Supreme Court sets new timeline for OROP arrears payment

The Supreme Court on Monday extended government's deadlines for paying arrears to retired military personnel and family pensioners under 'one rank one pension' scheme. A bench of Chief Justice of India DY Chandrachud and Justices JB Pardiwala and PS Narasimha ordered that family pensioners and gallantry award winners should be paid arrears in a single instalment by April 30.

Those above 70 should be paid arrears in a single instalment, or spread out, by June 30. For the remaining, arrears should be paid in three equal instalments by August 31, November 30 and next February 28. SC had earlier ordered arrears payments by mid-March 2023. The revised deadlines and staggered payment schedule were issued after the Centre cited financial difficulties in paying arrears at one go. The Ministry of Defence had moved an application seeking extension of deadline for clearing arrears.

The court also refused to accept MoD's note in a sealed cover, produced by attorney general R Venkataramani. The practice of sealed cover notes was against the fundamental process of justice, the CJI said and added he wanted to end the "sealed cover business". After the Supreme Court started accepting notes from the Centre in sealed covers, high courts were following the procedure, the CJI said.

"I am personally averse to sealed covers. There has to be transparency in court... If we follow sealed covers, then high courts follow it and there needs to be an end to it," the CJI remarked. He added that there was nothing confidential in the case since it pertained to implementing SC's previous order. "This is about implementing the orders. What can be the secrecy here? You must give a copy to the other side. Sealed covers are completely against settled judicial principles," he told the AG.

The AG then read out the contents, which said that MoD had taken up arrears payments with the finance ministry, which expressed inability to provide funds in one go and recommended staggered payments. SC had last Monday expressed displeasure over MoD notification that indicated that the deadline for arrears payments would be missed. Referring to the notification that said arrears would be paid in four half-yearly instalments, SC said that MoD could not 'take law into its hands.' Last March, SC had upheld Orop, introduced by the Centre through a November 7, 2015, notification. The ruling, however, said the Centre must have refixation exercise for five years on pension payable to defence personnel as stated in the policy.