Supreme Court Allows Ex-Servicemen's Claims for Full Disability Pension Arrears -- Union of India's Appeal Dismissed -- Judgment in Rem Overrides Limitation Periods for Recurring Pension Rights Under Armed Forces Tribunal Act

Nature of Litigation: Civil appeals concerning arrears of disability pension for ex-servicemen

Remedy Sought

Union of India sought restriction of arrears to three years while ex-servicemen sought full arrears from date of discharge

Filing Reason

Conflicting decisions of the Armed Forces Tribunal on period for which arrears of disability pension are payable

Previous Decisions

Tribunal in some cases directed payment from specified cut-off dates while in others restricted benefits to three years prior to application filing -- Full Bench of Tribunal held Ram Avtar judgment is judgment in rem and disability pension cannot be denied on grounds of limitation, delay, or laches

Issues

Whether the benefit of arrears of disability pension can be restricted to three years prior to filing of applications before the Tribunal

Submissions/Arguments

Union of India contended that claims for arrears are governed by Limitation Act, 1963 and Section 22 of Armed Forces Tribunal Act, 2007 -- Even in continuing wrong cases, arrears cannot extend beyond prescribed limitation period Ex-servicemen argued that right to claim arrears crystallized upon Ram Avtar judgment which is judgment in rem -- Denial or restriction would amount to deprivation of vested and recurring right -- Issue is no longer res integra

Ratio Decidendi

The Ram Avtar judgment constituted a judgment in rem that created enforceable rights for all similarly situated persons -- Disability pension is a recurring right and property interest that cannot be denied on grounds of limitation, delay, or laches -- Section 22 of the Armed Forces Tribunal Act, 2007 does not apply to disability pension arrears claims -- The right to disability pension, once judicially affirmed, cannot be curtailed by procedural limitations

Judgment Excerpts

The present batch of appeals require this Court to determine whether entitlement to disability pension, once judicially affirmed, can be curtailed beyond a prescribed period by invoking limitation, delay or laches The full bench of the tribunal by an order dated 01.12.2017, inter alia held that the decision of this Court in Union of India & Others v. Ram Avtar (supra) is a judgment in rem and denial of arrears of disability pension amounts to deprivation of property It was contended that claims for arrears of disability pension are governed by the provisions of the Limitation Act, 1963, as well as Section 22 of the Act, and that even in cases of continuing wrong, arrears cannot extend beyond the prescribed period of limitation It was argued that denial or restriction of arrears of disability pension would amount to deprivation of a vested and recurring right, and that the issue is no longer res integra The solitary issue which arises for consideration is whether the benefit of arrears of disability pension can be restricted to three years

Procedural History

Ex-servicemen were discharged with disability pension -- Following Ram Avtar judgment (10.12.2014), applications were filed before Armed Forces Tribunal seeking broad banding and arrears -- Tribunal granted benefits but with conflicting approaches to arrears period -- Full Bench of Tribunal held arrears could not be restricted -- Union of India and ex-servicemen filed appeals before Supreme Court under Section 30 of Armed Forces Tribunal Act, 2007