Monday, October 5, 2009

Claiming Arrears By Lt Col & Eq - On Revision PB3 to PB4 by Lt Col MG Kapoor

From: Madan Gopal Kapoor
To: ""REPORT MY SIGNAL" (CS Kamboj)"
Sent: Friday, 25 September, 2009 1:08:00 PM
Subject: Reg: Claiming Arrears By Lt Col & Eq - On Revision PB3 to PB4
Dear Brig Kamboj,

I am writing to you to dissminate, at your option, to affected Lt Col and equivalent how I got my arreas of Pension on upgradation of my pension from Pay Band -3 to Pay Band - 4.

I approached my Bankers SBI on number of occasions subsequent to the issuance of May 21 letter revising the pension of Lt Col and eq ranks, but to no avail. They kept narrating cock and bull stories - ours is a centralised system - it will take time - so on and so forth.

Fed up I served them 'Legal Notice' on 7.9.2009 giving them 7 days to credit the arreares failing which I cautioned them I shall claim interest at Bank's PLR (Prime Lending Rate) for the 'Deficiency of Sevice' . The Notice was to the CMD, SBI, Mumbai and to the AGM of the Branch.

It had telling effect. On 15th I got phone call from the AGM. He asked for three more days. Dot on 18th he called me to inform that the arrears, including 60% arrears due by 30.9.2009 too had been credited to my account.

I am attaching as attachment copy of my legal notice so that the veterans who have still not got the arrears may take the cue and send legal notice on similar lines, giving their own respective facts.

You may at your option publish it in the Blog for others to take benefit, if so advised.

(Lt Col MG Kapoor, practising law in Delhi HC)


Lt Col (S) M.G. Kapoor (Retd) Tele: 011-26439429
Advocate 011-26476540
Delhi High Court Mob: +919810938378

IV-B-17, Amar Colony,
Lajpat Nagar,
New Delhi – 110 024
07 September 2009

1. The A.G.M.
State Bank of India,
… edited …
2. C.M.D.,
Headquarters, State Bank of India,
Nariman Point,

Please take Notice as follows:
1. That my pension account is in your Bank Branch at … edited; account No. being … edited ... My PPO No. is … edited … .
2. That I was commissioned into the India Army on 11.12.1962.
3. That I retired on 22.1.1984 (FN) in the rank of Lieutenant Colonel (Substantive) (for short Lt Col (S)).
4. That in implementation of the recommendations of the sixth CPC by the Government of India the Pay Structure for the rank of Lieutenant Colonel in the Army (other than the MNS Officers) and equivalent ranks in Navy and Air Force issued vide Government of India, Ministry of Defence, letter No. 17(4)/2008(1)/D(Pen/Policy) dated 11.11.2008 as amended vide letter even No. dated 20.1.2009, were further revised under Special Army Instruction No. 2/S/2008 dated 21.4.2009 under which Lieutenant Colonels and equivalent ranks in Navy and Air Force have been placed in Pay Band – 4 (i.e. Rs. 37400 – Rs. 67000) with Grade Pay of Rs.8,000/- p.m. and MSP of Rs. 6,000/- p.m.
5. That accordingly, the rates of minimum guaranteed pension for the rank of Lieutenant Colonel (Substantive) / Lieutenant Colonel (Time Scale) and equivalent ranks in Navy and Air Force, earlier notified in Annexure-II to Ministry of Defence above quoted letter dated 20.1.2009, were substituted with the rates indicated in Annexure to Ministry of Defence letter No.17(4)/2008(1)/D(Pen/Policy) dated 21.5.2009,copy of which is already in your possession.
6. That as per the said Annexure to 21.5.2009 letter my pension as on 1.1.2006 is to be fixed at Rs.21,807/-, having completed 21 years of service in the rank of LT COL (S) on retirement. The revised pension with 22% DA as on 30.6.2009 works out to 26,605/- p.m. The D.A. for the current Half Year1.7.2009 to 31.12.2009 @ 24% has also been announced by the Government. Accordingly my pension from 1.7.2009 (payable on 1.8.2009) onwards is 27041/-
7. That although more than three months have passed, from the issue of Orders to fix the pension of the Lieutenant Colonels as per the Annexure to Government Order dated 21.5.2008, I have neither been paid the revised pension nor admitted the arrears.
8. That I have time and again visited your Bank in Lajpat Nagar and requested them to expedite release of arrears of pension as also admit revised pension as per Pay Band – 4.
9. That however, I am always given cock-and-bull stories as to why the revised pension and the arrears have not been paid. Although I was not obliged so to do, I have vide my letter dated 18.8.2009 even given all details in writing to the Bank to facilitate early payment of revised pension and arrears.
10. That it appears your Bank is not oblivious to the problems of the pensioners and seems not concerned in paying the revised pension and arrears. All other Banks have released the revised pension with arrears to Lieutenant Colonel by 31.7.2009.
11. That now the Government has even issued release of the balance 60% arrears by 30.9.2009.
12. That as per my calculations the sum due to me is as at Annexure to this letter giving detailed calculations. By not paying the arrears the Bank is depriving me from using such arrears. This is deficiency in service.

Now I call upon you to release the arrears as admissible within 7 days of this Notice failing which I shall be constrained to initiate appropriate proceedings against the Bank for deficiency in service at Bank’s risks and costs and the Bank shall also be liable to pay interest at the PLR of the Bank, which please note,.
I have kept a copy of this Notice for my record.
(IC-14136P Lt Col (S) M.G. Kapoor)
(Refers to Para 12 of the Notice)
Calculations of Arrears
Basic Pension to be Fixed as on 1.1.2006 as per 21.5.2009 letter: 21807/-

(a) D.A.%

(b)Total Pension p.m.
(c)Total Pension for the period at (a)
1.1.2006 –
1.7.2006 – 31.12.2006
1.1.2007 – 30.6.2007
1.7.2007 – 31.12.2007
1.1.2008 – 30.6.2008
1.7.2008 – 31.8.2008

Total Pension Receivable upto 31.8.2008 (payable till 1.9.2008) = 742746/-

Total Pension Received till 31.8.2008 (Received till 1.9.2008) =

Pension For: Amount

January 2006 11630/-
February 2006 11630/-
March 2006 to February 2007 147440/-
March 2007 to February 2008 161468/-
March 2008 to August 2008 85928/-
Total: 418096/-

Arrears till 31.8.2008: 742746 – 418096 = 324650/-
40% of Arrears till 31.8.2008 0.4 x 324650 = 129860/-
40% Arrears received till 31.8.2009 30054/- (Received on 8.12.2008)

Balance of 40% Arrears 129860 – 30054 = 99806/- (i) (To be released immediately after 21.5.2009 letter)
60% of Arrears till 31.8.2008 194790/- (To be released by 30.9.2009)

Post 31.8.2008:

Period Amount Amount To be
Receivable Received Received

Sep’ 08 to 25296/- x 4 16798/- x 4
Dec’ 08 = 101184 = 67192/- 33992/- (ii)

Jan’ 09 to 26605 x 6 17667/- x 6
Jun’09 = 159630/- 106002/- 53628/- (iii)

Total payable till 30.6.2009 (as on 1.7.2009) = (i) + (ii) + (iii)
99806 + 33992 + 53628 = 187426/-
Remaining 60% Arrears = 194790/- (To be released by 30.9.2009)


(IC-14136P Lt Col (S) M.G. Kapoor)

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