Notional Increment: Employees Retired on 30th June
No.PC-VI/2020/Misc./01, dated 21.04.2023
OFFICE MEMORANDUM
Sub: Grant of benefit of one Notional Increment (as due on 1st July for the pensionary benefits to those employees who had retired on 30th of June before drawing the same.
1. The undersigned is directed to refer to DOP&T’s O.M. No.1442509/2021-Estt(Pay-I), dated 11.02.2021 whereby a copy of DOP&T’s guidelines/ instructions issued vide O.M. No.19/2/201/-Estt (Pay-I), dated 03.02.2021 was forwarded to this Ministry to effectively utilize the same while defending the cases on the issue of grant of notional (as due on 1st July of the retirement year) for the purpose of pensianary benefits to those employees who had retired on 30th of June before drawing the same.
2. This Ministry has been contesting all such cases based on the above advice of DOP&T. in one such case viz. SLP (C) No.4722/2021 Union of India & Ors Vs M. Siddaraj) filed before Hon’ble Supreme Court of India against the order dated 22.10.2020 pronounced by Hon’ble High Court of Karnataka’s in W.P. No.146967 of 2020 (UOI & Ors Vs M. Siddaraj) challenging Hon’ble CAT/Bangalore Bench’s order dated 18.12.2019 in O.A. No.170/677/2019; Hon’ble Supreme Court vide their order dated 05.04.2021 had granted stay an implementation of order dated 18.12.2019. A copy of the stay order was also forwarded to DOP&T vide this Ministry’s O.M. dated 28.05.2021 (copy enclosed) for utilizing the same in defending the cases on the similar issue to ensure unified stand before courts of law.
3. Subsequent to above, another SLP (C) No.012439/2022 Union of India & Ors Vs Anil Kumar Gupta & Ors) on the similar issue of notional increment was filed before Hon’ble Supreme Court and tagged with SLP (C) No.4722/2021 (UOI & Ors Vs M. Siddaraj) and is presently pending for adjudication before the Hon’ble Supreme Court. Further, in yet another similar proposal for filing SLP, Ld. ASG Ms. Aishwarya Bhati, has opined that it is a fit case for preferring an SLP against the impugned order dated 18.01.2023 passed by the Hon’ble High Court of Allahabad in WP No.11368 of 2023 in the matter of UOI & Ors Vs. S. K. Misra & Ors as it raises important questions of law of general public importance and the issue is also pending consideration before the Hon’ble Supreme Court. A copy of opinion tendered by Ld. ASG is also enclosed herewith.
4. Meanwhile, it has come to the notice of this Ministry that Hon’ble Supreme Court vide their order dated 11.04.2023 (copy enclosed) has dismissed Civil Appeal No.2471 of 2023 arising out of SLP (C) No.6185 of 2020 [The Director (Admn. and HR) KPTCL & Ors Vs. C. P. Mundinamani & Ors] with the following observations:
“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 their 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 to cost.”
5. Vide aforesaid order, the Hon’ble Supreme Court has interpreted the law involved and decided the issue of notional increment on merit through a detailed reasoned judgement dated 11.04.2023 taking into consideration all relevant judgements pronounced various courts of law on the issue of notional increment which have been decided in favour & also against the interests of Union of India. The aforesaid judgement would have far reaching implications and there is a high probability that the same would be cited/ highlighted by the petitioners in similar cases being contested before various courts of law seeking the benefit of notional increment which would eventually have a cascading effect on such cases including those dismissed or adjourned sine die subject to the outcome of SLP (C) No.4722/2021 (UOI & Ors Vs. M. Siddraj).
6. Consequent to the said judgement, the issue of notional increment seems to have attained finality and the judgement pronounced by the Hon’ble Apex Court has become the law of land under Article 141 and all the lower courts are bound to abide by the same. Thus, the stand adopted by this Ministry in similar cases may get infructuous as very clear & specific directions have been given by Hon’ble Apex Court subsequent to the stay order dated 05.04.2021 in M. Siddaraj SLP.
7. Such implications/ cascading effects would not be limited to this Ministry only, but, would also impact other Ministries/ Departments of Govt. of India to a greater extent. Accordingly, DOP&T is hereby requested to:
(i) Furnish the considered opinion/ views on the judgement dated 11.04.2023 pronounced by Hon’ble Supreme Court in SLP (C) No.6185 of 2020 [The Director (Admn. and HR) KPTCL & Ors Vs. C. P. Mundinamani & Ors.]
(ii) Apprise this Ministry of the action taken/ stand adopted by DOP&T in contesting/ defending cases on the issue of notional increment consequent to above judgement of Hon’ble Apex Court.
(iii) Apprise this Ministry of remedial measures/ legal provisions, if any available, to safeguard the interests of Union of India in notional increment cases.
Download Railway Board Circular dated 21.04.2023
Forward reference ⇒ dated 20.06.2023
On behalf of all the pensioners, we request the DoPT to issue orders for grant of one annual increment to those who retired on 30 june or 31 December , who though served for one year, yet as there birthday was a day after, were denied the increment. Now that the highest Court, SC by its order on 13 May 2023 have decided in favour of the pensioners, to un do the injustice, and another order by SC rejecting the SLP 4722/ 2021, we hope the DoPT will not drag the matter unnecessarily , and issue orders , so as to not put the pensioners to a financial loss. Pensioners are a category and can’t be distinguished whether one has filed a case in the court or not. We pray the Hon’ble Prime Minister Shri Modi, will issue necessary directions to the DoPT for early favourable orders.
Though I am a strong supporter of BJP & the Modi government in the country but get harassed when we see that this government is not complying with the orders of the highest institution of justice in certain cases relating to pensioners of The Central government eg. grant of notional increment to retirees of 30th June & 31 st December despite of lapse of about 4-5months period.