VidhiSangh

Supreme Court of India · 11/04/2023

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

[2023] 3 S.C.R. 332 · 2023 INSC 352

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Summary

Employees of the Karnataka Power Transmission Corporation who completed a year of service on the day before superannuation were denied the annual increment because under Regulation 40(1) of the Karnataka Electricity Board Employees Service Regulations an increment accrues from the day after it is earned, when they were no longer in service. The High Court directed grant of one increment. The Supreme Court dismissed the employer's appeal: an increment is earned by a year's service with good conduct, the entitlement crystallises on completing that service and the next day is merely the date of payment, denying an earned increment because the employee retired the next day would be arbitrary under Article 14, and 'accrue' must be read as 'payable'; the contrary view of the Andhra Pradesh Full Bench and the Kerala and Himachal Pradesh High Courts was disapproved.

Issues

  1. Whether an employee who completes the qualifying year of service on the last day before retirement is entitled to the annual increment although, under the service regulation, the increment accrues from the following day on which he is no longer in service.

Provisions considered

Held

Result

Appeal dismissed; High Court direction to grant one annual increment earned on the last day of service for the preceding year's service upheld; no order as to costs.

Judgment PDF: Supreme Court of India, [2023] 3 S.C.R. 332.