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Issues: (i) Whether the validating enactment was beyond legislative competence or amounted to an impermissible interference with judicial decisions. (ii) Whether the fixation of 1 March 1989 as the cut-off date for pensionary arrears offended Article 14 of the Constitution of India.
Issue (i): Whether the validating enactment was beyond legislative competence or amounted to an impermissible interference with judicial decisions.
Analysis: A legislature may enact retrospective validating law and render earlier judgments ineffective if it removes the basis of invalidity. The impugned Act did not merely annul judicial pronouncements; it validated the revised pension scheme by deeming the resolutions to have operated from 1 March 1989 and by giving the Act overriding effect. The earlier decisions did not finally prohibit fixation of that effective date, and the legislature was competent to cure the defect identified in the prior litigation.
Conclusion: The validating enactment was within legislative power and was not invalid as an intrusion into judicial functions.
Issue (ii): Whether the fixation of 1 March 1989 as the cut-off date for pensionary arrears offended Article 14 of the Constitution of India.
Analysis: A cut-off date in a pension scheme is permissible if it rests on rational considerations and is not arbitrary. The State relied on substantial financial burden as the reason for restricting arrears. Financial constraints are a valid basis for introducing a cut-off date in a revised pension scheme, and the denial of arrears for the earlier period could not be characterised as irrational or discriminatory.
Conclusion: The cut-off date did not violate Article 14.
Final Conclusion: The constitutional challenge failed, and the validation law was upheld, with the earlier judgment of the High Court set aside.
Ratio Decidendi: A retrospective validating statute is lawful if it removes the defect that led to invalidation, and a rational cut-off date in a pension scheme supported by financial considerations does not offend Article 14.