State Of Punjab vs Gian Chand & Ors

The Supreme Court ruled that the circular dated 29th July 2003, which altered the calculation of pension commutation for employees of the Punjab State Electricity Board (PSEB), violated Article 14 of the Constitution of India by adversely affecting the pension rights of employees who retired between 31st July 2003 and 30th October 2006. The Court held that the pension regulations applicable at the time of retirement should govern the calculation of commutation, reaffirming that changes cannot be applied retrospectively to the detriment of retirees. Consequently, the Court quashed the circular and directed the PSEB to adhere to the previous regulations for those affected.