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2026 Supreme(Online)(CAT) 6892

CENTRAL ADMINISTRATIVE TRIBUNAL
Rajinder Singh Dogra, Judicial Member, Ram Mohan Johri, Administrative Member
Prithvi Raj Sharma – Appellant
Versus
Union of India – Respondent
O.A. No. 1125/2020



Advocates:
For the Appellants/Petitioners: Mr. Nitin Bhasin
For the Respondents: Mr. Raghu Mehta, Mr. Hunar Gupta

An employee who completes a full year of qualifying service is entitled to the benefit of a notional annual increment for pensionary purposes, even if the increment date falls on the day immediately following their date of retirement.

Headnote:The applicant sought the grant of one notional annual increment for pensionary purposes, having completed a full year of service prior to retirement, which was denied because the increment date fell on the day following retirement. The court examined the relevant service rules regarding annual increments and the principle of deferred compensation. It held that an increment earned through satisfactory service cannot be denied solely due to the retirement occurring one day prior to the increment's payable date. Issues centered on whether an employee is entitled to a notional increment despite retiring before the payable date and whether such claims are barred by delay and laches. The court relied on the ratio in C.P. Mundinamani & Others vs. The Director (Admn. and HR), KPTCL & Others, emphasizing that the increment is an earned benefit for service rendered rather than a bounty, and that pension fixation should reflect the last increment for employees who completed the qualifying period. The tribunal allowed the Original Application, directing the respondents to grant the notional increment w.e.f. 01.01.1998 for the limited purpose of pensionary re-fixation, with arrears restricted to three years prior to the filing of the application.

Table of Content
1. applicant's claim for notional increment based on completed service year prior to retirement. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. respondent's defense regarding delay, laches, and strict interpretation of retirement date under fr 56(a). (Para 7 , 8 , 9 , 10)
3. judicial determination that earned increments cannot be denied for pensionary purposes despite retirement timing. (Para 11 , 12 , 13 , 14 , 15 , 17 , 20)
4. operational directives for notional pay fixation, pension revision, and regulation of pension arrears. (Para 16 , 18 , 19 , 21 , 22 , 23 , 24 , 25)

ORDER

Per: - Ram Mohan Johri, Administrative Member

1. The applicant has filed the present Original Application under Section 19 of the Administrative Tribunals Act, 1985 seeking the following reliefs: -

a) To direct the respondents to grant notional increment to the applicant with effect from 01.01.1998 for the service rendered by him from 01.01.1997 to 31.12.1998 and consequentially re-fix his pensionary benefits and also to pay the arrears of pension to the applicant.

b) Any other relief which this Hon'ble Tribunal deems fit and proper in the facts and circumstances of the case.

2. The applicant has filed the present Original Application under Section 19 of the Administrative Tribunals Act, 1985 seeking a direction to the respondents to grant him one notional increment w.e.f. 01.01.1998 for the service rendered by him from 01.01.1997 to 31.12.1997 and thereafter to re-fix his pensionary benefits and release arrears of pension. The applicant has also prayed for any other relief which this Tribunal may deem fit and proper in the facts and circumstances of the case.

3. The facts, in brief, are that the applicant, Shri Prithvi Raj Sharma, was appointed as Instructor in the Song and Drama Division, Srinagar, under the Ministry of Information and Broadcasting, on 29.11.1975. After rendering regular service, he retired from service on 31.12.1997 on attaining the age of superannuation. The grievance of the applicant is that he had completed one full year of service from 01.01.1997 to 31.12.1997 and, therefore, had earned the annual increment which fell due on 01.01.1998. However, the respondents did not grant the said increment only on the ground that he had retired on 31.12.1997, i.e., one day prior to the date on which the increment became payable.

4. The applicant submits that the denial of the said increment has resulted in fixation of his pensionary benefits without taking into account the last increment earned by him for the completed year of service. It is pleaded that the revision of pension dated 10.05.2018, issued on the basis of recommendations of the 6th and 7th Central Pay Commission, also does not include the benefit of such notional increment. According to the applicant, once he had completed the requisite qualifying service for earning the increment, the mere fact that the increment became payable on the next day of his retirement cannot be used to deny him the benefit thereof for the limited purpose of pensionary fixation.

5. The applicant has further pleaded that the issue is no longer res integra. Reliance has been placed upon the judgment of the Hon’ble High Court of Delhi in Gopal Singh vs. Union of India , W.P.(C) No. 10509/2019, wherein similarly situated retirees were held entitled to grant of notional increment for the purpose of re-fixation of pension. The applicant has also relied upon the principle laid down in P. Ayyamperumal vs. Union of India, wherein the benefit of notional increment was granted to an employee who had completed one year of service but retired one day before the increment became payable. The applicant submits that the denial of the same benefit to him is arbitrary, discriminatory and contrary to the settled position of law.

6. It is also the case of the applicant that he made repeated requests to the respondents and submitted representation dated 26.10.2020 seeking grant of notional increment w.e.f. 01.01.1998 and co

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