Administrative authorities cannot unilaterally reduce disability percentages assessed as permanent by a Medical Board.

The respondent, Capt J K Verma, served in the Indian Air Force and was later commissioned into the Army in 1974. He was invalided out of service on May 12, 1979, due to "Pulmonary Tuberculosis"

Initially granted 100% disability pension, subsequent Re-survey Medical Boards (RSMB) reassessed his disability progressively lower

On March 22, 1993, an RSMB assessed his disability at 20% for life

However, in 1998, the PCDA (P) Allahabad and the Appellate Medical Authority unilaterally reduced the disability assessment to 11-14% without conducting a fresh medical examination, leading to the discontinuation of his disability pension

The Armed Forces Tribunal (AFT) set aside these administrative orders, restoring the pension and granting broad-banding benefits from the date of discharge

The Union of India challenged the AFT's order regarding the validity of the 1998 reduction and the extent of arrears

1. Whether an administrative authority (CDA/PCDA) can unilaterally reduce the percentage of disability assessment determined by a Medical Board without conducting a fresh medical examination

2. Whether the disability assessment of 20% for life, once finalized by an RSMB, can be reviewed or reduced

3. Whether the respondent is entitled to broad-banding benefits (20% to 50%) retrospectively from the date of discharge or from a later date

The court followed the principles laid down in Dharamvir Singh v. Union of India (2013) 7 SCC 316 and Ex Sapper Mohinder Singh v. Union of India (1993) regarding the primacy of Medical Board opinions over administrative decisions

It applied the Ministry of Defence circular dated February 7, 2001, which stipulates that disabilities adjudicated as permanent shall not undergo periodical reviews unless requested by the individual

Regarding broad-banding, the court adhered to the precedent in Union of India v. Ram Avtar (Civil Appeal No. 418/2012), which established the right to round off disability percentages

The High Court affirmed the AFT's finding that the CDA/PCDA committed a legal error by administratively reducing the respondent’s disability percentage from 20% to 11-14%

The court reasoned that a medical opinion can only be refuted by another competent medical opinion, not by a unilateral administrative decision

Since the RSMB in 1993 had recorded the 20% disability as "permanent" for life, the authorities were barred by the 2001 Policy and settled law from reviewing it downward without a fresh board or the pensioner's request

However, regarding the financial relief, the court found that broad-banding from 20% to 50% could not be granted from the date of discharge (1979) as the legal entitlement to such rounding off was settled only later by the Supreme Court

However, the broad-banding benefit to 50% is granted only from the date of the judgment in Ram Avtar (2014) onwards

The petitioners were directed to issue a fresh PPO and clear arrears within three months, failing which 6% interest per annum shall apply