O.K. UDAYASANKARAN vs UNION OF INDIA .

The Supreme Court addressed the issue of salary fixation for ex-servicemen re-employed by the Life Insurance Corporation of India, interpreting the instructions issued on June 2, 1989. The Court held that the basic salary of re-employed ex-servicemen must be set at the minimum of the scale for their position, with provisions for additional increments to ensure their gross salary is not less than their last drawn salary from military service. The judgment clarified the components of salary to be considered for both the last drawn salary in the Defence Services and the gross salary in LIC, thereby upholding the rights of ex-servicemen regarding pay protection.