The Supreme Court has reaffirmed its interim clarifications regarding its ruling in The Director (Admn and HR) KPTCL & Others vs CP Mundinamani. This case established that government employees are entitled to claim the annual increment they earned on the day before their retirement.

The Court has now made it clear that the judgment in CP Mundinamani will apply prospectively for third parties from April 11, 2023. Consequently, pensions calculated with the inclusion of one additional increment will be payable starting May 1, 2023. However, the enhanced pension for any period before April 30, 2023, will not be granted retroactively.

"The judgment dated April 11, 2023, will take effect for third parties from the date of the ruling, and pensions, incorporating the one increment, will be payable from May 1, 2023. Enhanced pensions for the period before April 30, 2023, will not be disbursed."

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"For individuals who have filed writ petitions and succeeded, the ruling will be treated as res judicata, and the increased pension must be paid accordingly."

"However, if the case has not attained finality due to pending appeals, the benefits will be subject to the final ruling of the appellate court."

"In cases where a retired employee has submitted an application for intervention, impleadment, or a writ petition before the Central Administrative Tribunal, High Court, or Supreme Court, the increased pension by adding one increment will be granted for a period of three years prior to the month in which the application was filed."

On February 20, 2025, the Supreme Court confirmed the directions outlined above but modified the directive related to employees who filed intervention or impleadment applications. The revised directive states that such employees will receive enhanced pensions for three years prior to the filing of their applications.

The Court also clarified that employees who filed their petitions after the decision in Union of India & Anr. v. M. Siddaraj (dated May 19, 2023) will be governed solely by the prospective application of the ruling and will not benefit from the three-year provision.

Furthermore, the Court stated that any excess payments, including arrears already disbursed, will not be recovered from the beneficiaries.

The Supreme Court granted the liberty for affected retirees to approach relevant authorities first if they encounter non-compliance with these directions. If grievances remain unresolved, they may seek relief from the Administrative Tribunal or High Court as per the law.

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Case Background

Mundinamani case arose when the Karnataka Power Transmission Corporation Limited (KPTCL) denied annual increments to employees retiring the following day, arguing that they were not in service on the actual day the increment accrued. This argument was based on Regulation 40(1) of the Karnataka Electricity Board Employees Service Regulations, 1997, which states that an increment accrues the day after it is earned. However, both the High Court and the Supreme Court rejected this reasoning, asserting that government employees cannot be denied increments merely because they retire the next day.

In M. Siddaraj, the Supreme Court reiterated that the CP Mundinamani ruling applied to similar appeals, further solidifying the right of employees to claim their rightful increments.

Case Details : UNION OF INDIA & ANR. v. M. SIDDARAJ| MISCELLANEOUS APPLICATION DIARY NO. 2400 OF 2024 IN CIVIL APPEAL NO. 3933 OF 2023