UNION OF INDIA vs A.S. GANGOLI .

The Supreme Court addressed the issue of pensionary benefits for Indian Air Force officers who voluntarily retired to join public sector undertakings. It was held that under the Circular dated 30.10.1987, officers who retire prematurely for permanent absorption in PSUs are not entitled to weightage in qualifying service for pension calculations, as specified in Note (1) of Clause 5. The Court upheld the decision of the Bombay High Court, affirming that the respondents' pension and gratuity were correctly calculated based on their actual service without weightage.