V.K. RAMA RAO AND ORS. vs NATIONAL BANK FOR AGRICULTURE AND RURALDEVELOPMENT THROUGH

The Supreme Court upheld the validity of the fitment increments granted to employees of NABARD, stating that the revision of pay scales, whether prospective or retrospective, necessitates a classification of employees into those in service prior to the retrospective date and those who joined thereafter. The Court emphasized that upward salary adjustments are essential to avoid anomalies and ensure equitable benefits under the new pay scales. The petitioners' claim of discrimination based on the 'Equal pay for Equal work' principle was dismissed as the fitment process was deemed just and valid under the circumstances.