Condonation of Shortfall in DSC Service Allowed: Supreme Court Clarifies Second Pension Eligibility under Army Pension Regulations

Case Name: Union of India & Ors. v. Balakrishnan Mullikote & Ors.
Citation: 2026 INSC 286
Date of Judgment: 24 March 2026
Bench: Justice Manmohan, MANOJ MISRA,J

Held: The Supreme Court held that Defence Security Corps (DSC) personnel are entitled to condonation of shortfall in qualifying service up to one year for the purpose of grant of second service pension, in terms of Paragraph 125 of the Pension Regulations, 1961 and Paragraph 44 of the Pension Regulations, 2008. It was further held that executive instructions or government letters cannot override statutory pension regulations.

Summary: The present batch of appeals concerned DSC personnel who had rendered a second spell of service after retirement from the regular Army but fell short of the minimum qualifying service of 15 years required for grant of pension. The central issue before the Court was whether such shortfall could be condoned and whether DSC personnel were entitled to a second pension.

The Union of India argued that condonation of deficiency was not permissible for second service pension, particularly in light of policy letters issued in 2017 and subsequent clarifications. It was contended that condonation was intended only to ensure that a person receives at least one pension and not dual pensionary benefits.

The respondents, on the other hand, argued that the Pension Regulations expressly provide for condonation of deficiency in service and that DSC personnel, being part of the Armed Forces, are governed by the same pension framework as regular Army personnel unless expressly excluded.

The Court undertook a detailed examination of the Pension Regulations, particularly Paragraphs 125 (1961) and 44 (2008), and held that these provisions clearly permit condonation of deficiency in service up to one year. It further held that by virtue of incorporation clauses (Paragraph 266 of 1961 Regulations and Paragraph 173 of 2008 Regulations), the general pension provisions applicable to Army personnel equally apply to DSC personnel unless inconsistent.

Rejecting the Government’s reliance on executive letters, the Court held that such letters cannot amend or override statutory regulations. It emphasized that the regulatory framework does not contain any prohibition against condonation for second service pension and that administrative instructions cannot create such a bar.

The Court also clarified that DSC service constitutes a distinct and independent second spell of service, and therefore grant of a second pension does not amount to impermissible dual benefit.

Additionally, the Court held that computation of qualifying service must first include rounding off provisions (fractions of service), and thereafter condonation of deficiency up to one year must be applied where required.

Decision The Supreme Court allowed the claims of the respondents and held that:

The Union of India must first compute qualifying service in accordance with the Pension Regulations and applicable government instructions, including rounding-off provisions. Thereafter, where a shortfall of one year or less exists, the same shall be condoned. The respondents shall be entitled to second service pension upon such condonation. Government letters seeking to bar such condonation were held ineffective and incapable of overriding statutory provisions