Notional Increment: Pensioners Retired on 30th June

No.PC-VI/2020/CC/13, dated 13.04.2021

Sub: Grant of notional increment (as due on 1st July) for the pensionary benefits to those employees who had retired on 30^th of June before drawing the same – Clarification reg.

Ref:  Boards letters No.PC-VI/2020/Misc/01, dated 01.03.2021 & No.PC-VI/2018/R-I/1 Pt., dated 21.05.2020.

1. A number of cases have been filed across all Indian Railways by various retired employees who had retired on 30^th of June of a year seeking the benefit of notional increment (as due on 1^st July of the retirement year) for the purpose of pensionary benefits primarily relying upon the judgment of Hon’ble High Court of Madras in WP No.15732/2017, in the matter of Sh. Ayyamperumal.

2. Keeping in view the intricacies involved and the cascading effect of any adverse judgment in the aforesaid cases, relevant guidelines of DOP&T in the matter were circulated to all Zonal Railways/ PUs vide Board’s letters under reference with a request to dispose all pending representations/ defend pending court cases, if any, on the issue accordingly.

3. In one such case viz. SLP(C) No.004722-/2021 (Union of India & Ors. Vs M. Siddaraj) filed before Hon’ble Supreme Court of India vide Dy.No.5821/2021. Hon’ble Supreme Court vide their order dated 05.04.2021 (copy enclosed) have granted stay on implementation of Hon’ble CAT/Bangalore Bench’s order while observing as under:-

“Issue notices returnable after three weeks.

In the meanwhile, there will be stay of operation of the order dated 18^th December, 2019 of the Central Administrative Tribunal, Bangalore Bench in Original Application No.170/00677/2019, affirmed by the judgment and order impugned. The Petitioners shall, however, in the meantime without prejudice to the rights and contentions of the parties pay retiral dues of the Respondent computed on basis of the last pay drawn by him on the date of his retirement, that is 30.06.2014.”

4. The above factual position/ observation of Hon’ble Supreme Court may be brought to the notice of respective Hon’ble Tribunals/ Courts by filing an appropriate application. Further, the same also be invariably incorporated in the counter reply/ para wise comments in further cases, if any, filed on the similar issue to safeguard the interests of Union of India effectively.

5. It may be ensured that the nominated Railway Advocates are properly & timely briefed on the matter.

6. Receipt of this latter may please be acknowledged.

Download Railway Board Circular dated 13.04.2021

Forward reference ⇒ RBE No.