92V.S. MURTHY vs UNION OF INDIA AND ORS.

The Supreme Court held that the 'deputation (duty) allowance' received by a railway employee on deputation to a Public Sector Undertaking should be included in the calculation of pension as it constitutes 'special pay' under the Indian Railway Establishment Code. The Court clarified that the employee could not be considered to be on 'foreign service' since the Public Sector Undertaking was controlled by the Government of India, and its revenues were part of the general revenue of the State. The appeal was allowed, and the Tribunal's decision was set aside, ensuring the inclusion of the allowance in pension calculations.