Chandigarh: The Chandigarh Bench of the Central Administrative Tribunal has stayed recovery of commuted value of pension from retired employees of the Tele Communication Department who have completed 10 years and eight months of retirement.
The bench has directed the department to file reply within three weeks.
Many employees of the department have approached The Tribunal through advocate Sanjay Kaul to quash the action of the department whereby they were making recovery of Commuted Value of Pension (CVP) even after completion of 10 years and eight months of retirement.
They alleged that despite making total recovery, the respondents continued the recovery, against the law.
They prayed before the bench to issue the direction to the respondents to stop recovery from the applicants and to refund the excess recovery already made from them.
They also prayed to stay the recovery as interim relief during the pendency of the original application.
They said, as per the prevailing rules at the time of their retirement, the government servant may commute a portion not exceeding 40 per cent of their monthly pension at the time of retirement.
The commuted portion of the pension shall get restored after fifteen years from the payment of CVP.
They said that it has come to their notice that the amount of the commuted value of the pension could be recovered in a period of 10 years, not 15 years. They said the 15-year period was illegal and amounts to unjust enrichment of the state at the cost of applicants. They said the fixation of 15 years for restoration of full pension was not justified.
After hearing the arguments, the bench said the applicants were entitled to the same relief as has been granted by the High Court of Punjab and Haryana, following the principle of parity and being homogeneous.
The bench said there shall be a stay on further recovery of the commuted value of pension from the applicants, subject to the fact the applicants have completed 10 years and eight months of retirement. The respondents were directed to file reply within three weeks.
The court has listed the matter for hearing on October 10.
