STATE OF PUNJAB vs TARLOK CHAND .

The Supreme Court upheld the decision of the Division Bench regarding the authority of the Chief Engineer to grant special increments to work-charged employees under Rule 10.8 of the Departmental Financial Rules. The Court ruled that the withdrawal of retrenchment increments was unjustified and that the Chief Engineer's powers were not overridden by executive instructions. The Court directed that any deductions from retiral benefits be refunded and that delayed payments of pensions be made with interest, affirming the rights of the petitioners under the applicable rules.