K.C. Bajaj And Ors vs Union Of India And Ors

The Supreme Court addressed the issue of whether Non Practising Allowance (NPA) should be included in the basic pay for pension calculations of doctors retired before 1.1.1996. The Court held that NPA, being a component of pay, must be considered for pension purposes as it is integral to the remuneration structure established by the 5th Pay Commission recommendations. The judgment clarified that the arbitrary choice of the State in prosecuting service condition matters does not negate the rights of public servants regarding their entitlements, thereby upholding the appeal against the Delhi High Court's dismissal.