High Court Imposed Stay Order on Commutation Deduction after 10 Years 8 Months

nw rules of commutation deduction

Recently Hon’ble Punjab and Haryana High Court has issued Stay order in the efect that the Commuted portion can not be recovered for more than 10 yers 8 months from the applicants who have filed ase before the court.

The commutation of pension means advance payment of a lump sum amount in lieu of portion of pension surrendered voluntarily by the pensioner based on the duration of period in relation to the age of pensioner.

The pension of the pensioner is proportionately reduced to the extent of the commuted portion from the date of receipt of lump sum commuted value by the Petitioner.

The recommendations of 6th CPC were implemented by Govt of India, Department of Pension & Pensioners’ Welfare vide letter No F. No. 38/37/08 P&PW(A) dated 2 Sep 2008 and revised commutation table was issued based on 8% interest. The provisions of this OM was made applicable to all central Govt to employees by the respective ministries including Min of Def Therefore at the time of retirement the commutation value has been disbursed to pensioners based on revised Table based on @8% interest.

Recently CWP No 2490-2024 Titled Ram Saroop Jindal Vs State of Punjab and others has been filed before Hon’ble Punjab and Haryana High Court with prayer to restore the commuted portion of pension after 10 years and 08 months (128 months) instead of 15 years (180 months) as the recovery of Commuted portion of pension along with interest thereon at the prescribed rate of 08% per annum stands already fully recovered in 128 months. The Hon’ble High court while issuing the notices of motion has also passed directions that “further recovery shall remains stayed.”

All the veterans and civilian pensioners who have opted to get commutation and yet to be restored, are similarly placed and in all cases the commuted portion of pension also has been recovered/ likely to be recovered upto 15 long years.  The competent authority may review all the case and stop further recovery of portion of pension where deduction/recovery has already been made for 10 years 8 months or more and refund excess amount already recovered to avoid unnecessary litigation.

You may submit your application to the competent authority as pdf file attached here-

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