S.C. Agarwal vs The State Of Madhya Pradesh
2024 Latest Caselaw 20889 MP

Madhya Pradesh High Court

S.C. Agarwal vs The State Of Madhya Pradesh on 1 August, 2024

                                                                  1                            WP-20585-2024
                                IN    THE       HIGH COURT OF MADHYA PRADESH
                                                      AT JABALPUR
                                                          BEFORE
                                          HON'BLE SHRI JUSTICE SANJEEV SACHDEVA,
                                                   ACTING CHIEF JUSTICE
                                                             &
                                            HON'BLE SHRI JUSTICE VINAY SARAF
                                                     ON THE 1 st OF AUGUST, 2024
                                                   WRIT PETITION No. 20585 of 2024
                                                S.C. AGARWAL AND OTHERS
                                                          Versus
                                        THE STATE OF MADHYA PRADESH AND OTHERS
                           Appearance:
                                Shri Dhiryakant Dubey - Advocate for petitioner.
                                Shri B.D.Singh - Dy. Advocate General for respondents/State.

                                                                    ORDER

Per: Sanjeev Sachdeva, Acting Chief Justice

1. Petitioners claim that they have stood superannuated from service on their respective dates of superannuation i.e. on 30th June and 31st December and therefore, they are entitled to the benefit of annual increment which became due to them on their respective dates of annual increment i.e. on 1st

of July of that year or 1st of January of the succeeding year, as the case may be. Reference may be had to judgment of the Supreme Court in Director (ADMN) and HR KPTCL v. C.P. Mundinamani , 2023 SCC OnLine SC 401, wherein the Supreme Court has held that the entitlement to receive increment crystallises when the Government servant completes a requisite length of service with good conduct and becomes payable on the succeeding

2 WP-20585-2024 day. The Supreme Court further held that annual increment earned on the last day of service for rendering good service preceding one year from the date of retirement with good behaviour and efficiency was liable to be paid to the employee.

2. Reference may also be had to Circular dated 15.03.2024 issued by the Finance Department of the State of Madhya Pradesh directing all departments to grant annual increment to all the employees who have retired on 30th June / 31st December with regard to annual increment that became payable on 1st July and 1st January as the case may be.

3. Learned Dy. Advocate General submits that there are thousands of employees who are covered by the Circular and said Circular is being implemented and the cases are being scrutinized and processed accordingly.

4. Be that as it may, since petitioners superannuated from service on 30th June and 31st December respectively, they are entitled to get the annual increment on the succeeding day of their retirement i.e. on 1st of July or 1st of January, as the case may be. However, in view of the judgment of the Supreme Court in Rushibhai Jagdishchandra Pathak vs. Bhavnagar Municipal Corporation, 2022 SCC online SC 641, since there is a delay in approaching the Court, we restrict the benefit of arrears to a period of three years immediately preceding the filing of the petition along with interest @ 7% per annum.

5. Accordingly, the respondents are directed to grant the annual increment to the petitioner which became due to them on 1st of July or 1st of January as the case may be, with all consequential benefits. Further, it is directed that

3 WP-20585-2024 the amount accrued in favour of the petitioners on account of annual increment be paid to them within a period of six weeks.

6. Petition is allowed in the above terms.

                                 (SANJEEV SACHDEVA)                             (VINAY SARAF)
                                 ACTING CHIEF JUSTICE                               JUDGE


                           rk.