Reccovery of Commutation for a period of 15 years. Judgment of DHC

[Prasad C N]

Dear friends,

I am attaching the Judgment of Hon'ble Delhi High Court regarding recovery of Commutation amount.

The Court held that the commuted value of pension is not computed as recovery of principal advanced to an individual but is determined through actuarial tables incorporating life expectancy, mortality distribution, discount rates and systemic risk of premature death. Relying on Common Cause v. Union of India (1987), the Court affirmed that the fifteen-year period was evolved on a "years-of-purchase" basis with an equitable two-year buffer beyond arithmetical recovery. Both the 6th and 7th Pay Commissions had consciously retained the fifteen-year period after examining the question, demonstrating sustained informed policy rather than arbitrary fixation.

Thanks, a Million. 

With regards,

Prasad C N