Annual Increment Earned by Govt Servant for Past Period can't be Denied merely because of Retirement on Next Day when it's Payable: SC [Read Judgement]
Annual Increment – Govt Servant – Past Period – Denied merely – Retirement – Payable – SC – taxscan
Annual Increment – Govt Servant – Past Period – Denied merely – Retirement – Payable – SC – taxscan
The Supreme Court (SC) of India has held that the annual increment earned by govt servants for the past period can't be denied merely because of retirement on the next day when it's payable.
The impugned judgment and order passed by the High Court of Karnataka at Bengaluru in Writ Appeal No. 4193/2017, by which, the Division Bench of the High Court has allowed the appeal preferred by the employee’s respondents by quashing and setting aside the judgment and order passed by the learned Single Judge and directing the appellants to grant one annual increment which the respondents had earned one day before they retired on attaining the age of superannuation.
One day earlier than the retirement and on completion of one year of service preceding the date of retirement all the employees earned one annual increment. As per Regulation 40(1) of the Karnataka Electricity Board Employees Service Regulations, 1997, an increment accrues from the day following that on which it is earned, the appellants denied the annual increment on the ground that the day on which the increment accrued the respective employees – original writ petitioners were not in service. The writ petition(s) filed by the original writ petitioners claiming the annual increment came to be dismissed by the learned Single Judge.
It was submitted that on the true interpretation of Regulation 40(1) of the Regulations, an increment accrues from the day following that on which it is earned. As the increment has accrued on the next day on which it is earned and therefore, even in a case where an employee has earned the increment one day before his retirement but he is not in service the day on which the increment is accrued is concerned while considering the aforesaid issue, the object and purpose of grant of annual increment are required to be considered.
The Court viewed that the increment can be withheld only by way of punishment or he has not performed the duty efficiently. Any interpretation which would lead to arbitrariness and/or unreasonableness should be avoided.
A two-judge bench comprising Justice C T Ravikumar and Justice M.R. Shah held that “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.”
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
