Ex Nk (ACP II) Prema Ram Bishnoi vs UOI & Others on 16 October 2025

O R D E R

16.10.2025

MA No 297/2024

1. MA No 297/2024 has been filed by the Applicant for condonation of delay in filing the OA. Having considered the reasons and grounds stated in the Application, the delay in filing the OA is condoned.

OA No 193/2024

2. By way of this Application under Section 14 of the Armed Forces Tribunal Act 2007, the Applicant has prayed fordirecting the Respondents to grant one notional increment wef 01.07.2017 and pay the arrears along with interest @ 8% per annum.

3. Brief facts of the case as enunciated by the Applicant are that, the Applicant was enrolled in the Army on 02.04.2001 and after rendering 16 years, 2 months and 29 days of Service, he was discharged from Service on 30.06.2017 under Rule 13(3) III (iv) of Army Rules, 1954. The Applicant has been granted Service Pension without granting one increment due on 01.07.2017. The Applicant submits that as per Govt Extraordinary Gazette Notification dt 29.08.2008, Armed Forces Personnel who have completed six months and above service will be given uniform annual increment wef 01st January/01st July. The Applicant has completed one full year of service before his discharge from service on 30.06.2017, therefore, he is eligible for one annual increment and consequential pensionary benefits wef 01.07.2017. The Applicant further submits that the issue of grant of notional increment for pensionary benefits to Central Government employees who retire on 30th of June and 31st of December of a year has been settled by Hon’ble High Court of Madras Judgment dt15.09.2017 in the case of P Ayyamperumal Vs UOI &Orsin WP No 15732/2017 and the SLP filed by the Union of India against the judgment has been dismissed by Hon’ble Supreme Court on 23.07.2018. The Applicant also placed reliance on Hon’ble AFT (PB), New Delhi Order dt 11.11.2022 in OA No 2436/2022 in the case of Ex Sgt Anupal Kumar Singh Vs UOI & Ors and this Tribunal Order dt 19.07.2023 in OA No 242/2023 in the case of Ex Sub Rajendra Singh Vs UOI & Ors. Based on the above judgments the Applicant issued Representation-cum- Legal Notice dt 04.03.2024 through his Counsel, but to no avail.

4. The Respondents have filed a detailed Reply Statement and submitted that while in service, the Applicant was granted MACP-1 (Naik Grade) wef 02.04.2009, ie., on completion of eight years of service. Thereafter, the Applicant was promoted to the rank of Naik wef 01.05.2014 and on completion of 16 years of service, he was granted MACP-II wef 02.04.2017. As per Para 11 of 1/S/2008 (6th CPC), annual increment is admissible on 01st July every year and as per Para 10 of the Gazette Notification dt 03.05.2017 (7th CPC), there shall be two dates for grant of annual increment viz., 1st January and 1st July of every year. There is no provision for grant of additional annual/ notional increment on the date of discharge as contested by the Applicant. The entire course of action on this subject rests with audit authorities, ie., PAO (OR) EME Secunderabad, who vide their letter dt 26.08.2024 have clarified that the Applicant was discharged from Service on 30.06.2017 and the last date of increment prior to discharge was 01.07.2016. Prior to discharge, the Applicant’s pay was fixed @ Rs. 35,900/- wef 02.04.2017 on account of grant of MACPS (Hav Grade). As per Para 10(2) of Army Pay Rules, 2017, ensuing increment after pay upgradation on account of promotion/MACPS is granted on completion of six months of qualifying service after grant of such promotion/MACPS subject to uniform date of increment, ie., 1st January or 1st July. As the Applicant got MACP on 02.04.2017, the date of next increment will be 01.01.2018, ie., after completion of six months after grant of MACPS on 02.04.2017. Since, the Applicant has served only three months of qualifying service from the date of grant of MACP-II on 02.04.2017, he is not eligible for grant of notional increment wef 01.07.2017.

5. We have heard both the Learned Counsels for the Applicant and the Respondents and perused the material placed on record. The issue to be determined in this case is whether the Applicant is entitled for grant of oneincrement and other consequential benefits wef 01.07.2017?

6. It is evident from the foregoing that the Applicant was discharged from Army on 30.06.2017. Based on the 7th CPC recommendations accepted by the Govt of India, it was decided to grant Annual Increment on 01st January/ 01st July every year, as applicable on completion of 365 days service and the same was also made applicable to Armed Forces Personnel. Further, as per the recommendations of 7th CPC, the employees were granted Annual Increments either on 01stJanuary or 01stJuly every year on completion of 365 days Service.

7. The issue in question stands settled by the Hon’ble High Court of Judicature at Madras in the case of P Ayyamperumal Vs The Registrar, Central Administrative Tribunal and Ors, in WP No 15732 of 2017, decided on 15/9/2017, which was subsequently upheld by the Hon’ble Apex Court Judgment dated 23/7/2018 in SLP (Civil) Diary No 22283/2018. Relevant Extract of Order dated 15/9/2017 of Hon’ble Madras High Court is reproduced below :- “7. The petitioner herein had completed one full year service as on 30/6/2013, but the increment fell due on 01/7/2013, on which date he was not in service. In view of the above judgment of this Court, naturally he has to be treated as having completed one full year of service, though the date of increment falls on the next day of his retirement. Applying the said judgment to the present case, the Writ Petition is allowed and the impugned order passed by the First Respondent - Tribunal dated 21/3/2017 is quashed. The Petitioner shall be given one notional increment for the period from 01/7/2012 30/6/2013, as he has completed one full year of service, though his increment fell on 01/7/2013, for the purpose of pensionary benefits and not for any other purpose. No costs” .

8. The Central Administrative Tribunal, Allahabad Bench, Allahabad in the case of Pravesh Chandra Gupta &OrsVs UOI &Ors in OA No 330/00146/2020 decided on 26.02.2021 decided the case in favour of the Applicants, the relevant extracts are as under:- “24. In view of the above discussion, this Tribunal is of the opinion that the DoPT letter dated 18.10.2019 is definitely in teeth of all the above cited judgments. In wake of the undisputed fact that all the applicants have completed one year of service before their retirement on 30th June, although in different years, all the impugned orders rejecting the claim of the applicants for release of the increment are quashed and set aside. The respondents are directed to grant one notional increment to the applicants for the period from 1st July to 30th June for the respective years in which they have retired and to re-fix their pension accordingly, if the applicants are found otherwise eligible for grant of such notional increment. It is further directed that arrears be paid to the eligible applicants within three months from the date of receipt of certified copy of this order.”

9. Hon’ble Principal Bench of Armed Forces Tribunal, New Delhi in the case of Ex WO Santosh Nagar Vs UOI &Ors in OA No 918/2022 decided on 29.08.2022, the relevant extracts of which is reproduced as under:- “12. Thus, there is no dispute that the applicant has completed the requisite service which entitles him the increment. Having served the period for which entitles him the increment, it is a matter of legitimate expectation that he will be paid the increment and thus cannot be denied his entitled dues, merely on the ground that on the next day when the increment became due, he was not in service. In the light of the above consideration, this OA pertaining to payment of increment on 01 July is allowed and the respondents are directed the following:- (a) Increment due and payable on 1st of July 2020 for the applicant who retired on 30th June 2020, be paid and the increment and retiral benefits including pension be accordingly calculated.

(b) While extending such benefits, a clause shall be incorporated to the effect that in case the Hon’ble Supreme Court takes a different view in the Civil Appeal arising out of SLP No. 4722/2021, the applicant shall be under obligation to refund the same benefit without any demur.

(c) All arrears without interest be paid and Corrigendum to PPO be issued within four months of this Order.”

10. In the present case, the last annual increment was granted to the Applicant on 01.07.2016 and his next annual increment was due on 01.07.2017. Meanwhile, the Applicant was granted MACP-II on 02.04.2017 and his pay scale was upgraded as per rules on the subject and pay re-fixed accordingly. After three month of grant of MACP-II benefit, the Applicant was discharged from Service on 30.06.2017. Had the Applicant been in service, he would have been granted annual increment only on 01.01.2018, ie., on completion of minimum of six months of service. Since, the Applicant has not completed minimum of six months service after grant of MACP-II benefit on 02.04.2017, the Applicant is not entitled for grant of annual increment on 01.07.2017. Further, he is not entitled to grant notional increment as he had not completed full one year of service as on 30th Jun 2017 after his pay had been re-fixed in the upgraded pay scale.

11. The judgments relied upon by the Applicant in the cases of P Ayyamperumal, Ex Sgt Anupal Kumar Singh and Ex Sub Rajendra Singh (Supra)are distinguished and not related to the facts and circumstances of the case as in these cases the Applicants were discharged after completion of one full year of service from the date of grant of last annual increment whereas in the present case, the Applicant was discharged from Service just three months after grant of MACP-II benefit and consequent revision of pay scale.

12. In-fine, the OA is devoid of merit and, hence, is dismissed. Pending Miscellaneous Application(s), if any, also stand disposed off.

13. No order on costs.

(SANJIV MITTAL)

(GOVERDHAN BARDHAR) MEMBER (A)

MEMBER (J)

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