Supreme Court Grants Full Arrears of Disability Pension to Ex-Servicemen
SC Rules Ex-Servicemen Entitled to Full Disability Pension Arrears

Supreme Court Delivers Landmark Ruling on Disability Pension for Ex-Servicemen

In a monumental decision that will profoundly impact tens of thousands of former Armed Forces personnel across India, the Supreme Court has unequivocally held that eligible ex-Servicemen (ESM) are entitled to receive full arrears of disability pension from the applicable cut-off dates, without any restriction to a three-year limitation period. The applicable cut-off dates are either January 1, 1996, or January 1, 2006, depending on the individual case.

A Right, Not a Largesse

The apex court made it explicitly clear that the disability pension is "not a matter of largesse, but a recognition of sacrifice made in service of the nation." A bench comprising Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe delivered this significant verdict while dismissing appeals filed by the central government and allowing those filed by ex-Servicemen seeking complete arrears.

The bench firmly stated, "Right to receive disability pension is a valuable right and once found due, the benefit has to be given from the date it became due. The same cannot be curtailed by restricting the benefit to a period of three years preceding the filing of the original application."

Core Legal Dispute and Historical Context

The central issue before the Supreme Court was whether arrears of disability pension should be restricted to only three years prior to the filing of a claim before the Armed Forces Tribunal (AFT). This dispute has its roots in the Supreme Court's landmark 2014 judgment in the case of Union of India versus Ram Avtar.

In that pivotal ruling, a three-judge bench had decreed that Armed Forces personnel who retire with disabilities attributable to or aggravated by military service were entitled to "broad banding" of their disability pension, even if they were not invalidated out of service. Following this 2014 judgment, numerous ex-Servicemen approached the AFT seeking re-computation of their disability pension and payment of arrears.

However, a lack of uniformity emerged in the AFT's decisions. While some tribunal benches granted arrears from the date of retirement or the applicable pay commission cut-off date, others restricted the arrears to a mere three-year period, citing principles of limitation law.

Government's Stance and Supreme Court's Rejection

In its appeal, the Centre, represented by the Attorney General, argued that its grievance was specifically confined to the direction to pay arrears beyond the three-year period. The government contended that claims for arrears of disability pension are governed by the Limitation Act, 1963, and that even in cases of a continuing wrong, arrears cannot extend beyond the prescribed limitation period.

The Supreme Court, in a decisive 17-page detailed order, firmly rejected the Centre's plea. The court observed that pension is not a matter of charity or executive discretion. It is a "deferred portion of compensation" and constitutes a vested property right protected under Article 300A of the Constitution of India.

"The contention advanced on behalf of the Union of India that the claim for arrears of disability pension is barred by Limitation Act, cannot be accepted," the Supreme Court held.

Wide-Ranging Ramifications of the Verdict

This Supreme Court verdict is expected to have extensive financial and administrative implications for the Ministry of Defence (MoD). It will potentially benefit a large number of retired Armed Forces personnel whose disability pension claims were previously curtailed or denied based on the limitation argument. The ruling ensures that the financial recognition of their service and sacrifice is fully honored.

Key Observations from the Supreme Court

Pension is Not a Bounty: The court elaborated on the fundamental nature of pensionary benefits. "Pension is neither a bounty nor an ex gratia payment dependent upon the grace of the state. It is a deferred portion of compensation for past service and, upon fulfilment of the governing conditions, matures into a vested and enforceable right. Pensionary entitlements, therefore, partake the character of property, and cannot be withheld, reduced, or extinguished except by authority of law," the Supreme Court stated.

Centre as a Model Employer: The bench also underscored the expected conduct of the government. "The Union of India, as a model employer, is expected to act with fairness, consistency and even-handedness in the administration of benefits conferred upon those who have served the nation. When a benefit is recognised by a policy and affirmed by judicial pronouncement, its application cannot be selective or uneven," the court remarked.

This ruling reinforces the legal and moral obligation of the state towards its veterans, ensuring that the principles of justice and equitable treatment are upheld for those who have dedicated their lives to the nation's defense.