Court: Supreme Court (1983)
Principle:
Pensioners form a homogeneous class.
Arbitrary cut-off dates creating discrimination between retirees violate Article 14.
Use in bank cases:
Retired bank employees often rely on this case to argue that different treatment between retirees is unconstitutional.
Court: Supreme Court
Held:
Pension revision is a policy decision.
Courts normally do not compel revision unless discrimination is proved.
Importance:
Often cited by government/banks to defend non-revision of pension.
Principle clarified:
Nakara does not mean equal pension to all retirees.
Pension depends on pay actually drawn at retirement.
Impact:
Courts allowed different pension amounts for different retirees.
Important ruling:
Pension is calculated according to rules existing on the retirement date.
Later pay revisions do not automatically revise pension.
Issue: Bank pension regulations.
Held:
Pension rights arise from statutory regulations of banks.
Courts can enforce them when violated.
Importance:
Confirms pension under bank regulations is a statutory right.
Key ruling:
Pension regulations must be interpreted liberally in favour of retirees.
Often cited by:
Bank retirees claiming benefits under pension schemes.
Held:
Pension scheme benefits depend on scheme rules and eligibility.
Courts cannot extend benefits beyond the scheme provisions.
Principle:
Pensioners are a class but classification based on retirement date may be valid if rational.
Held:
Financial implications are a valid reason for fixing cut-off dates in pension matters.
Key point:
Fixing a cut-off date for revised pension is not automatically unconstitutional.
Courts usually say:
✔ Pension = based on last drawn pay at retirement
✔ Later pay revisions need not automatically apply to past retirees
BUT courts may intervene if:
Arbitrary cut-off dates
Unequal formula
Violation of pension regulations
Unreasonable discrimination
✅ For bank retirees challenging pension non-revision, the strongest arguments usually rely on:
D.S. Nakara v. Union of India
Bank of India v. K. Mohandas
State Bank of India v. M.R. Ganesh Babu