Punjab and Haryana High Court on Retrospective Withdrawal of Increments after Retirement.

The Punjab and Haryana High Court held that benefits of additional increments once granted to an employee cannot be withdrawn retrospectively, particularly after a long lapse of time and after retirement. The Court directed the State to refund any amount recovered pursuant to the impugned order withdrawing increments and to reconsider the petitioner’s claim under the old scheme, if applicable.

1. The petitioner, Ram Chander Sharma, retired Assistant, challenged the order dated 10.05.2002 by which the respondents withdrew two additional increments earlier granted to him on completion of 8 and 18 years of service.
2. The Director General of Police, Haryana had sought clarification as to whether a certificate of regular satisfactory service was obtained before granting increments. Upon finding it was not, the DGP directed withdrawal of the benefit.
3. A show cause notice was issued to the petitioner, and after his reply and hearing, the increments were withdrawn retrospectively.
4. The petitioner contended that the increments were granted in accordance with Government Instructions dated 07.08.1992, and any withdrawal after ten years was illegal and arbitrary.
5. The State argued that the benefit was granted inadvertently and could be withdrawn, though only prospectively.

1. The Court observed that retrospective withdrawal of benefits already granted and enjoyed for a decade, particularly after retirement, is impermissible.
2. The petitioner’s entitlement had to be examined under the old scheme in force prior to 01.07.1992, as per Government Instructions dated 07.08.1992.
3. The State counsel agreed that the competent authority would reconsider the petitioner’s claim under the old scheme and extend benefits, if found due, from the date of the impugned order.
4. The Court further directed that any recovery made from the petitioner due to retrospective withdrawal must be refunded within three months.
5. If the refund is delayed beyond three months, the State shall pay interest at 9% per annum.

1. Articles 226 & 227, Constitution of India – Writ jurisdiction of High Courts.
2. Government Instructions dated 07.08.1992 (Haryana) – Grant of additional increments on completion of 8 and 18 years of service under old and new schemes.

The writ petition was disposed of with directions:

1. The competent authority shall reconsider the petitioner’s entitlement under the old scheme.
2. Any recovery made on account of retrospective withdrawal of increments shall be refunded within three months.
3. If delayed, interest at 9% per annum shall be payable.
4. Pending applications were also disposed of.

Citation: CWP-8549-2003, Decided on 27 October 2025

Case: Ram Chander Sharma v. State of Haryana & Ors.

Court: High Court of Punjab and Haryana at Chandigarh

Coram: Hon’ble Mr. Justice Jagmohan Bansal

Date of Decision: 27 October 2025

Writ Petition No.: CWP-8549-2003