Retirees Completing 12 Months Service By 30th June Entitled To Annual Increment For Pension Revision: P&H HC

Background Facts

The petitioners were employees of the State of Haryana. They sought quashing of Rule 10 of the Haryana Civil Services (Revised Pay) Rules, 2008, to the extent it denied annual increment to employees retiring on June 30, despite their having rendered six months or more of service since the last increment. They further prayed for refixation of pension by granting them the benefit of one increment for the year of retirement.

Aggrieved, the petitioners filed the writ petition.

Findings and Observations of the Court

The case of The Director (Administration and HR) KPTCL and others vs. C.P.Mundinamani and others was relied upon by the court wherein it was held by the Supreme Court that once an employee has rendered 12 months of satisfactory service by the date of superannuation, (30th June), they become entitled to the annual increment that falls due on the next day, i.e. 1st July. It was held that denying the benefit because the increment date falls after the retirement date was arbitrary.

It was observed by the Court that as per Rule 10 of the Haryana Civil Services (Revised Pay) Rules, 2008, the reference to an employee completing 6 months and above as on 1st July to be eligible for the increment must be understood in its correct context. It was found by the court that the six-month reference was introduced to create a uniform increment date (1st July) for all employees during the transition to the revised pay structure. It was intended to address the situation of employees who previously had a different increment date.

It was held by the court that this clause does not remove the requirement of completing 12 months of service to earn an annual increment. It was noted by the court that granting an increment for only six months of service would be contrary to the very concept of an annual hike in pay.

It was held by the court that the employees who retired before completing a year's satisfactory service cannot claim annual increment if they have earned their last annual increment on 1st of July of the year previous to the year of their retirement. Therefore, it was held that the petitioners, who completed one year of continuous satisfactory service as on 30th June, would be entitled to the benefit of annual increment. Further that the petitioners who have completed six months or less than a year, after availing last annual increment in their year of retirement, would not be entitled to any relief. It was directed by the court to the State to release the benefits due to the eligible petitioners within a period of three months.

With the aforesaid observations, the writ petition filed by the employees was disposed of by the Court.

Case Name : Karan Singh and Others vs. State of Haryana and Others

Case No. : CWP-22474-2025 (O&M)

Counsel for the Petitioners : Anil Kumar Sharma, Advocate and Nishant Sharma, Advocate

Counsel for the Respondents : Saurabh Mohunta, DAG, Haryana