STATE GOVERNMENT PENSIONERS' ASSOCIATION & OTHERS vs STATE OF ANDHRA PRADESH

The Supreme Court upheld the High Court's decision that the upward revision of gratuity under the Andhra Pradesh Revised Pension Rules, 1980, takes effect from April 1, 1978, with prospective effect only. The Court clarified that gratuity is distinct from other pensionary benefits and that no arrears are payable to pensioners who retired before this date, referencing the principle established in D.S. Nakara v. Union of India (AIR 1983 SC 130). The Court found no illegality in the prospective application of the gratuity revision, affirming the High Court's ruling.