CAT - Ernakulam

Annual increment falling due the day after retirement must be granted for pensionary and consequential benefits.

M M HAMZAKOYA vs DEPARTMENT OF EDUCATION

CAT - ErnakulamJUDGMENT: March 18, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicants, retired educational officials from the Union Territory of Lakshadweep, retired from service on 30.06.2008 and 30.06.2012, respectively.

Source reference: p.3, para 1

They filed these Original Applications (OAs) seeking the benefit of one annual increment that fell due on the date immediately following their retirement (July 1st) for the purpose of revising their pension and terminal benefits.

Source reference: p.3, para 1

The applicants relied upon the Department of Personnel and Training (DoP&T) Office Memorandum (OM) dated 14.10.2024, issued following Supreme Court mandates.

Source reference: p.3, para 2

The respondents argued that while the increment could be considered for future pension calculations from 01.05.2023, the applicants were not entitled to enhanced pension or arrears for the period prior to 30.04.2023.

Source reference: p.3, para 2
02

Issues

1. Whether the applicants are entitled to the grant of one annual increment falling due on the day following their retirement for the purpose of pensionary benefits.

Source reference: p.3, para 1

2. Whether the financial benefits resulting from such increment are restricted to the period after 01.05.2023 or are payable as full consequential benefits.

Source reference: p.3, para 2
03

Law Applied

The Tribunal primarily applied the legal principle established by the Hon'ble Supreme Court in Director (Admn. and HR) KPTCL v. C.P. Mundinamani [(2023) KHC 6371], which was later affirmed in Union of India v. M. Siddaraj [SLP(C) No. 4722/2021].

Source reference: p.3, para 1

These precedents establish that an employee who has completed one full year of service is entitled to the increment even if they retire a day before it is technically credited.

Source reference: p.3, para 1

The Tribunal further relied on Paragraph 6(a) of the DoP&T Office Memorandum dated 14.10.2024, which aligns with the specific directions issued by the Supreme Court in the M. Siddaraj judgment dated 06.09.2024.

Source reference: p.3, para 2
04

Reasoning

The Tribunal examined the timing of the applicants' retirement (30th June) and determined that they had completed the requisite year of service to earn the increment due on 1st July.

Source reference: p.3, para 1

It addressed the respondents' contention regarding the limitation of arrears by referencing the DoP&T OM dated 14.10.2024.

Source reference: p.3, para 2

The Tribunal found that the applicants fall under the specific category described in Paragraph 6(a) of said OM, which corresponds to Clause (a) of the Supreme Court's directions in M. Siddaraj.

Source reference: p.3, para 2

Consequently, the Tribunal determined that the applicants are entitled not just to a notional fix, but to the actual increment and "all consequential benefits" without the temporal restrictions suggested by the respondents.

Source reference: p.3, para 2
05

Holding

The Tribunal allowed both Original Applications, holding that the applicants are entitled to one annual increment and all consequential benefits arising therefrom.

The respondents were directed to calculate the specific amounts due to the applicants and pass the necessary orders for payment.

Source reference: p.4, para 3

The Tribunal ordered that the entire amount due must be paid to the applicants within one month from the date of receipt of the order.

Source reference: p.4, para 3

No costs were awarded.

Source reference: p.4, para 4
CAT - Ernakulam

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M M HAMZAKOYAvsDEPARTMENT OF EDUCATION

CAT - Ernakulam · March 18, 2026

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