# THE DIRECTOR (ADMN. AND HR) KPTCL & ORS v. C.P. MUNDINAMANI & ORS

- **Citation:** [2023] 3 S.C.R. 332
- **Court:** Supreme Court of India
- **Decided:** 2023-04-11
- **Case number:** Civil Appeal No. 2471 of 2023
- **Bench:** M. R. Shah, C. T. Ravikumar
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/the-director-admn-and-hr-kptcl-ors-v-c-p-mundinamani-ors-36883
- **Pages:** 13

## Headnote

Karnataka Electricity Board Employees Service Regulations,
1997 - Regulation 40(1) - As per Regulation 40(1) an increment
accrues from the day following that on which it is earned -
Appellant-KTCL denied the annual increment to the respondentsrespective employees on the ground that the day on which the
increment accrued, the respondents were not in service - Whether
an employee who has earned the annual increment is entitled to the
same despite the fact that he has retired on the very next day of
earning the increment - Held: Merely because, the government
servant has retired on the very next day, he cannot be denied the
annual increment which he has earned - In the instant case, the
word "accrue" should be understood liberally and would mean
payable on the succeeding day - Any contrary view would lead to
arbitrariness and unreasonableness and denying a government
servant legitimate one annual increment though he is entitled to for
rendering the services over a year with good behaviour and
efficiently and therefore, such a narrow interpretation should be
avoided.
Dismissing the appeal, the Court
HELD: 1. The submission on behalf of the appellants that
as the increment has accrued on the next day on which it is earned
and therefore, even in a case where an employee has earned the
increment one day prior to his retirement but he is not in service
the day on which the increment is accrued is concerned, while
considering the aforesaid issue, the object and purpose of grant
of annual increment is required to be considered. A government
servant is granted the annual increment on the basis of his good
conduct while rendering one year service. Increments are given
annually to officers with good conduct unless such increments
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are withheld as a measure of punishment or linked with efficiency.
Therefore, the increment is earned for rendering service with
good conduct in a year/specified period. Therefore, the moment
a government servant has rendered service for a specified period
with good conduct, in a time scale, he is entitled to the annual
increment and it can be said that he has earned the annual
increment or rendering the specified period of service with good
conduct. Therefore, as such, he is entitled to the benefit of the
annual increment on the eventuality of having served for a
specified period (one year) with good conduct efficiently. Merely
because, the government servant has retired on the very next
day, how can he be denied the annual increment which he has
earned and/or is entitled to for rendering the service with good
conduct and efficiently in the preceding one year. [Para 6.5][339F-H; 340-A-C]
2. To interpret Regulation 40(1) of the Regulations in the
manner in which the appellants have understood and/or
interpretated would lead to arbitrariness and denying a
government servant the benefit of annual increment which he
has already earned while rendering specified period of service
with good conduct and efficiently in the last preceding year. It
would be punishing a person for no fault of him. As observed
hereinabove, the increment can be withheld only by way of
punishment or he has not performed the duty efficiently. Any
interpretation arbitrariness which and/or would lead to
unreasonableness should be avoided. If the interpretation as
suggested on behalf of the appellants and the view taken by the
Full Bench of the Andhra Pradesh High Court is accepted, in
that case it would tantamount to denying a government servant
the annual increment which he has earned for the services he
has rendered over a year subject to his good behaviour. The
entitlement to receive increment therefore crystallises when the
government servant completes requisite length of service with
good conduct and becomes payable on the succeeding day. In
the present case the word "accrue" should be understood liberally
and would mean payable on the succeeding day. Any contrary
view would lead to arbitrariness and unreasonableness and

## Text

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[2023] 3 S.C.R.
[2023] 3 S.C.R. 332
332
THE DIRECTOR (ADMN. AND HR) KPTCL & ORS.
v.
C.P. MUNDINAMANI & ORS.
(Civil Appeal No. 2471 of 2023)
APRIL 11, 2023
[M. R. SHAH AND C. T. RAVIKUMAR, JJ.]
Karnataka Electricity Board Employees Service Regulations,
1997 - Regulation 40(1) - As per Regulation 40(1) an increment
accrues from the day following that on which it is earned -
Appellant-KTCL denied the annual increment to the respondentsrespective employees on the ground that the day on which the
increment accrued, the respondents were not in service - Whether
an employee who has earned the annual increment is entitled to the
same despite the fact that he has retired on the very next day of
earning the increment - Held: Merely because, the government
servant has retired on the very next day, he cannot be denied the
annual increment which he has earned - In the instant case, the
word "accrue" should be understood liberally and would mean
payable on the succeeding day - Any contrary view would lead to
arbitrariness and unreasonableness and denying a government
servant legitimate one annual increment though he is entitled to for
rendering the services over a year with good behaviour and
efficiently and therefore, such a narrow interpretation should be
avoided.
Dismissing the appeal, the Court
HELD: 1. The submission on behalf of the appellants that
as the increment has accrued on the next day on which it is earned
and therefore, even in a case where an employee has earned the
increment one day prior to his retirement but he is not in service
the day on which the increment is accrued is concerned, while
considering the aforesaid issue, the object and purpose of grant
of annual increment is required to be considered. A government
servant is granted the annual increment on the basis of his good
conduct while rendering one year service. Increments are given
annually to officers with good conduct unless such increments
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are withheld as a measure of punishment or linked with efficiency.
Therefore, the increment is earned for rendering service with
good conduct in a year/specified period. Therefore, the moment
a government servant has rendered service for a specified period
with good conduct, in a time scale, he is entitled to the annual
increment and it can be said that he has earned the annual
increment or rendering the specified period of service with good
conduct. Therefore, as such, he is entitled to the benefit of the
annual increment on the eventuality of having served for a
specified period (one year) with good conduct efficiently. Merely
because, the government servant has retired on the very next
day, how can he be denied the annual increment which he has
earned and/or is entitled to for rendering the service with good
conduct and efficiently in the preceding one year. [Para 6.5][339F-H; 340-A-C]
2. To interpret Regulation 40(1) of the Regulations in the
manner in which the appellants have understood and/or
interpretated would lead to arbitrariness and denying a
government servant the benefit of annual increment which he
has already earned while rendering specified period of service
with good conduct and efficiently in the last preceding year. It
would be punishing a person for no fault of him. As observed
hereinabove, the increment can be withheld only by way of
punishment or he has not performed the duty efficiently. Any
interpretation arbitrariness which and/or would lead to
unreasonableness should be avoided. If the interpretation as
suggested on behalf of the appellants and the view taken by the
Full Bench of the Andhra Pradesh High Court is accepted, in
that case it would tantamount to denying a government servant
the annual increment which he has earned for the services he
has rendered over a year subject to his good behaviour. The
entitlement to receive increment therefore crystallises when the
government servant completes requisite length of service with
good conduct and becomes payable on the succeeding day. In
the present case the word "accrue" should be understood liberally
and would mean payable on the succeeding day. Any contrary
view would lead to arbitrariness and unreasonableness and
denying a government servant legitimate one annual increment
THE DIRECTOR (ADMN. AND HR) KPTCL & ORS. v. C.P.
MUNDINAMANI & ORS.
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though he is entitled to for rendering the services over a year
with good behaviour and efficiently and therefore, such a narrow
interpretation should be avoided. [Para 6.7][343-A-E]
P. Ayyamperumal Vs. The Registrar and Ors. W.P. No.
15732/2017 decided on 15.09.2017 by the Madras
High Court; Gopal Singh Vs. Union of India and Ors.
Writ Petition (C) No. 10509/2019 decided on
23.01.2020 by the Delhi High Court; Nand Vijay Singh
and Ors. Vs. Union of India and Ors. Writ A No. 13299/
2020 decided on 29.06.2021 by the Allahabad High
Court; Yogendra Singh Bhadauria and Ors. Vs. State
of Madhya Pradesh (Madhya Pradesh High Court);
AFR Arun Kumar Biswal Vs. State of Odisha and Anr.
Writ Petition No. 17715/2020 decided on 30.07.2021
by Orissa High Court; State of Gujarat Vs. Takhatsinh
Udesinh Songara Letters Patent Appeal No. 868/2021
by the Gujarat High Court - approved.
Principal Accountant-General, Andhra Pradesh and
Anr. Vs. C. Subba Rao 2005 (2) LLN 592; Union of
India Vs. Pavithran O.P.(CAT) No. 111/2020 decided
on 22.11.2022 by the Kerala High Court; Hari
Prakash Vs. State of Himachal Pradesh & Ors. CWP
No. 2503/2016 decided on 06.11.2020 by the Himachal
Pradesh High Court - disapproved.
Union of India and Ors. Vs. R. Malakondaiah and ors.
2002(4) ALT 550 (D.B.) - referred to.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2471
of 2023.
From the Judgment and Order dated 23.01.2020 of the High Court
of Karnataka at Bengaluru in WA No. 4193 of 2017.
Huzefa Ahmadi, Sr. Adv., S. K. Kulkarni, M. Gireesh Kumar,
Ankur S. Kulkarni, Ms. Uditha Chakravarthy, Advs. for the Appellants.
M/s. Bannidinni and Co., Mallikarjun S. Mylar, Manjunath, Ashok
Bannidinni, Sujeet Kumar, Advs. for the Respondents.
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The Judgment of the Court was delivered by
M. R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the High Court of Karnataka at Bengaluru in Writ
Appeal No. 4193/2017, by which, the Division Bench of the High Court
has allowed the said appeal preferred by the employees - respondents
herein by quashing and setting aside the judgment and order passed by
the learned Single Judge and directing the appellants to grant one annual
increment which the respondents had earned one day prior to they retired
on attaining the age of superannuation, the management - KPTCL has
preferred the present appeal.
2. The undisputed facts are that one day earlier than the retirement
and on completion of one year service preceding the date of retirement
all the employees earned one annual increment. However, taking into
consideration Regulation 40(1) of the Karnataka Electricity Board
Employees Service Regulations, 1997 (hereinafter referred to as the
Regulations), which provides that an increment accrues from the day
following that on which it is earned, the appellants denied the annual
increment on the ground that the day on which the increment accrued
the respective employees - original writ petitioners were not in service.
The writ petition(s) filed by the original writ petitioners claiming the annual
increment came to be dismissed by the learned Single Judge. By the
impugned judgment and order and following the decision of the Andhra
Pradesh High Court in the case of Union of India and Ors. Vs. R.
Malakondaiah and ors. reported in 2002(4) ALT 550 (D.B.) and
relying upon the decisions of other High Courts, the Division Bench of
the Karnataka High Court has allowed the appeal and has directed that
the appellants to grant one annual increment to the respective employeesrespondents by observing that the respective employees as such earned
the increment for rendering their one-year service prior to their retirement.
2.1 Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the Division Bench of the High Court, the
management - KPTCL has preferred the present appeal.
3. Shri Huzefa Ahmadi, learned Senior Advocate has appeared
on behalf of the appellants and Shri Mallikarjun S. Mylar, learned counsel
has appeared on behalf of the respective employees - respondents.
THE DIRECTOR (ADMN. AND HR) KPTCL & ORS. v. C.P.
MUNDINAMANI & ORS.
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3.1 Shri Ahmadi, learned Senior Advocate appearing on behalf of
the appellants has vehemently submitted that the decision of the Andhra
Pradesh High Court in the case of R. Malakondaiah (supra) which
has been relied upon by the Division Bench of the High Court while
passing the impugned judgment and order has been subsequently overruled
by the Full Bench of the Andhra Pradesh High Court in the case of
Principal Accountant-General, Andhra Pradesh and Anr. Vs. C.
Subba Rao reported in 2005 (2) LLN 592.
3.2 It is further submitted by Shri Ahmadi, learned Senior Advocate
appearing on behalf of the appellants that there are divergent views of
different High Courts on the issue. It is submitted that the Madras High
Court, the Delhi High Court, the Allahabad High Court, the Madhya
Pradesh High Court, the Gujarat High Court have taken a contrary view
than the view taken by the Full Bench of the Andhra Pradesh High
Court, the Kerala High Court and the Himachal Pradesh High Court. It
is submitted that various High Courts taking the contrary view have as
such followed the decision of the Madras High Court in the case of P.
Ayyamperumal Vs. The Registrar and Ors. (W.P. No. 15732/2017
decided on 15.09.2017).
3.3 On merits, Shri Ahmadi, learned Senior Advocate appearing
on behalf of the appellants has vehemently submitted that the words
used in Regulation 40(1) of the Regulations are very clear and
unambiguous. It is submitted that it categorically provides that "an
increment accrues from the day following that on which it is earned." It
is submitted that therefore, when the right to get the increment is accrued
the employee must be in service. It is submitted that in the present case
when the right to get the increment accrues in favour of the respective
respondents they were not in service but on their superannuation retired
from the services. It is submitted that therefore, they shall not be entitled
to the annual increment which might have been earned one day earlier
i.e., on the last day of their service.
3.4 It is further submitted by Shri Ahmadi, learned Senior Advocate
appearing on behalf of the appellants that the annual increment is in the
form of a good service and it is an incentive so that the concerned
employee may serve effectively and may render good services. It is
submitted that therefore, when the concerned employees are not in service
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due to their retirement there is no question of grant of any annual
increment which as such is in the form of incentive to encourage the
employee for better performance.
3.5 Shri Ahmadi, learned Senior Advocate appearing on behalf of
the appellants has also taken us to the definition of the word "accrue" in
the Law Lexicon (the encyclopaedic law dictionary) and the definition
of the word "increment." It is submitted that as per the Law Lexicon,
"increment" means a unit of increase in quantity or value. It means a
promotion from a lower grade to a higher grade. As per the definition
"increment" means an upward change in something. It is submitted that
as per the Law Lexicon the word "accrue" means to come into existence
as an enforceable claim or right. It is submitted that therefore, on true
interpretation of Regulation 40(1) of the Regulations, an increment
accrues from the day following that on which it is earned. It is submitted
that therefore, the Division Bench of the High Court has materially erred.
It is submitted that therefore, the view taken by the Division Bench of
the High Court and other High Courts that the concerned employees
shall be entitled to the benefit of one annual increment which they earned
one day prior to their retirement is erroneous and is on mis-interpretation
of the relevant statutory provisions. Making the above submissions, it is
prayed to allow the present appeal.
4. Learned counsel appearing on behalf of the respective
employees - respondents, has heavily relied upon the decision of the
Madras High Court in the case of P. Ayyamperumal (supra) and the
decisions of the Gujarat High Court, the Delhi High Court, the Allahabad
High Court, the Madhya Pradesh High Court and the Orissa High Court
taking the view that the concerned employees who earned the annual
increment for rendering one year service prior to their retirement they
cannot be denied the benefit of the annual increment which they actually
earned, solely on the ground that they retired on attaining the age of
superannuation on the very next day. It is submitted that therefore, the
Division Bench of the High Court has not committed any error in allowing
one annual increment in favour of the respective employees which they
actually earned.
4.1 Making the above submissions, it is prayed to dismiss the
present appeal.
THE DIRECTOR (ADMN. AND HR) KPTCL & ORS. v. C.P.
MUNDINAMANI & ORS. [M. R. SHAH, J.]
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5. We have heard learned counsel appearing on behalf of the
respective parties.
6. The short question which is posed for the consideration of this
Court is whether an employee who has earned the annual increment is
entitled to the same despite the fact that he has retired on the very next
day of earning the increment?
6.1 In the present case, the relevant provision is Regulation 40(1)
of the Regulations which reads as under: -
"Drawals and postponements of increments
40(1) An increment accrues from the day following that on which
it is earned. An increment that has accrued shall ordinarily be
drawn as a matter of course unless it is withheld. An increment
may be withheld from an employee by the competent authority, if
his conduct has not been good, or his work has not been
satisfactory. In ordering the withholding of an increment, the
withholding authority shall state the period for which it is withheld,
and whether the postponement shall have the effect of postponing
future increments."
6.2 It is the case on behalf of the appellants that the word used in
Regulation 40(1) is that an increment accrues from the day following
that on which it is earned and in the present case the increment accrued
on the day when they retired and therefore, on that day they were not in
service and therefore, not entitled to the annual increment which they
might have earned one day earlier. It is also the case on behalf of the
appellants that as the increment is in the form of incentive and therefore,
when the employees are not in service there is no question of granting
them any annual increment which as such is in the form of incentive.
6.3 At this stage, it is required to be noted that there are divergent
views of various High Courts on the issue involved. The Full Bench of
the Andhra Pradesh High Court, the Himachal Pradesh High Court and
the Kerala High Court have taken a contrary view and have taken the
view canvassed on behalf of the appellants. On the other hand, the
Madras High Court in the case of P. Ayyamperumal (supra); the Delhi
high Court in the case of Gopal Singh Vs. Union of India and Ors.
(Writ Petition (C) No. 10509/2019 decided on 23.01.2020); the
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Allahabad High Court in the case of Nand Vijay Singh and Ors. Vs.
Union of India and Ors. (Writ A No. 13299/2020 decided on
29.06.2021); the Madhya Pradesh High Court in the case of Yogendra
Singh Bhadauria and Ors. Vs. State of Madhya Pradesh; the Orissa
High Court in the case of AFR Arun Kumar Biswal Vs. State of
Odisha and Anr. (Writ Petition No. 17715/2020 decided on
30.07.2021); and the Gujarat High Court in the case of State of Gujarat
Vs. Takhatsinh Udesinh Songara (Letters Patent Appeal No. 868/
2021) have taken a divergent view than the view taken by the Full
Bench of the Andhra Pradesh High Court and have taken the view that
once an employee has earned the increment on completing one year
service he cannot be denied the benefit of such annual increment on his
attaining the age of superannuation and/or the day of retirement on the
very next day.
6.4 Now so far as the submission on behalf of the appellants that
the annual increment is in the form of incentive and to encourage an
employee to perform well and therefore, once he is not in service, there
is no question of grant of annual increment is concerned, the aforesaid
has no substance. In a given case, it may happen that the employee
earns the increment three days before his date of superannuation and
therefore, even according to the Regulation 40(1) increment is accrued
on the next day in that case also such an employee would not have one
year service thereafter. It is to be noted that increment is earned on one
year past service rendered in a time scale. Therefore, the aforesaid
submission is not to be accepted.
6.5 Now, so far as the submission on behalf of the appellants that
as the increment has accrued on the next day on which it is earned and
therefore, even in a case where an employee has earned the increment
one day prior to his retirement but he is not in service the day on which
the increment is accrued is concerned, while considering the aforesaid
issue, the object and purpose of grant of annual increment is required to
be considered. A government servant is granted the annual increment
on the basis of his good conduct while rendering one year service.
Increments are given annually to officers with good conduct unless such
increments are withheld as a measure of punishment or linked with
efficiency. Therefore, the increment is earned for rendering service with
good conduct in a year/specified period. Therefore, the moment a
government servant has rendered service for a specified period with
THE DIRECTOR (ADMN. AND HR) KPTCL & ORS. v. C.P.
MUNDINAMANI & ORS. [M. R. SHAH, J.]
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good conduct, in a time scale, he is entitled to the annual increment and
it can be said that he has earned the annual increment for rendering the
specified period of service with good conduct. Therefore, as such, he is
entitled to the benefit of the annual increment on the eventuality of having
served for a specified period (one year) with good conduct efficiently.
Merely because, the government servant has retired on the very next
day, how can he be denied the annual increment which he has earned
and/or is entitled to for rendering the service with good conduct and
efficiently in the preceding one year. In the case of Gopal Singh (supra)
in paragraphs 20, 23 and 24, the Delhi High Court has observed and held
as under: -
(para 20)
"Payment of salary and increment to a central government servant
is regulated by the provisions of F.R., CSR and Central Civil
Services (Pension) Rules. Pay defined in F.R. 9(21) means the
amount drawn monthly by a central government servant and
includes the increment. A plain composite reading of applicable
provisions leaves no ambiguity that annual increment is given to a
government servant to enable him to discharge duties of the post
and that pay and allowances are also attached to the post. Article
43 of the CSR defines progressive appointment to mean an
appointment wherein the pay is progressive, subject to good
behaviour of an officer. It connotes that pay rises, by periodical
increments from a minimum to a maximum. The increment in
case of progressive appointment is specified in Article 151 of the
CSR to mean that increment accrues from the date following that
on which it is earned. The scheme, taken cumulatively, clearly
suggests that appointment of a central government servant is a
progressive appointment and periodical increment in pay from a
minimum to maximum is part of the pay structure. Article 151 of
CSR contemplates that increment accrues from the day following
which it is earned. This increment is not a matter of course but is
dependent upon good conduct of the central government servant.
It is, therefore, apparent that central government employee earns
increment on the basis of his good conduct for specified period
i.e. a year in case of annual increment. Increment in pay is thus
an integral part of progressive appointment and accrues from the
day following which it is earned."
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(para 23)
"Annual increment though is attached to the post & becomes
payable on a day following which it is earned but the day on which
increment accrues or becomes payable is not conclusive or
determinative. In the statutory scheme governing progressive
appointment increment becomes due for the services rendered
over a year by the government servant subject to his good
behaviour. The pay of a central government servant rises, by
periodical increments, from a minimum to the maximum in the
prescribed scale. The entitlement to receive increment therefore
crystallises when the government servant completes requisite
length of service with good conduct and becomes payable on the
succeeding day."
(para 24)
"In isolation of the purpose it serves the fixation of day succeeding
the date of entitlement has no intelligible differentia nor any object
is to be achieved by it. The central government servant retiring on
30th June has already completed a year of service and the increment
has been earned provided his conduct was good. It would thus be
wholly arbitrary if the increment earned by the central government
employee on the basis of his good conduct for a year is denied only
on the ground that he was not in employment on the succeeding
day when increment became payable."
"In the case of a government servant retiring on 30th of June the
next day on which increment falls due/becomes payable looses
significance and must give way to the right of the government
servant to receive increment due to satisfactory services of a
year so that the scheme is not construed in a manner that if offends
the spirit of reasonableness enshrined in Article 14 of the
Constitution of India. The scheme for payment of increment would
have to be read as whole and one part of Article 151 of CSR
cannot be read in isolation so as to frustrate the other part
particularly when the other part creates right in the central
government servant to receive increment. This would ensure that
scheme of progressive appointment remains intact and the rights
earned by a government servant remains protected and are not
denied due to a fortuitous circumstance."
THE DIRECTOR (ADMN. AND HR) KPTCL & ORS. v. C.P.
MUNDINAMANI & ORS. [M. R. SHAH, J.]
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6.6 The Allahabad High Court in the case of Nand Vijay Singh
(supra) while dealing with the same issue has observed and held in
paragraph 24 as under: -
"24. Law is settled that where entitlement to receive a benefit
crystallises in law its denial would be arbitrary unless it is for a
valid reason. The only reason for denying benefit of increment,
culled out from the scheme is that the central government servant
is not holding the post on the day when the increment becomes
payable. This cannot be a valid ground for denying increment
since the day following the date on which increment is earned
only serves the purpose of ensuring completion of a year's service
with good conduct and no other purpose can be culled out for it.
The concept of day following which the increment is earned has
otherwise no purpose to achieve. In isolation of the purpose it
serves the fixation of day succeeding the date of entitlement has
no intelligible differentia nor any object is to be achieved by it.
The central government servant retiring on 30th June has already
completed a year of service and the increment has been earned
provided his conduct was good. It would thus be wholly arbitrary
if the increment earned by the central government employee on
the basis of his good conduct for a year is denied only on the
ground that he was not in employment on the succeeding day
when increment became payable. In the case of a government
servant retiring on 30th of June the next day on which increment
falls due/becomes payable looses significance and must give way
to the right of the government servant to receive increment due to
satisfactory services of a year so that the scheme is not construed
in a manner that if offends the spirit of reasonableness enshrined
in Article 14 of the Constitution of India. The scheme for payment
of increment would have to be read as whole and one part of
Article 151 of CSR cannot be read in isolation so as to frustrate
the other part particularly when the other part creates right in the
central government servant to receive increment. This would
ensure that scheme of progressive appointment remains intact
and the rights earned by a government servant remains protected
and are not denied due to a fortuitous circumstance."
6.7 Similar view has also been expressed by different High Courts,
namely, the Gujarat High Court, the Madhya Pradesh High Court, the
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Orissa High Court and the Madras High Court. As observed hereinabove,
to interpret Regulation 40(1) of the Regulations in the manner in which
the appellants have understood and/or interpretated would lead to
arbitrariness and denying a government servant the benefit of annual
increment which he has already earned while rendering specified period
of service with good conduct and efficiently in the last preceding year. It
would be punishing a person for no fault of him. As observed hereinabove,
the increment can be withheld only by way of punishment or he has not
performed the duty efficiently. Any interpretation which would lead to
arbitrariness and/or unreasonableness should be avoided. If the
interpretation as suggested on behalf of the appellants and the view
taken by the Full Bench of the Andhra Pradesh High Court is accepted,
in that case it would tantamount to denying a government servant the
annual increment which he has earned for the services he has rendered
over a year subject to his good behaviour. The entitlement to receive
increment therefore crystallises when the government servant completes
requisite length of service with good conduct and becomes payable on
the succeeding day. In the present case the word "accrue" should be
understood liberally and would mean payable on the succeeding day.
Any contrary view would lead to arbitrariness and unreasonableness
and denying a government servant legitimate one annual increment though
he is entitled to for rendering the services over a year with good behaviour
and efficiently and therefore, such a narrow interpretation should be
avoided. We are in complete agreement with the view taken by the
Madras High Court in the case of P. Ayyamperumal (supra); the Delhi
High Court in the case of Gopal Singh (supra); the Allahabad High
Court in the case of Nand Vijay Singh (supra); the Madhya Pradesh
High Court in the case of Yogendra Singh Bhadauria (supra); the
Orissa High Court in the case of AFR Arun Kumar Biswal (supra);
and the Gujarat High Court in the case of Takhatsinh Udesinh Songara
(supra). We do not approve the contrary view taken by the Full Bench
of the Andhra Pradesh High Court in the case of Principal AccountantGeneral, Andhra Pradesh (supra) and the decisions of the Kerala
High Court in the case of Union of India Vs. Pavithran (O.P. (CAT)
No. 111/2020 decided on 22.11.2022) and the Himachal Pradesh
High Court in the case of Hari Prakash Vs. State of Himachal
Pradesh & Ors. (CWP No. 2503/2016 decided on 06.11.2020).
7. In view of the above and for the reasons stated above, the
Division Bench of the High Court has rightly directed the appellants to
THE DIRECTOR (ADMN. AND HR) KPTCL & ORS. v. C.P.
MUNDINAMANI & ORS. [M. R. SHAH, J.]
A
B
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344
SUPREME COURT REPORTS
[2023] 3 S.C.R.
grant one annual increment which the original writ petitioners earned on
the last day of their service for rendering their services preceding one
year from the date of retirement with good behaviour and efficiently.
We are in complete agreement with the view taken by the Division Bench
of the High Court. Under the circumstances, the present appeal deserves
to be dismissed and is accordingly dismissed. However, in the facts and
circumstances of the case, there shall be no order as to costs.
I.A. No. 149091/2022 stands disposed of in terms of the above.
Ankit Gyan
Appeal dismissed.
(Assisted by : Abhishek Agnihotri and Mahendra Yadav, LCRAs)