NEW DELHI: Observing that inflationary pressures do not discriminate between a serving employee and a pensioner, hitting the two equally, Supreme Court Friday held that fixing differential rates of enhancement of inflation-linked dearness benefits for the two categories is arbitrary and cannot be allowed. A bench of Justices Manoj Misra and Prasanna B Varale disapproved of Kerala govt’s decision to raise dearness allowance (DA) by 14% for state road transport corporation employees when the dearness relief (DR) for its retired employees was raised by just 11%. “…The Govt Order in question increases the rate of DA by 14% and DR by 11% even though the increase is to serve a common object, which is to mitigate the hardship faced by the serving employees and pensioners on account of inflation. Indisputably, inflation hits both serving and retired employees with equal force… Differentiating the two qua the rate of increase of DA and DR, in our view, has no rational nexus to the object sought to be achieved,” Justice Misra said, accepting the plea of senior advocates V Chitambaresh and Vipin Nair. The state had contended that serving and retired employees belonged to different categories and differential rates for them did not violate the right to equality. Financial reasons alone could justify the same, it said. The bench said, “No doubt a financial crunch might be a guiding factor to defer disbursement of certain benefits or may justify separate dates for implementation of beneficial schemes. But once a decision is taken to provide certain allowances, as also to increase them …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.”End of ArticleFollow Us On Social MediaVideosDelhi Police Crack Down on ISI-Linked Spy Module, 10 Arrested; Second Network Busted After Pan-India Surveillance Plot’Chokepoints Now A Global Anxiety’: Jaishankar Invokes West Asia Crisis At Indian Ocean ConferenceMathura: Boat Carrying Devotees Capsizes In Yamuna; 10 Bodies Recovered, Rescue Ops OnQatar Assures Reliable Energy Supply To India Amid West Asia Crisis After Hardeep Puri’s Doha VisitPakistan-ISI Spy Network Busted: 11 Arrested For Recce Of Military Sites Across North IndiaCentre Notifies CAPF General Administration Act 2026; Families, Retired Officers Protest in DelhiJustice Yashwant Varma Resigns Amid Cash Row — Why He Stepped Down On Day Of Impeachment Defence’Win A War Without Firing?’ CDS Anil Chauhan Explains Shift From Battlefield To Perception WarfareExercise Brahmastra: Indian army’s first firing from the AH-64E Apache attack helicoptersMarco Rubio’s India Visit Next Month After Talks With Vikram Misri in Washington123PhotostoriesFrom Vivek Dahiya getting emotional during Divyanka Tripathi’s pregnancy scan to pampering her midnight cravings, the couple share their journeyHow to differentiate between naturally and chemically ripened banana: FSSAI’s rulebook on ripening temperature for the fruit5 things that make Bandhavgarh National Park irresistible to nature loversGold or platinum with diamonds: Which one actually makes you look richer?Chef Sanjeev Kapoor shares secrets on how to use moong (whole, split with skin, and split skinless) for maximum benefitsShubman Gill’s new house in Juhu, Mumbai is a ₹20 crore luxury apartment with sea views, full-floor privacy and luxury amenitiesChild’s roti and sugar for school lunch goes viral: 13 school tiffin meals that all 90s kids can relate to10 stunning gates that reflect the beauty of Indian architectureThat constant throat clearing isn’t just a habit: What it could reveal about acid reflux and how to manage itBest TV mystery and thriller series: ‘Sherlock’, ‘Line of Duty’, ‘Dexter’ and more123Hot PicksIran war ceasefirePAN Card application 2026Purple cap winnerOrange cap winnerIPL Points TablePublic holidays April 2026Bank Holidays AprilTop TrendingStephen Curry charityLaura Loomer reactionIndia Lebanon civilianRajouri grenade recoveryUS stock marketPAN Card application 2026Hinjewadi Metro lineUS inflationSchool Holidays in AprilLaken Snelling case
NEW DELHI: Observing that inflationary pressures do not discriminate between a serving employee and a pensioner, hitting the two equally, Supreme Court Friday held that fixing differential rates of enhancement of inflation-linked dearness benefits for the two categories is arbitrary and cannot be allowed. A bench of Justices Manoj Misra and Prasanna B Varale disapproved of Kerala govt’s decision to raise dearness allowance (DA) by 14% for state road transport corporation employees when the dearness relief (DR) for its retired employees was raised by just 11%. “…The Govt Order in question increases the rate of DA by 14% and DR by 11% even though the increase is to serve a common object, which is to mitigate the hardship faced by the serving employees and pensioners on account of inflation. Indisputably, inflation hits both serving and retired employees with equal force… Differentiating the two qua the rate of increase of DA and DR, in our view, has no rational nexus to the object sought to be achieved,” Justice Misra said, accepting the plea of senior advocates V Chitambaresh and Vipin Nair. The state had contended that serving and retired employees belonged to different categories and differential rates for them did not violate the right to equality. Financial reasons alone could justify the same, it said. The bench said, “No doubt a financial crunch might be a guiding factor to defer disbursement of certain benefits or may justify separate dates for implementation of beneficial schemes. But once a decision is taken to provide certain allowances, as also to increase them …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.“
