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2024 Supreme(Guj) 220

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
ANIRUDDHA P. MAYEE, J.
JITENDRA RAVJIBHAI VAISHNANI – Petitioner
Versus
STATE OF GUJARAT – Respondent
Special Civil Application No. 17839 of 2023
Decided On : 22-01-2024

Advocates:
Advocate Appeared:
For the Petitioner: N.K. MAJMUDAR.
For the Respondent: H.G. PATEL.

The main legal point established in the judgment is that government servants are entitled to annual increment becoming payable on the succeeding day, even after retirement, and denying this entitlement based on retirement date would be arbitrary and unreasonable.

Headnote:

Increment - Retirement Benefits - State of Gujarat vs. Takhatsinh Udesinh Songara, Director (Admn. and HR) KPTCL vs. C.P. Mundinamani, State of Gujarat vs. Prahladbhai Haribhai Patel - [Letters Patent Appeal No. 868 of 2021, Civil Appeal No. 2471 of 2023, Letters Patent Appeal No. 277 of 2023] - The court discussed the entitlement of government servants to annual increment after retirement, emphasizing that the increment becomes payable on the succeeding day and should not be denied based on retirement date. The court cited various judgments and highlighted 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 would be arbitrary and unreasonable.

Fact of the Case:

The petitioners retired from service on 30.6.2022, 30.6.2021, 30.6.2019, 30.6.2018, 30.6.2022, 30.6.2023, 30.6.2022, 30.6.2023, 30.6.2023, 30.6.2021, respectively, on attaining the age of superannuation. They were not granted the benefit of annual increment for the period preceding their retirement. The issue was settled in previous court decisions and by the Hon’ble Supreme Court.

Finding of the Court:

The court found that the government servants are entitled to annual increment becoming payable on 1st July, even though they have retired on 30th June. The court emphasized that denying the increment based on retirement date would be arbitrary and unreasonable.

Issues: The main issue was the entitlement of government servants to annual increment after retirement and the interpretation of the increment becoming payable on the succeeding day.

Ratio Decidendi: The court held 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. Denying the increment based on retirement date 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 petitioners accordingly.

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 and 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 petitioners herein retired from the service on 30.6.2022, 30.6.2021, 30.6.2019, 30.6.2018, 30.6.2022, 30.6.2023, 30.6.2022, 30.6.2023, 30.6.2023, 30.6.2021, respectively, on attaining the age of superannuation. It is the case of the petitioners that they have rendered one full year of service before their retirement and therefore, they were 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 petitioners. However, as aforesaid, as the petitioners had retired from service on the 30th June of the respective years, they were not granted the said benefit of annual increment for the said period. Aggrieved, the petitioners have preferred the present Special Civil Application.

3. Learned advocate Mr. Majmudar appearing on behalf of the petitioners 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 vs. Takhatsinh Udesinh Songara and Another, 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 St

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