SC: Pension cut only for tenure of statutory post

SC: Pension cut only for tenure of statutory post 

11.11.2026 TIMES CHENNAI

By an order of Dec 19, 2006, the finance controller, Uttarakhand PSC, fixed Lt Gen Bhandari’s salary as chairman of Uttarakhand PSC after deducting 17,627, the amount of pension drawn by him. He challenged the deduction before the HC saying the pension was for the service he rendered as an Army officer and had no connection with the role he was assigned as PSC chairman and hence the pension amount could not be deducted from his salary. 

The HC agreed with him in 2010, forcing Uttarakhand to challenge it before SC. After more than 15 years, SC decided the appeal, ruling that Regulation 7(2) had striking similarities with a similar ‘pay minus pension’ principle enshrined in a provision in UPSC Regulations in case of re-engagement of retired public servants in constitutional posts. 

The bench said deduction of the pension amount from the salary was only for the tenure of the constitutional post to which the retired govt servant was appointed and would revive after he demitted the post. Writing the judgment, Justice Anjaria said, “If the cases of the original petitioners were to be accepted and the salary could be determined by adding the pension receivable by them at the time of their retirement from the previous government service, it would have led to absurd consequences.

 “The total amount in such eventuality would exceed the actual salary payable for the post and perhaps would become more than the salary of the highest post. Therefore, by no stretch of logic it could have been contended that in the amount of salary, the pension portion was liable to be added.”