4 min readChandigarhJun 1, 2026 02:36 PM IST
The Armed Forces Tribunal (AFT) has stayed the recovery of gratuity from a retired major general, observing that the mere pendency of a Supreme Court appeal in an illegal gratification case does not justify disciplinary action against him because the apex court has not stayed the AFT order that exonerated him.
In an order dated May 22, 2026, passed by the principal bench of Justice Rajendra Menon and Lt Gen C P Mohanty (Retd), the tribunal held, “Prima facie, we find that based on the order passed by this Tribunal in the previous round of litigation, i.e., OA No. 1038/2021, merely because the SLP is pending before the Hon’ble Supreme Court, in the absence of any stay granted by the Hon’ble Supreme Court, there cannot be any pendency of disciplinary proceedings against the applicant”.
The bench directed the central government and other respondents to file their replies within six weeks.
Major General John Mathews, who retired on September 30, 2022, upon attaining the age of superannuation, faced a Court of Inquiry in 2019 over allegations of obtaining illegal gratification in the purchase of security-related equipment (SRE) in the Southern Command. He was commissioned in the Army in the Mechanised Infantry Regiment in June 1985. He assumed the post of general staff (operations) of the Southern Command headquarters at Pune in December 2018.
A Court of Inquiry was constituted against the general at the behest of certain officers into the alleged illegal gratification obtained for facilitating clearance, grant, or payment for ongoing SRE projects. He challenged the proceedings before the AFT.
‘Bias, prejudice and mala fide intent’
In a detailed judgment on September 7, 2022, the AFT set aside the entire Court of Inquiry and exonerated him, noting bias, prejudice, and mala fide intent in the proceedings. The tribunal also directed the Army to investigate the mala fides in the recording of the Court of Inquiry and the involvement of Lt Col Himal Sisodia (complainant) and others, if any, in the procurement of SRE and take action as deemed necessary.
The central government challenged the AFT order before the Supreme Court in 2023, but was not granted any interim stay. Consequently, the tribunal’s 2022 order remained operative.
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Following the AFT order, the Principal Controller of Defence Accounts (PCDA) Pensions issued corrigenda in January 2023 and September 2024, releasing full retirement benefits, including gratuity of Rs 20 lakh and commuted value of pensions, and recording “Disciplinary Action Pending: NO” in pension records.
The officer received his full pension regularly until January 2026. However, on January 21, 2026, PCDA (Pensions) issued a corrigendum, reverting the pension to “provisional” status, reducing gratuity to 0 per cent and marking commutation as “not recommended”. This led to the recovery of the entire gratuity amount from the officer’s pension, slashing his net pension from approximately Rs 1.18 lakh to around Rs 75,000–76,000 per month.
The officer approached the AFT again, contending that the action was taken without any showcause notice, without affording him a hearing, and in complete violation of the tribunal’s 2022 order. He argued that the respondents were estopped from reversing their earlier position after having released full benefits and acknowledged the absence of any pending disciplinary proceedings.
The tribunal has prima facie accepted the officer’s contention. It directed that the pension should not be treated as provisional and stayed the recovery of gratuity.
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The matter will be heard further after the respondents file their replies.
