In Brief
The State of Tripura fixed a cut-off date of 01.01.2009 for granting actual pension benefits under its revised pension rules, computing pension notionally from 01.01.2006 to 31.12.2008 due to financial constraints. The High Court struck down Rule 3(3) as arbitrary and violative of Article 14. The Supreme Court reversed this decision, holding that financial constraints and budget limitations are valid rational grounds for fixing a cut-off date. The Court found the State's detailed affidavit showing budget shortfalls was sufficient justification. While the respondent retained arrears already paid, Rule 3(3) was restored.
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