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Saturday, September 8, 2012

Brief received from NHQ on Recent Supreme Court Judgement on Rank Pay Case first Filed by Major AK Dhanapalan - Small correction


Concept of Rank Pay

1. The concept of Rank Pay for the Armed Forces was first introduced in 1987 based on the recommendations of the IVth CPC. While recommending the introduction of the Rank Pay, the IVth CPC stated that the revised pay of officers up to the rank of Cmde as on 01 Jan 86 was to be arrived at by adding Basic Pay, DA, Interim Relief on DA, 20% of the Basic Pay and the Rank Pay. However, during implementation, the subsequent Govt instructions (NI 1/S/87) stipulated that the Rank Pay be offset against the revised emoluments and the Basic Pay be fixed thereafter at the next higher stage in the revised pay scale. Similar method of pay fixation was also laid down in the corresponding AI and AFI.

Filing of Petition by Maj (Retd) AK Dhanapalan and the Judgment

2. Aggrieved by the Govt interpretation, Maj (Retd) AK Dhanapalan filed a petition in 1996 in the Hon’ble Kerala High Court, contending that the ‘Rank Pay’ was granted by the IV CPC in addition to the Basic Pay; therefore deduction of ‘Rank Pay’ from total emoluments while doing ‘Pay Fixation’ post IV CPC, and the fixing the Pay in the Integrated Pay Scale of Rs. 2300-5100 was incorrect.

3. Kerala High Court Judgment. The Hon’ble High Court of Kerala upheld the petition filed by Maj (Retd) AK Dhanapalan and directed the Govt to refix the pay retrospectively from 01.01.86 without deducting the Rank Pay.

Filing of Appeal in the High Court Followed by SLP in the Supreme Court

4. Filing of Appeal in the High Court. An appeal against the said judgement was filed before the division bench of Kerala High Court in 1999 by the MoD, explaining the background of the introduction of integrated pay scale and the Rank Pay. This appeal was dismissed by upholding the single Bench Judgement by the High Court in its judgement dated 04 Jul 03.

5. SLP in the Supreme Court. Thereafter, the MoD filed an SLP under article 136(1) of the constitution in the said case in the Supreme Court. The SLP was dismissed by the Hon’ble Supreme Court in the hearing held on 12 Jul 05 on account of the inordinate delay in filing of the SLP. Consequently Major (Retd) Dhanapalan was paid Rs 28031/- towards relief as arrears of pay.

Filing of Writ Petiton by Similarly Placed Officers and Supreme Court Judgment

6. Filing of Writ Petiton. As a fallout of this case, Writ Petitions were filed by a number of retired officers in different High Courts. A Transfer Petition (Civil) No. 56/2007 was filed by the Govt in Hon’ble Supreme Court on behalf of the Union of India & Others praying for transfer of all such Writ Petitions to Supreme Court, pending before the various High Courts. The Supreme Court issued notices in the aforesaid transfer petition on 05 Feb 07 and passed orders for interim stay of further proceedings in all the High Courts. The Supreme court directed that all the matters be taken up in Supreme Court for final disposal.

7. Supreme Court Judgment. The matter was heard and finally disposed off by the Hon’ble Supreme Court by the Bench of Hon’ble Mr. Justice Markendey Katju & Hon’ble Mr. Justice R.M. Lodha on 08 Mar 10. The Apex Court carefully perused the judgement dated 05 Oct 98 of the Hon’ble Single Judge Bench of Kerala High Court and held that they respectfully agree with the reasoning given therein for grant of rank pay retrospectively from 01 Jan 86. The Hon’ble Apex Court awarded 6% interest on the amount due to the officers. The Hon’ble Supreme Court disposed of the transfer petition and allowed the writ petitions of the petitioners.

Filing of Interlocutory Application by the Govt and Supreme Court Judgment

8. Filing of Interlocutory Application. The Government of India filed an Interlocutory Application in the Hon’ble Supreme Court for recall of the order dated March 8, 2010 on the grounds that the monetary outgo will be a big burden on the exchequer and also stating that many more issues on the subject were not taken into consideration by the Court. The aforesaid matter along with connected matters, was heard on 04 Sep 12 before a bench of Hon’ble Mr. Justice R.M. Lodha, Mr. Justice T.S. Thakur and Mr. Justice Anil R. Dave.

9. The Judgment. The Hon’ble Supreme Court dismissed the application of Union of India finding no merits or grounds. While doing so, the Hon’ble Supreme Court has also directed the UOI to re-fix the pay of affected officers from 01.01.1986, without deducting the rank pay. The Hon’ble Supreme Court has also directed the UOI to pay interest @ 6% p.a. from 01.01.2006 to all the officers, whether or not they have filed any petition before any of the High Courts or Benches of Armed Forces Tribunal, within 12 weeks from today. The Hon’ble Court has also directed that all pending petitions before any of the High Courts or Benches of Armed Forces Tribunal, by similarly placed officers will be governed by this order. (The formal orders are awaited from the Hon’ble Supreme Court).

Personnel Who Benefit from the Judgment

10. As a fallout, a total of 4099 officers (serving and retired) are likely to benefit from the above judgement, which extends to officers drawing Rank Pay in the currency of IV CPC. The rank wise breakup of the beneficieries is as follows.

(a) Commodores – 81
(b) Captains – 83
(c) Commanders – 652
(d) Commanders (TS) -18
(e) Lieutenant Commanders – 1373
(f) Lieutenants – 1892

Financial Implications

11. An exercise has been undertaken to arrive at the financial implications, in consultation with Naval Pay Office. The financial implications involved revision of pay including arrears thereon in respect of serving and retired officers, w.e.f 01 Jan 86, which works out to approximately Rs 60,00,00,000 (Rupees Sixty Crores).

12. Prima facie, the benefit would be the difference of lower basic pay fixed and this newly approved basic pay, consequent to adjustment of rank pay. During the currency of IV CPC, this benefit would be in the range of Rs 150/- to Rs 300/- p.m. per officer. Majority of officers would get additional pay leading to arrears with 6% interest in between Rs. 1 Lakh to Rs. 1.8 lakhs. Some of the examples are placed at Appendix to the brief.

Implication On Status and Subsequent Pay Commissions

13. While the Hon’ble Supreme Court Judgment primarily pertains to officers of the rank of Lt to Cmde, as on 01.01.1986, it however provides a fresh impetus and adds strength to the stand taken by the Armed Forces in the ongoing deliberations on incorrect Pay and Grade Pay fixation. With the Supreme Court Judgment implying that Rank Pay is over and above the basic pay and should never have been deducted from the basic pay in the first place, one of the major implications would be the revision of pay scales in the Vth and VIth CPC. The element of Rank Pay that was earlier deducted after fixation of pay would now have to be added.

14. This would, in-effect, entail that the component of Rank Pay is to be added in the pay scales, resulting in increase in the minima and maxima of the pay scales. As a result of these new superior pay scales, the Armed Forces officers would regain their status, which otherwise was not being accorded by the government in the garb of rank pay not being a component of the basic pay. This would re-establish the parity, both in the currency of IVth, Vth and VIth CPC. Therefore, this judgement may have an impact on status of all officers of the Armed Forces from the rank of Lieutenant to Commodore from 01 Jan 1986 until todate.

Constraints Likely in Implementation

15. The following are the constraints and requirements in order to work out the details.

(a) Refixation is required to be carried out for about 4100 officers (Lts to Cmde as on 01.01.1986), out of which about 3000 have already retired.

(b) Electronic data required for re-fixation w.e.f 01 Jan 86 is available in a limited manner till 1993. Critical work would include Data Building software development, audit verification and amendment to PPO’s of retired officers.

(c) A lot of related data vis-a-vis dates of promotion, Annual Increment, Stagnation Increment, details of Forfeiture of Rank/Seniority or time etc would have to be factored in for calculation

(d) In case of retired officers, Last Pay Certificates (LPC) are required to be made afresh for arriving at arrears of leave accumulation, pension, commutation and service gratuity all of which have to be reworked consequent to the issue of corrigendum PPOs.

(e) Minimum of 6-8 months time frame is anticipated for complete implementation of the judgement.

16. The details/pre-requisites are being examined in consultation with LOIC, NPO and would be dealt with expeditiously.

Conclusion

17. This is seen as a landmark judgement and affects both pay and pension of officers from Lieutenant to Commodore as on 01.01.1986. Should the logic be accepted by the Govt and extended further into Vth and VIth CPC, then the Grade Pay/ Pay Scales would also undergo an upward revision for all Officers, thus having a substantial impact on status/parity with the civilian government officers.

Appendix

(Refers to Para 11)

EXAMPLES OF FIXATION IN VARIOUS RANKS CONSEQUENT TO JUDGEMENT IN THE CASE FILED BY MAJ AK DHANAPALAN (RETD)

Example No. 1

1. Rank as on 01.01.86 - Lieutenant
2. Existing basic pay - Rs.1300.00
3. DP/ADA on basic pay at index 
average 608 and interim relief - Rs.1650.00
4. Existing emoluments (2+3) - Rs.2950.00
5. Add.20% of basic pay - Rs. 260.00
_____________
Total Rs. 3210.00
_____________
6. Pay fixed by Government : Rs.3010/- + Rank Pay 200/ = Rs.3210/-
(Minimum Pay for rank of Lt being Rs.2500/- in integrated scale) 
(Round Off (R/O) to next stage) = Rs.3300/-
7. Pay after Court Order :Rs.3210/- + Rank Pay Rs.200/- = Rs. 3410/- 
Pay should have been fixed (R/O to next stage) = Rs. 3500/-
8. Difference : Rs 3500-Rs 3300 = Rs 200/- p.m. 

Example No. 2

1. Rank as on 01.01.86 - Lt Cdr (11 Yrs service)*
2. Existing basic pay - Rs. 1600.00
3. DP/ADA on basic pay at index 
average 608 and interim relief - Rs.1740.00
4. Existing emoluments (2+3) - Rs.3340.00
5. Add.20% of basic pay - Rs. 320.00
_____________
Total Rs. 3660.00
_____________

6. Pay fixed by Government : Rs.3400/- + Rank Pay 600/ = Rs.4000/-
(Minimum Pay for rank of Lt Cdr being Rs.3400/- in integrated scale) 
7. Pay after Court Order : Rs.3660/- + Rank Pay Rs.600/- = Rs. 4260/-
Pay should have been fixed (R/O to next stage) = Rs 4300/-
8. Difference : Rs 4300-Rs 4000 = Rs 300/- p.m. 

Example No. 3

1. Rank as on 01.01.86 - Cdr (Sel) (16 Yrs service)*
2. Existing basic pay - Rs.1750.00
3. DP/ADA on basic pay at index 
average 608 and interim relief - Rs.1881.00
4. Existing emoluments (2+3) - Rs.3631.00
5. Add.20% of basic pay - Rs. 350.00
_____________
Total (4+5) Rs. 4540.00
_____________

6. Pay fixed by Government : Rs.3900/- + Rank Pay 800/ = Rs.4700/- (Minimum Pay for rank of Cdr (Select) being Rs.3900/- in integrated scale)
7. Pay after Court Order : Rs.3981/- + Rank Pay Rs.800/- = Rs. 4781/-
Pay should have been fixed (R/O to next stage) = Rs 4850/-
8. Difference : Rs 4850-Rs 4700 = Rs 150/- p.m. 

Example No. 4

1. Rank as on 01.01.86 - Cdr (TS) (21 yrs service)
2. Existing basic pay - Rs.1900.00
3. DP/ADA on basic pay at index 
average 608 and interim relief - Rs.2037.00
4. Existing emoluments (2+3) - Rs.3937.00
5. Add.20% of basic pay - Rs. 380.00
_____________
Total Rs. 4317.00
_____________
6. Pay fixed by Government : Rs.4050/- + Rank Pay of Lt Cdr – Rs 600/- 
= Rs.4650/- 
7. Pay after Court Order : Rs.4317/- + Rank Pay Rs.600/- = Rs. 4917/-
Pay should have been fixed (R/O to next stage) = Rs 4950/-
8. Difference : Rs 4950-Rs 4650 = Rs 300/- p.m. 

Example No. 5

1. Rank as on 01.01.86 - Captain (20 yrs service)*
2. Existing basic pay - Rs.2100.00
3. DP/ADA on basic pay at index 
average 608 and interim relief - Rs.2243.00
4. Existing emoluments (2+3) - Rs.4343.00
5. Add.20% of basic pay - Rs. 420.00
_____________
Total Rs. 4763.00
_____________
6. Pay fixed by Government : Rs.4500/- + Rank Pay 1000/ = Rs.5500/- (Minimum Pay for rank of Capt being Rs.4500/- in integrated scale)
7. Pay after Court Order : Rs.4763/- + Rank Pay Rs.1000/- = Rs. 5763/-
Pay should have been fixed (R/O to next stage) = Rs 5800/-
8. Difference : Rs 5800-Rs 5500 = Rs 300/- p.m. 

Example No. 6

1. Rank as on 01.01.86 - Cmde (23 years service)*
2. Existing basic pay - Rs.2200.00
3. DP/ADA on basic pay at index 
average 608 and interim relief - Rs.2346.00
4. Existing emoluments (2+3) - Rs.4546.00
5. Add.20% of basic pay - Rs. 440.00
_____________
Total Rs. 4986.00
_____________
6. Pay fixed by Government : Rs.4950/- + Rank Pay 1200/ = Rs.6150/- (Minimum Pay for rank of Cmde being Rs.4950/- in integrated scale)
7. Pay after Court Order : Rs.4986/- + Rank Pay Rs.1200/- = Rs. 6186/-
Pay should have been fixed (R/O to next stage) = Rs 6300/-
8. Difference : Rs 6300-Rs 6150 = Rs 150/- p.m. 

* Note : The pay of officers holding the rank of Lt Cdr / Cdr / Capt as on 01 Jan 1986 who have not completed corresponding service as per their rank [Lt Cdr – 11 Yrs, Cdr – 16 Yrs, Capt (<3yrs 20="20" capt="capt">3yrs) – 23 yrs] will be fixed as per pay admissible to an officer holding the rank corresponding to their length of service. Rank Pay appropriate to the rank actually held will be admissible in additionto the rank actually held will be admissible in addition.

Some observations by Col LK Anand Retd

This case pertains only to the Naval officers as worked out by Naval HQ. However, identical analogy can be applied to the officers of the other two services. Of course the final pay fixation would actually be done by the Controller of Defence Accounts (Officers), Pune. It is to be seen what mechanism they apply for working out the arrears. 

However, there seem to be some inaccuracies in some examples listed in the BRIEF, which need to be corrected. If the examples are taken as principally correct, the gains for the affected officers appear to be only nominal. The examples go to show that the full amount of rank pay has not been deducted, as has been averred in the information having been circulated all this while. If these examples and calculations are authentic and correct then the happiness levels of the aspirants of Rank Pay are likely to take a certain nosedive. Some of the major speculators who have been circulating happy figures in their spreadsheets are also in for major disappointments and surprises.   

Let us all wait till the actual Government Orders are issued on the Supreme Court Judgement and the arrears actually come into our bank accounts. We can hope for the very best anyway.

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38 comments:

  1. COL LAMBA11 September, 2012 10:03

    THE NAVAL HQ WORKING IS NOT CORRECT
    1 FIRSTLY: THE AMOUNT IS 16OO CRORE FOR 20000 OFFICERS AND NOT 60 CRORE .SO FOR 4099 officers 2(serving and retire.THE AMOUNT SHOULD BE ABOUT 320 CRORES ,HENCE BASIS IS IN CORRECT
    2.SECONDLY THE UNIFORM RANK PAY FOR IV TH & VTH SCALE IS TAKEN WHICH IS WRONG. RANK PAY IS ALMOST DOUBLE WEF I/1/96
    3.THIRDLY DA CHANGES HALF YEARLY ,SO DA CUMULATIVE EFFECT IS TO BE TAKEN INCLUDING RELIEF.
    UNIFORM DA IS WRONG
    4.FOURTH REVISION OF VTH PAY SCALE NOT TAKEN INTO ACCOUNT
    5. THERE ARE MORE ANOMALIES IN IT. NAVAL HQ CAN CONTACT ME

    ReplyDelete
    Replies
    1. Anonymous15 September, 2012 11:38

      Dear All,

      Please let us not float rumors or working of arrears of rank pay illogically. Let us not get involved in this line of action. CDA (O) is part of MOD and it was MOD who cheated us in IVth and Vth CPCs. It is not that they cheated us but we got cheated because of our ignorance in our pay matters. We take pride in our operational commitments but we never take interest in our administrative commitments. If we take little interest in our administrative commitments towards our men and our selves how can we get cheated by any other people or organisation.

      The gist of the whole case of the rank pay for Capt to Brig and their equivalents in other two services on which The Honourable Supreme Court of India gave judgment on 04 Sep 2012 was that the Bureaucrats in IVth and Vth CPC very cleverly and smartly fixed the rank pay and after adding the rank pay so fixed made us at par with our civilian counterparts. In other words out of our total monthly emoluments which were at par with our civilian counter parts the rank pay was first debited and shown it as a new element of pay in IVth CPC. The rank pay forms part of basic pay and after adding the rank pay to the basic pay then only our total emoluments came to nearer to our civilian counter parts thereby allowing our civilian counter parts to draw the rank pay merged in their basic pay. But how come the army pay commission cell has accepted this at that time. It was because of ignorance as we never give thought and priority to our own administration. Now the judgment of The Honourable Supreme Court very clearly says that the Govt to fix the rank pay with effect from 01 Jan 1986 which mutadis mutandis apply to the successive pay commission (Vth CPC where the rank pay stayed as fixed in IVth CPC). When this judgment is very clear about fixing of rank pay then why were are working out our total emoluments drawn since 1986, what will be new emoluments after fixing the rank pay and what amount of arrears we do get. Let us not get involved in volumetric exercise. Let us wait and see as to what amount of rank pay for each rank the Govt fixes now with effect from 01 Jan 1986 to 31 Dec 2005 (in two successive pay commissions of IVth and Vth) and then work out you own arrears from date of your promotion to the ranks of Capt to Brig and equivalents, then add the half yearly DA percentage to the re-fixed rank pay as the rank pay forms part of Basic Pay.

      Many or raising doubts whether the judgment applies to only those who were in service & in the ranks of Capt to Brig as on 31 Jan 1986. Absolutely No. This judgment applies to every one who was in service or retired in the ranks of Capt to Brig between the periods of 20 years right from 01 Jan 1986 to 31 Dec 2005. Officers who were in service during this period and in the ranks of Capt to Brig will get 100% rank pay of the ranks held by them with DA announced six monthly and those retired pre 31 Dec 2005 will get half the rank pay with DA at the DA percentage at par with serving officers. Hope this is clearly understood.

      Col Raju

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    2. Anonymous15 September, 2012 11:42

      In continuation of previous reply,

      Now for those who wants a ready reckoner as to what was the DA percentage in IVth and Vth CPC, a ready reckoner is given below which is authenticated from my pay slips right from Jan 2006 to Dec 2005: -

      Jan to Jun 1986 - Nil (We were getting 150% DA on the pay of IIrd CPC)
      Jul to Dec 1986 - 4%
      Jan to Jun 1987 - 8%
      Jul to Dec 1987 - 13%
      Jan to Jun 1988 - 18%
      Jul to Dec 1988 - 23%
      Jan to Jun 1989 - 29%
      Jul to Dec 1989 - 34%
      Jan to Jun 1990 - 38%
      Jul to Dec 1990 - 43%
      Jan to Jun 1991 - 51%
      Jul to Dec 1991 - 60%
      Jan to Jun 1992 - 71%
      Jul to Dec 1992 - 83%
      Jan to Jun 1993 - 92%
      Jul to Dec 1993 - 97%
      Jan to Jun 1994 - 104%
      Jul to Dec 1994 - 114%
      Jan to Jun 1995 - 125%
      Jul to Dec 1995 - 136%

      (Vth CPC arrears were paid in Jan 1998, Till Dec 1997 the DA % given above continued with increases six monthly and paid on ivth CPC rank pay)

      Jan to Jun 1996 - 148%
      Jul to Dec 1996 - 159% (4% in Vth CPC)
      Jan to Jun 1997 - 170% (8% in Vth CPC)
      Jul to Dec 1997 - 170% (13% in Vth CPC)
      Jan to Jun 1998 - 16%
      Jul to Dec 1998 - 22%
      Jan to Jun 1999 - 32%
      Jun to Dec 1999 - 37%
      Jan to Jun 2000 - 38%
      Jul to Dec 2000 - 41%
      Jan to Jun 2001 - 43%
      Jul to Dec 2001 - 45%
      Jan to Jun 2002 - 49%
      Jul to Dec 2002 - 52%
      Jan to Jun 2003 - 55%
      Jul to Dec 2003 - 59%
      Jan to Mar 2004 - 61% (50% DA added to basic rank pay wef 01 Apr 04)
      (Rank pay from 01 Apr 2004 will be Rank Pay till 31 Mar 2004 x 1.5)
      Apr to Jun 2004 - 11%
      Jul to Dec 2004 - 14%
      Jan to Jun 2005 - 17%
      Jul to Dec 2005 - 21%

      The rank pay with effect from 01 Jan 1996 (Vth CPC) should be more than the rank pay in IVth CPC plus DA @ 170% thereto (ie it should be more than the rank pay of IV th CPC x 2.7). Let us see how the rank pay in IV and Vth CPCs is fixed by the Govt. Once the rank pay is fixed, work out yourself your monthly arrears as per your rank held along with the DA at the above given percentages then sum of the total rank pay along with DA of every month till 31 Dec 2005. Then add 42% interest (for 7 years @ 6% p.a from Jan 2006 to Dec 2012). Then the grand total will be your arrears. Those who retired prior to 31 Dec 2005 make the rank pay half of the serving officer and add DA at par with the serving officer.

      Let us not ask MOD or CDA as to “how much do I get”, let us claim on CDA after the announcement made by the MOD.

      (The author is Accounting Professional and written books on accounts, auditing and management audit for the Defence).

      Col Raju

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  2. Anonymous14 September, 2012 18:35

    Yes, Col Lamba is correct.
    It is not only for the officers who were either Capt, May. Lt col, Col or Brig as on 01 Jan 1986 but for those also who picked up these ranks after 01 Jan 1986 and till 31 Dec 2005.
    With last installment of DA raise in IV CPC was 170% and in Vth CPC 21% after merging 50% into basic. All these have to be calculated.

    There was some logic as to why Govt had committed in their application to Court that the amount involved is Rs 1600 crores and on 20000 officers.

    The entire case was not of calculating whole basic pay, the case is wrong fixation of rank pay, first deducting and then adding. It therefore says that the actual rank pay was not paid by the govt between 01 Jan 86 to 31 Dec 2005.

    Raju

    ReplyDelete
    Replies
    1. Lt Col (Retd) MS Raju18 September, 2012 12:45

      Dear All,

      Though the Vth CPC was implemented wef 01 Jan 96, the arrears were paid in Jan 1998. Till Dec 1997 the pay as per IVth CPC was paid. The DA paid in Dec 1997 was @ 170% up to the Basic pay of Rs 3500/- pm and beyond basic pay of 3500/- pm the DA was paid @ 135.23%. This can be clearly seen from the working out sheet attached to pay slip for the month of Jan 1998 by CDA (O) Pune. Accordingly, a Captain whose basic pay was less than or up to Rs 3500/- was entitled for rank pay of Rs 200/- plus DA Rs 340/- (@ 170%). Thus the total rank pay including DA entitled for a Captain in Dec 1997 was Rs 540/- pm but surprisingly wef Jan 1996 the rank pay fixed for a Captain was just Rs 400/- (Please refer your pay slip for the month of Jan 1998 and the arrears sheet attached thereto). The rank pay wef 01 Jan 1996 in Vth CPC was not a new element but was an element continued from previous CPC (IVth CPC). The aim and purpose of successive pay commissions was to step up the pay drawn. Thus the rank pay of Rs 200/- pm for Captain which was introduced on 01 Jan 1986 works out to Rs 540/- pm with DA @ 170@ immediately prior to payment of arrears of Vth CPC. In the next successive pay commission (Vth CPC) the rank pay for Captain Steps up to Rs 600/- per month and not Rs 400/- per month. Logically when the Captain’s rank pay of 200/- pm steps up to Rs 600/- pm in Vth CPC, the rank pay for other ranks also steps up in Vth CPC wef 01 Jan 1996 to Rs 1800/- pm for Majors, Rs 2400/- for Lt Cols, Rs 3000/- for Cols and Rs 3600/- for Brig. The logic is when a Captains rank pay of IV th CPC becomes triple with DA immediately before payment of Vth CPC arrears the rank pay of Majs to Brig should also step up to three-times. This is only food for thought and not for pointing out any one before the fresh calculations are worked out and the arrears are paid to the concerned officers.

      As per the Honourable Supreme Court judgment the UOI (MOD) is to fix the rank pay from 01 Jan 1986 and pay the arrears to all the effected officers. The latest news says “Meanwhile, a fresh calculation has been ordered following a Supreme Court judgment”.

      Let us wait and see as to what rank pay for each rank the Govt is going to fix wef 01 Jan 1986 (IVth CPC), wef 01 Jan 1996 (Vth CPC) and as to how the further calculations are worked out.

      If the rank pay is fixed as per the logic brought out above, for certain ranks it makes the MSP much below of rank pay plus DA drawn till 01 Jan 2006.

      Dear Veterans please take this just as food for thought only. Please do not react to this based on your pay slips immediately.


      Col Raju (Retd)

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  3. digvijay15 September, 2012 16:52

    Naval HQ's as normal , has again done something that it should not have done .The Only service that has the accountant service is the Indian Air Force .It would have better for them to have done this task .I do agree with Col Raju on this issue . DVK singh( Wg Cdr Retd )







    ReplyDelete
    Replies
    1. Anonymous16 September, 2012 12:25

      Thanks Wg Cdr Digvijay,

      I know IAF has got its own accounting professionals in their organisation unlike in other two services. I served twice in inter services organisation and in fact had close interactions with them in the subject of Accounts, audit and management audit being an author in the books for defence on these subjects. My request to every one is don't depend on others to work out what you get but just work our as to what is your entitlement. With the information which I posted above in three posts any one can work out his/her entitlements. Again I reiterate that unless we as officers know our own entitlement how are we going to look after our jawans entitlements.

      Col Raju

      Delete
  4. chowpc19 September, 2012 07:12

    The SC's latest verdict is entirely based on the case of Maj Dhanapalan. After the payment of Rs. 28031/- what happened to his pension and other terminal benifits. Whether that also were accordingly revised ? Maj Dhanapalan may please inform post-verdict his revised pension, gratuity, leave encashment etc for our calculations.

    ReplyDelete
  5. chowpc19 September, 2012 07:17

    Col Raju may also add his info on Maj Dhanapalan's pension etc after the one time lump sum payment of Rs.28031/-. Then only we can proceed further on the calculations.

    ReplyDelete
    Replies
    1. Anonymous20 September, 2012 11:53

      Dear Chow,

      Let Maj Dhanapalan say about what all he has got.

      The case is of non-payment of rank pay and DA there on and nothing to do with working out of complete pay wef 01 Jan 1986. It is a clear cut case that the officers holding the ranks of Capt to Brig between 01 Jan 1986 and 31 Dec 1995 (both days inclusive) will have to be paid the corresponding rank pay with DA prevalent during that time. If officers retired during this 20 years span of IVth & Vth CPCs the rank pay of last rank held at the time of retirement and the applicable DA will get added to his 10 months average emoluments for working out of gratuity and then the monthly pension which will be half of the 10 months average emoluments. The method of working out of arrears is not universal in every body's case; it depends on date of acting rank, applicable DA percentage (the slab in IVth CPC), the date of retirement, rank on retirement and age on retirement. If these things are known the service arrears and post retirement arrears (if he retired before 31 Dec 2005) can be worked out. Since the case is of non-payment of rank pay and DA thereon working out of the total monthly pay is not required. I have already given in my posts the DA rates for these twenty years time. Working out is not a problem. If you still need any assistance, please contact consultants6425@yahoo.com, they are professionals in working out entitlements. Give your details including dates of commissioning, initial rank on commissioning, date of promotion to Capt and above, date of retirement, rank on retirement and age on retirement. If these are known the arrears can be worked out very easily. They can do it for you.

      But my suggestion is as I already brought out above let us wait and see as to how the Govt fixes our rank pay for each rank in Vth CPC. The rank pay of IVth CPC was simply doubled in Vth CPC which was grossly wrong. A captain whose rank pay was 200 was entitled DA at 170% which made total rank pay Rs 540/- pm prior to payment of Vth CPC arrears. Captain's rank pay can not come down to less than 540/- pm. It should be Rs 600/- pm in Vth CPC. It follows that the rank pay of IVth CPC gets three-folds in Vth CPC. But Captain’s rank pay fixed in Vth CPC was Rs 400/- which was wrong. Let us wait and see, let us not work out arrears based on the rank pays wrongly fixed by the Govt in IVth and Vth CPC. Once every one is paid rank pay I am sure Maj Dhanapalan will also get the rest of the arrears now once again.

      Why only am talking about Captains rank pay every where. In IVth CPC the rank pay was introduced as an element which forms part of basic pay for allowances. The rank pay fixed was Capt: Maj/Lt Col (TS): Lt Col(S): Col: Brig :: 200 :600: 800: 1000: 1200. The idea and logic in fixing these rates of rank pays in IVth CPC may be in consideration of motivational factors, competitive spirit, service interest, command and control between these rank structures. If this rank pay element was continued in the next CPC the ratio as appearing in IVth CPC need to be maintained otherwise it defeats the well purpose of introducing the rank pay. If captains rank pay increases to three-folds by DA at the end of the IVth CPC, it can not be fixed less than three-folds in Vth CPC. It follows in others rank pay also. Once in 1986, again in 1988 and again in 1996 I already wrote to CDA(O) for incorrect payments made to me but they kept on making vague replies and our higher authorities were reluctant to take up the case. By the time I retired similar cases were already there in various courts. Now am waiting to see as to how MOD fixes the rank pay in Vth CPC. Let them calculate the arrears as they wish, will see how and where the case to be taken. No pay can be brought down in successive pay commissions.


      Col Raju

      Delete
    2. Anonymous20 September, 2012 11:58

      In continuation to earlier post

      I must bring out here that some of the veterans do have high hopes since the MOD said that the case involves Rs 1600 crore among 20000 officers. Yes, they may be right as they said it when they filed I.A 9 after Honourable Supreme Court gave Judgment on 08 Mar 2010 where in interest at 6% p a was granted wef Jan 1986. SG also brought out the same saying that it will be heavy burden on the exchequer. The Honourable SC then brought down the interest burden in their Judgment of 04 Sep 2012 and stayed 6% interest from 01 Jan 2006. Large amount of burden on the exchequer came down now. See the following statistics of the interest: -

      IVth CPC – 1 month rank pay x 390% interest – We don’t get it now
      IV th CPC – Yrly int from Jan 96 to Dec 2012 – 102% - we get 42% only
      Vth CPC - 1 month rank pay x 390% interest – We don’t get it now
      Vth CPC - Yrly int from Jan 2006 to Dec 2012 – 42%, we get it now.

      IVth & Vth CPC total rank pay – We now get total of 42 % int from Jan 2006 to Dec 2012.

      The consultants who worked out the arrears of some officers have stated that an officer who became Capt in Jan 1988, Maj in later part of 1996, Lt Col (S) in Apr 2001, retired in Aug 2005 gets arrears of rank pay and pension till Dec 2005 Rs 3.75 lac including interest from Jan 2006 till date. Since the officer had already got Rs max limit of gratuity on retirement in Aug 2005 this increase in pension/pay till 31 Dec 2005 does not effect on gratuity.

      Considering the above statistics the burden to exchequer or loss to us is more than 50% of the burden which the MOD has been harping on. Now the burden to exchequer may be less than 800 crore only and not 1600 crore.
      Don’t be hurry in working out, just wait and see how it happens at the MOD level and what more tricks and tactics the CDAs play.

      Col Raju

      Delete
  6. chowpc19 September, 2012 08:49

    Even the interest part was restricted by the Supreme Court citing that no interest was paid to Maj Dhanapalan. Therefore my observation ibid.

    ReplyDelete
  7. Ex MWO VS Balasubramanian19 September, 2012 21:16

    Dear Lt Col LK Anand,
    Sir,
    Observation made by you on Brief received from NHQ and posted on 8 sep is assumed to be true.
    I would like to put some calculation further to it.
    For officers in service as on 1.1.86
    As a rule the consolidated pay arrived by adding Basic pay, DA/ADA rounded off to next increment is inserted with the integrated pay scale or minimum of pay scale is considered in case the consolidated pay is lesser, to arrive Revised Basic pay w.e.f. 1.1.86. Further appropriate Rank pay is shown separately in addition to Basic pay.
    Next step, find out the difference amount of pay between eligible after the SC court verdict and received before the verdict.
    Calculate DA for the difference amount as applicable to BP exceeding Rs.3000/-pm .e.g 2% wef 1.7.86 ( Nil DR for Jan-Jun 86)and so on till Dec 1995 or up to the date of release from service.
    The same procedure is to be followed for the period from 1.1.95 to 31.12.2005.
    For officers released after 1.1.86( Pensioners)
    Basic pay (Last pay drawn) to be fixed based on the above calculation with annual increments. Calculate pension according to your qualifying service as per your PPO.
    Find the difference add DA as per the rate applicable from 1.7.1986 to 31.12.1995. Follow the same procedure for the period from 1.1.1996 to 31.12.2005.
    What about the pension benefit to those officers of Pre 1986 retiree?
    To get the benefit extended to all those in service prior to that date ( eg 1.1.86) ( Refer Mr.DS Nakra and Rear Admiral Satyendra Singh Vs UOI’s Case at, SC judgment delivered on 17.12.1982.), I fee l the minimum pay of the integrated scale is to be re-fixed by adding appropriate rank pay to it, so that they too get the benefit of the recent judgment ,w.e.f. 1.1.1986.
    There may be still some omission and I may be wrong, KINDLY wait for PCDA Circulars based on GOI Orders.
    Ex MWO VS Balasubramanian

    ReplyDelete
  8. Anonymous21 September, 2012 19:09

    UOI ACHIEVED ITS AIM THROUGH I.A. 9 FILED TO RECALL THE HONOURABLE SUPREME COURT ORDER OF 08 MARCH 2010. SEE HOW?

    Judgment of 08 Mar 2010 spells out interest to be paid from 01 Jan 1986 on rank pay arrears.

    UOI files I.A. 9 to recall the Orders of 08 Mar 2010

    Judgment of 04 Sep 2012 relaxes the burden of interest which will now be paid from 01 Jan 2006.

    What the MOD gained and what the veterans and serving officers lost?

    See the table below;

    The total interest from 1986 to Dec 2012 on the total rank pay from Jan 1986 to Dec 1995 is 144.25% (If you don’t believe ask me will send the excel sheet)

    The total interest from 01 Jan 2006 to Dec 2012 on total rank pay from Jan 1986 to Dec 1995 is 42%

    As per UOI and SG the total burden to exchequer is Rs 1600 crore calculated prior to filing I.A. 9 based on Honourable Supreme Court Order of 08 Mar 2010.

    Rs 1600 Crore calculated by MOD includes interest at 144.25%. The interest is 944.93 Crore & the total rank pay for 20000 officers is Rs 655.07 Crore

    After the Honourable Supreme Court judgment on 04 Sep 2012 the interest rate came down to 42% only. The rank pay of Rs 655.07 crore accrues interest of Rs 275.13 Crore at 42%. The total burden on the exchequer now is Rs 930.20 Crore. (ie 655.07 Crore + 275.13 Crore)

    What is achieved by UOI is that the MOD saved Rs 669.80 Crore (Rs 1600 Crore – Rs 930.20 Crore). This total saving is on interest (Rs 944.93 Crore – 275.13 Crore = Rs 669.80 Crore.)

    Good, three cheers to UOI for saving Rs 669.80 Crore. But the UOI & MOD should look back and realise as to at whose cost they made this saving, for whose benefit they made this saving, from whose services they made this saving, at whose faults the exchequer today got burdened, at whose mistakes and faults the burden came on exchequer today, why not those who caused this burden to the exchequer today contribute the burden as penalty for their mistakes and failures. Any answers?

    Finally the looser are honest armed forces officers who never take the route the way the country’s civilian crowed takes by agitations, rasta rokos, strikes, destruction and so many.

    We waited for 26 years, finally some thing came. But how can this fruit reaches those who are no more now. Will the UOI & MOD understand this loss?

    THOUGH THE HONESTY LOOSES BUT FINALLY IT WINS.

    HONESTY PAYS IN LONG RUN.

    Col Raju

    ReplyDelete
  9. chowpc21 September, 2012 22:05

    Col Raju Thank you very much for the info. Mr Balasubramanian Thank you also very much for the input. As advised we will await govt orders and PCDA Pension circulars.
    With best wishes: chowpc

    ReplyDelete
  10. Anonymous03 October, 2012 18:47

    The contention of NHQ that benefit to the offrs will be in the range of Rs 150 -300 is not correct as the statement is contradicted by their own example given for re-fixation of pay of Lt Cdr(11 yrs service).As per this example pay of Lt Cdr should have been fixed as 3700+600=4300 and not 3400+600=4000. If it is assumed that re-fixation of pay in this example is as per the spirit of Hon'blecourt order, then the re-fixation of pay in the subsequent yrs will also get effected as explained below

    Pay fixed as IV CPC Pay as per SC order Diff
    01 Jan 86 3400+600=4000 3700+600=4300 300
    01 Jan 87 3500+600=4100 3800+600=4400 300
    01 Jan 88 3600+600=4200 3900+600=4500 300
    01 Jan 89 3700+600=4300 4050+600=4650 350
    01 Jan 90 3800+600=4400 4200+600+4800 400
    01 Jan 91 3900+600=4500 4350+600=4950 450
    01 Jan 92 4050+600=4650 4500+600=5100 450
    01 Jan 93 4200+600=4800 4650+600=5250 450
    01 Jan 94 4350+600=4950 4800+600=5400 450
    01 Jan 95 4500+600=5100 4950+600=5550 450
    01 Jan 96 4650+600=5250 5100+600=5700 450

    In view of the above explanation, NHQ is requested to consider above aspect while working out the arrears of concerned offs.In above case Lt Cdr remains in the same rank till 01 Jan 96 but for offrs who got promoted between the two pay commission, the arrears will be required to be worked accordingly. There were certain allcs during that period based on range of pay. Arrears of such allc will also accrue to offrs.

    Accordingly re-fixation of pay from 01 Jan 96 is required to be done keeping in view Hon'ble court order and the re-fixed pay of the offrs as on 01 Jan 96. It is pertinent to mention here that during court hearing on 18 Jan 2012, It was admitted through an affidivit by UOI that actual implementation of Hon'ble court order will involve the following stages
    (a) Revision of pay of offrs on 1/1/1986, 1/1/1996, and 1/1/2006 with simultaneous revision of all pay linked allowances/benefits.
    (b) Calculation of DA on slab basis from 1/1/1986 to 31/12/1995 is time consuming
    (c) Revision of retirement benefits (gratuity, leave encashment)of offrs retiring after 1/1/1986
    (d) Revision of pension on 1/1/1986, 1/1/1996, 1/1/2006.
    (e) Revision of family pension based on revision of pension of offr
    (f) Payments to be made to legal heirs of deceased offrs
    (g) Interest @ 6 % per annum for upto 24 yrs in each case will have to be calculated and paid.
    In view of the above statement of UOI in Hon'ble court, we should not have any doubt about re-fixation of pay from 01 Jan 96 and also from 01 Jan 2006. Therefore we should carry out re-fixation from 01 Jan 96 onward as per our wisdom keeping NHQ examples as corrected by various commentator as base. requested

    ReplyDelete
    Replies
    1. Anonymous05 October, 2012 00:06

      Dear Anonymous,

      An Officer becomes Maj or Lt Cdr after completion of 11 years of service (during 4th CPC era). The integrated pay scale started from 2300 for 2nd Lt. add 11 years increments to working starting basic pay of a Major or Lt Cdr. The starting basic for Maj & Lt Cdr was Rs 3400/- (2300+1100)and not 3700.

      Col Raju

      Delete
  11. Anonymous06 October, 2012 00:46

    Dear Col Raju

    your contention that starting basic pay of a Maj or Lt cdr or Sqn Ldr with 11 yrs service was to be fixed as Rs 3400 on 01 Jan 1986 as per 4th CPC in the integrated pay scale 2300-100 3900 -150-5100 is not correct as Rs 3400/- was minimum fixed pay recommended by 4th CPC for Maj/Lt Cdr/Sqn Ldr with 11 yrs service. Here one has to understand the difference between starting basic pay and minimum fixed pay.Now the Starting basic pay of a Maj/Lt Cdr/Sqn Ldr as on 01 Jan 1986 is required to be fixed keeping recommendations of 4th CPC and Hon'ble SC order as delibrated herein after. As per recommendations of 4th CPC, pay an offr was to be fixed keeping in view his existing emoluments as on 01 Jan 1986 i:e basic pay as on 01 Jan 1986 + DA/ADA on basic pay at index average of 608 and IR and then 20% of his basic pay was to be added to these existing emoluments. From the amount so arrived the rank was to be to deducted and if his total emoluments after deducting rank pay was less than Rs 3400/- ( in case of Maj/Lt Cdr/Sqn Ldr) then his pay was to be fixed at Rs 3400/- otherwise if amount after deducting the rank pay is more than Rs 3400/,then Pay was to be fixed at the appropriate higher stage in the integrated pay scale. The court case was fought with the aim that deduction of rank pay from the amount worked out by adding 20% of basic pay to existing emoluments i:e basic pay +DA/ADA on basic pay at index average of 608 and IR for fixing the Pay under 4th CPC is not justified. Our this contention has been accepted by the Hon'ble courts after deliberating the case for so many years. Therefore after this judgement, pay of Defence Forces offrs is to be fixed on the existing emolument as explained above + 20% of the basic pay. Accordingly NHO has worked out the starting pay of Lt Cdr with 11 yrs of service as 3700+600 and not 3400+600 as fixed in the past which seems to correct. However your contention will be applicable to all offrs who attain this rank after 01 Jan 1986 that too in case their existing emoluments works out to be less than 3400/- on the day of their promotion. I hope that I have been able to make myself more clear.

    ReplyDelete
  12. Anonymous06 October, 2012 22:21

    Dear Friend,

    The NHQ example which you have referred to in your post says "Rank as on 01.01.1986 - Lt Cdr (11 Years Service)". Prior to IVth CPC Officers used to attain the rank of Maj/LtCdr/Sqn Ldr in 13 Years of services and not 11 years. If some one with 11 years service was holding the rank of Lt Cdr as on 31 Dec 1985, it was an acting rank and the officers holding acting ranks were not given jump in the basic pay of that rank. If some one was holding acting rank of Lt Cdr with 11 years service as on 01 Jan 1986, the said rank in his case becomes substantive as fresh promotee with 11 yrs service and the officer is given jump in the basic pay fixed for the rank and starts getting the minimum of the pay fixed for the rank being newly promoted and becomes entitled for the rank pay introduced wef 01 Jan 1986 in IVth CPC. The officer with 11 years service on 01 Jan 1986 was known to be substantive Capt and not Major as on 31 Dec 1985. If such officer in the rank of substantive captain was already getting basic pay of Major after adding the unrevised basic pay,DA,ADA and 20% of Basic pay then on 01 Jan 1986 his basic pay steps up by one increment of Rs 100/- over and above the sum of total unrevised pay including 20% of unrevised basic pay.

    Col Raju

    ReplyDelete
  13. Unknown07 October, 2012 18:06

    Dear Col Raju

    you are correct that prior to IVth CPC qualifying service for rank of Maj/Sqn Ldr/Lt Ldr was 13 yrs and before completion of this service, offrs use to hold paid acting rank. It is also absolutely correct that offrs holding acting rank of Maj/Sqn Ldr/Lt Ldr with 11 yrs service on 31 Dec 1985 were not given jump in basic pay of that rank and if some one was holding acting rank of Maj/Sqn Ldr/Lt Ldr with 11 yrs service as on 01 Jan 1986, the said rank in his case becomes substantive as fresh promotee with 11 yrs service and offr is given jump in the basic pay for the rank and starts getting the minimum of the pay fixed for the rank being newly promoted and becomes entitled for the rank pay introduced wef 01 Jan 1986 in IVth CPC You have also mentioned that such offrs with 11 yrs service on 01 Jan 1986 to be considered as substantive Cation and given one increment of Rs 100/- if they are already drawing pay of Major after adding unrevised basic pay.DA,ADA and 20% of basic pay on 01 Jan 1986. The above procedure for fixing the revised pay as per Special Army Instruction which were formulated based on recommendations of IVth CPC where in it was clearly laid down that Pay of Defence Offrs will be fixed deducting rank pay from amount arrived by adding 20% 0f basic pay to basic pay + DA and ADA at index average of 608 +IR. Now in view of Hon'ble SC judgement, the rank pay is not to be deducted for fixing of pay under IVth CPC and therefor pay is required to be fixed based on amount arrived by adding 20% of basic pay to basic pay + DA and ADA at index average of 608 +IR at next higher stage in the integrated scale and then rank pay of Rs 600/- is to be added..Hence NHO calculation for fixing starting pay of Maj/Sqn Ldr/Lt Cdr with 11 yrs of service Rs 3700/- seems to be correct and to rank pay of Rs 600/- is to be added to be added this amount.

    I would like further state that even the staring pay of all substantive Capts is also required to be fixed on the same logic even if it may works out to be more than the minimum basic pay laid down by IVth CPC as Rs 3400/- for rank of Maj/Sqn Ldr/Lt Cdr as on 01 Jan 1986. Since Pay of an individual can not be fixed at amount less than drawn by him at a particular point of time. I hope that now there wo'nt be any more explanation required on this aspect

    I would like to mention here that probably once IVth CPC finally decided to grant integrated pay scale to Defence Offrs,the BABU's were worried about its long terms gain to maximum numbers Defence Offrs and hence to limit these long terms benefits while drafting the clause for fixation of pay under IV CPC intentionally they introduced the clause for deduction of rank pay which never existed before. Subsequently these BABU's made sure that Integrated pay scale got discontinued in V CPC by giving some very unconvincing explanation of a few lines which even accepted by our senior Offrs as they were also not comfortable with this integrated pay scale as they wanted two integrated pay scales i:e one for offrs of rank Lt to Col and for Brig and above. Probably there there is need to look after our lower ranks in all aspects and senior Offrs would get the automatically get elevated in all aspects some difference has to be maintained between ranks at all times by the Govt to ensure good administration and better command and Control.

    ReplyDelete
  14. Anonymous09 October, 2012 23:01

    Dear Serving and Retired Officers.

    The fixing of pay on 01 Jan 1986 by deducting the newly introduced rank pay in IVth CPC was wrong. It was a mistake by some agencies of the Govt. Weren’t we also party to that mistake? Just think yourself. The pay as on 01 Jan 1986, though it was fixed much later from the retrospective effect, was wrong. The pay was fixed after receipt of Govt Orders through Army Instruction. We get copy of Army Instructions in every unit and formation. Why didn’t we object that time only that the deduction of the newly introduced rank pay from the emoluments before fixing the emoluments was wrong? Aren’t we party to the wrong fixation of the pay when the rank pay was first introduced wef 01 Jan 1986. I am sure even today we the officers are never bothered to update our knowledge by going through the regulations, Instructions and Orders we keep receiving in the units and formations from time to time. Though the Govt has committed mistake in formulating the procedure containing wrong instructions in Army Instructions we were also party to that mistake of accepting such Army Instructions containing wrong instructions. Now the Honourable Supreme Court Judgment is not only a slap on Govt but also on us too not being alive to the correct instructions. Let us please pull up our socks and now at least keep our knowledge updated by going through the Instructions and Orders being received in the units and formations. It is for our betterment only.

    Now let us come to the point. I have been reading the posts in many blogs. The brother officers say that the Court judgment not only affects Officers who were there on 01 Jan 1986 in the ranks of Captain to Brigadier but also affects not only all officers who were there on 01 Jan 1986 irrespective of the rank but also those who were commissioned after 01 Jan 1986 and they also say that since in fixation of revised pay of 01 Jan 1986 in IVth CPC the ranks of Captain to Brigadier were downgraded, it affects all officers even those who were commissioned after 01 Jan 1986. Sorry, it is not correct. There was no down gradation of ranks was involved. The rank pay of officers of the rank of Capt to Brig was deducted from the total emoluments before arriving at revised pay but it was neither down gradation of the ranks nor does it affect the officers who were 2nd Lts and Lts on 01 Jan 1986 and those who were commissioned after 01 Jan 1986. It was only wrong fixation of the revised pay on 01 Jan 1986 in the case of Capts to Brig. Later on whosoever was promoted he was given rank pay. I was Lt on 01 Jan 1986 and my revised pay in IVth CPC was correctly fixed. When I became Captain in Jan 1988 I was given rank pay without involving pay fixation. Please remember that the promotion of an officer to next higher rank does involve no pay fixation but the officer promoted is straightway given the rank pay and step up increment if needed. Pay fixation is involved in only revision of pay in successive pay commissions and not on promotions.

    Col Raju
    Accounting Professional and Author

    ReplyDelete
  15. Anonymous09 October, 2012 23:04

    In continuation of earlier post;

    Please sharpen your brain and see your pay fixation in Vth CPC. It was fixed in Jan 1998 and the pay fixation sheets were sent to you by CDA along with your pay slip for the month of Jan 1998. The Govt did one mistake of deducting the newly introduced rank pay from the total emoluments before arriving at revised pay of IVth CPC wef 01 Jan 1986 whereas in fixation of pay for Capt to Brig in Vth CPC wef 01 Jan 1996 the Govt did multiple mistakes. They are; adding of unrevised rank pay to unrevised basic pay and deduction of revised rank pay from the total emoluments. There were two blunder mistakes in fixation of pay in Vth CPC as the rank pay which was introduced in IVth CPC was continued in Vth CPC also. Apart from this there were other mistakes too which I have already brought out in some of my posts. They were not only mistakes but they were facts which were incorrect. Check your pay slips and raise observations. CDA (O) is silent about Vth CPC and so far they have not replied to my query about fixation of pay in Vth CPC. The court judgment as far as fixation of pay with rank pay in IVth CPC is concerned also applies to the fixation of pay and rank pay in successive pay commission too so far as rank pay is concerned. No fresh judgment is required. Hope Maj Navdeep agrees with me.

    I request all of you to apply the mind with logical reasoning and bring out the meaning/definition of the following statements:-

    (a) Rank pay is part of basic pay
    (b) Rank Pay forms part of basic pay

    The Govt/CDA has acted upon the statement at (a) above which is totally wrong.

    The Rank Pay forms part of basic pay of Armed Forces Officers only and runs parallel & collateral to their Basic Pay to avoid immersion of rank pay of Armed Forces Officer’s with their basic pay to remain at par with their civilian counter parts.

    This is the definition which I have given to the Rank Pay. Rest is up to your logical reasoning. Please correct me if I am wrong any where.

    Our pay in Vth CPC (Capt to Brig) was fixed after adding the unrevised rank pay and brought us at par with our civilian counter parts which ultimately says that our civilian counter parts were also given certain amount of our rank pay. Had the rank pay been kept collateral & parallel to our basic pay, it could have become three folds in Vth CPC and couldn’t have gone to our civilian counter parts and also we could have benefited in every promotion up to the rank of Brig and for Brig the rank pay of Vth CPC with DA could have gone much above the MSP in VIth CPC. Work out yourself. Otherwise consult me at my mail id I will send you the excel sheet. (mavuleti.raju@rediffmail.com)

    May I request brother officers who visit this blog, copy this brief and post in other blogs also for information of all our brother officers?

    May I request NHQ/Naval Officers to please let me know as to how the revised pay of their Lt(IN) and rank pay were fixed in Vth CPC.

    Col Raju
    Accounting Professional and Author

    ReplyDelete
  16. Anonymous09 October, 2012 23:37

    Dear Col Raju

    Ref your blog of 06 Oct and my reply thereafter on 07 Oct.
    I would like to make the matter more clear by giving certain factual figures abstracted from working sheet for fixation of pay and calculation of arrears under RPC-1986 received CDA(O) Pune along with my Statement of Account for Jul 1987.

    I was commissioned on 16 Jun 1972 with Two yrs antedate seniority and hence for grant of substantive rank, my date of seniority was 16 Jun 1972. As per above mentioned Work Sheet my pay was fixed in integrated scale as under

    Details of Existing emoluments as on on 01 Jan 1986
    Basic Pay (BP) Rs 1650/-
    DA/ADA /Adhoc DA as avg index 608 on BP Rs 1534/50
    Interim Relief I & II Rs 245/-
    Existing Emoluments Rs. 3459/50
    Add 20% of Basic Pay Rs 330/-

    Total Rs 3759/50
    Pay Fixed in Integrated Scale Rs 3400/-
    Rank Pay (RP) Rs 600/-

    Subsequent increments were given accordingly till Dec 1995.
    Now in view of Hon'ble SC order, as my total emoluments after adding 20% of Basic Pay to existing emolument works out Rs 3759/50 as on 01 Jan 1986 and hence my starting basic pay should be fixed as Rs 3800/- as on 01 Jan 1986 instead of Rs 3400/- as done by CDA(O). Therefore my basic pay and rank pay is required to be refixed from 01 Jan 1986 to 01 Jan 1996 as under

    BP + RP given BP + RP as Diff
    by CDA(O) per SC order

    1/1/1986 3400+600 3800+600 400
    1/6/1986 3500+600 3900+600 400
    1/6/1987 3600+600 4050+600 450
    1/4/1988 3700+600 4200+600 500
    1/4/1989 3800+600 4350+600 550
    1/4/1990 3900+600 4500+600 600
    1/4/1991 4050+600 4650+600 600
    6/10/1991 4050+800 4650+800 600
    as offr promoted to the rank of Lt Col wef 6/10/1991
    1/4/1992 4200+800 4800+800 600
    1/4/1993 4350+800 4950+800 600
    1/4/1994 4500+800 5100+800 600
    5/2/1995 4650+1000 5100+1000 450
    as offr promoted to the rank of Col wef 5/2/1995
    31/1/1995 4800+1000 5100+1000 300

    The above details have been given to establish that actual difference during pay refixation will be up to Rs 600/- for most of this period and starting basic pay of acting Majors and substantive Capts or their equalvent in Air Force and Navy will get refixed at much above the minimum fixed basic pay of Rs 3400/-for the Major depending on total emolument of the offr by adding 20% of his basic pay to existing emoluments as on 01 Jan 1986.

    In this calculation. the increments to be given due to bunching or on promotion are not incl due to non availability SAI which lays down details guidelines in this regards.

    Accordingly Starting Basic Pay for V CPC in this case is required to refixed by taking the Basic Pay as on 01 Jan 1996 as Rs 6100/- and not as Rs 5800/- which has presently been done by CDA(O) as rank pay is part of basic pay.

    ReplyDelete
    Replies
    1. Anonymous10 October, 2012 13:10

      Dear Col,

      Please do not treat rank pay as part of basic pay. The rank pay forms part of basic pay. Do not allow CDA to merge rank pay into basic pay and then fix the revised pay by adding DA,IRs and 40% of basic together. Please put your basic pay as on 31 Dec 1995 at one place and in parallel side you put your rank pay as on 31 Dec 1995. Now divide total DA drawn as on 01 Jan 1996 in the proportion of basic pay and rank pay and then put them under respective pays. Now divide IR I and IR II each in the proportion of Basic pay and Rank pay and put under the respective pays finally put 40% of basic pay under the basic pay and put 40% of rank pay under the rank pay. Sum it up separately under the columns basic pay and rank pay. Then fix the revised basic at the next slab of pay scale of Vth CPC above the amount shown in the total under the column Basic Pay. That will be your revised basic pay. Now see the total of rank pay under rank pay column, it goes almost three folds of your rank pay in IVth CPC that you have drawn on 31 Dec 1995. Insist the authorities to fix rank pay in Vth CPC to three folds of the rank pay of IVth CPC.

      Never say rank pay is part of basic pay, say Rank pay forms part of basic pay and it accrues all those which basic pay accrues over the years. What mistake CDA did in fixing of the revised pay as on 01 Jan 1996 was as you said they clubbed both basic and rank pay together and then added DA, IR I, IR II & 40% of basic then deducted double the amount of old rank pay treating as revised rank pay of Vth CPC, the balance of the amount which the old rank pay accrued over 10 years in IVth CPC was left in basic and then your basic was fixed and said you are at par with your civilian counter part. So intelligently they merged portion of rank pay in our basic and then say we are at par with civilian counter parts. The rank pay is identical and does not merge with basic but it forms part of basic as far as the allowances that are admissible over the basic pay. But rank pay is not part of basic pay and our basic pay after adding rank pay can not be said to be at par with civilian counter parts. Be care full what CDA now does. They will play the same game. They keep 1/3rd of rank pay into our revised basic pay and console us that our pay is at par with our civilian counter parts. Hope you understood Sir.

      Col Raju

      Delete
  17. Anonymous11 October, 2012 17:38

    Dear Col Raju

    I gave my views on the para 12 of NHQ brief on recent Hon'ble court judgement in rank pay wherein it was mentioned that benefit will be in the range og Rs 150/- to Rs 300/-. Since working sheet for fixation of pay calculation of arrears under IV CPC was received from CDA(O) Pune and statement of account for the period 01 Jan 1986 to 01 Jan 1996 were available with me so I worked out the arrears is likely to accrue to me for this period in view of Hon'ble SC judgement. It worked out in the range Rs 400/ to Rs 600/-p.m. in my case from factual details. Not with standing this calculations,I worked out the arrears for the arrears for an Lt Cdr with 11 yrs service based on NHQ example which worked out for in range of Rs 300/- to Rs 450/ p.m. for the period 01 Jan 1986 to 01 Jan 1996 in a simple case where offr continue to remain a Lt Cdr till 01 Jan 1996 and posted these calculations on this web site for info of all brother offrs as news going was that this judgement going to give nominal gains to affected offrs but I am having a different views in this regards if the gains calculated in totality.

    However you were not in agreement as stated in your blog of 05 Oct 2012. Then again a detailed explanation was given in my blog on 06 Oct but still you were not convinced as is evident from your blog of of the date wherein you brought the factor of substantive rank of major is only attained after 13 yrs and all acting majors with 11 yrs of service on 01 Jan 1986 were given starting basic pay of Rs 3400/- fixed for this rank as they were considered as new promotee from that day. However you did mentioned in this blog that a substantive capt was if already getting basic pay of major after adding unrevised basic pay,DA,ADA,IR and 20% of existing basic pay as on 01 Jan 1986 then his basic pay steps up by one increment over and above the sum of total unrevised pay including 20% of unrevised basic pay. This is what exactly done by NHQ in their example for Lt Cdr with 11 yrs of service who may be holding acting rank but definitely would be a substantive Lt.

    Subsequently I again gave a detailed reasoning to clarify my point of view on 07 Oct.Ultimately I posed detailed calculations of my personal case wherein my starting basic pay has been fixed as Rs 3400/- by CDA(O) on 01 Jan 1986 whereas in view of Hon'ble SC order it is required to be fixed to be fixed at Rs 3800/- and then rank pay of Rs 600/- is to be added. Now while going through old case. I have found that even I am entitled to one addl increment since starting basic pay falls at 5th stage.

    I have intentionally given detailed explanation repeatedly to clarify this aspect since most of paid acting majors of the Indian Army with service of 10 yrs and above were getting basic pay of Rs /-1650 and above on 01 Jan 1986 depending upon date of picking the paid acting rank of major. Starting basic pay of all such is required to be fixed at Rs 3900/- or above and it may ultimately result in revision of their pension.

    Now with regard to your blog of 10 Oct, you have raised a fresh issue but did not give your final view under deliberation i:e especially the correctness or otherwise of calculations of my personal case for refixation of basic pay from 01 Jan 1986 to 01 Jan 1996 which I would request to do it now being an Accounting Professional so that

    You have also raised the fresh issue that rank pay should never be treated as part as part of basic pay but forms part of basic pay. You have also suggested to make certain calculations by raising the said issue in mind with regard to V CPC. I have done these calculations at my end but divulge these calculations only after CDA(O) decides how to go about it Rather my suggestion would be to leave this aspect to legally qualified people who were associated with case right from the start.

    ReplyDelete
  18. Anonymous12 October, 2012 11:47

    Dear Officer,

    We both discussed in above posts. We both are correct. I am not denying that why not your pay can be fixed above 3400/- as Lt Cdr on 01 Jan 1986. The fixation of pay in IVth CPC wef 01 Jan 1986 depends on the basic pay+DA+ADA+Adhoc DA at average index 608+IRs+20% of Basic Pay. If the sum of all these goes above 3400/- as on 01 Jan 1986, then the pay will be fixed in immediately next slab in Integrated pay scale. In this initial fixation the service is not the matter but the pay drawn till 31 Dec 1985 matters. After fixation of the pay as above add your rank pay irrespective of whether it was acting or substantive rank. Those who were Maj & equivalent with 11 years service on 01 Jan 1986 and his total emoluments drawn till Dec 1985 + 20% of basic pay remain below Rs 3400/- then his pay will be fixed at 3400/- basic as he becomes substantive Maj with 11 years service on 01 Jan 1986. But this is not applicable in your case as your total emoluments went above Rs 3400/-. If your total emoluments including 20% basic pay were 3759.50, then your pay will be fixed at 3800/- and not 3400/-. Your revised basic pay on 01 Jan 1986 will be Rs 3800/- and rank pay of Rs 600/-.. Why your pay was fixed 3400+600 rank pay was that, your revised basic was 3800 and the rank pay of 600 was deducted there from and it became 3200, but you were already substantive Lt Cdr on 01 Jan 1986 and thus they fixed your pay at Rs 3400 and gave rank pay of Rs 600 which was debited to your total emoluments. This was the wrong which they did. Hope it is clear now. Your revised basic as on 01 Jan 1986 was Rs 3800/- plus Rank Pay 600/-. There after you keep adding increments every year in integrated scale with EB plus rank pay minus whatever basic & rank pay you have drawn will be your monthly arrears right from Jan 1986. Add DA at the % announced from time to time till 31 Dec 1995. Hope I am clear now.

    Now let us come to issues which you said in your post as “fresh issue”. See, just analyze as to why your pay was fixed at 3400/- plus rank pay, because your rank pay was debited from your total emoluments of 3759.50 and then it was fixed at 3400 being min Lt Cdrs basic pay. Why they did it was they defined rank pay as “part of basic pay” and they deducted rank pay from total emoluments to fix the basic pay and then gave rank pay and both basic and rank pay were clubbed into basic pay because of the wording that “rank pay was part of basic pay”. That is why I submitted to our AF society at least let us not call rank pay is part of basic pay otherwise CDA will again do the same mistake. THE RANK PAY FORMS PART OF BASIC PAY and not rank pay is part of basic pay. The Rank pay forms part of basic pay as far as the allowances admissible to basic pay are also admissible to rank pay. The Rank Pay forms part of basic pay of Armed Forces Officers only and runs parallel & collateral to their Basic Pay to avoid immerging of rank pay of Armed Forces Officers with their basic pay to remain at par with their civilian counter parts”. After going through this definition you please co-relate my statement that rank pay is not part of basic pay. The legal authorities have also said that the rank pay forms part of basic pay and they never said that the rank pay is part of basic pay. The catch word here is “forms” which makes our rank pay to run parallel and collateral to our basic pay and does not immerse into basic pay. If you see and analyze as to how your revised pay was fixed in Jan 1998 in Vth CPC with retrospective from 01 Jan 1996. It will be eye opener and you will agree with me that the rank pay is not part of basic pay but it forms part of basic pay.

    Col Raju

    ReplyDelete
  19. Anonymous12 October, 2012 11:48

    In continuation of above post......

    So far you have been concentrating on the arrears of the pay of IVth CPC from Jan 86 to Dec 95. Please concentrate on your Vth Pay commission pay fixation and arrears also. Your arrears in Vth CPC from Jan 96 to Dec 2005 will be much more than the arrears which you have calculated for IVth CPC from Jan 86 to Dec 95. In pay fixation in IVth CPC the CDA did one mistake of deducted the newly introduced rank pay from the total emoluments before arriving at revised pay where as in pay fixation in Vth CPC the CDA did multiple mistakes of clubbing unrevised rank pay to basic pay and then deducting double the rank pay as “Revised Rank Pay” from the total emoluments before arriving at revised basic pay.

    What has the CDA done in Vth CPC?

    I will quote my own example here. As per the details of pay fixation sheet in Vth CPC, which the CDA sent to me in Jan 1998, they clubbed together the Basic Pay + Rank Pay + DA + IR I + IR II + 40% of (Basic + Rank) Pay and then they deducted double the rank pay and the revised basic pay was fixed based on the balance emoluments. The details were 3600+200+5180+100+380+1520=10980-400=10580. The basic pay fixed was 10,800/- and rank pay Rs 400/- I was Capt. Taking that the rank pay was part of basic pay, the CDA clubbed my rank pay to basic pay and allowed admissible allowances together. From the total emoluments Rs 400 was deducted as Revised Rank Pay. Why only the Revised Rank Pay was Rs 400/- in Vth CPC? Why not Rs 600/-. If rank pay forms part of basic pay then it does not club with basic pay but runs parallel & collateral to basic pay. Whatever DA, IRs and 40% of basic add together to basic pay similarly the proportionate portion of DA, IRs and 40% of rank pay get added to rank pay. Thus the rank pay emoluments goes much above 570/- making the rank pay as Rs 600/- for a Captain. If a Captain’s rank pay rises to three-folds in Vth CPC then the rank pay of all other ranks up to Brig also rise to three-folds in Vth CPC, plus DA as admissible for 10 years. This was one of the disadvantages of clubbing rank pay with basic pay. The other disadvantage was the pay fixed (Rs 10800) in Vth CPC after deducting the revised rank pay of Rs 400/- was said to be at par with our civilian counter parts, how can we accept it, wasn’t the revised pay (Rs 10800) contain certain elements of rank pay? Yes it contains Rs 200/-. Why should we accept that after adding certain elements of rank pay into our basic pay we were made at par with civilian counter parts? Why Govt compares our pay with civilian counter parts after adding our rank pay why not before adding rank pay? Rank pay was a peculiar grant for AF Officers only and not the civilian counter parts. All these mistakes were happening because every one absorbs that the Rank Pay is part of Basic pay. No. It is not part of basic pay but it forms part of basic pay. Even the Court has ruled that the “Rank Pay forms part of basic pay”, let us stick to it. Hope I attempted to clear the doubts here. If I am wrong at any point kindly let me know.

    Col Raju

    ReplyDelete
  20. Anonymous15 October, 2012 18:57

    Dear Col Raju
    Refer your post of 12 Oct 2012
    Since you are now in agreement that my starting basic pay was wrongly fixed at Rs 3400/- where as it should have been fixed at Rs 3800/- on 01 Jan 1986 when I was substantive Major at that time and my total emoluments were Rs 3759/- on 01 Jan 1986 but I would like to mention here that staring basic pay of all such offrs with total emoluments as on 01 Jan 1986 should have been at fixed at Rs 3800/- irrespective of their rank.

    This was not an omission on the part of CDA(O) Pune as they have fixed this staring basic pay at Rs 3400/- as per guidelines laid down in Special Army Instructions 1987 in this regard which directs them to deduct the Rank Pay from total emoluments as on 01 Jan 1986.

    Now after the Hon’ble SC judgment of 04 Sep 2012, the above SAI is required to be amended to the extent by incorporating the ruling of the said court order i:e RANK PAY NOT TO BE DEDUCTED while fixing starting basic pay in the integrated pay scale. However there would not be any other change in the existing guidelines such as grant of one addl increments on bunching or any other reasons mentioned therein.

    In view of the fore going, since my starting basic pay of Rs 3800/- as explained above falls at the 5th stage of the minimum starting basic pay for a substantive Major and hence I am also entitled one addl increment as per existing SAI in this regard. Therefore my starting basic pay is required to be fixed at Rs 3900/. Accordingly my basic pay plus rank is required to refixed as under till Dec 1995 indicating difference after every increment

    Date Basic Pay + Rank Pay Total Diff
    01 Jan 1986 3900 + 600 = 4500 500

    01 Jun 1986 4050 + 600 = 4650 550

    01 Jun 1987 4200 + 600 = 4800 600

    01 Apr 1988 4350 + 600 = 4950 650

    01 Apr 1989 4500 + 600 = 5100 700

    01 Apr 1990 4650 + 600 = 5250 750

    01 Apr 1991 4800 + 600 = 5400 750

    01 Oct 1991 4800 + 800 = 5600 750
    (Promoted to Lt Col)
    01 Apr 1992 4950 + 800 = 5750 750

    01 Apr 1993 5100 + 800 = 5900 750

    01 Apr 1994 5100 + 800 = 5900 600

    01 Dec 1994 5100 + 1000 = 6100 600
    (Promoted to Col )
    01 Apr 1995 5250 + 1000 = 6250 600
    (Entitled to one Stagnant increment)
    01 Dec 1995 5250 + 1000 + 6250 600

    The above details calculations about refixation of basic pay have now been given after incorporating one increment due bunching and one increment due to stagnation which resulted in difference upto Rs 750/- in a particular case against max of Rs 300/- as worked out by NHQ in a generalized case of a Lt Cdr (11 Yrs). NHQ is requested to analyse the above calculations for their correctness or otherwise as basic pay worked out as 31. Dec 1995 which is going to tremendously effect refixation of starting basic pay for V CPC and also Pension, Gratuity and leave encashment of certain offrs who retired before 01 Jan 2006.

    ReplyDelete
  21. Anonymous07 November, 2012 08:16

    Col. Raju,

    Sir, Could you kindly give the integrated payscales with increments as of 1.1.1986 (start to end) for the rank of Lt to Brig.

    ReplyDelete
  22. Anonymous20 November, 2012 16:38

    Dear Sir
    Why silent after 07 Nov 2012? Please let us know what is presently happening to implement the judgement by 04 Dec 2012. What will be approx amount paid to those offrs who were commissioned in 1990 and are still is service?

    ReplyDelete
  23. Col MS Raju25 November, 2012 07:37

    Dear Officers

    We all must understand that the fixation of AF Officers pay (Capt to Brig) on 01 Jan 1986 in IVth CPC and on 01 Jan 1996 in Vth CPC are two entirely different issues. This is not being understood by many of us.

    Rank pay was introduced in IVth CPC wef 01 Jan 1986 for AF Officers which was over and above the basic pay fixed at par with our civilian counter parts. Just understand the logic conveyed by this sentence.

    When the pay was fixed on 01 Jan 1986 for the first time after the introduction of the rank pay wef 01 Jan 1986, our total emoluments which were worked out at par with our civilian counter parts were not granted to us as basic pay but rank pay was first deducted and the balance was granted (may be stepped up in the integrated scale) as basic pay to us. Just think yourself and tell me that, in this way, was not our rank pay was also indirectly granted to our civilian counter parts? Just sharpen your ideas, you will get the hint. The basic wrong was in the Army Instruction issued by the MoD for calculation of pay in IV CPC. If our AF Officers still not understand what mistake was done by the Govt in Army Instruction, I will quote another example here which clearly indicates the insight of our bureaucrats.

    The rank pay introduced in IVth CPC was continued in Vth CPC. Just see your fixation sheet attached to your pay-slip for the month of Jan 1998. Our total emoluments were worked out after adding unrevised basic and unrevised rank pay with DA and IRs. These were the total emoluments which a civilian counter part also got. It means the unrevised rank pay was also given to our civilian counter parts in Vth CPC. In addition to this mistake, our revised rank pay (doubling the unrevised rank pay) was deducted from the total emoluments of AF Officers the deducted amount was give to us as revised rank pay. The bureaucrats did double mistake in admitting our rank pay in Vth CPC.

    So far I brought two issues above. Before proceeding to third issue, I would like all our AF Officers Serving and veterans to enalise and clearly understand the following:-

    (a) Rank is part of Basic Pay
    (b) Rank Pay forms part of basic pay.

    The Govt fixed our pay in Vth CPC by considering the rank pay as part of basic pay and in that run the government granted rank pay to our civilian counter parts also in their basic pay.

    The clear definition of rank is that “The Rank pay forms part of basic Pay, runs collateral to basic pay and earns all those allowances which basic pay earns”, but it is not part of basic pay to be added to basic pay for fixation of pay at par with our civilian counter parts. In Vth CPC there were two issues involved, one was fixation of our basic pay which should be at par with our civilian counter parts and the other part was fixation of rank pay which includes unrevised rank pay, DA, IR and 40@% there of and this should have been worked in the same way the basic pay was worked out ie unrevised basic pay, DA, IR and 40% of unrevised basic pay. If this was fixed this way, the rank pay in Vth CPC goes three folds to the unrevised rank pay which we got till 31 Dec 1995. Hope you all understood now.

    Is implementation of the Honourable Supreme Court judgment really impacts with extensive burden on exchequer? If you ask me I say “NO”. The rank pay meant for us was already paid to our civilian counter parts by deducting it from our total emoluments. Why can’t it be recovered now by those who acted so smartly in downgrading us and benefiting our civilian counter parts? But whatever is the case, no point in digging those things now, what we are interested is we must get our dues. But we as honest people our country it always remain on the back of our mind that undue dues were paid to our civilian counter parts for two decades.

    ReplyDelete
  24. Col MS Raju25 November, 2012 07:39

    Dear Officers,

    Let us first understand that the rank pay granted to us was exclusively for our AF Officers only and no civilian counter part is granted such rank pay. Then why should we talk of what rank pay to be added or deducted to/from basic pay. Rank pay is not part of basic pay but it forms part of basic pay for all the benefits what a basic pay accrues over the time. Then, while fixation of our basic pay in Vth CPC why should the unrevised rank pay drawn during IVth CPC be added to basic emoluments and then why should the revised rank pay be deducted from such total emoluments. This is all against the purpose of granting rank pay to AF Officers (Capt to Brig) in IVth and Vth CPC.

    Adding of unrevised rank pay to basic pay for arriving at total emoluments in Vth CPC and then making us at par with civilian counter parts means the civilian counter parts also got the rank pay granted to us. When govt says our basic is fixed at par with civilian counter parts, for such comparison, our rank pay should not be added to our basic pay.

    In Vth CPC the unrevised basic plus DA @ the % drawn on 01 Jan 1996 plus IR I plus IR II Plus 40% of unrevised basic all together became total emoluments for govt employees. Our basic also should have been fixed in similar way without adding rank pay, and then only our basic pay becomes comparable with civilian counter parts. After fixing the basic, our Rank pay should have been fixed in the same way such as unrevised rank pay plus DA @ the % drawn on 01 Jan 1996 plus IR I plus IR II plus 40% of unrevised rank pay, then the revised rank pay is fixed in the next slab of such total emoluments. This way the rank pay drawn in IVth CPC triples in Vth CPC. Ranks pay forms part of Basic pay means this only and not adding it to basic to calculate the revised pay. This working out or calculations is nothing to do with permutations and combinations.

    We all must insist the govt to keep our rank pay corollary, collateral and parallel to our basic pay as the rank pay gets all those allowances and benefits which basic pay gets over the time.

    In Vth CPC pay fixation, if our revised pay was at par with civilian counter parts, the civilian counter parts were also paid rank pay. No doubt in that as the revised pay included the rank pay of IVth CPC. This was the first mistake and the second mistake was of fixing rank pay @ double the IVth CPC rank pay without any calculations and the third mistake done by the MOD was deducting the revised rank pay from total emoluments. There were three mistakes in pay fixation in Vth CPC where as there was only one mistake in pay fixation in IVth CPC.

    In Vth CPC if the rank pay was calculated separately and then the revised rank pay was fixed, it would have, till 31 Dec 2005, fetched the DA and other allowances more than the grade pay which was introduced to us in VIth CPC by discontinuing the rank pay. This is not food for thought but an eye opener. Calculate yourself and you will come to know that there is so much to meet the eyes.


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  25. Anonymous29 November, 2012 21:22

    Dear Col Raju
    Thnx a lot for providing very vital informations as to how the armed forces officers were befooled by notorous babus. Anyway can you put light on the letter dated 26 Nov 12 issued by MOD to implement the judgement. What will be appprx time taken by service HQs/PCDA Pune/CGDA to work out the total emoluments to be paid to each offr. Any latest out put on offr from AG's Br visited PCDA Pune on the issue.

    ReplyDelete
  26. Col MS Raju30 November, 2012 14:34

    Dear Anony,

    It is all working style of beaurocrats. The 12 weeks time given in the judgement of 04 Sep 2012 completed on 27 Nov 2012. Exactly a day before, the MOD has issued letter No 34(6)/2012-D(Pay/Services) on 26 Nov 2012. This letter was addressed to all the Three Chiefs. The letter conveys the directions of Govt to refix the pay without deduction of rank pay wef 01.01.1986. It also says that the instructions regarding the modalities and methodology of payment to the affected officers of the AF and the provisioning of funds for the same are being issued separately in consultation with Service Hqrs, CGDA, Def(Fin) and Min of Fin. Now we have no idea how long does it take in issue of instructions and how long the concerned offices take to make payment finally to the affected officers.

    A quite good delay tactics. Finally we can expect something to our accounts in year 2013 if no further delay tactics are played by any deptt.

    ReplyDelete
  27. Col MS Raju30 November, 2012 14:45

    Dear All,

    In the mean time AHQ MP5 has already computed the list of all the officers retired till year 2002 and placed the list on official website for the information and corrections by the concerned officers. you can visit and see it and they said the records of officer retired in year 2003 and onwards are already held by them. But what about those officers who are no more, whose NOKs have no access to web site and computers/internet and those whose NOK also are no more. God bless those on behalf of our beaurocrats. Even if the affected officers, retirees, NOKs are no more, these arrears can be claimed by their sons, daughters, grand children if they know this and if we can identify them and guide them. We must do this social service in our areas.

    ReplyDelete
  28. Anonymous07 December, 2012 10:25

    Dear Sir,

    May i request you to upload the DGL fwd by TRIPAS to MOD. We will be really very very grateful

    Thanks

    ReplyDelete
  29. Anonymous31 December, 2012 16:45

    There is no update on letter issued by MOD for implementation of judgement in which the offr who were commissioned after 1984 are not effected. Please offer your valuable comments.

    ReplyDelete
  30. Anonymous01 January, 2013 22:43

    Dear Col. M S Raju,

    Sir, I would like your guidance on following-

    I am short service commission officer, was commissioned on 01st Sept 2001 and served till 25th Jun 2008.
    At the time of exiting Army, I was at the rank of Major.

    Sir, please guide if I would be entitled to any benefit from the decision by Honorable Supreme Court with respect to the petition filed by Major. A K Dhanpalan.

    I have been to CDA, but they were very stiff and not very transparent on this issue.

    In my humble opinion, if the emoluments include arrears of V th pay commission which was effective from Jan 96 to Dec 2005, then it seems that I would be entitled.

    Sir, I would be grateful for your guidance.

    My mobile # is 9673916152
    mail Id - ashishacharjee@yahoo.com

    Thank you
    Regards,
    Major. Ashish Acharjee

    ReplyDelete

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