No. PC-VI/2023/Misc./03-Part(2) New Delhi, dated: 20 .05.2024
The General Managers/ Principal Financial Advisors,
All Zonal Railways & Production Units
(as per the standard mailing list)
Sub: Grant of notional increment (as due on 1st July/1st January) for the pensionary benefits to those employees who had retired on 30th of June before drawing the same – Clarification reg.
Attention is invited to Board’s letter dated 09.02.2024 whereby it was advised to implement the orders pronounced by various courts of law granting the benefit of notional increment in letter & spirit strictly on personam basis, only in those cases where a contempt petition has been filed by the petitioner subject to any administrative directions received from DOP&T and fulfillment of the condition that the petitioner(s) had completed 12 months of service on the date of retirement on superannuation since the date of accrual of last annual increment.

  1. Subsequently, it has come to the notice of this Ministry that Hon’ble Courts/Tribunals are dismissing the new/fresh cases filed by granting the benefit of notional increment to the applicants restricting the payment of arrears to only three (03) years preceding the date of filing of the case instead of payment of entire arrears w.e.f the date of applicability of the notional increment. This principle has been adopted by various Courts/Tribunals relying upon the law laid down by the Hon’ble Apex Court in its judgment dated 13.08.2008 passed in Civil Appeal No. 5151-5152 of 2008 titled as Union of India & Ors Vs Tarsem Singh wherein the Hon’ble Court has dealt with the issue of delay and latches / limitation while conferring the relief ( copy enclosed).
  2. In view of the above, it has been decided that henceforth while implementing the orders pronounced by various Courts/ Tribunals on ‘personam’ basis only in contempt cases. payment of arrears would be restricted only to 3 years preceding the date of filing of the case. These instructions would be applicable with immediate effect and strict compliance thereof should be ensured. Past cases already decided shall not be reopened.
  3. It is reiterated that the aforesaid benefit of notional increment shall only be restricted to contempt cases. As regards to other cases/ similarly situated pensioners, necessary instructions would be issued separately on receipt of general policy guidelines/clarification from DOP&T.

    Executive Director, Pay Commission
    Railway Board
    Tel. No. 011-47845117
    Email add:
    4th floor, Room No. 7
    COFMOW Building, Railway Offices Complex, Tilak Bridge, New Delhi-110002