CAT - ['Chennai']

Enhanced pension from notional increments is payable from May 2023, excluding retrospective arrears.

S KATHIRESAN vs M/O FINANCE

CAT - ['Chennai']JUDGMENT: April 06, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The applicant, a retired government employee, sought the setting aside of a speaking order dated 07.08.2025

Source reference: p. 2

The applicant had previously filed OA No. 310/2023, where the Tribunal on 17.02.2023 directed the respondents to grant a notional annual increment due on 1st July 2018 and revise his pensionary benefits

Source reference: p. 2

Following a Contempt Petition (CP No. 169/2024), the respondents partially implemented the order by revising only the pre-revised pay and pension

Source reference: p. 3

The applicant filed the current OA seeking the remaining unpaid arrears of gratuity, commutation, and leave salary calculated on the basis of the revised last pay drawn after the notional increment

Source reference: p. 2
02

Issues

1. Whether the applicant is entitled to the recovery of arrears for gratuity, commutation, and leave salary based on a notional increment in light of the Supreme Court’s subsequent clarifying directions

Source reference: p. 3-4
03

Law Applied

The Tribunal applied the principles settled by the Hon’ble Supreme Court in MA Diary No. 2400/2024 in SLP (C) No. 4722/2021, order dated 06.09.2024

Source reference: p. 3

This ruling established that for third parties, the benefit of a notional increment for pensionary purposes is payable only from 01.05.2023, and no enhanced pension for the period prior to 31.04.2023 shall be paid

Source reference: p. 4

It further stipulated that while res judicata protects those who already succeeded in litigation that attained finality, specific restrictions apply to intervenors and cases where appeals are entertained

Source reference: p. 4
04

Reasoning

The Tribunal noted that the issue is no longer res integra (unsettled) due to the specific interim directions issued by the Supreme Court to prevent excessive litigation and confusion regarding notional increments

Source reference: p. 3

The Court analyzed the applicant’s claim against the Supreme Court’s four-way classification (a-d) of retirees

Source reference: p. 4

Although the applicant had a prior favorable order from the Tribunal, the Supreme Court’s order dated 06.09.2024 explicitly restricted the payment of enhanced pensionary benefits for periods prior to April 2023 for most categories of claimants

Source reference: p. 4

The Tribunal found that the applicant's demand for unpaid gratuity and leave salary arrears based on the 2018 increment revision was directly hit by these restrictive guidelines

Source reference: p. 5
05

Holding

The Tribunal concluded that in view of the Supreme Court's judgment in the MA Diary case, the specific relief sought by the applicant regarding the unpaid arrears of gratuity, commutation, and leave salary cannot be granted

The Tribunal answered the issue in the negative and dismissed the Original Application at the admission stage

Source reference: p. 5
CAT - ['Chennai']

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S KATHIRESANvsM/O FINANCE

CAT - ['Chennai'] · April 06, 2026

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