In Subhash Chander vs. Union of India & Others, the Delhi High Court addressed the contribution rates for a life-time Central Government Health Scheme (CGHS) pensioner card. The Court held that a retired employee who applies for a CGHS card after the implementation of revised subscription rates must pay the new rates, even if they retired when lower rates were in effect. The Court clarified that merely submitting an application does not constitute “subscribing” to the scheme; actual payment at the time of retirement is necessary to claim the benefit of older, lower rates. While the Court upheld the demand for a Rs. 78,000/- lump sum contribution, it noted that any arrears of Fixed Medical Allowance (FMA) adjusted against this amount must reflect the statutory increase in FMA rates that occurred in 2017.
- Factual Background
The petitioner retired as an Assistant Controller of Accounts on April 30, 2016. At the time of his retirement, the monthly CGHS contribution for his grade pay was Rs. 325/-, as per an Office Memorandum (OM) dated May 20, 2009. Following his retirement, he settled in a non-CGHS area and initially opted for a Fixed Medical Allowance (FMA) of Rs. 500/- per month. On March 3, 2017, the petitioner applied to obtain a life-time CGHS pensioner card. However, effective January 1, 2017, a revised OM had enhanced the monthly contribution for his grade to Rs. 650/- based on the 7th Central Pay Commission recommendations. Consequently, the authorities directed him to pay a lump sum of Rs. 78,000/- (representing 120 months of contribution at the revised rate).
- Core Legal Issue
The primary question was whether the petitioner’s contribution should be governed by the 2009 OM (Rs. 325/- rate) applicable at his retirement or the 2017 OM (Rs. 650/- rate) applicable when he actually applied for the card.
- Arguments and Tribunal Decision
- Petitioner’s Stand: He argued that under Para 5(i) of the 2017 OM, pensioners should pay the amount they were subscribing at the time of their retirement. He contended that since he retired in 2016, the 2009 rates should apply .
- Tribunal’s Ruling: The Central Administrative Tribunal (CAT) dismissed his plea, ruling that because he had not paid the requisite fees at the time of his retirement, he was not a “subscriber” under the old rules. Therefore, he was bound by the revised rates introduced in January 2017.
- Court’s Reasoning and Analysis
The High Court concurred with the Tribunal, focusing on the specific provisions of the OM dated January 9, 2017:
- Interpretation of “Subscribed”: The Court held that Para 5(i), which allows payment at retirement rates, only applies to those who were actively subscribing at that time. Absent actual payment, a retired employee cannot be said to have “subscribed” to the scheme.
- Application of Para 5(v): The Court found the petitioner’s case was squarely covered by Para 5(v), which specifically mandates that a pensioner who has “not so far got his/her pensioner CGHS card made” must pay at the revised rates applicable at the time of application.
- Effect of Deadline Extensions: Although the government extended the application deadline for those retiring around the transition period, the Court clarified that these extensions did not revert the subscription rate itself, which had already been revised to Rs. 650/- as of January 1, 2017.
- Fixed Medical Allowance (FMA) Adjustments
The Court addressed the petitioner’s entitlement to FMA during the period he resided in a non-CGHS area. It noted that the FMA rate was increased from Rs. 500/- to Rs. 1000/- per month effective July 1, 2017. The Court directed that if the respondents choose to adjust FMA arrears against the Rs. 78,000/- lump sum payment, they must apply the enhanced rate of Rs. 1000/- for the period starting July 2017.
- Final Conclusion
Finding no perversity or irregularity in the Tribunal’s decision, the High Court dismissed the writ petition . The petitioner remains liable to pay the revised contribution of Rs. 78,000/- to avail of the life-time CGHS pensioner card .
2026 DHC 5231
Subhash Chander V. Union of India & Others (D.O.J. 01.07.2026)



