New Delhi: In a landmark ruling, the Supreme Court of India has struck down the controversial order of Kerala State Road Transport Corporation that introduced separate dearness allowance (DA) rates for serving employees and pensioners.
Calling the move “arbitrary and unfair,” a bench comprising Justices Manoj Misra and P. B. Varale ruled that inflation impacts both working staff and retirees alike, making unequal DA rates unjustifiable.
The decision upholds the earlier verdict of the Kerala High Court, which had also quashed the KSRTC order. The state government and KSRTC had approached the apex court, arguing that DA distribution is a policy matter within the corporation’s authority and warning that higher DA for pensioners would create a heavy financial burden.
However, the Supreme Court firmly rejected these claims, emphasizing fairness and equality in employee benefits.
Senior advocate V. Chidambaresan and advocate Vipin Nair represented various employee unions in the case.
The ruling is seen as a major victory for workers and pensioners, and could have far-reaching implications for pay and benefit policies in public sector organizations across the country.
