UNION OF INDIA vs SHRI B. RAMA MURTHY

The Supreme Court upheld the validity of the Government of India's O.M.No. 18(4)-EV/79 dated May 25, 1979, which allowed half of the dearness pay to be included in the computation of retirement benefits, thereby facilitating a more favorable calculation for pensioners. The Court found that the O.M. did not violate Article 14 of the Constitution, as it did not constitute invidious discrimination among pensioners who retired at different times. The appeal was allowed, reversing the Central Administrative Tribunal's decision that had declared the O.M. ultra vires.