ups_01242 — Employees retiring on 30th June / 31st December are entitled to notional increment due the next day, but only for pension calculation. The enhanced pension will be payable from 1-5-2023, with no arrears before 30-4-2023

Employees retiring on 30th June / 31st December are entitled to notional increment due the next day, but only for pension calculation. The enhanced pension will be payable from 1-5-2023, with no arrears before 30-4-2023 — The given chunk discusses interim directions issued by the Supreme Court in response to applications seeking clarification on the implementation of a previous judgment concerning notional increment f... — Facts:The Applicant superannuated as S.D.M. (HQ) from the office of Deputy Commissioner, North-East District on 30-6-2020 and one annual increment was due to him on 1st July, 2020. Since the Applicant superannuated one day before the date of grant of annual increment, the Respondents denied the benefit of grant of one notional increment to the Applicant on the ground that he was not in service at the relevant point of time. Since the Applicant has already completed one year regular service from 1-7-2019 to 30-6-2020, he is legally entitled for grant of one notional increment with consequential benefits. The learned Counsel for the Respondent contended that as per Rule 10 of CCS (RP) Rules, 2008, after 6th CPC, the date of annual increment of all the employees is on 1st July of every year but as the Applicant retired on 30-6-2020 and as he was not in Government service on 1-7-2020, he was not entitled for one increment due on 1st July, 2020. Moreover, the cut-off date for grant of annual increment is sacrosanct and it will always cause inconvenience to some of the employees and vehemently prayed for dismissal of the OA. The learned Counsel for the Applicant relied upon the decision of Hon'ble Supreme Court in the case of Director (Admn. and HR), KPTCK and others v. C.P. Mundinamani and others (Civil Appeal No. 2471 of 2023 decided on 11-4-2023 [ (2023) SCC OnLine SC 401 ] wherein it has been held as follows: “In view of the above and for the reasons stated above, the Division Bench of the High Court has rightly directed the appellants to grant one annual increment which the original writ petitioners earned on the last day of the service for rendering their services preceding one year from the date of retirement with good behaviour and efficiently. We are in complete agreement with the view taken by the Division Bench of the High Court. Under the circumstances, the present appeal deserves to be dismissed and is accordingly dismissed. However, in the facts and circumstances of the case, there shall be no order as costs.” The Review Application (Dy. No. 36418 of 2024) filed against the above judgement was dismissed on 18-12-2024. In the case of Union of India and another v. M. Siddaraj [ Special Leave Petition (C) No. 4722 of 2021 ] and relied upon by learned Counsel for the Applicant, Misc. Application No. 2400 of 2024 was filed seeking clarification regarding modalities to be adopted while implementing its order, dated 6-9-2024. While observing that the issue raised in the applications requires consideration insofar as the date of applicability of judgment, dated 11-4-2023 in C.A. No. 2471 of 2023 Union of India v. Siddaraj (supra.) to third parties is concerned, by way of an interim order, dated 6-9-2024, the following directions were issued to prevent any further litigation and confusion:- “a. The judgment dated 11-4-2023 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 1-5-2023. Enhanced pension for the period prior to 30-4-2023 (erroneously mentioned as 31-4-2023 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 an application for intervention / impleadment in Civil Appeal No. 3933 of 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 this Court. However, no person who has already received an enhanced pension including arrears, will be affected by directions in (a),

(c) and (d).” In furtherance to the order, dated 6-9-2024 passed in a Misc. Application, M.A. No. 2400 of 2024 before Hon'ble Supreme Court seeking clarification / guidance regarding modalities to be adopted while implementing its Order, dated 19-5-2023 in SLP (C) No. 4722 of 2021 (Union of India v. M. Siddaraj), DOP&T has issued O.M. No. 19/116/2024-Pers.Pol. (Pay) (Pt.), dated 14-10-2024 wherein on the subject “Grant of notional increment on 1st July / 1st January to the employees who retired from Central Government service on 30th June / 31st December respectively for the purpose of calculating their pensionary benefits-regarding”, relevant portion whereof reads as under:- Subsequently, Hon'ble Supreme Court vide Order, dated 19-5-2023 dismissed SLP (C) No. 4722 of 2021 (Uol v. M. Siddaraj) filed by M/o. Railways on the subject matter with the observation that the appeals filed therein are squarely covered by the Order dated 11-4-2023 in C.A. No. 2471 of 2023. M/o. Railways filed a Miscellaneous Application (M.A. No. 2400 of 2024) before the Hon'ble Supreme Court seeking guidance / clarification regarding the modalities to be adopted while implementing its Order, dated 19-5-2023. On 22-7-2024, while hearing the matter, Supreme Court ordered that the learned Counsel for the Union of India shall examine as to whether Union of India needs to file an application in C.A. No. 2471 of 2023 disposed of vide judgment, dated 11-4-2023. After due legal consultations on the directions of the Apex Court, this Department filed a Petition (Dy.No. 36418/2024) before Supreme Court on 12-8-2024 seeking review of its Order, dated 11-4-2023 which is pending before the Hon'ble Supreme Court. Meanwhile, on 6-9-2024, while hearing M.A. No. 2400 of 2024 filed by M/o. Railways along with several Intervention Applications tagged therewith, Hon'ble Supreme Court took note of the pending Petition (Dy. No. 36418/2024) filed by Union of India seeking review of its Order, dated 11-4-2023 in C.A. No. 2471 of 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 11-4-2023 in C.A. No. 2471 of 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 11-4-2023 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 1-5-2023. Enhanced pension for the period prior to 30-4-2023 (erroneously mentioned as 31-4-2023 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 of 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 this Court. However, no person who has already received an enhanced pension including arrears, will be affected by the directions in (a),

(c) and (d). Relist in the week commencing 4-11-2024.” The matter has been examined in consultation with D/o. Expen diture and D/o. Legal Affairs. It is advised that in pursuance of the Order, dated 6-9-2024 of the Hon'ble Supreme Court referred above, action may be taken to allow the increment on 1st July / 1st January to the Central Government employees who retired / are retiring a day before it became due i.e. on 30th June / 31st December and have rendered requisite qualifying service as on the date of their superannuation with satisfactory work and good conduct for calculating the pension admissible to them. As specifically mentioned in the Orders of the Hon'ble Supreme Court, grant of notional increment on 1st January and 1st July shall be reckoned only for the purpose of calculating the pension admissible and not for the purpose of calculation of other pensionary benefits. It may also be noted that these instructions are being issued in compliance of Interim Orders, dated 6-9-2024 of the Hon'ble Supreme Court in MA Dy. No. 2400 of 2024 without prejudice to the legal stand of the Union of India in the matter and without prejudice to any change of law in this regard. Further, the action taken shall be subject to the final outcome of the Review Petition (Dy. No. 36418/2024) pending before the Hon'ble Supreme Court which is expected to be heard by the Apex Court in the week commencing 4-11-2024.”