10 July 2025 Civil Writ Petition >> Civil & Consumer Law  

In a recent judgment of Mohan Singh v/s The Chief General Manager Madhya Pradesh Paschim Kshetra Vidyut Vitran Company Limkited Indore & Others, the High Court of Madhya Pradesh addressed a petition concerning the grant of an annual increment to a government employee who superannuated on June 30, 2022, seeking the increment due on July 1, 2022. The case aligns with a broader legal debate regarding the entitlement of employees to an annual increment on the day immediately following their retirement.

The petitioner argued his entitlement based on the Supreme Court's ruling in Director (ADMN) and HR KPTCL v/s C.P. Mundinamani. In that case, the apex court clarified that the right to receive an annual increment crystallizes upon completing the requisite service with good conduct and becomes payable on the succeeding day. This means an increment earned for good service in the year preceding retirement is due to the employee.

Further supporting the petitioner's claim, the Government of Madhya Pradesh had issued a circular on March 15, 2024, explicitly directing all government departments to grant annual increments to employees retiring on June 30th or December 31st, on July 1st or January 1st, respectively.

However, the respondent, representing the government, highlighted that while the circular is being implemented for thousands of employees, those approaching the court with significant delay might not be entitled to arrears and interest.

The High Court's decision was significantly guided by a recent Supreme Court order in Union of India and another V/s M. Siddaraj (February 20, 2025), which provided specific directions for granting annual increments to retired government employees:

• General Rule (for third parties): The enhanced pension, including one increment, will be payable from May 1, 2023. No enhanced pension will be paid for the period prior to April 30, 2023.
• Litigation-Specific Rules: For individuals who had already filed and succeeded in writ petitions, the judgment acts as res judicata, entitling them to enhanced pension. For those who initiated legal action (intervention, impleadment, writ petition, or original application) before the Siddaraj judgment, the enhanced pension is payable for a period of three years prior to their filing. Crucially, the Supreme Court clarified that the benefit of a retrospective three-year payment would not apply to those who filed their petitions or applications after the Siddaraj judgment; for such cases, the general rule of payment from May 1, 2023, would apply.

In light of these directives, the Madhya Pradesh High Court disposed of the current petition by instructing the petitioner to submit a detailed representation to the competent authority within 30 days. Upon receiving this representation, the authority is mandated to consider and grant the benefit as per Clause (a) of the Supreme Court's Siddaraj order, meaning one increment will be given from May 1, 2023, with no enhanced pension paid for the period prior to April 30, 2023. This ruling provides clarity on the application of the increment benefit based on the timing of legal recourse.