RECENT JUDGEMENT ON PRO RATA PENSION
TO ARMED FORCES PERSONNEL
Pro rata is the term used to describe a proportionate allocation. It is a method of assigning an amount to a fraction according to its share of the whole.
While a pro rata calculation can be used to determine the appropriate portions of any given whole, it is most commonly used in business finance. Pro-rata pension means the proportionate pension for the Government service.
It is calculated as per the Government pension rules. The pro-rata pension is paid by the Government. As per Rule 37 of Central Civil Services Pension Rules 1972 and as amended from time to time this provision of pro rata pension was made applicable to Central Govt employees inducted into public sector undertaking or an autonomous body, all Government servants of that Department shall be transferred en-masse to that public sector undertaking or autonomous body as the case may be on terms of foreign service without an deputation allowance till such time as they get absorbed in the said undertaking or body as the case be and such transferred Government servants shall be absorbed in the public sector undertaking or autonomous body as the case may be.
This policy was also made applicable only to Commissioned Officers of Defence Services and not to Personnel Below Officer Rank (PBOR) of the Defence Services.
The same issue was raised before Hon’ble Delhi High Court in WP(C) 10026/2016 by Govind Kumar Srivastava. The background of that case was that he served in the Air Force as a Corporal for more than 10 years and was discharged from service to join Civil post.
He applied for grant of Pro Rata Pension which was denied. The petitioner made out his case on the basis of discrimination being violative of Article 14 of the Constitution as there is no rational to deny Pro Rata Pension Benefits to PBOR and same being given to Commissioned Officer of Defence Forces on absorption/appointment in Central Public Enterprises. He cited the judgment of WP(C) No. 3471/1996 titled Ex-Sgt SS Kalan v. UOI & Ors with similar facts have been granted benefits and also highlighted the Rule 37A of CCS Pension Rule.
The Hon’ble Court on the basis of differential treatment being accorded to PBORs /NCOs like the petitioner recognising the notification dated 30.09.2000 have held that The petitioner cannot discriminate once the department have granted benefits in similar facts to other personnel who approached court (reference given above) and also cannot confine the benefit to Commissioned Officers who have completed 10 years of service and absorbed in a PSU thereafter.
The Hon’ble Court held that the principle challenge by the petitioner to discriminative part of Circular dated 19 Feb 1987 the court has not hesitation in holding that in denial in term of said letter/circular of the benefits of Pro Rata Pension to PBOR/NCOs like the petitioner is violative of Article 14. The benefits of Pro Rata Pension to the petitioner was granted accordingly.
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