Withholding Increments With Cumulative Effect Not Only Permanently Affects Salary Structure But Also Impacts Pension: J&K High Court

The Jammu and Kashmir and Ladakh High Court has ruled that when an employee faces the penalty of withholding or postponement of increments with cumulative effect, it permanently affects their salary structure and impacts pension benefits even after retirement.Justice M. A Chowdhary made these observations while hearing a plea wherein the petitioner, a Manager Audits had challenged the postponement of two future increments along with her suspension pending an inquiry for alleged misconduct.The petitioner contended that the orders to postpone her increments and suspend her were a result of misuse of authority, as she had raised concerns about misdoings and misappropriation within the corporation. On the other hand, the respondent corporation argued that the petitioner had a history of indiscipline and misconduct, for which she had been charge-sheeted and recommended for a major penalty, though a minor penalty was eventually imposed.Upon scrutinising the various precedents on the subject the bench highlighted that such penalties have a continuous and perpetual impact on the employee's service tenure, affecting their future salary increments and retirement benefits.Citing Punjab State Vs. Ram Lubhaya reported as (1983) 2 SLR 410, Kulwant Singh Gill Vs. State of Punjab reported as 1991 Supp (1) SCC 504 and the most recent Karuthapandi Vs. Managing Director Tamil Nadu State Transport Corporation (Kumbakonam Ltd. & Anr. reported as 2023 the bench spotlighted the continuous nature of such penalties and recorded, “It is, thus, held that the penalty of awarding “two future increments with cumulative effect”, imposed on the petitioner for having committed misconduct during her service, cannot be reviewed, as this penalty has implication of continuous nature and shall be perpetual during the rest of the tenure of the service of petitioner and the increments she would have earned for those two years, would not be counted in her time scale of pay as a penalty”.In consonance with these observations the bench concluded that when the punishment of withholding or postponement of increment with cumulative effect is in force, there is no scope for salary review during the said period of service or at the time of calculating retiral benefits after superannuation. Consequently, the court dismissed the petitioner's plea for the release of postponed increments. Case Title: Mysar Jan Vs J & K HANDICRAFTS & ORSCitation: 2024 LiveLaw (JKL) 108Mr. Shaqir Haqani, Advocate appeared for the petitioner, Mr. Mubashir Malik, Dy.AG represented the respondents. Click Here To Read/Download Judgment

Withholding Increments With Cumulative Effect Not Only Permanently Affects Salary Structure But Also Impacts Pension: J&K High Court

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