04 Sep, 2012 09:23 PM

SC order : Army officers to have their pay fixed for 4th CPC

The Supreme Court on today asked the Government to re-fix the pay scale of of Army officers affected by the 4th Pay Commission.

The order will benefit a large number of officers who were in the rank of Captain to Brigadier in the Army and equivalent ranks in the Air Force and Navy, between January 1, 1986 and January 1, 2006. The order will cost Rs 1,600 crore to the exchequer.

The Supreme Court also directed the Centre to pay interest at the rate of 6 per cent from January 1, 2006, to all the officers, irrespective of whether they have or have not filed the petition before any of the High Courts or Benches of Armed Forces Tribunal. The payment have to be made within 12 weeks from today.

The bench directed that all pending petitions before any of the High Courts or Benches of Armed Forces Tribunal, by similarly-placed officers, will be governed by this order.

A three-judge bench of justices - RM Lodha, TS Thakur and Anil R Dave, passed the order while dismissing an application filed by the Centre for recall and modification of March 8, 2010 order.

By the March, 2010 order, the apex court had agreed with the reasoning of the Kerala High Court in the case of Major Dhanapalan and directed proper fixation of rank pay from January 1,1986 and interest at the rate of 6 per cent per annum.

The officers had contended that there was a wrong fixation of rank pay awarded by the Fourth Pay Commission in which the element of rank pay was introduced for all ranks from Captain to Brigadier in the Army and their equivalent ranks in the Air Force and Navy, in addition to pay in the integrated scale.

However, at the time of fixation, the rank pay was first deducted to arrive at the total emoluments and thereafter added after fixation in the integrated scale. This ensured that the final fixation of the total pay of the officer became at par with his civilian counterpart and the edge was neutralised during fixation.