UNION OF INDIA vs G. VASUDEVAN PILLAY .

The Supreme Court addressed three key issues regarding the denial of Dearness Relief (DR) on pensions for ex-servicemen re-employed in civil posts, as well as for their dependants. The Court held that the decision of the Union of India to deny DR was not in accordance with law, particularly as Rule 55-A of the Central Civil Services (Pension) Rules, 1972, does not apply to ex-servicemen. The Court concluded that ex-servicemen are entitled to DR on their pensions, thereby upholding their rights under the applicable service conditions.