The State Of Kerala vs M. Vijayakumar

The Supreme Court examined whether dearness allowance (DA) and dearness relief (DR) should be enhanced at the same rate for serving and retired employees, respectively. The core issue was whether a higher rate of DA for current employees justifies a higher rate of DR for pensioners. The Court analyzed the principles of parity and fairness in pension and salary enhancements, ultimately holding that the rate of DR cannot be arbitrarily lower than DA, emphasizing equitable treatment. The Court directed that the enhancement of DR should be at least proportionate to the DA enhancement for serving employees.