LATEST STATUS AND BRIEF ON ACTION BY AIR HQ ON THE CASE OF MAJ AK DHANAPALAN (RETD) VS UNION OF INDIA

    The Contents of Air HQ (RKP) letter No. Air HQ/25840/21/D Accts dated 06 Jun 06 reproduced below for the information all concerned:-

             INCORRECT DEDUCTION OF RANK PAY WHILE FIXING PAY IN THE INTEGRATED SCALE CONSEQUENT TO IMPLEMENTATION OF IV CENTRAL PAY COMMISSION REPORT

1.        Consequent to the implementation of the IV CPC , the Pay of AF Officers was fixed in terms of SAFI 1/S/87. The procedure outlined in the SAFI for fixation of initial pay in the revised scales is given briefly:-

            An amount representing 20% of the basic pay in the existing scale shall be added to the existing emoluments of the officers.

            After the existing emoluments have been so increased, an amount equivalent to the rank pay, if any,
appropriate to the rank held by the Officer on 01 Jan 86 at the rate prescribed in para 3(a) (ii) of AFI will be deducted. Thereafter, the officers will be fixed in the revised scale at the stage next above the amount thus computed.

2.         MoD has now asked this HQ to work out the financial implications on the re-fixation of pay of Officers who were affected on account of formula of pay fixation devised by IV CPC. AFCAO is now working out the financial affect of all affected serving and retired officers on this account.

            Government decision on the subject is still awaited and will be communicated as and when received

The Secretary, AFA Karnataka Branch
07 Jul 06

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THE CASE OF MAJ AK DHANAPALAN (RETD) VS  THE  UNION  OF INDIA

              In accordance with the recommendations of the 4th Pay Commission and government decisions thereon, as promulgated under Gazette of India (Extraordinary) Notification No 91 dated 18/3/1987, officers of the Army, Navy and Air Force were granted an integrated pay in the scale of Rs 3300 -100-3900-150-5100.

             In addition to the pay in the integrated scale as above, Rank Pay for Captain, Major, Lt Col, Col and Brig and equivalent in the Navy and the Air Force were also granted @ Rs 200, 600,800,1000 and Rs 1200 per month respectively.

            Although the rank pay was sanctioned in addition to the basic pay, while fixing the pay in the integrated scale an amount equal to the rank pay was deducted from the total emoluments. This resulted in heavy financial loss to the officers which also have cumulative effects on pay, DA, pension, gratuity etc.

            Having failed to get a proper consideration of the case from due authorities, Maj AK Dhanapalan (Retd) was forced to approach the Honourable High Court of Kerala for justice in the case of Maj AK Dhanapalan (Retd) Vs Union of India in Original Petition (OP) 2448/96. The Honourable High Court of Kerala was pleased to allow the plea of the officer and held that the deduction of the rank pay from the basic pay was not correct and directed the concerned authorities to re-fix the basic pay with effect from 1st January 1986.

            However, the Union of India preferred an appeal before a larger bench of the High Court against the judgment. Larger bench of the High Court was also pleased to dismiss the appeal. The Union of India filed an appeal with the Honourable Supreme Court of India. The Honourable Supreme Court was pleased to dismiss that appeal on 10th July 2005.

           According to the judgment, pay of Maj AK Dhanapalan has been re-fixed with effect from 1st January 1986 and government sanction for payment of arrears was issued. Officers (serving/retired) of the Armed Forces who were in service as on 1st January 1986 in their rank of Captain, Major, Lt Col, Col and Brig and equivalents in the Navy and the Air Force also fall in the same category and have suffered the same degree of injustice as Maj AK Dhanapalan had faced. However, they seem to have been forgotten by the authorities concerned in terms of redressal.

          This benefit has not automatically accrued to all similarly placed officers of the Army, Navy and the Air Force.The `Dhanapalan Case' has set a legal precedent. Eligibility for minimum arrears, after re-fixation, works out approximately as:

Captain (and equivalent) - Rs 55,000

Major (and equivalent)    - Rs 1,50,000

Lt Col (and equivalent)    - Rs 2,00,000

Col (and equivalent)         - Rs 2,50,000

Brig (and equivalent)         - Rs 3,30,000

Note: this is subjected to the length of service from 1-1-86

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(SOURCE ':- THE SECRETARY, AFA KARNATAKA BRANCH)

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LATEST STATUS ON MAJOR DHANPALAN CASE

1.        Genesis. The GOI resolution that followed the recommendations of 4th CPC, on one hand indicated that Rank Pay would form part of the Basic Pay. However, on the other hand, in the methodology of fixing pay, Rank Pay was to be deducted from the revised consolidated pay and thereafter pay fixed in the next higher slab of pay. This method of consolidating pay, after deducting the Rank Pay, was the issue that Maj Dhanapalan contested in the Kerala High Court. This was upheld by the Hon'ble High Court of Kerala and GOI was directed to refix the pay without deducting the Rank Pay. GOI/MOD appealed against this judgement. However a Division Bench of the same court dismissed the appeal. Subsequently, GOI/MOD file a Special Leave Petition in the Hon'ble Supreme Court, which was also dismissed, albeit due to an inordinate delay in filing of the Special Leave Petition and not on the merit of the case.

(a) Since Maj Dhanapalan case was decided in his favour, a number of Writ Petitions have been filed in different High Courts by retired Naval Officers for grant of similar relief in pay fixation as was granted to Maj Dhanapalan (Retd) by Hon’ble High Court of Kerala.

(b) In consultation with Min of Law & Justice, a Transfer Petition (No 56/ 2007 under Article 139 A of the Constitution) was filed in the Apex Court by Ministry of Defence on behalf of Union of India for clubbing all Writ Petitions pending in different High Courts. The Hon’ble Supreme Court vide order dated 05 Feb 07 has granted interim stay for further proceedings.

(c) Transfer Petition was heard in Hon’ble Supreme Court on 09 May 08 wherein the Hon'ble Supreme Court directed that these cases are to be clubbed together for further hearing by them. Subsequently, case was heard on 20 Oct 08, wherein the Govt Counsel sought a week time to seek GoI instructions to proceed further. Subsequently, the case was heard on 03 Nov 08, where the counsel for the respondent submitted that cases in which pleading are complete be disposed off. The Hon'ble Court gave two weeks time to file rejoinder, if any, by GOI. Thereafter, the case be listed for final disposal.

(SOURCE : INDIAN NAVY SITE)