Supreme Court Raps Central Government on OROP, Clear All Pension Dues In One Installment

The Supreme Court on Monday directed the central government to pay pension arrears of retired military personnel in one installment instead of four.

The apex court said that we had issued an order to pay the remaining pension in one instalment, on the contrary, the Defence Secretary issued a letter to pay the outstanding pension in four instalments. This is contempt of court, ask us to withdraw your letter or we will take action against you.

A bench comprising Chief Justice of India (CJI) DY Chandrachud, Justice PS Narasimha, and Justice JB Pardiwala directed the Secretary of Defence Ministry to file a personal affidavit explaining why the Ministry issued a unilateral directive when the apex court had directed that the payment be made by March of this year.

The ministry had announced in a notification from January 2023 that the payments would be given in four equal installments.

The problem is related to the March 2022 ruling in which the Supreme Court supported the OROP programme that the Central government had launched through its notification of November 7, 2015.

However, the Court had ordered that the government execute a refixation exercise for a period of five years with regard to the pension due to Army troops according to the OROP policy in compliance with the November 7, 2015 notification.

Then, it had said that the arrears were to be paid in three months.

After that, in September 2022, the same extension was given for an additional three months, and in January 2023, the court granted another extension and mandated that the payment be completed by March 15.

The Center later announced, however, that the money would be made in four payments every quarter.

Senior Advocate Huzefa Ahmadi challenged how the administration could unilaterally change the date established by the Court while speaking on behalf of the affected personnel.

“When this court passed an order how can the department reserve the right to modify it? 4 lakh pensioners have passed away in the interregnum and they cannot claim the pension,” he stated.

The CJI was also not impressed by the Defence Ministry’s actions.

“This is not a war but under the rule of law. Set your own house in order. If not we will issue a contempt notice to the Ministry of Defence,” the CJI remarked.

The bench then sought the Secretary’s response.

“Defence Ministry Secretary to the pension scheme is directed to file a personal affidavit on why this unilateral direction passed when Supreme Court had passed orders,” the order noted.

The Court also warned that if arrears are not cleared by March 15, they will have to pay 9% interest.