Pension--Dearness Relief -- Dearness Allowance and Dearness Relief Serving Common Object of Inflation Neutralisation Cannot Be Granted at Disparate Rates
Dearness allowance payable to serving employees and dearness relief payable to pensioners share a common object of neutralising the impact of inflation. Granting a higher rate of dearness allowance to serving employees than dearness relief to pensioners, when both are linked to the same inflation index, has no rational nexus to the object sought to be achieved and is therefore arbitrary and violative of Article 14 of the Constitution. Financial constraints of the State may justify deferment of benefits but cannot justify differential rates once a decision to grant such benefits is taken.
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