1. Introduction

The case of Arun Kumar Biswal v. State Of Odisha And Another Opp. Parties adjudicated by the Orissa High Court on July 30, 2021, addresses the entitlements of government servants regarding notional increments post-retirement. The petitioner, Mr. Arun Kumar Biswal, served as the Additional Commissioner of Commercial Tax and Goods and Service Tax in Odisha. Upon reaching the age of superannuation, he retired on December 31, 2019, and subsequently sought the recognition of a notional increment for the period preceding his retirement to enhance his pensionary benefits.

2. Summary of the Judgment

The petitioner challenged a letter dated July 14, 2020, which rejected his representations for treating January 1, 2020, as the date of grant for a notional increment. The High Court, referencing established precedents, held that Mr. Biswal was entitled to a notional increment for the period from January 1, 2019, to December 31, 2019. This decision was based on the principle that completing a full year of service qualifies an employee for the next scheduled increment, even if the increment date coincides with the retirement date. Consequently, the rejection by the authorities was quashed, and the notional increment was to be granted to the petitioner for pensionary benefits.

3. Analysis

3.1 Precedents Cited

The judgment extensively relies on the precedent set by P. Ayyamperumal v. The Registrar, Central Administrative Tribunal, Madras Bench (W.P. (C) No. 15732 of 2017) and its subsequent confirmation by the Supreme Court in Special Leave Petition (Civil) Diary No(s). 22283 of 2018. Additionally, decisions from the Madhya Pradesh High Court in Yogendra Singh Bhaduria v. State of Madhya Pradesh & Gwalior and the Delhi High Court in Gopal Singh v. Union Of India reinforced the interpretation that eligible employees are entitled to notional increments for completed service years, even if the increment date aligns with the retirement date.

3.2 Legal Reasoning

The court examined the relevant provisions under the Odisha Service Code and the Odisha Civil Services (Pension) Rules, 1992. Rule-56 stipulates that a government servant ceases to draw pay and allowances upon retirement, while Rule-82 outlines the commencement of pension benefits. Rule-10 of the Odisha Revised Scales of Pay Rules, 2017, specifies that the next increment is due twelve months after the last sanctioned increment.

Applying these rules, the court determined that since Mr. Biswal had completed twelve months of service from January 1, 2019, to December 31, 2019, he was eligible for the increment due on January 1, 2020. The fact that the increment date fell immediately after his retirement did not negate his entitlement, as upheld in the cited precedents. The court emphasized that not granting the increment was inconsistent with established legal interpretations and the principles of fairness.

3.3 Impact

This judgment solidifies the understanding that government employees who complete a full year of service are entitled to notional increments, even if the scheduled increment date coincides with their retirement date. This decision has significant implications for future cases, ensuring that pensionary benefits accurately reflect the service rendered by the employee up to the date of retirement. It reinforces the judiciary's role in safeguarding employee rights and ensuring equitable treatment in pension calculations.

4. Complex Concepts Simplified

5. Conclusion

The Orissa High Court's decision in Arun Kumar Biswal v. State Of Odisha reinforces the principle that government employees are entitled to notional increments for completed service years, ensuring that pensionary benefits are commensurate with their service tenure. By aligning the judgment with established precedents, the court has provided a clear directive that prevents administrative authorities from unjustly denying rightful increments. This ruling not only upholds the rights of retirees but also promotes fairness and transparency in the administration of government employee benefits.