Maharashtra: State administrative tribunal gives relief to 30 who retired just a day before increment

The MAT held that those who retire just a day before their next increment are eligible for the increment amount, which needs to be taken into account while calculating retirement benefits. Representation pic

As many as 30 retired state government officials, who were deprived of annual increment as they retired just a day before the increment was to be enforced, ie July 1, got a major relief from the Maharashtra Administrative Tribunal (MAT) which ruled that the increment should be taken into account while calculating their retirement benefits. Of the 30 complaints, 26 were from retired officials from sales tax, public health and state police departments. MAT clubbed all the complaints and passed its landmark order.

The case

Litigants said they were entitled to the benefit of increment and cited that as per the recommendations of the Sixth Pay Commission and Rule 36 of the Maharashtra Civil Services (Pay) Rules, all employees are entitled to increment, effective from July 1 every year, if they have completed one year of service, unless the same is withheld as penalty.

"There is absolutely no dispute that all the applicants have rendered one year of service and there were no such orders of withholding their increments. Though they have rendered one-year complete service, they are deprived of the increment because they stand retired one day before the day of increment, which was due on July 1 as a uniform date of annual increment for all employees. Consequently, their pension and other retiral benefits were fixed to their disadvantage," the litigants said.

The advocates for litigants cited the P Ayyamperumal v/s The Registrar, Central Administrative Tribunal and others case which, though rejected by the Central Administration Tribunal, was upheld by the Madras HCand even the Supreme Court. The advocates referred to other similar cases heard and decided by the Bombay HC Nagpur and Aurangabad benches, too.

A P Kurhekar, member (judge), MAT, stated in his order, "In view of the aforesaid legal position, the applicants cannot be deprived of benefit of increment which was due on July 1 of the concerned year."

Other side's plea

Presenting Officer Kranti Gaikwad, for respondents, appealed to MAT that since the applicants approached belatedly, the actual monetary benefits be restricted to three years preceding the filing of original applications. MAT agreed to the plea and noted, "I find merit in the submission on the point of arrears. Indeed, the applicants have filed these proceedings long after retirement when they got knowledge of the judgment of the Supreme Court giving benefit of increment due on the next day of retirement."

The order

MAT, in its order, stated, "The applicants are held entitled for increment due on July 1. It shall be reckoned with for the purpose of pension and gratuity and other retiral benefits subject to rider that the applicants would be entitled to arrears of monetary benefits for the period of three years only preceding the date of filing original applications (case filed before MAT). The respondents are directed to make payment of arrears within three months."

LawyerSpeak

Advocate Rajeshwar Panchal, who represented 26 of the applicants, said, "We filed the case before MAT and relied upon a judgment of the Madras High Court that was upheld by the Supreme court. The judgment of MAT is really landmark and it is going to benefit not only the applicants but all other government staffers who retire on June 30 (for Sixth Pay Commission) or December 31 (for Seventh Pay Commission)."