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Rules, Rights & Rites -133 Supreme Court's decision regarding Dearness Allowance (DA) and Dearness Relief (DR):

 Rules, Rights & Rites -133

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Supreme Court's decision regarding Dearness Allowance (DA) and Dearness Relief (DR):

The case arose from a 2021 Kerala government order that sanctioned a 14% DA increase for Kerala State Road Transport Corporation (KSRTC) employees but limited Dearness Relief (DR) for pensioners to only 11%.
After a single-judge bench initially dismissed the pensioners' plea, a Division Bench of the Kerala High Court ruled in favor of the retirees, leading the State and KSRTC to appeal to the Supreme Court.
The Supreme Court held that the State cannot differentiate between serving employees and pensioners when enhancing inflation-linked allowances.
The bench, comprising Justice Manoj Misra and Justice Prasanna B. Varale, observed that inflationary pressures hit both serving and retired employees with "equal force".
Fixing a higher rate of increase for serving employees than for retired ones was declared arbitrary and a violation of the Right to Equality under Article 14 of the Constitution.
The Supreme Court dismissed the appeals filed by the State of Kerala and KSRTC, upholding the pensioners' rights.
The Court stated there is no "rational nexus" between the objective of countering inflation and the act of providing different rates of increase based on employment status.
While the Court acknowledged that a "financial crunch" might justify deferring benefits or setting different implementation dates, it cannot justify fixing different rates of increase once the decision to provide them is made.
The Court emphasized that these benefits serve a common purpose of countering inflation, which does not discriminate between a serving employee and a pensioner

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