K.C. BAJAJ vs UNION OF INDIA

The Supreme Court addressed the issue of whether Non Practising Allowance (NPA) should be included in the basic pay for pension calculations of doctors who retired before January 1, 1996. The Court held that the NPA, being a part of the salary structure, must be considered for pension computation, thereby ensuring that the rights of public servants are not arbitrarily denied by the State. The judgment emphasized the need for clarity in service conditions and the implications of allowances on retirement benefits, ultimately ruling in favor of the appellants.