The Supreme Court clarified that retired employees are entitled to one increment for pension calculations effective from May 1, 2023, with provisions for timely compliance by state authorities and no recovery on previous payments.

ORDER :

A.S. SUPEHIA, J.

With the consent of the learned advocates for the respective parties, delay, if any, is condoned and leave to appeal, if any, is granted in the matters. Upon directions of this Court, registry has circulated the Letters Patent Appeals on today’s board itself.

1. The issue pertains to the grant of one increment to the employees of the entire State, who have retired from services and are getting pension.

2. The genesis of the entire litigation, as mentioned in numerous orders passed by this Court in various proceedings, lies in the judgment and order of the Supreme Court in Civil Appeal No.2471 of 2023 (SLP (c) No.9185 of 2020) in the case of The Director (Admin & HR) KPTCL and others Vs C.P. Mundinamani and Ors., dated 11th April, 2023. Large number of employees are extended the benefit of one increment as per the directions issued by the learned Single Judges and on disposals of the Letters Patent Appeals in light of the judgment of the Supreme Court in the case of C.P. Mundinamani and Ors. (supra).

3. Thereafter, it appears that an application being Miscellaneous Application Diary No.2400 of 2024 was filed before the Apex Court seeking clarification of the said judgment, and accordingly, the Supreme Court passed an order dated 6th September, 2024 clarifying the manner in which the benefit of one increment has to be extended.

4. After the disposal of the matters, the Supreme Court finally, in the order dated 20th February, 2025 passed in Miscellaneous Application Diary No.2400 of 2024, has laid quietus to the entire issue of granting the benefit of one increment to the employees by further clarifying the order dated 6th September, 2024. The entire order is incorporated as under :

“Delay condoned.

We had passed the following interim order dated 06.09.2024, the operative portion of which reads as under:

“(a) The judgment dated 11.04.2023 will be given effect to in case of third parties from the date of the judgment, that is, the pension by taking into account one increment will be payable on and after 01.05.2023. Enhanced pension for the period prior to 31.04.2023 will not be paid.

(b) For persons who have filed writ petitions and succeeded, the directions given in the said judgment will operate as res judicata, and accordingly, an enhanced pension by taking one increment would have to be paid.

(c) The direction in (b) will not apply, where the judgment has not attained finality, and cases where an appeal has been preferred, or if filed, is entertained by the appellate court.

(d) In case any retired employee has filed any application for intervention/impleadment in Civil Appeal No. 3933/2023 or any other writ petition and a beneficial order has been passed, the enhanced pension by including one increment will be payable from the month in which the application for intervention/ impleadment was filed.”

We are inclined to dispose of the present miscellaneous applications directing that Clauses (a), (b) and (c) of the order dated 06.09.2024 will be treated as final directions. We are, however, of the opinion that Clause (d) of the order dated 06.09.2024 requires modification which shall now read as under:

“(d) In case any retired employee filed an application for intervention /impleadment/writ petition/original application before the Central Administrative Tribunal/High Courts/this Court, the enhanced pension by including one increment will be payable for the period of three years prior to the month in which the application for intervention/ impleadment/ writ petition/original application was filed.”

Further, clause (d) will not apply to the retired government employee who filed