Wg. Cdr. A.U. Tayyaba (Retd.) and Ors. vs. Union of India and Ors.
Background
In an earlier 2022 judgment, the Supreme Court had directed that women Short Service Commissioned Officers (SSCOs) released from the armed forces after 14 years be treated as having completed the 20-year minimum qualifying service for pension, with arrears of pension payable from the deemed completion date. When the government issued Pension Payment Orders, it computed pension using the officers' last-drawn salary as of their actual release date, without factoring in the notional salary increments they would have earned up to the deemed 20-year mark, prompting this application for clarification.
Decision Breakdown
The Court clarified that its 2022 direction meant pension must be computed on the salary as of the date of deemed completion of 20 years, which necessarily includes notional increments between the actual release date and that deemed date. It further directed that the commuted value of pension, encashment of accumulated annual leave (up to the permissible maximum of 300 days), and ECHS (medical) benefits all be recalculated and paid on this corrected basis, with all arrears to be settled by 15 June 2024, and it directed correction of Pension Payment Orders that had wrongly recorded the officers as "released" rather than retired with full benefits.
Lesson Learnt
When a court's earlier judgment grants pensionary parity based on a "deemed" length of service, the benefit must be computed as if the officer had genuinely served through to that deemed date, including salary increments, not frozen at the salary drawn on the date of actual release.