In Brief
United Bank of India's retirees who retired before 1 November 2002 sought equal dearness relief to that granted to post-1 November 2002 retirees, arguing the distinction was arbitrary. The Supreme Court held that the two groups of retirees constitute distinct classes governed by separate negotiated Bipartite Settlements with different parameters and formulas. The Court ruled that settlements must be treated as complete package deals and cannot be challenged piecemeal. Pre-November 2002 retirees are covered by a tapering formula (0.24%–0.06%), while post-November 2002 retirees receive a flat 0.18% rate. These differences are rational and part of the negotiated agreements, and modifying them would destabilize the settlement. The appeals were allowed and the High Court's orders were set aside.
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