Government employees who complete the requisite length of service with good conduct are entitled to a notional annual increment that falls due on the day following their retirement, solely for the purpose of pension calculation, as withholding such earned benefit is arbitrary and contrary to settled law.

ORDER

Heard Ms. Rekha Singh, holding brief of Shri Ashok Kumar Singh, learned counsel for the applicant and Shri Anil Kumar, learned counsel for the respondents are present and heard.

2. This O.A. has been filed by the applicant under Section 19 of the Administrative Tribunals Act, 1985 for the following main relief(s):-

“1) to issue order or direction commanding the competent authority among the respondents to grant the benefit of one notional increment, redetermine his pension and revised the pension payment order.

II) To issue order or direction to competent authority among respondents to calculate the interest on revised pension w.e.f. 30.06.2016 to actual date of re-fixation of pension.

III) To issue any order, direction, further orders which this Hon’ble Court may deem fit and proper in the present facts and circumstances of the case.

IV) Award the cost of original application”.

3. Although the matter has been listed under the heading of ‘Direction’ but the same is heard and decided today itself with the consent of counsels appearing for both the parties.

4. It is submitted by the applicant’s counsel that the applicant has retired on 30.06.2016. One increment falling due on the very next date i.e. 01st July of the relevant year was not granted to him. He also placed reliance on catena of judgments pronounced by the Hon’ble Supreme Court followed by Hon’ble High Court as well as various Tribunals and submitted that the present case may also be decided by this Tribunal in the light of the aforesaid judgments/orders. In this regard, the applicant submitted a representation dated 27.03.2026 (which has been annexed with Annexure A-2 to the Compilation No II of the OA) but for no avail.

5. In reply, learned counsel for the respondents submits that although one Office Memorandum dated 20.05.2025 has been issued by the DoP&T, Ministry of Personnel, Public Grievances & Pensions, Government of India to grant one notional increment to the retired employees who have retired on 30th June / 31st December, yet notional increment can only be allowed to the applicant if he fulfils the requisite eligibility conditions as prescribed in the aforesaid OM as well as the directions issued by the Hon’ble Apex Court.

6. I have considered the rival contentions and carefully gone through the records.

7. As far as the question of granting the notional increment is concerned, the law on the point has already been settled by the Hon’ble Supreme Court in the case of Director (Admn. and HR) KPTCL & Ors. vs. C.P. Mundinamani & Ors., reported in (2023) SCC online S.C. 401 (Civil Appeal No.(s) 2471/2023 decided on 11.04.2023). The Hon’ble Supreme Court considered the divergent views of different Hon’ble High Courts on the issue:-

“Whether an employee who has earned the annual increment is entitled to the same despite the facts that he has retired on the very next day of earning the increment?”

The Hon’ble Supreme Court discussed the matter and importance of increment and observed that denying the benefit of annual increment which he has already earned while rendering a specified period of service with good conduct and efficiency in the last preceding year, would be punishing a person for no fault. The Hon’ble Supreme Court did not approve the contrary view taken by Full Bench of Andhra Pradesh High Court and the view of Kerala and Himachal Pradesh, High Courts and approved the view of Madras, Allahabad, M.P., Orissa, and Gujrat High Courts. In para 6.7, the Hon’ble Supreme Court has observed as under:-

“6.7 Similar view has also been expressed by different High Courts, namely, the Gujarat High Court, the Madhya Pradesh High Court, the Orissa High Court