P. S. E. B., Patiala & Anr vs Sudarshan Parshad & Ors

The Supreme Court addressed the issue of House Rent Allowance (HRA) for employees of the Punjab State Electricity Board, specifically regarding the protection of higher HRA rates drawn until 31.8.1988 after a revision effective from 1.9.1988. The Court held that employees who were previously entitled to HRA as applicable to Ludhiana city should continue to receive the higher rates until their revised rates were adjusted, as per the Board's policy and subsequent circulars. The judgment clarified the applicability of HRA based on the place of posting and the classification of cities, affirming the employees' rights to the higher allowances.