Citation : 2023 Latest Caselaw 7449 Guj
Judgement Date : 9 October, 2023
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C/SCA/17671/2023 ORDER DATED: 09/10/2023
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 17671 of 2023
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UNION OF INDIA
Versus
MEHBUB PADHIYAR S/O RAHIMBHAI PADHIYAR
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Appearance:
MR ANKIT SHAH(6371) for the Petitioner(s) No. 1,2,3
for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE N.V.ANJARIA
and
HONOURABLE MS. JUSTICE NISHA M. THAKORE
Date : 09/10/2023
ORAL ORDER
(PER : HONOURABLE MR. JUSTICE N.V.ANJARIA)
Heard learned advocate Mr. Ankit Shah for the petitioner Union of India.
2. The petitioner seeks to call in question the order dated 14.06.2023 passed by the Central Administrative Tribunal, Ahmedabad Bench in Original Application No.223/2022. Thereby the Tribunal held that the applicant, who retired on 30.06.2020, was entitled to receive increment falling due on 01.07.2020. It was directed to pay the applicant the consequential benefits along with arrears within stipulated time.
3. While giving such declaration regarding entitlement of the petitioner, the Central Administrative Tribunal relied on the decision of the Supreme Court in the Director (Admn. and HR) KPTCL & Ors. vs. C.P. Mundinamani & Ors., which was Civil Appeal No.247 of 2023 before it.
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4. The issue is no longer res integra in view of the decision of the Supreme Court in C.P. Mundinamani (Supra). Also the Division Bench of this Court in State of Gujarat Vs. Pravinbhai Khemabhai Patel, which was Letters Patent Appeal No.941 of 2023 decided on 07.08.2023, dealt with the same issue.
4.1 The Supreme Court considered the very question in the Director (Admn. And HR) KPTCL & Ors. vs. C.P.Mundinamani & ors., whether the employee would be earning the annual increment falling on the very next day of retirement. That question fell for consideration before the Supreme Court in the context of Rule 40(1) of the Karnataka Electricity Board Employees Service Regulations, 1997.
4.1.1 The Supreme Court noted that on this issue various High Courts have taken divergent views,
"6.3 At this stage, it is required to be noted that there are divergent views of various High Courts on the issue involved. The Full Bench of the Andhra Pradesh High Court, the Himachal Pradesh High Court and the Kerala High Court have taken a contrary view and have taken the view canvassed on behalf of the appellants. On the other hand, the Madras High Court in the case of P. Ayyamperumal (supra); the Delhi high Court in the case of Gopal Singh Vs. Union of India and Ors. (Writ Petition (C) No. 10509/2019 decided on 23.01.2020); the Allahabad High Court in the case of Nand Vijay Singh and Ors. Vs. Union of India and Ors. (Writ A No. 13299/2020 decided on 29.06.2021); the Madhya Pradesh High Court in the case of Yogendra Singh Bhadauria and Ors. Vs. State of Madhya Pradesh; the Orissa High Court in the case of AFR Arun Kumar Biswal Vs. State of Odisha and Anr. (Writ Petition
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No.17715/2020 decided on 30.07.2021); and the Gujarat High Court in the case of State of Gujarat Vs. Takhatsinh Udesinh Songara (Letters Patent Appeal No. 868/2021) have taken a divergent view than the view taken by the Full Bench of the Andhra Pradesh High Court and have taken the view that once an employee has earned the increment on completing one year service he cannot be denied the benefit of such annual increment on his attaining the age of superannuation and/or the day of retirement on the very next day."
4.1.2 It was observed by the Apex Court regarding the object of grant of annual increment in paragraph No. 6.5 of C. P. Mundinamani (supra),
"A government servant is granted the annual increment on the basis of his good conduct while rendering one year service. Increments are given annually to officers with good conduct unless such increments are withheld as a measure of punishment or linked with efficiency. Therefore, the increment is earned for rendering service with good conduct in a year/specified period. Therefore, the moment a government servant has rendered service for a specified period with good conduct, in a time scale, he is entitled to the annual increment and it can be said that he has earned the annual increment for rendering the specified period of service with good conduct. Therefore, as such, he is entitled to the benefit of the annual increment on the eventuality of having served for a specified period (one year) with good conduct efficiently. Merely because, the government servant has retired on the very next day, how can he be denied the annual increment which he has earned and/or is entitled to for rendering the service with good conduct and efficiently in the preceding one year."
4.1.3 It was observed by the Supreme Court that the manner in
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which the authorities understood the rule and applied to deny the increments, would lead to arbitrariness and would amount to deny the government servant the benefit of annual increment which he has earned while rendering specific period of service with good conduct and efficiently in the last preceding year.
4.1.4 It was observed by the Supreme Court,
"It would be punishing a person for no fault of him. As observed hereinabove, 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. If the interpretation as suggested on behalf of the appellants and the view taken by the Full Bench of the Andhra Pradesh High Court is accepted, in that case it would tantamount to denying a government servant the annual increment which he has earned for the services he has rendered over a year subject to his good behaviour. The entitlement to receive increment therefore crystallises when the government servant completes requisite length of service with good conduct and becomes payable on the succeeding day. In the present case the word "accrue" should be understood liberally and would mean payable on the succeeding day. Any contrary view would lead to arbitrariness and unreasonableness and denying a government servant legitimate one annual increment though he is entitled to for rendering the services over a year with good behaviour and efficiently and therefore, such a narrow interpretation should be avoided."
4.1.5 The Supreme Court then stated that it was in agreement with the view taken by the Madras High Court in P. Ayyamperumal vs. Union of India. Extracting para 6.7 from the judgment of the supreme court,
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"We are in complete agreement with the view taken by the Madras High Court in the case of P. Ayyamperumal (supra); the Delhi High Court in the case of Gopal Singh (supra); the Allahabad High Court in the case of Nand Vijay Singh (supra); the Madhya Pradesh High Court in the case of Yogendra Singh Bhadauria (supra); the Orissa High Court in the case of AFR Arun Kumar Biswal (supra); and the Gujarat High Court in the case of Takhatsinh Udesinh Songara (supra). We do not approve the contrary view taken by the Full Bench of the Andhra Pradesh High Court in the case of Principal Accountant- General, Andhra Pradesh (supra) and the decisions of the Kerala High Court in the case of Union of India Vs. Pavithran (O.P.(CAT) No. 111/2020 decided on 22.11.2022) and the Himachal Pradesh High Court in the case of Hari Prakash Vs. State of Himachal Pradesh & Ors. (CWP No. 2503/2016 decided on 06.11.2020)."
5. In view of the law laid down by the Supreme Court, no interference is called for in the impugned order of Central Administrative Tribunal. The present petition is dismissed.
(N.V.ANJARIA, J)
(NISHA M. THAKORE,J) Y.N. VYAS
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