Holding that an increment is a vested right earned for services already rendered, the Punjab and Haryana High Court has ruled that it cannot be withheld merely because an FIR has been registered against an employee. The court clarified that registration of an FIR did not establish misconduct or guilt, and withholding increment on such a tentative basis would amount to punishing an employee without due process.

The Bench asserted that only a duly adjudicated penalty imposed after a formal disciplinary proceeding could justify withholding of increment. It stressed that procedural fairness must be maintained to prevent arbitrary deprivation of an employee’s earned benefits, as increments acknowledge past performance and are distinct from future conduct.

The court added that the balance of l

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