The Supreme Court on Friday issued notices to the Centre and all states on a plea seeking restoration of full pension to retired judicial officers immediately after the recovery of their commuted pension amount, instead of waiting for the prevailing period of 15 years.
A bench headed by Chief Justice of India B.R. Gavai, and comprising Justices K. Vinod Chandran and N.V. Anjaria, was hearing submissions by advocate Gopal Jha on behalf of the All India Retired Judges Association (AIRJA). The association argued that the current system leaves former judicial officers at a financial disadvantage long after the principal and interest on commuted pensions have already been recovered.
AIRJA, led by its Chairman, former Justice N. Sukumaran, filed the plea in connection with a long-pending case initiated in 2015 by the All India Judges Association regarding service conditions and pensionary benefits.
The association pointed out that retired officers who opt for commutation receive a lump sum at the time of retirement to meet pressing needs such as housing, children’s education, or marriage expenses. The commuted amount is later deducted from monthly pensions over a period of 15 years, akin to equated monthly installments (EMIs).
However, according to AIRJA, the government recovers the full amount — principal plus 8% annual interest — in less than 11 years. Despite this, deductions continue until the completion of 15 years, resulting in excess recovery.
In its petition, AIRJA highlighted the case of a judicial officer retiring at level J7, who receives around ₹51.94 lakh as a lump sum. With 8% interest, the repayment liability comes to about ₹69.13 lakh. Yet, over the 15-year period, the government recovers nearly ₹95.08 lakh — an excess of approximately ₹26 lakh.
“This method penalises pensioners, as they end up repaying money they never received,” the plea contended, urging the court to strike down government orders, circulars, and rules mandating 15 years of recovery.
The petition also cited the recommendations of the Second Judicial Pay Commission, which had observed that the commuted amount with interest is usually recovered within 11 years and continuing deductions beyond 12 years is unreasonable.
AIRJA therefore requested the court to direct the Centre and states to restore full pension as soon as the actual recovery is complete.
Taking note of the submissions, the CJI-led bench ordered: “Issue notice to the Centre and all the states.” The matter will now proceed with responses from the governments before the court examines the policy further.
