Important case laws where courts discussed whether pension based on last drawn emoluments at retirement (without later revision) is discriminatory (source chatgpt)

[Kalyanasundaram Subramaniam]

---

1. Landmark Case: D.S. Nakara v. Union of India (1983)

D.S. Nakara v. Union of India (1983)

Principle laid down:

• Pensioners form one homogeneous class.

• Government cannot discriminate between pensioners based solely on date of retirement when applying a liberalized pension formula.

Key observation of Supreme Court:

If pensioners form a class, their computation cannot be by different formula merely because some retired earlier and others later.

Importance for your issue:

• If a new formula for pension calculation is introduced, it must apply equally to earlier retirees also.

• A cut-off date that creates arbitrary discrimination can be struck down.

---

2. Indian Ex-Services League v. Union of India (1991)

Indian Ex‑Services League v. Union of India (1991)

The Supreme Court clarified the scope of Nakara.

Key principle:

• Same formula must apply to all pensioners.

• But pension amount need not be equal because it depends on actual emoluments drawn at retirement.

Thus courts held that:

• Pension calculated on last drawn pay at retirement is valid.

• Pensioners cannot demand notional revision of pay they never received.

---

3. K.L. Rathee v. Union of India

K.L. Rathee v. Union of India

This case further explained Nakara.

Held:

• Pension formula must be common.

• But retirees cannot claim recalculation of pension based on revised pay scales introduced after retirement.

---

4. B.J. Akkara v. Union of India (2006)

B.J. Akkara v. Union of India (2006)

Supreme Court summarized pension law:

• Pension is determined by rules existing on date of retirement.

• Later revisions do not automatically revise pension unless government policy provides it.

---

5. Recent High Court view (example)

Retired Chief Engineer Welfare Society v. State of Rajasthan (2024)

Court held:

• Pension is calculated based on emoluments actually drawn at retirement.

• Revision of pay for serving employees does not create a legal right for retirees to demand revised pension unless policy provides it.

---

Key Legal Position (from these judgments) Courts recognize two principles:

1️⃣ Equality principle (Nakara)

• Same pension formula for all retirees.

2️⃣ But pension amount can differ

• Because it depends on last drawn pay at retirement.

Therefore courts generally say:

• Pension based on last drawn emoluments is not discriminatory by itself.

• But different formulas or arbitrary cut-off dates may be unconstitutional.

---

How pension discrimination arguments are usually framed in court

Lawyers rely on:

• Article 14 – Equality before law

• D.S. Nakara case (pensioners are a class)

• Arbitrary cut-off date doctrine

But government often defends by saying:

• Pension is based on actual pay drawn at retirement

• Future pay revisions cannot be claimed as right

S Kalyanasundaram 

[JSOMA SHEKARA]

Irrespective of rules and regulations the benefits workmen and pensioners  get depend upon competence, 

skill, honesty and commitment of the trade unions which have the right to negotiate on behalf of workers and pensioners.

Even if it is policy mateer and management has right to take decision, trade unions also have right to fight for benefits using weapons

negotiation, agitation and litigation.

RBI pensioners.employees unions united and launched constant struggle for 9 years having negotiations with management, going on mass leave,

agitations before regional offices. UPA for 5 years and NDA government for 4 years resisted demand giving various reasons.

But due to pressure from unions the government finally accepted demand.

RBI governors were in favour of updation+serving unions gave support to pensioners+there is no dallal/agent like PSU Banks.

PSU Banks:  Banks/IBA/UFBU  all are against updation. There is no pressure on DFS to consider updation.. 

Hon. Judge of HC in M C Singla case said: Go and negotiate with management for better benefits.                           

--
Visit our blog site http:://bankpensioner.blogspot.com
---
You received this message because you are subscribed to the Google Groups "bankpensioner" group.
To unsubscribe from this group and stop receiving emails from it, send an email to bankpensione...@googlegroups.com.
To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/f72106ad-1d60-4183-a789-582bddeb1576n%40googlegroups.com.

[Asok Bhaumik]

As per daily cause list dated 12.03.26 of SC the listing of M C Singla case is not found.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAM%3DeiW1k6yFcCeZi9d733DeGrj9tYfp1WsM3ifqGPcSWY-vxDA%40mail.gmail.com.