CAT - Bangalore

Headline: Entitlement to notional increment for retirees on superannuation day before increment date.

Dr. K.N. Murthy v. The State of Karnataka, O.A. No. 170/00295/2025/CAT/BANGALORE

CAT - Bangalore3 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

Dr. K.N. Murthy, a 1985 batch Indian Forest Service officer, retired from service on June 30, 2018, the day before his next annual increment was due on July 1, 2018.

Source reference: p. 3

His pensionary benefits were fixed without considering this increment.

Source reference: p. 3

Aggrieved, Dr. Murthy submitted a representation dated December 26, 2018, seeking revision of his pension based on the decision of the Hon'ble Madras High Court in Shri P. Ayyamperumal.

Source reference: p. 4

His request was rejected on January 27, 2021, by Respondent No. 2, stating the judgment was applicable only to the petitioners therein.

Source reference: p. 4

Dr. Murthy then filed OA No. 43/2023, which was disposed of on June 27, 2023, setting aside the rejection and remanding the matter for reconsideration in light of the Supreme Court's judgment in Director (Admn and HR), KPTCL and Ors. vs. C.P. Mundinamandi and Ors.

Source reference: p. 4

Subsequently, Respondent No. 2 again rejected his request via an order dated July 10, 2024, leading to the current OA.

Source reference: p. 4
02

Issues

Whether the applicant is entitled to a notional increment due on July 1, 2018, despite retiring from service on June 30, 2018.

Source reference: p. 7
03

Law Applied

The court primarily applied the legal principles established by the Hon'ble Apex Court in C.P. Mundinamani and M. Siddaraj, read with the clarification issued vide MA Diary No. 2400/2024 in Civil Appeal No. 3933/2023 dated February 20, 2025.

Source reference: p. 7, p. 8

This clarification, particularly Clause (d), addresses the applicability of enhanced pension by including one increment for retired employees who filed applications before the Central Administrative Tribunal/High Courts/this Court.

Source reference: p. 7, p. 8
04

Reasoning

The court deemed the reasons assigned by Respondent No. 2 for rejecting the applicant's claim invalid, specifically addressing the arguments that IFS (Pay) Rules 2016 preclude benefits upon retirement on June 30th and that the Supreme Court judgments were in personam.

Source reference: p. 5, p. 9

The Tribunal highlighted that the clarification issued by the Hon'ble Apex Court on February 20, 2025, in MA Diary No. 2400/2024, explicitly negates the "judgment in personam" argument.

Source reference: p. 9

This clarification, particularly Clause (d), dictates that enhanced pension with one increment is payable for three years prior to the month in which an application (including original applications before the Central Administrative Tribunal) was filed.

Source reference: p. 8

Since the applicant's initial OA No. 43/2023 was filed on December 23, 2021, and this current OA is a continuation, the conditions of Clause (d) apply, making the applicant eligible for the notional increment and consequential pension revision.

Source reference: p. 10

The Tribunal asserted that legal principles laid down by the Supreme Court apply generally to all government employees, and IFS (Pay) Rules cannot exclude this settled controversy.

Source reference: p. 9
05

Holding

The Tribunal held that the applicant is entitled to the notional increment due on July 1, 2018, and consequent re-fixation of his pensionary benefits.

The OA was partly allowed.

Source reference: no citation

The respondents were directed to grant the annual increment due on July 1, 2018, with arrears from that date, and to revise the applicant's pensionary benefits based on the revised pay of Rs. 2,24,400/- (Level -16-4) with effect from July 1, 2018.

Source reference: p. 3

The applicant is entitled to the enhanced pension by including one increment payable for the period of three years prior to December 2021 (the month the Original Application was filed).

Source reference: p. 10

Compliance with this order must be made within eight weeks from the date of receipt of the certified copy of the order.

Source reference: p. 10

No order as to costs was made.

Source reference: p. 11
CAT - Bangalore

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Dr. K.N. Murthy v. The State of Karnataka, O.A. No. 170/00295/2025/CAT/BANGALORE

CAT - Bangalore

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