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2026 Supreme(Online)(AP) 7819

HIGH COURT OF ANDHRA PRADESH
D Ramesh, J
G Muni Venkata Narayana – Appellant
Versus
State of AP – Respondent
WRIT PETITION NO: 29457/2024



Annual increments are generally granted as a matter of course under F.R. 24; withholding them constitutes a penalty that requires a specific order from a competent authority following due process, and cannot be denied merely due to suspension or pending proceedings without such an order.

Headnote:(A) Service Law - Annual Increments - Suspension period - Grant of increments is a matter of course under F.R. 24 unless specifically withheld by a competent authority through a speaking order. (Para 5, 6)

(B) Administrative Law - Withholding of Increments - Penalty - Withholding increments is considered a penalty and can only be issued if due process is followed and based on proof of case, unsatisfactory service, or bad conduct. (Para 6)

Issues: Whether the respondents can withhold annual grade increments of a petitioner during a suspension period without a specific order of withholding.

Legal Category Hierarchy

  • administrative law
    • government employees
      • suspension
        • increments during suspension (Para 4, 5, 6, 7, 8)
      • disciplinary proceedings
        • penalty of withholding increments (Para 6)
  • constitutional law
    • writ jurisdiction
      • mandamus (Para 1)

Table of Contents

1. Petitioner suspended, later reinstated and retired – increments for suspension period not released – action challenged as illegal under FR 24. (Para 3 , 4 )

2. Petitioner: increments not withheld by specific order per FR 24. Respondents: increments to be considered only after acquittal, citing circular and FR 26(a) proviso. (Para 4 , 5 , 8 )

3. Writ allowed – respondents directed to release increments from 2017 to 2020 within two months. (Para 7 , 8 )

4. Can annual increments be withheld during suspension without a specific order of withholding?

No. Per FR 24, increments are drawn as a course unless withheld by competent authority order; withholding is a penalty requiring due process. (Para 5 , 6 , 7 )

5. Does a government circular on sanction of increments during suspension override FR 24?

No. The circular and proviso under FR 26(a) do not justify withholding increments without a specific order of postponement or withholding. (Para 8 )

6. What is the legal principle regarding withholding increments as a penalty?

Withholding increment is an exception, not the rule; it can only be imposed after due process on proof of unsatisfactory service or bad conduct. (Para 6 )

1. This Writ Petition is filed under Article 226 of the Constitution of

India by the Petitioners for the following relief:

to issue a Writ or Order more in the nature of

Mandamus in declaring the action of the respondents in not

releasing and paying the increments from February 2017 to

February 2020 as illegal , arbitrary , violative of FR24 and

accordingly set aside the 2nd respondent Memo

C3/2188/2021 dated 18.11.2022 and consequentially direct

the respondents to release and pay the increments from

February 2017 to February 2020 by extending the benefits

of the final orders of this Honourable Court passed in

WP.No.45.S3/2021, dated 24.02.2021, WP No.9228/2021

dated 13.07.2021 and WP.No.28050/2021 , dated

28.04.2022 and pass

2. Heard the learned counsel for the petitioner and the learned counsel

for the respondents.

3. The present Writ Petition is filed aggrieved by the action of the

respondents in not releasing and paying the annual increments for the

period from February 2017 to February 2020, which action is illegal and

arbitrary.

4. The petitioner was placed under suspension by the 1st respondent

vide G.O.Rt.No.72 dated 14.02.2017. Subsequently, the 1st respondent

revoked the suspension and reinstated the petitioner into service vide

::3:: 2026:APHC:6534

G.O.Rt.No.5 dated 23.01.2020. After his retirement, the 1st respondent

issued G.O.Rt.No.63 dated 20.03.2024, framing three (03) Articles of

Charges against the petitioner. It is submitted that the annual periodical

increments due for the period from February 2017 to February 2020 are

liable to be paid to the petitioner, even during the period of suspension,

as the said increments were not withheld by any specific order of the

respondents. However, the 2nd respondent issued Memo No.

C3/2188/2021 dated 18.11.2022 stating that the annual grade increments

from February 2017 to February 2020 would be considered only after

receipt of acquittal orders in the ACB case.

5. The learned counsel for the petitioner has submitted that, according to

F.R.24 of the A.P. Fundamental Rules , an increment shall ordinarily be

drawn as a matter of course unless it is withheld, by an order of competent

authority.

6. The said issue was considered by this Court in order W.P.No.9228 of

2021 dated 13.07.2021, which reads as follows;

“this Court is of the opinion that as rightly pointed out by the

learned counsel for the petitioner FR-24 fell for consideration in

the Division Bench judgment i.e., W.P. No.6617 of 2004.

The Division Bench clearly held that order of withholding

increment is an exception rather than the rule and that the three

::4:: 2026:APHC:6534

increments can only be withheld on proof of case, unsatisfactory

service or bad conduct. It is also mentioned that such an order

should state the period from which it is withheld and whether the

postponement shall have the effect of withdrawal, postponing the

future increments also.

Ultimately, the learned Judges concluded that an order

holding the increment is in the nature of a penalty and can only

be issued if due process is followed.

The same is reiterated in the subsequent judgment of the

Bench and also of the learned Single Judge. This is applicable to

the present facts and nothing to the contrary was pointed out by

the respondents.

Hence, this Court is of the opinion that the action of the

respondents in withholding the increments of the petitioner is not

correct and contrary to the settled law on the subject. Therefore,

the respondents are directed to release the increments due to

the petitioner.”

7. Following the above said judgment and also following the judgment of

this Court in Komma Venkata Prasada Rao vs. The State of Andhra Pradesh

and Others, in W.P. No. 30863 of 2025 this Court holds that the action of the

respondents in not granting annual grade increments is illegal and

consequently directs the respondents to release the same to the petitioner

within a period of one (01) month.

::5:: 2026:APHC:6534

8. The learned Standing Counsel for the respondents, wherein the

respondents relied on Circular

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