of former Armed Forces personnel, Supreme Court (SC) has held that eligible ex-Servicemen (ESM) are entitled to full arrears of disability pension from the applicable cut-off dates, either Jan 1, 1996, or Jan 1, 2006, without restriction to a three-year limitation period.SC also made it clear that disability pension is “not a matter of largesse, but a recognition of sacrifice made in service of the nation”.“Right to receive disability pension is a valuable right and once found due, the benefit has to be given from the date it became due. The same cannot be curtailed by restricting the benefit to a period of three years preceding the filing of the original application,” a Supreme Court bench comprising Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe said while dismissing appeals by central govt and allowing those filed by ex-Servicemen seeking complete arrears.The main issue of consideration before the apex court was if arrears of disability pension should be restricted to three years prior to filing the claim before Armed Forces Tribunal (AFT).The dispute traces back to SC’s landmark 2014 judgment in Union of India versus Ram Avtar, where a three-judge bench ruled that Armed Forces personnel who retire with disabilities attributable to or aggravated by military service were entitled to “broad banding” of disability pension, even if they were not invalidated out of service.Following that ruling, many ex-Servicemen approached AFT, seeking re-computation of their disability pension and payment of arrears. While some tribunal benches granted arrears from the date of retirement or applicable pay commission cut-off, others restricted arrears to three years, citing limitation principles.In its appeal, the Centre, represented by the Attorney General, submitted that govt’s grievance is confined to the direction to pay arrears of disability pension beyond a period of three years. It was contended that claims for arrears of disability pension are governed by Limitation Act, 1963, as well as Section 22 of the Act, and that even in cases of continuing wrong, arrears cannot extend beyond the prescribed period of limitation.However, rejecting the Centre’s plea, SC observed that pension is not a matter of charity or executive discretion. It is a “deferred portion of compensation” and constitutes a vested property right protected under Article 300A of the Constitution. “The contention advanced on behalf of the Union of India that the claim for arrears of disability pension is barred by Limitation Act, cannot be accepted,” SC held in its 17-page detailed order.RAMIFICATIONSThe SC verdict is expected to have wide financial and administrative implications for Ministry of Defence (MoD) and potentially benefit a large number of retired Armed Forces personnel whose disability pension claims were previously curtailed.OBSERVATIONSPension not Bounty“Pension is neither a bounty nor an ex gratia payment dependent upon the grace of the state. It is a deferred portion of compensation for past service and, upon fulfilment of the governing conditions, matures into a vested and enforceable right. Pensionary entitlements, therefore, partake the character of property, and cannot be withheld, reduced, or extinguished except by authority of law,” SC said.Centre expected to act as model employer“The Union of India, as a model employer, is expected to act with fairness, consistency and even-handedness in the administration of benefits conferred upon those who have served the nation. When a benefit is recognised by a policy and affirmed by judicial pronouncement, its application cannot be selective or uneven,” SC said.
