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Allhabad Court Judgment on Notional increment case - Penalty of Rs.50000 is imposed

This is a court order issued by the High Court of Judicature at Allahabad in India. The case involves twelve petitioners, all retired employees of the Railway Protection Force (RPF), who filed a writ petition against the Union of India and others.



The petitioners retired on June 30th of various years and were denied their annual increment because they were not in service on July 1st, the date when the increment fell due. They argued that they had earned the increment for the service period from July 1st of the previous year to June 30th of their retirement year.

The court relied on the Supreme Court's decision in C.P. Mundinamani which established that an employee retiring on June 30th is entitled to the annual increment. The Allahabad High Court ruled in favor of the petitioners, directing the respondents to grant one notional increment to the petitioners for the purpose of calculating their pensionary benefits.

The court criticized the Railway Board's stance, stating that it was "utterly illegal" and "contumacious" to deny the increment based on pending policy decisions or clarifications. The court also addressed the issue of the retrospective application of the C.P. Mundinamani judgment, referring to interim orders and clarifications from the Supreme Court.

Ultimately, the High Court allowed the petition, directing the respondents to pay the petitioners their revised pension with arrears, calculated based on the notional increment, within three months. The court also imposed costs of ₹50,000 on the respondents.

 

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