Section 6 of The Comptroller and Auditor-Generals Duties Powers and Conditions of Service Act 1971

Section 6 of The Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971
Pensionary Benefits

Original Text

6. Pension.—(1) A person who, immediately before the date of assuming office as the Comptroller and Auditor-General, was in the service of Government shall be deemed to have retired from service on the date on which he enters upon office as the Comptroller and Auditor-General but his service as the Comptroller and Auditor-General shall be reckoned as continuing approved service counting for pension in the Service to which he belonged.
(2) Every person who enters upon office as the Comptroller and Auditor-General shall, on demitting the said office, be eligible to a pension of a sum of fifteen thousand rupees per annum which sum shall include the aggregate of all pensions payable to him and the commuted portion, if any, of his pension, and the pension equivalent of the retirement gratuity, if any, which may have been admissible to him under the rules for the time being applicable to the Service to which he belonged:

Provided that if such a person is or becomes eligible, at any time, under the rules for the time being governing the Service to which he belonged, to a pension higher than the said sum of fifteen thousand rupees, he shall be eligible to draw, as pension, the said higher amount.
(3) A person who, immediately before the date of assuming office as the Comptroller and Auditor-General, was in receipt of, or, had become eligible for receiving, a pension in respect of any previous service under Government, shall, on demitting office as the Comptroller and Auditor-General, be eligible to a pension of fifteen thousand rupees per annum…
(4) Any other person who is appointed as the Comptroller and Auditor-General shall, on demitting the said office, be eligible to a pension of fifteen thousand rupees per annum.
… [Sub-sections (5), (6), (6A), (6B) omitted for brevity, see full text for transitional provisions] …
(6C) Notwithstanding anything contained in the foregoing provisions of this section, a person who demits office [whether in any manner specified in sub-section (8) or by resignation] as the Comptroller and Auditor-General after the commencement of the Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Amendment Act, 1987 (50 of 1987), shall, on such demission, be entitled to—

(a) a pension which is equal to the pension payable to a Judge of the Supreme Court…
(8) Except where he demits office by resignation, a person holding office of the Comptroller and Auditor-General shall be deemed, for the purposes of this Act, to have demitted such office as such if, and only if,—

(a) he has completed the term of office specified in section 4, or

(b) he has attained the age of sixty-five years, or

(c) his demission of office is medically certified to be necessitated by ill health.

Visual Summary

Deemed Retirement

Govt servants entering office are deemed retired from previous service.

Supreme Court Parity

Pension is linked to that of a Supreme Court Judge (via Sub-section 6C).

Resignation

Specific pension calculation applies if the CAG resigns before term end.

Demission Criteria

Occurs at 65 years of age, completion of 6-year term, or ill health.

Summary

Section 6 establishes the pensionary rights of the Comptroller and Auditor-General (CAG). It ensures that the CAG is financially secure post-retirement, which is crucial for maintaining the independence of the office. The section handles complex scenarios involving appointees who were previously in government service, treating their entry into the CAG office as a technical retirement from their previous post while allowing their service as CAG to count towards their total pensionable service. Most significantly, later amendments (specifically Sub-section 6C) have linked the CAG’s pension directly to that of a Supreme Court Judge, overriding older fixed amounts to ensure parity with the judiciary.

Key Takeaways

Technical Retirement: A government servant appointed as CAG is deemed to have retired from their previous service upon appointment.
Judicial Parity: The pension is calculated equal to that of a Supreme Court Judge (Sub-section 6C), ensuring high status and security.
Service Continuity: For pension purposes, the years spent as CAG are added to the previous government service record.
Demission Defined: Demission occurs upon completing the 6-year term, reaching age 65, or due to medical certification.

Key Analysis

➤ Independence through Security: The detailed pension provisions are not merely administrative; they are constitutional safeguards. By guaranteeing a pension equivalent to a Supreme Court Judge, the Act ensures the CAG does not need to seek favors from the Executive for post-retirement security.
➤ The “Deemed Retired” Clause: Sub-section (1) is critical for administrative officers (like IAS) becoming CAG. It cleanly separates their career as a subordinate to the government from their new role as an independent constitutional authority, while protecting their financial accumulation of service years.
➤ Evolution of Amounts: The original text mentions specific sums (Rs 15,000/annum). However, Sub-section (6C) effectively overrides these static figures by introducing the dynamic link to the Supreme Court Judges (Conditions of Service) Act, ensuring the pension adjusts with inflation and pay commissions.

Key Ingredients

Appointment of a person as CAG.
Determination of previous service status (Government vs. Non-Government).
Demission of office (via Term Expiry, Age, Resignation, or Medical grounds).
Calculation of pension based on SC Judge parity or specific resignation rules.

Related Provisions

Practical Illustrations

Example 1: Government Servant AppointeeMr. A, a senior IAS officer with 30 years of service, is appointed as CAG. On the day he assumes office, he is deemed to have retired from the IAS. However, his 6-year tenure as CAG is added to his 30 years of service. Upon retiring as CAG, his total pension is calculated based on 36 years of approved service, subject to the minimum of a Supreme Court Judge’s pension.

Example 2: ResignationMs. B is appointed as CAG but resigns after 3 years due to personal reasons. She does not complete the full term. Under Sub-section (6), her pension is calculated specifically based on the completed years of service as CAG (pro-rata), rather than the full pension she would have received upon completing the term or reaching age 65.

Process Flowchart

Practice Questions

Q: What is the status of a government servant immediately upon assuming the office of CAG under Section 6(1)?

A. They are considered on deputation.
B. They are deemed to have retired from their previous service.
C. They hold a dual charge of both offices.
D. Their previous service is forfeited.

View Correct Answer

Correct Answer: B. They are deemed to have retired from their previous service.
Reasoning: Section 6(1) explicitly states that a person in government service shall be deemed to have retired from service on the date they enter upon the office of CAG.

Q: Under Section 6C, the pension of the CAG is linked to the pension payable to which authority?

A. Cabinet Secretary
B. Judge of the High Court
C. Judge of the Supreme Court
D. President of India

View Correct Answer

Correct Answer: C. Judge of the Supreme Court
Reasoning: Sub-section (6C) states that the pension shall be equal to the pension payable to a Judge of the Supreme Court.

Q: Which of the following is NOT a condition for “demitting office” under Section 6(8)?

A. Completion of 6-year term
B. Attaining the age of 65 years
C. Transfer to another government department
D. Medical certification of ill health

View Correct Answer

Correct Answer: C. Transfer to another government department
Reasoning: The CAG is a constitutional authority and cannot be simply “transferred”. Demission happens only via term end, age limit, ill health, or resignation.

Frequently Asked Questions

Does service as CAG count towards pension if the person was previously a government servant?

Yes. Under Section 6(1), while the person is deemed to have retired from their previous service, their tenure as CAG is reckoned as “continuing approved service” for the purpose of calculating their pension in their original service.

Is the pension amount fixed at Rs 15,000 as mentioned in the text?

No. While the original text mentions Rs 15,000, subsequent amendments (specifically Sub-section 6C) have linked the pension to that of a Supreme Court Judge. This ensures the amount is dynamic and current, overriding the older fixed figure.

What happens if a CAG resigns before completing their term?

If a CAG resigns, they are eligible for a pension calculated based on each completed year of service (pro-rata), rather than the full pension applicable for completing the term or reaching the age of 65.

Conclusion

Section 6 of the Act is a cornerstone provision that safeguards the financial independence of the Comptroller and Auditor-General. By aligning the pensionary benefits with those of the Supreme Court Judges and ensuring continuity of service benefits for government appointees, the law empowers the CAG to perform their auditing duties without fear of financial disadvantage post-retirement.