In Brief
Three Navy sailors retired in January 1983 sought inclusion of Submarine Pay (₹300 per month) in their pension calculations. The Navy refused, claiming it was an allowance, not pay. The Armed Forces Tribunal rejected their claims. The Supreme Court allowed the appeal, holding that Submarine Pay was explicitly treated as 'pay for all purposes' under the 1967 Defence Ministry Letter and the Navy Instruction applicable at retirement. Since the instruction did not exclude Submarine Pay and later amendments came after their retirement, those amendments could not apply retrospectively. Submarine Pay was therefore includible in computing their Service Pension.
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