P.S.E.B., PATIALA vs SUDARSHAN PARSHAD

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 the employees were entitled to retain the higher HRA rates until their revised rates were adjusted, as per the Board's circulars and the classification of cities. The judgment emphasized the need for adherence to the Board's policy on HRA, affirming the employees' rights under the existing terms and conditions.