DISPARITY ON DR TO PENSIONERS

[MOHAN P]

Dear Friends,

As you may be aware:

01.Under SLP (C) Nos.11592-11593 of 2023)  between The state of Kerala (Appellants) Vs  M. Vijaykumar and Others (Respondents) verdict from Hon Supreme Court dated 10^th April ’26 came in favour of retirees.

 Retired employees of Kerala State Road Transport Corporation filed a writ petition questioning the lower rate fixed for enhancement of DR on pension than what was fixed in for enhancement of DA on salary.

 Their grievance was that the serving employees got enhancement of DA by 14 per cent whereas the pensioners’ DR was enhanced by 11 per cent. Claiming that there was no rationale for different rates, and the same violated the mandate of Article 145 of the Constitution of India, writ petitions were filed before a Single Judge of the High Court.

In Appeal filed before Apex Court , Hon court said that:

“But once a decision is taken to provide certain allowances as also to increase them, based on inflation, fixing a higher rate of increase for the ones who are

serving than the ones who have retired, would be arbitrary and violative of Article 14 of the Constitution. The question posited above, is answered accordingly.”

02.In bank pensioners case too right now we have different DR rates among pensioners,which are of course,  based on settlement periods wise /based on retirement date.

 Bank’s view( may be legally too) is, -that each wage settlement creates a separate DR scheme.

-Pension is linked to last drawn pay structure, so DR differs by settlement period

 03.However from.1.11.2022 the structure of DA/DR payment too have changed to pensioners of above period along with serving employees

  i) by adopting new CPI series of 2016 as base year with 1% increase on rise in one point, instead of   existing slab system of 4 points rise/fall under CPI series of 1960 to pre 1.11.2022 pensioners,

 ii)merger of CPI 8088 points with basic pay of employees which was extended to pensioners w.e.f 1.11.2022.

Even while moving from  existing different DR rate based on settlement periods, currently two sets of pensioners have emerged one with lower amount of  DR  and other with higher amount.

04.In nut shell pre 1.11.2022  pensioners are receiving a lower monthly DR since implementation of 12^th BPS/JN and post 31.10.22 pensioners receiving higher DR monthly on account of above change.

( Reality is that currently all pensioners under different periods up to 31.10.2022 are loosing per month @ ₹ 1100 to ₹1800 under DR on account of above)

05.This is found recognised by Unions -IBA and a Minute was signed on 8.3.24 along with other major issues like Updation of Pension to resolve within 6 months time!

Item No 11 of Minutes specifically stated that:

“DA Scheme to all pensioners to be at uniform index of  8088 points”

We had confronted with such issues earlier too,which could be resolved later through long drawn legal battle and otherwise.

Let us hope that the stake holders may resolve the issues without delay  and our Retirees Apex Organisations too may jointly take steps to speed up the matter.

Regards

[MOHAN P]

ALL INDIA BANK RETIREES' FEDERATION (REGD.)

Flat No 101, Block C Shivom Residency, M. G. Road Indore-452001

E mail id sharbat...@gmail.com

Mobile: 8966019488

सेवा निवृत्त हितेखा

6th Conference Slogan- Pension Updation is Right of Bank Retirees

Ref No. 2026/0153

Date: 11.04.2026

 

The Chairman

Indian Banks' Association

Mumbai

 

Respected Sir,

Re: Representation in light of Supreme Court Judgment dated 10.04.2026 in Civil Appeal No. 11592-11593 of 2023. Removal of discrimination in Dearness Relief (DR)

2. We respectfully invite your kind attention to the judgment delivered by the Hon'ble Supreme Court of India on 10.04.2026 in Civil Appeal No. 11592-11593 of 2023, wherein it has been categorically held that discrimination in the formulation of Dearness Allowance (DA) and Dearness Relief (DR) between employees and retirees is impermissible under law, as both are equally affected by inflation.

3. The Hon'ble Court has reaffirmed the constitutional principles enshrined under Article 14, emphasizing that any classification must satisfy the twin tests of:

1. Intelligible differentia, and

2. Rational nexus with the object sought to be achieved

4. The judgment further clarifies that arbitrariness is antithetical to equality, and any arbitrary distinction is violative of Articles 14 of the Constitution.

5. In this regard, we invite your kind attention to:

Para 13 and Para 35 of the 12th Bipartite Settlement dated 08.03.2024, wherein an Improved formula for DA/DR has been introduced for employees and retirees who retired after 31.10.2022.

However, Para 34 of the same settlement denies the benefit of improved DR to pensioners who retired prior to 01.11.2022.

6. This distinction creates a clear class discrimination among pensioners, despite all retirees being equally impacted by inflation. Such exclusion lacks:

Any reasonable classification, and

Any rational nexus with the objective of DA/DR, which is to neutralize the impact of rising cost of living.

7. In light of the above Supreme Court judgment, this differential treatment is prima facie arbitrary, discriminatory, and violative of Article 14 of the Constitution.

8. Our Humble Submission:

In view of the legal position now settled by the Hon'ble Supreme Court, we respectfully urge the Indian Banks' Association to:

Review and revise Para 34 of the 12th Bipartite Settlement dated 08.03.2024

Extend the benefit of improved Dearness Relief (DR) uniformly to all pensioners, including those who retired prior to 01.11.2022

Implement the revised provisions with effect from 01.11.2022, ensuring parity and fairness across all retirees

Such a step would not only ensure compliance with the constitutional mandate and judicial pronouncement but also uphold the principles of equity, fairness, and social justice.

We sincerely hope that the matter will receive your sympathetic and expeditious consideration.

With Respectful Regards,

Yours Sincerely,

(S. C. JAIN)

GENERAL SECRETARY

1. The Chief Executive, Indian Banks' Association (IBA), Mumbai

2. The Senior Advisor (HR), Indian Banks' Association (IBA), Mumbai

3. General Secretaries, AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBOC, INBEFE NOBOW, NOBRO

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[MOHAN P]

For Information:

"SC Order dated the 10th April, 26: (SLP 11592-11583 of 2023) State of Kerala Vs KSRTC Pensioners Association: Dual Rate of Payment of Dearness Relief held

discriminatory and violative of Article 14 of Constitution of India: There is virtual flood of messages from friends seeking compliance of this order by SBI.

I wish to inform that I have shared the copy of the order with Hon'ble General Secretary, FSBIPA, AIBOC, NCBE besides DyCEO, IBA and hope they would certainly take appropriate action.

2. Gratefully remember Father of this movement Our Late Sri PPR Upadhyaya who included this issue in our Writ.

As far GOP this issue is already part of our Writ Petitions under hearing before Delhi High Court where we have sought uniformity, single rate of payment of Dearness Relief. GOP has also raised Articles 12 & 14 in our pleadings. I have shared the copy of the order with our Advocates and talked to them also

3. I have been told by both the Counsels that' there may not be need for filing of fresh writ since this issue is already part of original writs and prayers. This order would further strengthen our case For information"

Regards

Umesh Sharma

GOP"

On Sun, 12 Apr, 2026, 9:22 am MOHAN P, <moha...@gmail.com> wrote:

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[Prasad C N]

Dear friends,

Further, Dearness Relief and Dearness Allowance in Central and State Government is paid in terms of Administrative Orders after approval by Cabinet. It is not on account of provision in Pension Rules.  Order is because of application of two rates in one common order. During Covid., DA was not increased for 18 months. Even Court upheld such denial. Our Dearness Relief is paid in terms of Regulation 37 - Appendix II.  In case, we feel that there is any infirmity, we have to challenge the provisions of the Regulations.  Unfortunately, it is over 30 years since these provisions have come into existence.

Therefore facts and circumstances are different.

Thanks, a Million. 

With regards,

Prasad C N

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[JSOMA SHEKARA]

CONFLICTING VERDICTS BY COURTS

As per  above sc order once a pension scheme in which DA  structure based on inflation is accepted and implemented there cannot be different DA rates for employees and pensioners.

From the day BEPR 1995 came into force  and till Aug 2023 pre 2002 retirees were paid DA at lower rate  than working employees and those retired after 01.11.2002.

Further for those who retired from 01.11.2022 a different base year for  DA calculation was adopted. All these are clear discrimination as per recent SC order.

But in 2018 SC rejected 100% Case stating that management has the right to apply the benefit based on the year of retirement which means management has right to apply different DA rates for employees and pensioners and also based on retirement date.

Now the SC has passed an order that inflation applies to all and there cannot be different DA rates for employees and Pensioners,

Can we now demand 100% DA from the date of retirement based on this SC order?

A sub staff or general manager once retired all are equal and covered under the same pension regulations. Employees may get their basic as per their date of retirement but there cannot be discrimination while applying DA rates. It should be the same for all.

Will AIBRF file a case for arrears from DOR?

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[Narayanan Venkateshwaran]

In the matter of bank pensioners, we are aliens to main stream as per management's actions of past. We cannot gel with working employees for, we are not part of homogenous group

On the said principle 100%da neutralisation was denied for years with suppressive action of denial of arrears with an undertaking.Needless to say our so called representation acted with double speed in this negative issue of denial. 

In Parliament, recently it was proclaimed that we are paid da without let up. What a grace! They seem to be not aware of continuing disparity in da,this time in 8088 merger. 

Have we got to continue as aliens? Where are our representatives? Will they take a leaf out of recent Kerala trade union activits? 

C V Narayanan

On Sun, 12 Apr, 2026, 9:22 am MOHAN P, <moha...@gmail.com> wrote:

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[K Balasubramanian]

Not only that .they are expected to revisit the 100 percent DA sanction and to settle from the year 2005 and arrears may given in form of bond with annual interest and principal encashment in stages.this is the real genuine to help to the super seniors who are suffering the most .

K balasubramanian 

Indian Bank vrs 2001

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