IN THE HIGH COURT OF JUDICATURE AT PATNA
NANI TAGIA, J.
Prof. (Dr.) Chandrawati Kumari, W/o. Dr. Janardan Jee & Ors. - Petitioners
Versus
The State of Bihar through the Principal Secretary, Education Department, Government of Bihar, Patna & Ors. - Respondents
Civil Writ Jurisdiction Case No. 2496 of 2021
Decided On : 15-04-2024
RETIREMENT BENEFITS - Pension and Gratuity Claims - CCS (RP) Rules 2008, Notification dated 06.03.2019 - The court interpreted the CCS (RP) Rules 2008, which stipulates a uniform date of increment on 1st July, and the notification dated 06.03.2019 regarding gratuity limits. The court concluded that retirees are entitled to an additional increment for the year preceding their retirement and that the upper limit for gratuity applies to those who retired after 01.04.2017, thus influencing the decision to grant the petitioners their claims.
Fact of the Case:
The petitioners, three retired professors from Magadh University, sought payment of retiral dues including pension and gratuity, claiming entitlement to an additional increment in their last basic salary based on a government memorandum and a recent Supreme Court ruling.
Finding of the Court:
The court found that the petitioners were entitled to an additional increment for their service prior to retirement and that the notification regarding gratuity limits applied to them, thus ordering the payment of the additional increment and gratuity.
Issues: Whether the petitioners are entitled to an additional increment in their last basic salary upon retirement and whether they qualify for additional gratuity under the notification dated 06.03.2019.
Ratio Decidendi: The court relied on the Supreme Court's ruling that employees who have earned an increment are entitled to it even if they retire the next day, affirming that the petitioners, having served until their retirement dates, were entitled to the additional increment and gratuity as per the applicable rules and notifications.
Final Decision: The writ petition was disposed of with directions for the respondents to pay the additional increment and gratuity to the petitioners within three months, along with any applicable interest.
JUDGMENT :
Nani Tagia, J.
Heard Mr. Shashi Bhushan Singh, learned counsel for the petitioners, Mr. Madhaw Prasad Yadaw, learned counsel for the respondents and Md. Faiz Ahmed, learned counsel for the Magadh University.
2. The petitioners, three in number, who retired on 30.06.2015, 30.06.2017 and 30.06.2017 respectively, have filed this writ petition, seeking a direction to the respondent-authorities to make payment of all the retiral dues including arrears of pension by adding one increment in last basic pay salary of the petitioners. The petitioners have also prayed for a direction to make payment of retiral dues such as gratuity, earned leave and arrears of pension in the light of Memo No. 592 dated 06.03.2019, issued by the Special Secretary, Education Department, Govt. of Bihar to the petitioner Nos. 2 and 3 as they have retired on 30.06.2017 and arrears of pension to the petitioner No. 1 from due date.
3. Learned counsel for the petitioners have submitted that though the prayer of petitioners are worded in the manner indicated hereinabove; the basic prayer of the petitioner Nos. 1, 2 and 3 is for payment of pension by adding one increment in the last basic salary of the petitioners and to pay additional gratuity to petitioner Nos. 2 and 3, in the light of notification dated 06.03.2019, issued by the Special Secretary, Education Department, Govt. of Bihar.
4. Learned counsel for the petitioners submit that the petitioner No. 1 and 2 retired on 30th June, 2015 and 30th June, 2017 respectively from the post of Professor from the Magadh University, while the petitioner No. 3 retired on 30th June 2017 from the post of Associate Professor from the Magadh University. Insofar as payment of pension by adding one increment in last basic salary of the petitioners are concerned, the petitioners by referring to office memorandum dated 30.08.2008, issued by the Joint Secretary to the Government of India, Ministry of Finance (Annexure – 1 to the writ petition), contends that by the said office memorandum, in terms of the CCS (RP) Rules 2008, a uniform date of increment has been provided which is 1st July of every year after implementation of the revised pay structure.
5. Learned counsel for the petitioner, by referring to the decision of the Supreme Court rendered in the case of The Director (Admn. And HR) KPTCL & Ors. vs. C.P. Mundinamani & Ors. passed in Civil appeal No. 2471 of 2023, dated 11th of April, 2023, further contended that since the petitioners have retired on 30.06.2015 and 30.06.2017 respectively, they are entitled to be paid basic salary and the pension calculated after having adding one increment in the last basic salary of the petitioners.
6. Insofar as the payment of gratuity to the petitioner Nos. 2 and 3 are concerned, it is contended by learned counsel for the petitioners that the petitioner nos. 2 and 3 have so far received Rs.10 lakhs each as gratuity. However, by referring to the notification dated 06.03.2019, issued by the Special Secretary, Education Department, Government of Bihar, (Annexure – 4 to the writ petition), more particularly, Clause 7(iv) of the same, it is contended that since by the aforesaid notification, Rs.20 lacs has been provided as the upper ceiling limit for receiving gratuity for the employees, who have retired after 01.04.2017, the petitioner nos. 2 and 3, who have retired on 30.06.2017, which is after 01.04.2017, are entitled to receive more than Rs.10 lacs as gratuity, as provided in the notification dated 06.03.2019.
7. Respondent nos. 2 and 3 and 4 to 6 have filed counter affidavits.
8. Insofar as the payment of one additional increment is concerned, in paragraph 7, 8, 9 and 10 of the counter affidavit filed by the respondent Nos. 2 and 3, it is stated as under :
Retired employees are entitled to an additional increment for the year preceding their retirement and to gratuity limits as specified in government notifications, regardless of their retirement date ....
Employee entitled to notional increment earned before superannuation despite retiring next day; benefit for third parties prospective from 01.05.2023 per Supreme Court clarification.
Employees are entitled to increments earned prior to retirement, even if the increment is due the day after retirement, as denying it is arbitrary.
Employees retiring on 30th June/31st December after one year service entitled to notional annual increment despite Rule 10 fixing date next day; for pension refixation, arrears limited to three years....
The main legal point established in the judgment is that the entitlement to receive increment crystallizes when the government servant completes requisite length of service with good conduct, and any....
Employees retiring on 30th June are entitled to annual increments earned prior to retirement, with denial based on retirement date deemed arbitrary and contrary to fair labor principles.
Government servants are entitled to annual increments after retirement for the services rendered over a year with good behavior and efficiency, as interpreted by the Division Bench of the Court and t....
Employees retiring on 30th June entitled to notional 1st July increment for pension after completing qualifying service.
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