State Of Karnataka And Anr vs Mangalore University Non-Teaching ...

The Supreme Court upheld the Karnataka High Court's decision to restore the payment of House Rent Allowance (HRA) and City Compensatory Allowance (CCA) to employees of Mangalore University, which had been discontinued by the State Government effective from 1.4.1994. The Court found that the Government's rationale for discontinuation, based on the location of the university outside the Mangalore City Corporation area, was not justified given the historical context of allowance payments. The Court ruled that the employees were entitled to the allowances, thereby reversing the State's decision and allowing the Writ Petitions under Article 226.