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2024 Supreme(Guj) 181

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
ANIRUDDHA P. MAYEE, J.
Ganpat Hardas Pandya - Petitioner
Versus
State of Gujarat - Respondent
R/Special Civil Application No. 17379 of 2023
Decided On : 22-01-2024

Advocates Appeared:
For the Petitioner: Mr. N.K. Majmudar.
For the Respondent: Ms. H.G. Patel AGP.

The entitlement to receive increment crystallizes when the government servant completes requisite length of service with good conduct and becomes payable on the succeeding day, and denying a government servant the benefit of annual increment which he has already earned while rendering specified period of service with good conduct and efficiently in the last preceding year would be arbitrary and unreasonable.

Headnote:

Increment - Retirement Benefits - State of Gujarat v. Takhatsinh Udesinh Songara and Anr., Director (Admn. and HR) KPTCL and Ors. v. C.P. Mundinamani and Ors., State of Gujarat v. Prahladbhai Haribhai Patel and Ors. - The court discussed the entitlement of government servants to annual increments after retirement, citing various judgments and emphasizing that denying a government servant the benefit of annual increment which he has already earned while rendering specified period of service with good conduct and efficiently in the last preceding year would be arbitrary and unreasonable. The court upheld the view that the entitlement to receive increment crystallizes when the government servant completes requisite length of service with good conduct and becomes payable on the succeeding day.

Fact of the Case:

The petitioner retired from service on 30.06.2017 and sought the benefit of annual increment for the one full year of service rendered before retirement. The petitioner's claim was based on the policy of the Government, which grants increments on 1st July of the respective years of retirement.

Finding of the Court:

The court found that the government servant is entitled to annual increment after retirement, as settled in various judgments, and held that denying a government servant the benefit of annual increment which he has already earned while rendering specified period of service with good conduct and efficiently in the last preceding year would be arbitrary and unreasonable.

Issues: The main issue was the entitlement of government servants to annual increments after retirement, based on the policy of the Government and settled judgments.

Ratio Decidendi: The court emphasized that the entitlement to receive increment crystallizes when the government servant completes requisite length of service with good conduct and becomes payable on the succeeding day, and that denying a government servant the benefit of annual increment which he has already earned while rendering specified period of service with good conduct and efficiently in the last preceding year would be arbitrary and unreasonable.

Final Decision: The Special Civil Application was allowed, and the respondent authorities were directed to revise the pension and other retirement benefits of the petitioner accordingly, with arrears and retirement benefits to be paid within a specified period.

ORDER :

1. The present Special Civil Application is filed praying for the following reliefs:-

    “A. Your Lordship may be pleased to admit this petition;

B. Your Lordship may be pleased to issue appropriate writ, order or direction and quash and set aside the action of the respondent authorities of not releasing the periodical / yearly increment preceding for discharge of duties by the petitioners for a period preceding the one year preceding the 1st week of July of respective calendar in which the petitioners attended the age of superannuation and therefore the said action of the respondent authorities for not releasing the last yearly/periodical increment to the petitioners though the petitioners have attended the age of superannuation on 30th June of the respective calendar and became eligible and entitle to get yearly increment. the aforesaid action for not releasing the yearly increment is arbitrary and illegal;

C. Be pleased to direct the respondent authorities to pass appropriate order for making payment / for releasing the periodical yearly increment / increments which has become due and payable to the petitioners as the basis of discharge of duties from the 1st week July of respective calendar year in which the petitioners attended the age of superannuation and the Hon’ble Court may issue further direction to the respondent authorities or may kindly be directed to recalculate “Last Pay” drawn by the petitioners after addition of yearly/periodical increment in the “Salary & Wages” of the petitioners and the Hon’ble Court may kindly direct the respondent authorities to recalculate / revise the pension / gratuity / leave encashment and other consequential benefits after addition of the aforesaid increment in the “Last Pay Drawn” by the petitioners and the difference of salary may kindly be ordered to be paid with 12% interest from the respective date of superannuation of the petitioners;

D. By way of interim order be pleased to direct the respondent authorities to take decision to release the last earned yearly increment to the petitioners;

E. Pass such orders as thought fit in the interest of justice.”

2. The factual matrix in the present case is that the petitioner herein retired from the service on 30.06.2017, on attaining the age of superannuation. It is the case of the petitioner that he has rendered one full year of service before his retirement and therefore, he was entitled to get the benefit of annual increment for the said period of service. That, as per the policy of Government, the said increments fall due on 1st July of the respective years of retirement in respect of petitioner. However, as aforesaid, as the petitioner had retired from service on the 30th June of the respective years, he was not granted the said benefit of annual increment for the said period. Aggrieved, the petitioner has preferred the present Special Civil Application.

3. Learned advocate Mr. Majmudar appearing on behalf of the petitioner submits that the issue with respect to grant of increment after retirement has now been settled in the decisions by the Division Bench of this Court as well as by the Hon’ble Supreme Court. He submits that in the case of State of Gujarat v. Takhatsinh Udesinh Songara and Anr., being Letters Patent Appeal No. 868 of 2021 decided on 27.04.2022, the Division Bench of this Court has held that the government servant is entitled to increment becoming payable on 1st July and the retirement of the government servant on the day prior to the increment becoming payable is only fortuitous circumstance. He submits that the said judgment was challenged before the Hon’ble Supreme Court by way of preferring Special Leave Petition (Civil) Diary No. 26295 of 2022 and the Hon’ble Supreme Court was pleased to dismiss the Special Leave Petition since the order of the Division Bench was complied with by the State Government and the issue was kept upon as the issue was at large in other matters pending before the Hon’ble Supreme Court. H

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