Notional increment is admissible for pension calculation to employees retiring a day before the increment falls due.

The applicant, a retired Junior Telecom Officer (JTO) of Bharat Sanchar Nigam Limited (BSNL), retired from service on February 28, 2018

He submitted a representation on March 10, 2021, requesting the grant of one annual increment that fell due on the day immediately following his retirement for the purpose of calculating pensionary benefits

Following no relief, he filed the present Original Application (OA) on September 30, 2021

During the pendency of the matter, the Department of Personnel and Training (DoPT) issued an Office Memorandum (OM) dated May 20, 2025, and BSNL issued a letter dated February 16, 2026, to implement Supreme Court directions regarding the grant of notional increments to employees retiring a day before such increments become due

1. Whether the applicant is entitled to a notional increment for the purpose of pensionary benefits based on the latest legal precedents and government OMs

2. From which date the arrears of the enhanced pension should be calculated and paid to the applicant

The court primarily relied on the Supreme Court judgment in Union of India & Anr. Vs M. Siddaraj dated April 11, 2023, and the subsequent order in MA No. 2400/2024 (Ministry of Railways) dated February 20, 2025, which established that employees retiring a day before the increment date are entitled to a notional increment for pension calculation

It applied the principle that for litigants who filed applications before Tribunals/Courts, enhanced pension is payable for three years prior to the filing of the application

the court referred to the DoPT OM dated May 20, 2025, and BSNL Corporate Office letter dated February 16, 2026, which clarified that these benefits apply to BSNL/MTNL absorbed employees

The Tribunal observed that the Respondents, via the BSNL Corporate Office letter dated February 16, 2026, had already acknowledged the applicability of the Supreme Court's directions to BSNL employees

The court found that the applicant’s grievance was substantially redressed by these policy updates

the Tribunal applied the Supreme Court's directive from the Ministry of Railways matter, which categorizes claimants based on the timing of their legal action

Since the applicant had filed the OA on September 30, 2021—prior to the finality of the specific OMs—the court determined that justice would be served by granting arrears from the date of filing the OA, ensuring the relief aligned with the judicial mandate to limit retrospective financial liability while recognizing the litigant's proactive pursuit of a remedy

The Respondents were directed to complete the exercise of granting the increment and calculating arrears from the date of filing the OA (September 30, 2021) within 90 days of receipt of the order

The court clarified that the notional increment shall be reckoned only for pension calculation and not for other pensionary benefits, as per the governing OMs

No order as to costs was made