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State can’t differentiate between serving employees and pensioners on DA: SC

by AIP Online Bureau | Apr 10, 2026 | Eco/Invest/Demography, Indian News, Pension & Social Security, Policy | 0 comments

In a significant judgment upholding the right to equality for retirees, a bench comprising Justice Manoj Misra and Justice Prasanna B Varale dismissed appeals filed by the State of Kerala and the Kerala State Road Transport Corporation (KSRTC) and affirmed that inflation hits both serving and retired employees with “equal force”.

NEW DELHI: The Supreme Court on Friday held that the State cannot differentiate between serving employees and pensioners when enhancing allowances meant to counter inflation.

In a significant judgment upholding the right to equality for retirees, a bench comprising Justice Manoj Misra and Justice Prasanna B Varale dismissed appeals filed by the State of Kerala and the Kerala State Road Transport Corporation (KSRTC) and affirmed that inflation hits both serving and retired employees with “equal force”.

“Equality is a dynamic concept with many aspects and dimensions, and it cannot be cribbed, cabined and confined within traditional and doctrinaire limits. From a positivistic point of view, equality is antithetic to arbitrariness. In fact, equality and arbitrariness are sworn enemies; one belongs to the rule of law in a republic while the other, to the whim and caprice of an absolute monarch,” Justice Mishra, who authored the judgement, said.

Referring to Article 14 (right to equality) of the Constitution, the verdict said it forbids class legislation but permits reasonable classification which must satisfy twin tests.

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