F.No.19/2/2018-Estt (Pay-I)
Government of India
Ministry of Personnel, Public Grievances & Pensions
(Department of Personnel & Training)

North Block, New Delhi
Dated: 3rd February, 2021

OFFICE MEMORANDUM

Subject: References/ Representations/ Court cases for granting notional increment for pensionary benefits in pursuance of the judgement dated 15.09.2017 of Hon’ble High Court of Madras in W.P. No. 15732 of 2017 in the case of P. Ayyamperumal Vs Union of India & Ors-regarding.

The undersigned is directed to refer to references/ representations/ court cases/ VIP references, received in this Department in large numbers on the issue of granting notional increment for pensionary benefits to those Central government servants who have retired on 30th June/ 31st December of a year, in pursuance of the judgement dated 15.09.2017 of Hon’ble High Court of Madras in W.P. No. 15732 of 2017 in the case of P. Ayyamperumal Vs Union of India & Ors.

2. The issue has been examined in this Department in consultation with Department of Legal Affairs and it has been observed that the judgement dated 15.09.2017 of Hon’ble High Court of Madras in W.P. No.15732 of 2017 in the case of P. Ayyamperumal Vs Union of India & Ors. is ‘inpersonam’ in nature. A brief note reflecting the Government’s stand on this issue is attached as Annexure-1.

Madras High Court Order – Notional increment of pensionary benefits

3. Further, it is also mentioned that in a similar case, the Hon ‘ble Supreme Court, vide judgment dated 29.03.2019 (copy enclosed as Annexure-11) , while dismissing the SLP (C) Dy. No.6468/ 2019 filed by D/ o Telecommunications against the judgment dated 03.05.2017 of Hon’ble High Court, Lucknow Bench in WP No.484 / 2010 in the matter of UOI & Ors. Vs. Sakha Ram Tripathy & Ors., has, inter alia, observed the following:

“There is delay of 566 days in filing the special leave petition. We do not see any reason to condone the delay. The Special leave petition is dismissed on delay, keeping all the questions of law open.”

4. Since the question of law is open and not yet decided, decision for implementation of the judgement dated 15.09.2017 of Hon’ble High Court of Madras in W.P. No. 15732 of 2017 in Shri P. Ayyamperumal case, in rem has not been taken.

5. Accordingly, all Ministries/ Departments are, therefore, advised to dispose of all pending grievances seeking notional increment for pensionary benefits and also to defend the various pending Court Cases in this matter.

6. In their application to the persons belonging to Indian Audit and Accounts Department, these orders are issued under Article 148(5) of the Constitution and after consultation with the Comptroller and Auditor General of India.

7. Hindi Version will follow.

(Murali Bhavaraju)
Deputy Secretary to the Government of India

Annexure-1

Note on the issue of granting a notional increment for pensionary benefits in pursuance of the judgment dated 15.09.2017 of Hon’ble High Court of Madras in W.P. No. 15732 of 2017 in the case of P. Ayyamperumal Vs Union of India & Ors.

Hon’ble High Court of Madras, vide Order dated 15.09.2017, allowed the W.P. No. 15732 of 2017 filed by Shri P. Ayyamperumal relying upon its earlier judgment dated 20.09.2012 in W.P. No. 8440 of 2011 M. Balasubramaniam Vs State of Tamil Nadu. The said case referred by Hon’ble High Court in the said judgement is related to the Fundamental Rules of Tamil Nadu Government whereas the case of petitioner Shri P. Ayyamperumal relates to Central Government Rules. As per the provisions under the Tamil Nadu Fundamental Rule 26(a), the annual increments of the Govt. Servants are regulated in four quarters viz. 1st January, 1st April, 1st July and 1st October. For the Central Government, the increment accrues annually on 1st July only (6th CPC scenario) [now 1st July and 1st January in 7th CPC scenario]. Hence, argument of petitioner is devoid of merits.

2. In light of the relevant provisions of the Fundamental Rules like 9 (21), 9(6), 17(1), 22, 26(a) and 56(a), as also the provisions of CCS (RP) Rules, 2008, a person appointed as a Government servant is entitled to pay, and is also entitled to draw the annual increment as long as such Government servant discharges duties of the post. However, such Government servant may not be entitled to draw the pay and allowances attached to the post as soon as he ceases to discharge those duties. In other words, as per F.R. 17 read with F.Rs. 24 and 26, annual increment is given to a Government servant to enable him to discharge duty and draw pay and allowances attached to the post. If such Government servant ceases to discharge duties by any reason say, by reason of attainment of age of superannuation, he will not be entitled to draw pay and allowances. Such an employee would not be entitled to any increment if it falls due after the date of retirement, be it on the next day of retirement or sometime thereafter. An employee must satisfy not only the condition of becoming entitled for increment, but also should continue to be on duty as a Government servant on the due date {1st July/ 1st January) to avail the increment.

3. Further, in a similar matter, Hon’ble High Court of Andhra Pradesh at Hyderabad, in the year 2005, in the C. Subbarao case, has, inter alia, observed as under:

“In support of the above observations, the Division Bench also placed reliance on Banerjee case (supra). We are afraid, the Division Bench was not correct in coming to the conclusion that being a reward for unblemished past service, Government servant retiring on the last day of the month would also be entitled for increment even after such increment is due after retirement. We have already made reference to all Rules governing the situation. There is no warrant to come to such conclusion. Increment is given (See Article 43 of CS Regulations) as a periodical rise to a Government employee for the good behavior in the service. Such increment is possible only when the appointment is “Progressive Appointment” and it is not a universal rule. Further, as per Rule 14 of the Pension Rules, a person is entitled for pa y, increment and other allowances only when he is entitled to receive pay from out of Consolid ated Fund of India and continues to be in Government service. A person who retires on the last working day would not be entitled for any increment falling due on the next day and payable next day thereafter (See Article 151 of CS Regulations}, because he would not answer the tests in these Rules. Reliance placed on Banerjee case (supra) is also in our considered opinion not correct because as observed by us, Banerjee case (supra) does not deal with increment, but deals with enhancement of DA by the Central Government to pensioners. Therefore, we are not able to accept the view taken by the Division Bench. We accordingly, overrule the jud gment in Malakondalah case (supra).”

4. In addition, subsequent to the judgment of Hon’ble High Court of Madras in the P. Ayyamperumal case, Hon’ble CAT Madras Bench vide its Orders dated 19.03.2019 in O.A.No.310/ 00309/ 2019 and O.A. No.310/ 00312/ 2019 and Order dated 27.03.2019 in 0.A. No.310/ 00026/ 2019 has also dismissed similar requests related with notional increment for pensionary benefits.

Source: DoPT

The post Court cases for granting notional increment for pensionary benefits in pursuance of the judgement dated 15.09.2017 of Hon’ble High Court of Madras in W.P. No. 15732 of 2017 in the case of P. Ayyamperumal Vs Union of India appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

F.No.A-23011/36/2013-Ad.IIA
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs

North Block, New Delhi,
Dated the 18 October, 2019

To,
All Pr. Chief Commissioners / Chief Commissioners / Director General under CBIC,

Subject: Grant of notional increment / re-fixation of pensionary benefits as per Hon’ble Madras High Court Order in WP No. 15732/2017 in the case of Sh.P.Ayyamperumal – regarding.

Sir/Madam,

1. I am directed to inform that the Order dated 15.09.2017 of the Hon’ble High passed in the matter of P.Ayyamperumal’s case (WP No.15732/ 2017) is in personam and not in in rem. Therefore, the CBIC has implemented the High Court’s order in personam after dismissal of review petition filed in the Supreme Court, for petitioner only which would not be quoted as precedent in future.

2. A number of cases on the similar grounds are pending at various fora, and similar demands from other similarly placed officers could also arise after Hon’ble Supreme Court’s Order dated 08.08.2019 in R.P.(C) No.1731/2019. Keeping this in mind, a request was made to DoPT seeking their opinion about the future course of action to be taken in case pertaining to similarly placed applicants and non ­applicants.

Also check: Grant of one notional increment/pension benefits to retirees those who retired on 30th June as per Madras High Court Order

3. DoPT has now informed that Deptt. of Legal Affairs have observed that:

“It is very clear that the judgment of Hon’ble High Court of Madras passed in the matter of Sh. P.Ayyamperumal is in personam and not in rem.”

4. Based on the above, DoPT has informed that in so far as other similar cases are concerned, the same may be defended on following grounds:-

4.1 In so far as P. Ayyamperumal case is concerned, it is stated that the judgment of Hon’ble High Court of Madras is in personam.

4.2 Further, the case of Sh. M Balasubramaniam referred by Hon’ble High Court in it’s judgment in P. Ayyamperumal case is related to Fundamental Rules of Tamil Nadu Government whereas P. Ayyamperumal case relates to Central Government Rules.

4.3. It is relevant to mention here that in a similar matter, Hon’ble High Court of Andhra Pradesh at Hyderabad in year 2005, in C.Subbarao case, has inter-alia observed as under:

In support of the above observations, the Division Bench also placed reliance on Banerjee case (supra). We are afraid, the Division Bench was not correct in coming to the conclusion that being a reward for unblemished past service, Government servant retiring on the last day of the month would also be entitled for increment even after such increment is due after retirement. We have already made reference to all Rules governing the situation. There is no warrant to come to such conclusion. Increment is given (See Article 43 of CS Regulations) as a periodical rise to a Government employee for the good behavior in the service. Such increment is possible only when the appointment is “Progressive Appointment” and it is not a universal rule.

Also read: Grant of Notional Increment on completion of 12 Months of Service

Further, as per Rule 14 of the Pension Rules, a person is entitled for pay, increment and other allowances only when he is entitled to receive pay from out of Consolidated Fund of India and continues to be in Government service. A person who retires on the last working day would not be entitled for any increment falling due on the next day and payable next day thereafter (See Article 151 of CS Regulations), because he would not answer the tests in these Rules.

Reliance placed on Banerjee case (supra) is also in our considered opinion not correct because, as observed by us, Banerjee case (supra) does not deal with increment, but deals with enhancement of DA by the Central Government to pensioners. Therefore, we are not able to accept the view taken by the Division Bench. We accordingly overrule the judgment in Malakondaiah case (supra).

4.4 In addition, subsequent to the judgment of Hon’ble High Court of Madras in P. Ayyamperumal’s case, Hon’ble CAT Madras Bench vide its orders dated 19.03.2019 in 0.A. No. 310/00309/ 2019 and O.A. No. 310/00312/ 2019 and Order dated 27.03.2019 in O.A. No. 310/00026/ 2019 has also dismissed the similar requests related with notional increment for pensionary benefits.

5. Accordingly, it is requested that all the pending / future court cases on the similar issue should be defended/ dealt with adequately on the above lines.

Yours faithfully,
sd/-
(A.K. Mishra)
Under Secretary to the Government of India

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F, No.A-26017/16/2019-Ad IIA
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs

North Block, New Delhi,
Dated the 18th March, 2018.

To,

All Pr. Chief Commissioners/Chief Commissioner of GST & Central
Excise/Customs/Directors General under CBIC.

Subject:- Representation for grant of one notional increment/pension benefits to retirees those who retired on 30th June as per Hon’ble Madras High Court Order in WP No.15732 of 2017 in the case of Shri P. Iyyamperumal ys UOI and the Order of Hon’ble Supreme Court in SLP No.22283/2018 dated 23.07.2018 – regarding.

Sir/Madam,

I am directed to say that the above matter has been examined in the Board and after dismissal of SLP Dy. No.22283/2018 dated 23.07.2018, the matter was referred to DoP&T for their advice. DoP&T has advised to refer the matter to Department of Legal Affairs (DoLA) to explore the possibilities of review of the Hon’ble Supreme Court Order dated 23.07.2018 in the said SLP Dy. No.22238/2018. Hence, the matter has not attained finality as yet.

It is, therefore, informed that the final decision taken in the matter would be intimated in due Course as and when the matter attains finality.

Yours faithfully,

(Nagendra Kumar)
Under Secretary to the Government of India

Copy with enclosure to:-

1. DG. of System & Data Management – for uploading on the website of CBEC.

Source: www.cbic.gov.in

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