Department Can’t Deny Benefit Of Increment Already Earned By Employee Which Is Payable On Subsequent Date As Per Rules: Delhi High Court
The Petition before the Delhi High Court was filed assailing the impugned order of the Central Administrative Tribunal granting the employees the benefit of an increment.
While upholding the benefit of increment granted to a government employee whose increment was due a day after he retired, the Delhi High Court has held that the Department cannot deny the benefit which has already been earned by the employee, though payable on a subsequent date due to administrative rules.
The Petition before the High Court was filed assailing the impugned order of the Central Administrative Tribunal granting the Respondent the benefit of an increment on the basis of the judgment passed by the Hon’ble Supreme Court in The Director (Admn. And HR) KPTCL & Ors. v.C.P. Mundinamani & Ors (2023).
The Division Bench of Justice Anil Kshetarpal and Justice Amit Mahajan held, “Hence, it has already been settled by the Hon’ble Supreme Court that the employee earns increment for the period he has already worked, which, in the present case stood completed on the day of retirement i.e. 30.06.2021 and the increment was admittedly due on the next day i.e. 01.07.2021.”
“The Department cannot deny the benefit which has already been earned by the employee, though payable on a subsequent date due to the administrative rules”, it added.
SPC Suruchi Mittal represented the Petitioner.
Arguments
It was the case of the Petitioners that the Respondent was working/posted as A.F.A. at Baroda House, Headquarters' Office, Northern Railway, New Delhi. He superannuated on June 30, 2021, and the increment was due to him only on July 1, 2021, i.e. a day after the Respondent retired. As per the petitioner, the Tribunal had erred in relying upon the judgment of the Apex Court.
Reasoning
The Bench was of the view that the case at hand was squarely covered by the judgment in Director (Admn. and HR) KPTCL & Ors. (supra) where the Apex Court was dealing with the case where the employees, who had retired one day earlier than the date on which the annual increment became payable, and despite completion of one year of service preceding the due date of retirement and having earned one annual increment, the increment was denied on the ground that the date on which the increment accrued, i.e., the 366th day, the employee was not in service. It was held therein that the increment is earned for rendering their services for one year preceding the date of retirement, and only because the benefit accrues on a day after the retirement, the benefit cannot be denied.
The Bench reaffirmed that the employee earns an increment for the period he had already worked, and in the instance case, the same stood completed on the day of retirement, i.e. June 30, 2021, and the increment was admittedly due on the next day, i.e. July 1, 2021.
As per the Bench, the benefit of the judgment passed in the Director (Admn. And W.P.(C) 12216/2024 KPTCL & Ors. (supra) should be given when the Respondent had completed 6 months of service (January 1, 2021, to June 30, 2021) and earned the increment.
Cause Title: Union of India & Ors. v. Naresh Kumar Gupta (Neutral Citation: 2026:DHC:2369-DB)
Appearance
Petitioner: SPC Suruchi Mittal, Advocate Shubham Soni