The High Court of Panjab and Haryana has dismissed 808 writ petitions challenging the 15-year period for pension restoration after commutation. The petitions, filed by retired Punjab government employees, had sought restoration of commuted pension after a shorter period of about 12 years, arguing that the existing 15-year period was arbitrary and unjustified.
The amount of commuted part of pension stands recovered in approximately 11.5 years in about 135 instalments along with the interest, while the state is recovering this amount for 15 years in 180 instalments, the petitioners had submitted.
Commutation of pension allows retirees to get a lump sum payment at the time of retirement in exchange for a part of their monthly pension. This amount is typically recovered over a period of 15 years. Many retirees had petitioned for this period to be reduced to 12 years, arguing that the current duration was excessive and financially unjustified.
In its final decision, the High Court dismissed the petitions, emphasizing that the 15-year period was a voluntary choice made by the retirees. The Division Bench of Justice Lisa Gill and Justice Sukhvinder Kaur observed: “Having availed of a benefit which is clearly voluntary in nature, it is not open to the petitioners to raise the grievances, at this stage, to seek a variation in the terms and conditions accepted by them with open eyes.”
The court held that the petitioners’ claim lacked merit, adding: “The counsel for petitioners were unable to point out any material on record to show that the formula adopted is per se and ex-facie irrational or arbitrary which calls for interference by this court.”
The Bench asserted that matters related to commutation of pension were inherently complex, involving “vexed issues traversing diverse fields, which call for application of specialized expertise.” It reiterated that judicial interference in such matters would be warranted only in cases of “manifest and apparent arbitrariness,” which the petitioners failed to establish.
The court also vacated all interim orders staying recoveries and clarified: “The State is entitled to effect recoveries which were stayed by way of interim orders in the writ petitions. Such recovery, however, be made in a staggered manner to obviate any hardship to the pensioners.”
This ruling means that retirees who opted for pension commutation will continue to have their pensions restored after 15 years.
The Punjab Government, nonetheless, expressed its readiness to reevaluate the scheme/ period of commutation, through an expert committee taking into account underlying factors . The designated committee will also engage with pensioner associations in the state for their feedback.
Pension Restoration: High Court Upholds 15-Year Commutation Period was originally published on All India RBI Oers Pensioners Forum