Dear Shri Ramakrishnan Ji
Referring to your message, the copy of the GOI ,Ministry of Finance letter dated 5th October 2023, conveying to IBA 'No Objection' on advising banks to pay 100% DR neutralisation by IBA to pre 1.11.2002 pensioners w.e.f 1st Oct 2023, is attached herewith.
You may please note the last paragraph of above communication as follows
"No arrears shall be payable for the periods falling prior to effective date"
Also banks have granted Ex gratia of small amount along with.
If a favourable verdict was from Court ,naturally arrears would have been received.As we are aware we have lost the case before Apex Court .So it is a great relief to see that at least same has been resolved later out of court.

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The Judges may take a very dim view of the IBA filing "illegible" data at such a late stage. This could be viewed by the Bench as a delaying tactic or a lack of transparency regarding the very data they requested on February 5th.
This actually strengthens pensioners’ argument that the IBA is avoiding a clear comparison of the facts.
The court's primary goal remains the year-wise pension calculations for the three periods to test the "shall be updated" mandate (p. 5).
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The disappointment of the April 9th adjournment is heavy for all of us. However, questions regarding the 'Prayers' and the 'Formula' provide an opportunity to move the discussion from anxiety to clarity. In any legal struggle, one must distinguish between blind optimism and a structured legal right.
1.What is
the ‘Prayer’ in CA 7993/2023?
The core prayer is for a Declaration of Right. The petitioners have prayed for the Court to set aside the High Court judgments and declare that Regulation 35(1) (post-2003 amendment) mandates a dynamic updation of pension whenever pay scales are revised. Simply put: The prayer is to treat Bank Pension as a 'Deferred Wage' that must maintain its value, exactly like the RBI and Central Government models.
2. What
is the 'Formula' for the increase we are expecting?
We do not expect the Court to 'invent' a new formula; we expect it to enforce the RBI Model, which was the agreed-upon benchmark in the 1993/94 settlements. Based on how the RBI has implemented updation, the expected formula involves applying a Multiplying Factor to the existing Basic Pension:
3. What is the basis for 'Zeroing In' on this formula?
The basis is Regulation 35(1) read with the 2003 Amendment (the shift to 'shall' and 'formulae'). This implies the 10% Loading Principle: merging the DA into the Basic Pension plus a 10% increase to bridge the inflation gap. While exact rupee amounts vary, the adoption of the RBI formula typically results in a 35% to 40% increase in Basic Pension—a far cry from the IBA’s 'Ex-Gratia' patch.
In the legal world, there is a vast difference between 'Blind Faith' and
'Judicial Realism.' While lower courts often stick to a Literal Rule
(the 'fixation' argument), the Supreme Court is a Court of Equity. It
exists specifically to look at the 'Spirit' of the law when the 'Letter'
is used by the State or Banks to deny a fundamental right.
If there is no substance, the Hon’ble Bench would have dismissed this case on day one, based on the IBA’s technical objections. Instead, the Judges have spent hours scrutinizing comparative charts and questioning the 2003 'Shall' amendment. This isn't the behaviour of a Court looking to dismiss a case; it is the behaviour of a Court looking for the mathematical 'Formula' to deliver substantive justice.
Being 'forewarned' is wise, but being 'fore-defeated' serves no one. We stand on the shoulders of the Nakara Precedent, and that is solid ground.
Let us remain united in the principle; the 'Formula' is merely the mathematical consequence of winning that principle."
(with inputs from AI).
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