Judgment :-

Jagdish Singh Khehar, J.

1. The Government of Tamil Nadu has been issuing executive order from time to time to determine the composition of allowances to be added to pay for quantifying wages for calculating pension. It is the case of the appellants, that the State Government followed a consistent practice of treating ‘dearness allowance’ as ‘dearness pay’ for the computation of pension and other retiral benefits. Illustratively, we are informed, that by a Government Order dated 11.3.1970 the State Government included ‘dearness allowance’ at the rate then prevalent, as a component of wages for calculating average emoluments for determining pension, for those who retired on or after 26.2.1970. The instant Government Order dated 11.3.1970 was applicable to employees who retired between 26.2.1970 and 1.10.1970.

2. One R. Narasimachar who had retired on 21.11.1969 was not extended the benefit of ‘dearness allowance’ drawn by him at the time of his retirement, while computing his pension. This denial was because the Government order dated 11.3.1970, extended the benefit referred to above only to such employees who had/would retire on or after 26.2.1970. Dissatisfied with the af