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2026 Supreme(Online)(CAT) 672

CENTRAL ADMINISTRATIVE TRIBUNAL
Krishna, Member (A), Umesh Gajankush, Member (J)
Vilas Balkrishna Bhavsar – Appellant
Versus
Union of India – Respondent
Original Application No.28/2026



Advocates:
For the Appellants/Petitioners: Shri P.J. Prasadrao
For the Respondents: None

Central Government employees retiring on 30th June/31st December are entitled to one notional increment for pension calculation from 01.05.2023 per Supreme Court directions, but not for other benefits.

Headnote:(A) Constitution of India - Art. 141 - Finality of Supreme Court orders - Central Civil Services (Pension) Rules, 1972 - Notional increment on retirement - Entitlement of government employees retiring on 30th June/31st December to annual increment due on 1st July/1st January. The issue is settled by the Hon'ble Supreme Court in *The Director (Admn, And AR) KPTCL & Ors. Vs. CP. Mundinamani & Ors.* and *Union of India & Anr. Versus M. Siddaraj.* (Paras 1, 6-8)

(B) Administrative Law - Binding effect of Supreme Court judgments and DoPT OMs - The directions of the Supreme Court in M. Siddaraj (2025) and the consequent DoPT OM dated 20.05.2025 require all departments to grant notional increment for pension calculation to employees retiring a day before 1st July/1st January, but such increment is only for pension and not for other benefits. (Paras 8-9)

Facts of the case:
The applicant, a retired Central Government employee, superannuated on 30.06.2019 and claimed notional increment due on 01.07.2019. His representation and legal notice were not replied to. He relied on settled Supreme Court precedents granting such benefit.

Findings of Court:
The Tribunal held that in view of the final directions of the Supreme Court in *Union of India & Anr. v. M. Siddaraj* (2025) and the DoPT OM dated 20.05.2025, the applicant was entitled to one notional increment w.e.f. 01.05.2023 for the purpose of calculating pension only, not for other benefits.

Issues: Whether the applicant is entitled to one notional increment on the date of his retirement for pension calculation.

Ratio Decidendi: The Tribunal applied the binding precedent and government orders, holding that the notional increment is to be granted from the date prescribed by the Supreme Court (01.05.2023) and for pension calculation only, not for other pensionary benefits.

Result: Original Application partly allowed.

Table of Content
1. issue settled by supreme court precedents and government orders. (Para 1 , 2)
2. reliance on binding judgments for entitlement. (Para 3 , 4)
3. court considered submissions. (Para 5)
4. final directions on effective date and scope of notional increment. (Para 6 , 7 , 8)
5. partial allowance with directions to implement. (Para 9 , 10)

ORAL ORDER

Per :Mr. Shri Krishna, Member (A) The matter was listed under the caption for ‘Fresh Admission’ category. Since the issue involved is finally settled by the Hon’ble Supreme Court in the case of The Director (Admn, And AR) KPTCL & Ors. Vs. CP. Mundinamani & Ors., 2023 SCC Online SC 401_ and in the case of Union of India & Anr. Versus M. Siddaraj, MA Diary 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, the matter has been taken up for final disposal at the admission stage.

2. The applicant has retired on superannuation on 30.06.2019. He is claiming notional increment which he claims was due to him on 01.07.2019. The applicant submitted a representation dated 07.06.2025 followed by legal notice dated 04.07.2025 to the respondent No.

3. The same have not been replied till date.

Hence, this OA.

3. Learned counsel for the applicant has placed reliance on the decision of Hon’ble Supreme Court in the case of Union of India & Ors. Vs. P. Ayyamperumal, Special Leave Petition

(Civil) Diary No(s) .22283/2018 dated 23.07.2018 whereby th 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 Supreme Court in the case of The Director (Admn.

And HR) KPTCL & Ors. Vs. C.P. Mundinamani & Ors. (supra) wherein the Hon’ble Apex Court has held that th mployees retiring on 30% June/31%*

December ar ntitled for annual increment on the next date of their retirement i.e. 0O15¢ July/01s* January.

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

5. We have considered the submissions of learned counsel for the applicant.

6. 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 th issu 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. Milan Jacks

(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.”

This interim order will continue till further orders of Hon’

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