Case Note & Summary
The petitioners, five retired employees of Karnataka Power Transmission Corporation Limited (KPTCL), Bangalore Electricity Supply Company (BESCOM), and Hubli Electricity Supply Company (HESCOM), filed writ petitions under Articles 226 and 227 of the Constitution of India. They challenged an endorsement dated 21.12.2012 issued by the first respondent (Director, Administration & HR, KPTCL) which denied them one annual increment for the service rendered in the preceding year. The first petitioner retired on 30.06.2012, and petitioners 2 to 5 retired on 31.03.2012. They had completed a full year of service in the preceding year (01.07.2011 to 30.06.2012 for petitioner 1, and 01.04.2011 to 31.03.2012 for petitioners 2 to 5) and were eligible for the increment. The respondents argued that since the petitioners did not complete the full increment year (i.e., they retired during the year), they were not entitled to the increment. The court, relying on Rule 10 of the Karnataka Electricity Board Employees' Service Regulations, 1997, held that an annual increment accrues on the day following completion of a year of service. The denial of increment to employees who retired during the increment year was arbitrary and unjust. The court allowed the petitions, quashed the impugned endorsement, and directed the respondents to grant one annual increment and all consequential monetary benefits to the petitioners.
Headnote
A) Service Law - Annual Increment - Entitlement of Retired Employees - Rule 10 of Karnataka Electricity Board Employees' Service Regulations, 1997 - The petitioners, who retired during the increment year, were denied one annual increment for the service rendered in the preceding year. The court held that the increment accrues on the day following completion of a year of service and denial thereof is arbitrary. The respondents were directed to grant one annual increment and all consequential benefits. (Paras 1-6) B) Constitutional Law - Writ Jurisdiction - Articles 226 and 227 of Constitution of India - The petitions were filed under Articles 226 and 227 of the Constitution of India seeking quashing of the impugned endorsement dated 21.12.2012 and direction to grant annual increment. The court allowed the petitions and directed the respondents to grant the increment. (Paras 1-6)
Issue of Consideration
Whether employees who retired from service during the period from 1st July to 30th June (or 1st April to 31st March) are entitled to one annual increment for the service rendered in the preceding year, even though they did not complete the full increment year?
Final Decision
The court allowed the writ petitions, quashed the impugned endorsement dated 21.12.2012, and directed the respondents to grant one annual increment for the service rendered by the petitioners from 01.07.2011 to 30.06.2012 (petitioner 1) and from 01.04.2011 to 31.03.2012 (petitioners 2 to 5) and grant all monetary and consequential benefits.
Law Points
- Annual increment accrues on the day following completion of a year of service
- Denial of increment to employees who retired during the increment year is arbitrary
- Rule 10 of Karnataka Electricity Board Employees' Service Regulations
- 1997
- Articles 226 and 227 of Constitution of India
