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Restoration of Commuted portion of Pension before 15 years from the date of commutation

No. 1222/2015
Historical — likely supersededCircularticket-checking
Historical — likely superseded. This circular predates 2020 and has probably been replaced. Treat it as a record of what the rule was, not what it is. The official Railway Board PDF always prevails over anything shown here.

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Circular numberNo. 1222/2015
TypeCommercial Circular
Topicticket-checking
CurrencyHistorical — likely superseded

Summary

Restoration of Commuted portion of Pension before 15 years from the date of commutation Subject:-Restoration of Commuted portion of Pension before 15 years from the date of commutation.

Text of the circular

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

No. F(E)II1/2024/Mise.3(R) New Delhi, dated: 26.03.2025.

The General Managers/Principal Financial Advisors,
All Zonal Railways/Production Units ete,
DGs of RDSO and NAIR.

Subject:-Restoration of Commuted portion of Pension before 15 years from the date of commutation.
wie
References have been received from different Zonal Railways/Production Units seeking
guidelines/clarifications on the court cases filed by railway pensioners praying for restoration of their commuted
portion of pension before completion of 15 years from the date of commutation.

2 Representations have also been received from different Associations/Individuals requesting to restore the
commuted portion of pension before 15 years.

3. The issue has been examined in consultation with nodal Department on pensionary matters, i.e. the
Department of Pension & Pensioners Welfare (DOP&PW). The DOP&PW has clarified as under-

'The law regarding commutation has been well settled by the Hon'ble Supreme Court vide their judgment dated
09.12.1986 in Writ Petition No. 3958-61 of 1983 “Common Cause” Society and others (Petitioners) Vs Union of
India (1987 (1) SSC 142) in 1986. The Supreme Court considered all the relevant factors like interest rate,
mortality rate etc. and the commutation table in existence in 1986 and gave a decision that the commutation period
should be fixed at 15 years.

The Hon'ble Delhi High Court of Delhi in their judgment dated 17.01.2019 in WP(C) No. 1222/2015 filed by
forum of Retired IPS Officer (Foripso) Versus Union of India and another observed that the pension, commutation
of pension etc. are policy matters, which are examined and decided on the basis of recommendations of the Pay
Commissions by the authorities. Further, the Hon'ble Supreme Court of India in its judgment dated 15.04.2019 in
Petition(s) for Special Leave to Appeal(C) No(s). 8852/2019 (arising out of impugned final judgment and order
dated 17.01.2019 in WP(C) No. 1222/2015 passed by the High Court of Delhi at New Delhi) delivered that “we
have no reason to entertain this petition. Accordingly, the special leave petition is dismissed." Also Hon'ble High
Court of Punjab and Haryana, in their order of CWP no. 9426 of 2023 (O&M) dated 27.11.2024 (containing 808
writ petitions) regarding restoration of commuted pension after 12 years have directed to effect recoveries which
were stayed by way of interim orders.’

4. In view of above clarification of DOP&PW, Zonal Railways/Production Units are advised to take steps in
defending the court cases filed by pensioners for restoration of commuted portion of pension before completion of
15 years from the date of commutation, and also for disposal of pending references, if any.

5. This also disposes Northern Railway's letter No. NR/HQ/Pension/Court Case/2023 dated 08.10.2024.
°
Riga fudesors.
(G. Priya Sudarsani),

Director, Finance (Estt.),
Railway Board.

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