Retrospective pay revision requires pension to be computed on revised emoluments from the operative date, not a later cut-off.

Where revised pay scales are granted retrospectively, pension must be computed on the revised emoluments from the date the revised pay becomes operative. Pension is deferred salary with a direct nexus to last pay drawn, and an executive instruction cannot cut down an accrued pensionary entitlement by imposing a later cut-off date. The Court held that the appellants, having been placed on revised UGC pay scales from 1.1.1996, were entitled to pensionary benefits on that basis from the same date, and the later date of 1.4.1998 could not be used to deny the revised pension.

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Issues: Whether the appellants, having been granted revised UGC pay scales with effect from 1.1.1996, could be denied pensionary benefits computed on the basis of the revised pay for the period prior to 1.4.1998.

Analysis: The revised pay scales were expressly made effective from 1.1.1996 and the appellants were treated at par with comparable Government college teachers. Rule 296 of the Karnataka Civil Services Rules, which governs computation of emoluments for pension, was applied to their case. Once the revised scales were extended retrospectively, the pay drawn under those scales formed part of the emoluments relevant for pension computation. Pension is a deferred salary and has a direct nexus with the last pay drawn. An executive instruction could not curtail an accrued entitlement by fixing a later date for pensionary revision when the pay revision itself operated from an earlier date. Denying the benefit from 1.1.1996 while granting revised pay from that date resulted in arbitrary discrimination and retrospective reduction of pension.

Conclusion: The appellants were entitled to have their pensionary benefits computed on the basis of the revised pay scales from 1.1.1996, and the cut-off date of 1.4.1998 could not be applied to deprive them of that benefit.

Ratio Decidendi: Where revised pay scales are given retrospective effect, pension must be computed on the basis of the revised emoluments from the date the revised pay becomes operative, and accrued pensionary rights cannot be curtailed by later executive instructions.

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