Retirement on 30th June-Increment to Pensioners

A question was raised regarding not implementing the Court Order to grant Notional Increment benefit to pensioners retiring on 30th June. The reply is given below

Retirement on 30th June-Increment to Pensioners

(a) whether Government had filed a Review Petition in the Supreme Court of India against Court’s order dated the 23rd July, 2018 [RP (c) No. 1731/2019 in SLP (c) No.22008/2018] and the Court had dismissed the SLP on 8th August, 2019, if so, the details thereof;

Yes, Sir. Union of India filed SLP (C) No. 22008/2018 in the Supreme Court of India against Order dated 15-09-2017 in WP No. 15732/2017 passed by the High Court of Judicature at Madras [ Read this Judgement ]. The said SLP was dismissed by the Supreme Court of India by its Order dated 23-07-2018. Against the said Order, Union of India filed Review Petition (C) No . 1731/2019 which was dismissed by the Supreme Court of India vide its Order dated 08-08-2019.

(b) whether in the light of the said order of the Supreme Court. Government has issued any order to implement it for the benefit of pensioners who retired on 30th June, if not, whether any timeline has been fixed and if not, the reasons therefor?

Ans : As the judgement is in personam and is contrary to the personnel policy of Government of India, no general order has been issued. Source : Rajyasabha

Increment to employee Retiring on 30th June

DoPT vide its OM No. 1396752/2019-Rstt (Pay-I) Dated the 11 November, 2019 Clarified that the Judgement on Increment to employee Retiring on 30th June in P.Ayyamperumal case is parsonam.

DoPT has further clarified in the matter of Increment to employee Retiring on 30th June that,

It is relevant to mention here that in a similar Matter, Hon’ble High Court of Andhra Pradesh at Hyderabad in year 2005, inc. Subbarao case, has inter-alia observed as under:

“In Support of the above observations, the Division Bench also placed reliance on Banerjee case (Supra), we are afraid, the Division Bench was not correct in coming to the conclusion that being a reward for unblemished Past service, Government servant retiring on the last day of the month would also be entitled for increment even after such increment is due after retirement, We have already made reference to all Rules governing the situation: There is no warrant to come to such conclusion, Increment is given (See Article 43 of CS Regulations) as a Periodical rise to a Government employee for the good behaviour in the Service. Such increment is Possible only when the appointment is “Progressive Appointment” and it is not universal rule. Further, as per Rule 14 of the Pension Rules, a person is entitled for pay, increment and other allowances only when he is entitled to receive pay from out of Consolidated Fund of India and continues to be in Government Service.

A Person who retires on the last working day would not be entitled for any increment falling due on the next day and payable next day thereafter (See Article 151 of CS Regulations) because he would not answer the tests in these Rules : Read More