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Bombay High Court

PANDURANG KRUSHNA DAMARE AND ORS.versusTHE STATE OF MAHARASHTRA THR. THE SECRETARY RURAL DEVELOPMENT DEPT. AND ORS.

Disposal
Disposed Off

Holding

The Court held that the increment payable on 1 July shall be notionally included for calculating the pensionary benefits of petitioners who superannuated on 30 June and ordered payment of arrears for up to three years.

Summary

The petitioners, who retired on 30 June of various years, sought a notional addition of the annual increment that became payable on 1 July, arguing that it should be counted for pension, gratuity and other benefits. The Court relied on its earlier order in Prakash Tulshiram Chaudhari v. State of Maharashtra, which in turn followed the Madras High Court decision in P. Ayyamperumal v. Registrar, CAT, holding that an employee who completes a full year of service is entitled to the increment even if the increment date falls after retirement. The Supreme Court had upheld both the Madras High Court judgment and the Bombay High Court’s 2021 order. Applying this precedent, the Court allowed the writ petition, directing that the notional increment be included for calculating pensionary benefits and that arrears be paid for up to three years preceding each petitioner’s superannuation, with payment to be made by 30 November 2026.

Issues considered

  • The entitlement of a notional annual increment payable on 1 July to employees who superannuated on 30 June
  • Whether such increment must be factored into pension, gratuity, earned leave and commutation calculations
  • The period for which arrears of the notional increment can be claimed

Legislation cited

Subjects

  • annual increment
  • pension calculation
  • superannuation
  • notional benefit
  • Maharashtra Civil Services (Revised Pay) Rules
  • Central Civil Services (Revised Pay) Rules
  • 6th Pay Commission
  • arrears
  • writ petition

Judgment

                                                          17 wp-2244-2026(c).odt




            IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                    CIRCUIT BENCH AT KOLHAPUR
                    CIVIL APPELLATE JURISDICTION

                     WRIT PETITION NO. 2244 OF 2026

Pandurang Krushna Damare and Others.                   ….Petitioners.
            Versus
The State of Maharashtra and others.                   ….Respondents.

                                 ----
Mr. Umesh Kurnd for the Petitioners (thr. V.C.).
Mr. V. M. Mali, AGP for the Respondent No. 1 and 2.
Mr. Ashok Misal for Respondent Nos.3 and 4 (ZP, Solapur).
                                 ----

                             CORAM : RAVINDRA V. GHUGE, ACJ.
                                              &
                                     NANDESH S. DESHPANDE, J.

                             DATE    : JULY 10, 2026

P.C. :-

1.             In this Petition, the issue that has been raised by the

Petitioners is as regards the notional addition of an annual increment,

while computing their pension and pensionary benefits. Such

increment became due and payable one day after their superannuation.

This issue has been considered and decided by this Court [Coram :

Ravindra V.Ghuge & Avinash G. Gharote, JJ.] by order dated

24th June, 2021 in Writ Petition No.6396 of 2020 filed by Prakash

Tulshiram Chaudhari Vs. State of Maharashtra. This order was assailed

by the State of Maharashtra before the Hon’ble Supreme Court of

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India in Special Leave to Appeal (C) No. 206 of 2022. The Hon’ble

Apex Court [Coram : Hon’ble Mr. Justice S. Abdul Nazeer & Hon’ble

Mr. Justice Krishna Murari] passed an order on 12.01.2022

concluding as under:-

            “We are not inclined to interfere with the
            impugned order. The Special Leave Petition is,
            accordingly, dismissed.
                         Pending application also stands disposed
            of.”


2.          This Court had based its order dated 24 th June, 2021, on the

conclusions arrived at by the learned Division Bench of the Madras

High Court on 15.09.2017 in Writ Petition No.15732/2017 filed by P.

Ayyamperumal Vs. The Registrar, Central Administrative Tribunal and

others. We had referred to the said judgment in our order dated

24.06.2021 and had concluded as under:-



            “3.       The petitioner has raised a very short issue
            before us. His retirement fell on 30.06.2019 and had he
            retired on 01.07.2019, he would have been entitled for
            annual increment as is provided under Rule 10 of the
            Central Civil Services (Revised Pay) Rules, 2008.
            Considering this provision, the Government of
            Maharashtra revised the Maharashtra Civil Services
            (Revised Pay) Rules, 2009 and brought uniformity in
            the payment of annual increments. There is no dispute

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            that the petitioner had worked up to 30.06.2019. He
            has thus, completed one year prior to his retirement.
            He would be entitled for an annual increment, but for
            the fact that the Rules prescribed that he would be
            entitled to such increment if he has worked on
            01.07.2019, when it became payable.


            4.        The issue raised in this petition has been
            squarely covered by the judgment delivered by the
            learned Division Bench of the Madras High Court on
            15.09.2017 in Writ Petition No.15732/2017 filed by P.
            Ayyamperumal vs. The Registrar, Central Administrative
            Tribunal and others. The facts in the case before the
            Madras High Court were set out in paragraphs 5 and 6
            and the Madras High Court drew it’s conclusions in
            paragraph 7 and allowed the petition. Paragraphs 5 to 7
            read as under :-

                 “5. The petitioner retired as Additional Director
                 General, Chennai on 30.06.2013 on attaining the age
                 of superannuation. After the Sixth Pay Commission,
                 the Central Government fixed 1st July as the date of
                 increment for all employees by amending Rule 10 of
                 the Central Civil Services (Revised Pay) Rules, 2008.
                 In view of the said amendment, the petitioner was
                 denied the last increment, though he completed a full
                 one year in service, i.e. from 01.07.2012 to
                 30.06.2013. Hence, the petitioner filed the original
                 application in O.A.No.310/00917/2015 before the
                 Central Administrative Tribunal, Madras Bench, and
                 the same was rejected on the ground that an
                 incumbent is only entitled to increment on 1st July if
                 he continued in service on that day.

                 6.               In the case on hand, the petitioner got
                 retired on 30.06.2013. As per the Central Civil Services
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                 (Revised Pay) Rules, 2008, the increment has to be
                 given only on 01.07.2013, but he had been
                 superannuated on 30.06.2013 itself. The judgment
                 referred to by the petitioner in State of Tamil Nadu,
                 rep.by its Secretary to Government, Finance Department
                                  and others      v.
                 M.Balasubramaniam, reported in CDJ 2012 MHC 6525,
                 was passed under similar         circumstances     on
                 20.09.2012, wherein this Court confirmed the order
                 passed in W.P.No.8440 of 2011 allowing the writ
                 petition filed by the employee, by observing that the
                 employee had completed one full year of service from
                 01.04.2002 to 31.03.2003, which entitled him to the
                 benefit of increment which accrued to him during that
                 period.

                 7.              The petitioner herein had completed
                 one full year service as on 30.06.2013, but the
                 increment fell due on 01.07.2013, 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
                 21.03.2017 is quashed. The petitioner shall be given
                 one notional increment for the period from
                 01.07.2012 to 30.06.2013, as he has completed one
                 full year of service, though his increment fell on
                 01.07.2013, for the purpose of pensionary benefits
                 and not for any other purpose. No costs.”


            5.       The judgment of the Madras High Court in
            P.Ayyamperumal (supra) was carried in Special Leave
            Petition (Civil) Diary No.22283/2018. By order dated
            23.07.2018, the Honourable Supreme Court dismissed the
            said Special Leave Petition.


            6.        There is no dispute that Rule 10 of the
            Maharashtra Civil Services (Revised Pay) Rules, 2009 is
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               identical to the amended Rule 10 of the Central Civil
               Services (Revised Pay) Rules, 2008 in relation to the
               uniformity in annual increments.


               7           Considering the above, this Writ Petition               is
               allowed.    As     the   petitioner    is   superannuated         on
               30.06.2019, we hold that he would be entitled to the last
               annual increment, which he has been deprived of and the
               respondents shall, accordingly, calculate the said monetary
               benefits expeditiously so as to be paid to the petitioner on
               or before 30.09.2021. So also, as the grant of this annual
               increment would affect his pension, gratuity, earned leave,
               commutation benefits, etc., the respondents would
               recalculate the same and make the payment of arrears on
               or before 30.09.2021 and shall ensure that the revised
               pension is also paid to the petitioner accordingly.”


3.                 The Petitioners have superannuated on the 30th day of

June of the particular year as they were due for superannuation. For

the sake of clarity, the names of the petitioners and their dates of

superannuation are mentioned in a chart hereunder :-

Name of the petitioners, Initial Date of Appointments, Date of Last

increment & Date of superannuation of petitioners.:

 Sr.          Name of the Petitioners      Last date of      Date of        Total
 No.                                         granting      retirement      Service
                                              annual                      in Month
                                            increment
     1      Pandurang Krushna Damare        01/07/2011     31/05/2012         10
     2      Angad Krushna Vidhate           01/07/2013     31/05/2014         10
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   3        Shamal Dasharath Jadhav          01/07/2017   31/05/2018         10
   4        Narayan Yetala Kangude           01/07/2019   31/05/2020         10
   5        Dattatraya Pandhari Apune        01/07/2021   31/05/2022         10
   6        Shahaji Shamrao Gatkal           01/07/2009   30/04/2010         09
   7        Jarichand Genba Chaoudhari       01/07/2023   31/05/2024         10
   8        Shashikant Ratan Kande           01/07/2022   31/05/2023         10
   9        Tukaram Ranba Umap               01/07/2017   31/05/2018         10
  10        Prakash Balbhim Vaskar           01/07/2020   31/05/2021         10
  11        Dattatrya Dnyandev Doltode       01/07/2023   31/05/2024         10
  12        Vasant Chandrasen Umap           01/07/2024   31/05/2025         10
  13        Tai Ramdas Jadhav                01/07/2023   31/05/2024         10
  14        Navanath Bhagwan Pawar           01/07/2011   31/05/2012         10
  15        Murlidhar Bhikaji Khartmal       01/07/2010   31/05/2011         10
  16        Bebi Kashinath Mangalkar         01/07/2020   31/05/2021         10
  17        Subhash Sopan Ukirde             01/07/2007   31/05/2008         10
  18        Laxman Bhagwan Bodhale           01/07/2010   31/03/2011         08
  19        Pandurang Dnyandev               01/07/2023   31/05/2024         10
            Waghmode
  20        Anjalidevi Jaganath Zadbhuke     01/07/2020   30/04/2021         09
  21        Angha Arun Ramdasi               01/07/2017   31/05/2018         10
  22        Sandipan Bhagwan                 01/07/2007   31/05/2008         10
            Ghayatidak
  23        Appasaheb Sandipan Pisal         01/07/2021   31/05/2022         10
  24        Bansilal Rahiman Mujawar         01/07/2016   31/05/2017         10
  25        Bhagwan Ramling Langote          01/07/2006   31/05/2007         10
  26        Annasaheb Raghunath              01/07/2014   31/05/2015         10
            Aaglave
  27        Suresh Ganpati Yadav             01/07/2019   31/05/2020         10
  28        Mohan Eknath More                01/07/2019   31/05/2020         10
  29        Dnyaneshwar Rama Doke            01/07/2015   31/05/2016         10
  30        Dilipkumar Trimbak Giram         01/07/2016   30/04/2017         09
  31        Gaoutam Balbhim Kashid           01/07/2010   31/05/2011         10
  32        Dadasaheb Ambir Pathan           01/07/2006   31/05/2007         10
  33        Subhas Dnyandev Mule             01/07/2019   31/05/2020         10
  34        Tukaram Manohar Mule             01/07/2013   31/05/2014         10
  35        Chandrakant Murlidhar            01/07/2017   31/05/2018         10
            Thombre
  36        Achyut Shivaji Jagdale           01/07/2015   31/05/2016         10
  37        Ghokulnand Anant Gambhire        01/07/2017   31/05/2018         10
  38        Angad Ganpati Gawali             01/07/2010   31/05/2011         10
  39        Suman Bhimrao Mali               01/07/2015   31/05/2016         10
  40        Aaoudumbar Manohar Gidde         01/07/2015   31/05/2016         10
  41        Gorakh Madhav Bhoskar            01/07/2014   31/05/2015         10
  42        Navnath Sopan Burgute            01/07/2013   31/05/2014         10
  43        Khandu Uttreshwar Ghodake        01/07/2010   31/05/2011         10
  44        Dnyandev Vithoba Pawar           01/07/2014   31/05/2015         10
  45        Damodhar Uddhav Jambale          01/07/2020   31/05/2021         10
  46        Dashrath Santram Mali            01/07/2018   31/05/2019         10
  47        Rohidas Keru Adsul               01/11/2006   31/05/2007         06
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  48        Pandit Gajanan Kashid          01/07/2009   31/05/2010         10
  49        Bharat Ambarushi Deshmukh      01/07/2022   31/05/2023         10
  50        Shantabai Bapurao Barade       01/07/2019   31/05/2020         10
  51        Shankar Ramling Garad          01/07/2024   31/05/2025         10
  52        Dattatraya Shripati Gawali     01/07/2019   30/04/2020         09
  53        Vasudev Changdev More          01/07/2013   31/05/2014         10
  54        Tatya Sukhadev Kamble          01/07/2024   31/05/2025         10
  55        Dasharat Haridas Argade        01/07/2017   31/05/2018         10
  56        Sunita Agatrao Thakare         01/07/2024   31/05/2025         10
  57        Ashok Tukaram Kshirsagar       01/07/2014   31/05/2015         10
  58        Laxman Abhimanyu Kashid        01/07/2015   31/05/2016         10
  59        Babusha Sopan Thite            01/07/2020   31/05/2021         10
  60        Kamal Kundlik Burgute          01/07/2018   31/05/2019         10
  61        Ranjana Narhari Ghodake        01/07/2019   31/05/2020         10
  62        Shrihari Dadarao Gaikawad      01/07/2020   31/05/2021         10
  63        Bhaurao Lahu More              01/07/2022   31/05/2023         10
  64        Bhau Bhimrao Masal             01/07/2022   31/05/2023         10
  65        Arun Keshav Jadhavar           01/07/2022   31/05/2023         10
  66        Bhaskar Pandhari Kakade        01/07/2021   31/05/2022         10
  67        Asha Vitthal Raut              01/07/2016   31/03/2017         08
  68        Baliram Dagadu Mastud          01/07/2007   31/05/2008         10
  69        Bibhisan Shankar Thite         01/07/2022   31/05/2023         10
  70        Laxman govind Kashid           01/07/2009   31/05/2010         10
  71        Bhimrao Rangnath Ghemad        01/07/2009   31/05/2010         10
  72        Shashikant Sadashiv            01/07/2022   31/03/2023         08
            Basangoundar
  73        Bhaskar tukaram Dhakne         01/07/2022   31/05/2023         10
  74        Vijaya Shivaji Patil           01/07/2019   31/05/2020         10
  75        Vasudev Ramling Gadekar        01/07/2007   31/05/2008         10
  76        Prakash Mahadev Kharat         01/07/2014   31/05/2015         10
  77        Appasaheb Limbraj Damare       01/07/2014   31/05/2015         10
  78        Chitra Aatmaram Ukirde         01/07/2024   31/03/2025         10
  79        Nanasaheb Sarjerao Karande     01/07/2021   28/02/2022         07
  80        Navnath Bhagwan Mundhe         01/07/2020   31/05/2021         10
  81        Vishambhar Arjun Jadhavar      01/07/2024   31/03/2025         10
  82        Laxman Rajaram Sankpal         01/07/2013   31/03/2014         08
  83        Pandurang Namdev Gore          01/07/2006   28/02/2007         07
  84        Suman Rajabhau Ratanparkhi     01/07/2023   31/05/2024         10
  85        Shobha Samrao Savant           01/07/2018   30/04/2019         09
  86        Subhas Baburao Jambhale        01/07/2016   31/05/2017         10
  87        Naushad Shadula Patan          01/07/2019   30/04/2020         09
  88        Ankush Dharma Lade             01/07/2013   31/05/2014         10
  89        Baburao Ramchandra Late        01/07/2015   31/05/2016         10
  90        Late. Dadarao Rangnath         01/07/2011   31/05/2012         10
            Jangale
            Shardha Dadarao Jangale
  91        Late. Madhukar Ambarushi       01/07/2016   31/05/2017         10
            Ukirde
            Shanta Madhukar Ukirde
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  92        Late. Mahadev Namdev             01/07/2009   31/05/2010         10
            Khaladkar
            Parvati Mahadev Khaladkar
  93        Late Rameshwar Shrihari          01/07/2022   26/03/2023         08
            Lande
            Shobha Rameshwar Lande
  94        Late. Vishawanath Hudaji         01/07/2020   31/05/2021         10
            Lande
            Shila Vishawanath Lande
  95        Late Bharat Kisan Aagale         01/07/2013   31/05/2014         10
            Anjali Bharat Aagale
  96        Late. Kalyan Ambrushi Ukirde     01/07/2020   09/05/2021         09
            Binadev Kalyan Ukirde
  97        Late. Babasaheb Bhujang          01/07/2020   12/04/2021         09
            Kashid
            Minakshi Babasaheb Kashid
  98        Late. Ganesh Bapurao             01/07/2024   13/03/2025         08
            Narkhedkar
            Madhuri Ganesh Narkhedkar



4.             It is undisputed that the recommendations under the 6th Pay

Commission altered the date on which the annual increment would have

become payable, which was normally payable after putting in 12

months in continuous service preceding the date of reference and fixed

the 1st day of July of each year. Prior thereto, the employees like these

petitioners used to earn their annual increment by calculating 12

calendar months from the dates of their appointment for each

succeeding year. As such, the reference period of 12 months for

calculating the annual increment, was a period of 12 calendar months in

each succeeding year from the date of appointment. For example, if

person ‘A’ was appointed on 1st March, 2000, he would complete

12 months in employment on 28th February 2001. He, therefore, earned

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his annual increment on 1st March, 2001 for the work done in 12

calendar months preceding 1st March. This was the pattern of earning

annual increments after 12 months in employment in each year.



5.          By the recommendations of 6 th Pay Commission,

uniformity was decided to be introduced and 1st of July of each year

was considered to be the date on which the annual increment, for

having worked for 12 calendar months preceding 1st July, would be

payable. Consequentially, for the work performed in 12 calendar

months till 30th June, the said employee would earn the annual

increment on 1st July of the said year. It is in these peculiar

circumstances that, these petitioners are before us, after having

superannuated on 30th June of their respective year set out in the

chart For example, if person ‘A’ had retired on 30 th June, 2021, he

would have earned the annual increment which became payable to

him on 01.07.2021. As he superannuated on 30th June, 2021, he

was not granted the notional benefit of the increment which would

have been payable to him on 01.07.2021 for the work performed

from 01.07.2020 to 30.06.2021.



6.          It is in these circumstances, that we found that the


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judgment delivered by the learned Division Bench of the Madras

High Court in P.Ayyamperumal (supra), was an appropriate view.

We delivered an order on 24th June, 2021 in Prakash Tulshiram

Chaudhari (supra). The judgment of the Madras High Court in

P.Ayyamperumal (supra) was challenged by the Union of India and

others in Special Leave Petition (Civil) Diary No.22283/2018. By

order dated 23.07.2018, the Hon’ble Supreme Court declined to

interfere with the impugned judgment of the Madras High Court and

dismissed the Special Leave Petition. Similarly, to the challenge to

our order dated 24th June, 2021 in Prakash Tulshiram Chaudhari

(supra), the Hon’ble Supreme Court dismissed the Special Leave

Petition on 12.01.2022.



7.          In view of the above, this Writ Petition is allowed.



8.          Considering    the dates    of     superannuation of      these

petitioners as being 30th June of the respective years, we hold that

the increment payable to them on 1 st July of the concerned year,

after 2006, would be reckoned with for notionally calculating the

pensionary benefits, which would have been payable to them from

1st July, but for their superannuation on 30th of June. This notional


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inclusion of the annual increment would be considered for

calculating their pension, gratuity, earned leave, commutation

benefits, etc.



9.          The learned Advocate for the Petitioners have prayed for

entire arrears from their dates of superannuation. The chart referred

to below paragraph 4 indicates that some of the petitioners have

superannuated in 2007. Some have superannuated in between 2008

and 2021. It is conceded that none of these Petitioners have prayed

for arrears of such addition of annual increments from the dates of

their superannuation, in the Petition.



10.         It is quite apparent that the judgment delivered by the

Madras High Court in P.Ayyamperumal (supra), became a cause for

these Petitioners to approach this Court. None of them had

challenged the non-inclusion of the annual increment in their

pensionary       benefits   for   calculation   purposes,    when         they

superannuated on 30th June of a particular year. As the judgment

delivered in P. Ayyamperumal (supra) became known to all, that

these Petitioners have approached this Court.               Some of the

Petitioners have superannuated in between 2016 and 2021.


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11.         Considering these aspects, we are of the view that the

arrears of such benefits as granted by us in paragraph 9 hereinabove,

could be restricted for a reasonable period. As such, these

Petitioners would be entitled for the arrears of such benefits for a

period of three years preceding the dates of their superannuation or

as per actuals, which ever is less. We direct the payment of such

arrears accordingly and expect such payment to be made to these

Petitioners, on or before 30/11/2026.



(NANDESH S. DESHPANDE, J.)              (ACTING CHIEF JUSTICE)




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