Rank Pay: New Order by MoD for more monetary benefits

Rank Pay: New Order by MoD for more monetary benefits

On the rank pay controversy the Attorney General had supported some of the issues raised by the Defence Services on which there was a difference of opinion with the Ministry of Defence on interpretation of the decision of the Supreme Court.

Taking into account the legal advice tendered by the then Attorney General, the Ministry has issued a fresh letter on the rank pay issue which is to be read in conjunction with the earlier letter.

The Ministry has also agreed that the reduction/deduction of rank pay from the fixation during 5th Central Pay Commission was also incorrect and that the fixation would be rectified for the period of 01st January 1996 and beyond too.

The contents of letter is reproduced below: The letter can be downloaded by Table by PCDA.

34(10/2013/D (Pay/Services)
Government of India
Ministry of Defence

New Delhi, Dated the 24th July 2014

To,
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief of the Air Staff

CORRIGENDUM

Sub: Implementation of Hon’ble Supreme Court Order dt 4th September, 2012 in IA No. 9 of 2010 in Transfer Petition (C) No. 56 of 2007 Union of India and Others versus N. K. Nair & others, etc

Sir,
I am directed to refer to this Ministry Order No. 34 (6)/2012-D(Pay/Services) dt 27th December 2012 regarding implementation of subject Order of the Hon’ble Supreme Court and to state that as per legal opinion tendered by the Learned Attorney General of India, the sanction of the Government is hereby accorded to modify the provisions of this Ministry’s ibid order as under:

(i) The existing para 6 will be renumbered 6 (A) and would stand revised as under:

In the twelfth line after the word ‘(integrated scale),’ the words “as on 1.1.1986” will be substituted by “w.e.f. 1.1.1986.”

(ii) A new para 6 (B) will be added as follows:

6(B) Sanction of the Government is hereby also communicated to modify certain provisions of Special Army Instructions No. 2/S/1998 dated 19th December 1997 and the corresponding Special Instructions pertaining to Navy and Air Force both bearing Nos. 2/S/1998 dated 19th December 1997, in so far as they relate to deduction of Rank Pay for fixation of revised pay of the concerned officers of  Army, Navy and Air Force in the revised scale w.e.f. 01.10.1996. The modifications/amendments in SAI 2/S/1998 and corresponding instructions for Air Force and Navy are as under:

(a) The existing para 5(a)(ii) would read as under:

(ii) After the existing emoluments have been so increased, there shall be no deduction of Rank Pay. Thereafter, the officer’s pay will be fixed in the revised scale at the stage next above the amount thus computed

(iii) A new para 6(C) will also be added in ibid MoD letter as follows:

6(C) The pay fixation formula w.e.f. 1.1.2006 as laid down in SAI 2/S/2008 and the corresponding Special Instructions applicable to the Air Force and Navy has also been examined in light of the legal opinion tendered by the Learned Attorney General. In the methodology of pay fixation of revised pay w.e.f. 1.1.2006, Rank Pay has not been deducted and has been taken into account along with Basic Pay in the pre-revised scale to arrive at the new, revised pay in the relevant pay band w.e.f. 1.1.2006 whereupon Grade Pay has also been given and an additional component of Military Service Pay (MSP) at Rs 6000 p.m. is also admissible to the Armed Forces upto the rank of Brigadier/eq. As such, the pay fixation formula w.e.f. 1.1.2006 for the relevant officers of the Armed Forces as laid down in the relevant instructions does not require any change.

(iv) Existing Para 7 will be replaced with the following:

7. Except to the extent of modifications as stated in MoD letter No. 34(6)/2012-D (Pay/Services) dated 27.12.2012 and as amended vide this letter, the aforesaid Army Instructions 1/S/87 dated 26.05.1987 and corresponding Navy and Air Force Instructions both bearing No 1/S/87 dated 11.06.1987 and 26.05.1987 respectively as amended from time to time and Special Army Instructions No. 2/S/98 of 19.12.1997 and the corresponding Special Instructions in case of Navy and Air Force both bearing No. 2/S/98 dated 19.12.1997 as amended from time to time, there shall be no change in the provisions of the aforesaid Special Army, Navy and Air Force Instructions of 1987 and 1997 pertaining to the implementation of the recommendations of the 4th and 5th Central Pay Commission.

(v) Existing para 8 will be replaced with the following:
8. As the aforesaid Order of the Hon’ble Supreme Court passed on 04.09.2012 read with their earlier order dated 08.03.2010 has upheld the order of the Hon’ble Kerala High Court passed on 05.10.1998 in case of Major A K Dhanapalan and as the said order of the Hon’ble Kerala High Court dated 05.10.1998 is for re-fixation of pay without deduction of Rank Pay w.e.f. 1.1.1986, and as this sanction is in compliance with these judicial pronouncements and the legal opinion of the Learned Attorney General on this issue, it is clarified that there shall be no change in respect of Special Army Instructions of Army, Navy and Air Force issued on 11.10.2008 (Army) and 18.10.2008 (Navy and Air Force) for implementation of the recommendations of the 6th Central Pay Commission, except to the extent of the need for the fixation of pay w.e.f. 01.01.2006 necessitated due to the fixation of pay w.e.f. 01.01.1986 and 01.01.1996 in terms of these orders.

(vi) All other provisions of the MoD letter No. 34(6)/2012-D(Pay/Services) dated 27.12.2012 remain unchanged.

2. This issues with the concurrence of Ministry of Defence (Finance) vide their UO No. 1(76)/2013-AG/PA (310-PA) dated 23.07.2014 and Ministry of Finance (Department of Expenditure vide their UO No. 94466/E.III (A)/2014 dated 09.07.2014

Yours faithfully,
(P.S. Walia)
Under Secretary to the Government of India

Source: http://www.indianmilitary.info