Supreme Court Clarifies Pension Benefits for Women SSCOs: Wg Cdr A U Tayyaba (retd) vs. Union of India (2024)

Date of the Judgment: April 15, 2024

Citation: 2024 INSC 311

Judges: Dr Dhananjaya Y Chandrachud, CJI, J B Pardiwala, J, Manoj Misra, J.

Can the salary used to calculate pension for women Short Service Commissioned Officers (SSCOs) be based on a notional date of completion of service, rather than their actual release date? The Supreme Court of India addressed this question in a recent miscellaneous application, clarifying its previous judgment regarding pension benefits for women SSCOs. This case clarifies the calculation of pension, commutation value, encashment of leave, and ECHS benefits for women officers who were granted pensionary benefits based on deemed completion of 20 years of service. The bench was composed of Chief Justice of India Dr. Dhananjaya Y Chandrachud, Justice J B Pardiwala, and Justice Manoj Misra.

Case Background

The case involves a group of women Short Service Commissioned Officers (SSCOs) who were previously granted pensionary benefits by the Supreme Court. These officers were released from service after completing 14 years, but were deemed to have completed 20 years of service for pension purposes, as per the Supreme Court’s judgment dated 16 November 2022. The dispute arose because the Union government calculated their pension based on their last drawn salary at the time of their actual release, without considering notional increments up to the deemed 20-year completion date. The officers sought clarification on this and other related issues.

Timeline

Course of Proceedings

This Miscellaneous Application was filed seeking clarification of the Supreme Court’s judgment dated 16 November 2022 in Wg Cdr A U Tayyaba (retd) & Ors v Union of India & Ors. The primary issue was the method of calculating pensionary benefits for women SSCOs who were deemed to have completed 20 years of service for pension purposes, despite being released after 14 years. The applicants contended that the pension should be calculated based on the salary they would have drawn on the deemed date of completion of 20 years, including notional increments, and not on their last drawn salary at the time of their actual release. The Supreme Court heard the arguments and issued the order to clarify the matter.

Legal Framework

The judgment primarily deals with the interpretation and implementation of the Supreme Court’s previous order regarding pensionary benefits for women SSCOs. The core legal principle revolves around the concept of “deemed completion of service” for pension eligibility. The court clarified that when officers are deemed to have completed a certain period of service for pension purposes, their pension calculation should reflect the salary they would have drawn on that deemed date, including notional increments. The judgment does not cite any specific act or section, but it interprets the intent of the previous judgment to ensure that the women officers receive the full pensionary benefits they were entitled to.

Arguments

Submissions by the Appellants (Women SSCOs):

• The applicants argued that the authorities have not correctly interpreted the operative directions of the judgment dated 16 November 2022.
• They contended that once they have been treated as having completed the minimum qualifying service required for pension (20 years), the last drawn salary must be taken as on that date.
• They asserted that increments have to be computed for pension purposes from the date of release to the deemed date of completion of 20 years.
• They also sought clarification on the computation of the commuted value of the pensionary payment, encashment of annual leave, and grant of ECHS benefits.

Submissions by the Respondents (Union of India):

• The Union government had issued Pension Payment Orders (PPOs) based on the interpretation that the last drawn salary at the time of release should be used for pension calculation.
• The respondents did not specifically argue against the grant of notional increments but sought to implement the judgment in a manner that they believed was consistent with the directions.

Issues Framed by the Supreme Court

The Supreme Court addressed the following issues:

1. Whether the pensionary payments should be computed on the basis of the salary on the date of the deemed completion of twenty years or on the basis of the last drawn salary on the date of release.
2. Whether the women SSCOs would be entitled to notional increments between the date of release and the date on which they have completed the minimum qualifying period for pension, namely, the deemed completion of twenty years.
3. Computation of the commuted value of the pensionary payment.
4. Encashment of annual leave.
5. Grant of ECHS benefits.

Treatment of the Issue by the Court

The following table demonstrates as to how the Court decided the issues:

Authorities

The Supreme Court did not rely on any specific case laws or books in this order. The order is primarily based on the interpretation of its own previous judgment dated 16 November 2022. The court clarified the directions in its previous order to ensure proper implementation of the pensionary benefits for women SSCOs. The Court referred to the following:

• Judgment dated 16 November 2022 in Wg Cdr A U Tayyaba (retd) & Ors v Union of India & Ors – Supreme Court of India.
• HRP dated 19 November 2010 bearing Part No 5.

Judgment

How each submission made by the Parties was treated by the Court?

How each authority was viewed by the Court?

• The Judgment dated 16 November 2022 in Wg Cdr A U Tayyaba (retd) & Ors v Union of India & Ors [2022 INSC 1111]* was interpreted and clarified to ensure that the pensionary benefits are correctly calculated. The court held that the pensionary payments would have to be computed on the basis of the salary on the date of the deemed completion of twenty years and that the women SSCOs would be entitled to notional increments between the date of release and the date on which they have completed the minimum qualifying period for pension.

What weighed in the mind of the Court?

The Supreme Court’s decision was primarily driven by the need to ensure that the women SSCOs receive the full pensionary benefits that were intended by its previous judgment. The Court emphasized that the officers were deemed to have completed 20 years of service for pension purposes, and their pension calculation should reflect that. The Court’s reasoning focused on the following:

• Correct Interpretation of Previous Judgment: The Court clarified that its previous order intended that the women officers be treated as if they had completed 20 years of service, and hence, their pension should be calculated based on the salary they would have drawn on that deemed date.
• Notional Increments: The Court recognized that notional increments were necessary to ensure that the officers receive the full benefits they were entitled to, as if they had served for the full 20 years.
• Fairness and Equity: The Court aimed to ensure fairness and equity in the implementation of its orders, ensuring that the women officers are not disadvantaged due to the technicality of their release date.
• Other Benefits: The Court also addressed the issues of commutation value, leave encashment, and ECHS benefits to provide a comprehensive resolution to the grievances of the applicants.

Sentiment Analysis of Reasons Given by the Supreme Court:

Fact:Law Ratio:

The court’s decision was primarily based on legal considerations (70%), focusing on the interpretation of its previous judgment and ensuring that the women officers receive the full benefits they were entitled to. The factual aspects of the case (30%) were also considered to ensure that the directions were implemented fairly.

Key Takeaways

• Pensionary benefits for women SSCOs should be calculated based on the salary they would have drawn on the deemed date of completion of 20 years, not their actual release date.
• Women SSCOs are entitled to notional increments between their actual release date and the deemed date of completion of 20 years for pension calculation.
• The commuted value of the pension should be calculated as on the date of the deemed completion of 20 years.
• Officers are entitled to encashment of annual leave up to a maximum of 300 days, and any difference should be paid.
• Women SSCOs are entitled to ECHS benefits as retired officers.

Directions

The Supreme Court directed the following:

• The pensionary payments would have to be computed on the basis of the salary on the date of the deemed completion of twenty years.
• The women SSCOs would be entitled to notional increments between the date of release and the date on which they have completed the minimum qualifying period for pension.
• The commuted value shall be computed as on the date of the deemed completion of twenty years.
• The difference between the encashable quantum of 300 days and the amount which has already been released shall be computed and paid over.
• The officers governed by this batch and other similarly placed officers would be entitled to ECHS benefits as retired officers.
• The one time pensionary payment due in terms of the judgment dated 16 November 2022 shall be revised and arrears that remain due and payable shall be paid on or before 15 June 2024.
• The PPOs shall also be corrected, since they erroneously referred to the applicants as having been ‘released’. This shall be corrected in terms of the judgment dated 16 November 2022 before 15 June 2024.

Development of Law

The ratio decidendi of this case is that when officers are deemed to have completed a certain period of service for pension purposes, their pension calculation should reflect the salary they would have drawn on that deemed date, including notional increments. This clarifies the implementation of the Supreme Court’s previous judgment and ensures that the intended benefits are fully realized. There is no change in the previous position of law, but rather a clarification of how the law should be applied in this specific context.

Conclusion

The Supreme Court’s order clarifies the method of calculating pensionary benefits for women Short Service Commissioned Officers (SSCOs) who were deemed to have completed 20 years of service for pension purposes. The Court directed that the pension should be calculated based on the salary they would have drawn on the deemed date of completion of 20 years, including notional increments. This ensures that the officers receive the full pensionary benefits they were entitled to. The court also clarified the calculation of commutation value, encashment of leave, and ECHS benefits. This order resolves the grievances of the appellants and sets a clear precedent for similar cases.