Supreme Court guidelines mandate that employees retiring on specific dates are entitled to a notional increment effective the following day for pension computations.

ORAL ORDER

Per : Mr. Shri Krishna, Member (A)

The matter was listed under ‘Orders’ category. Notice was issued to the respondents on 09.12.2024. However, till date no reply has been filed by them. Since the issue involved is finally settled by the Hon’ble Supreme Court in The Director (Admn. And HR) KPTCL & Ors. Vs. the case of C.P. Mundinamani & Ors., 2023 SCC Online SC 401 and in the Union of India & Anr. Versus M. Siddaraj, MA Diary case of No.2400/2024 in Civil Appeal No.3933/2023 dated 20.02.2025 and the same has been implemented by the DoPT by way of OM dated 20.05.2025, therefore, with the consent of the parties, the matter has been taken up for final disposal.

2. The applicant has retired on superannuation on 31.12.2023. He is claiming notional increment which he claims was due to him on 01.01.2024. The applicant submitted a representation to respondent No.4 dated 07.10.2024. The same was rejected vide impugned order dated 08.10.2024 stating therein that there are no orders from the Competent Authority to consider the cases of granting notional increment earned on 31.12.2023 following on 01.01.2024. Furthermore, the decision passed by various Hon’ble CATs/HCs and Supreme Court are applicable in-person name. Aggrieved by the above order, the applicant filed this OA.

3 . Learned counsel for the applicant has placed reliance on the decision of Hon’ble Union of India & Supreme Court in the case of Ors. Vs. P. Ayyamperumal , Special Leave Petition (Civil) Diary No(s).22283/2018 dated 23.07.2018 whereby the order of Hon’ble High Court of Madras was upheld and SLP was dismissed. He has also placed reliance on the decision of Hon’ble The Director (Admn. Supreme Court in the case of And HR) KPTCL & Ors. Vs. C.P. Mundinamani & Ors. (supra) wherein the Hon’ble Apex Court has held that the employees retiring on 30th June/31st December are entitled for annual increment on the next date of their retirement i.e. 01st July/01st January.

4. Further, it is submitted that No.2400/2024 in Civil Appeal No.3933/2023 in the Union of India & Anr. Versus M. Siddaraj case of has already decided on 20th February, 2025 by the Hon’ble Supreme Court.

5. We have considered the submission of learned counsel for the parties.

6 . We find that the Hon’ble Supreme Court on 06.09.2024, while hearing MA No.2400/2024 filed by Ministry of Railways along with several Intervention Applications tagged therewith, Hon’ble Supreme Court took note of the pending Petition (Dy. No.36418/20245) filed by Union of India seeking review of its order dated 11.04.2023 in CA No.2471/2023 in the matter. While observing that the issue raised in the applications requires consideration insofar as the date of applicability of the judgment dated 11.04.2023 in CA No.2471/2023 to third parties is concerned, Hon’ble Court issued following directions, by way of an interim order, to prevent any further litigation and confusion:

(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 30.04.2023 (erroneously mentioned as 31.04.2023 in the Order) 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,