VidhiSangh

Supreme Court of India · 10/04/2026

THE STATE OF KERALA versus M. VIJAYAKUMAR & ORS.

[2026] 5 S.C.R. 119 · 2026 INSC 352

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Summary

The Supreme Court held that once KSRTC pensioners are entitled to dearness relief linked to inflation, enhancing it at a lower rate (11%) than dearness allowance for serving employees (14%) violates Article 14. Both benefits serve the common object of offsetting inflation, which affects both groups alike, so the differentiation has no rational nexus to that object. Financial constraint may justify deferring benefits but not unequal rates once the benefit is granted.

Issues

  1. Whether, when dearness allowance and dearness relief are both payable and linked to inflation, the State or KSRTC can enhance dearness allowance for serving employees at a higher rate than dearness relief for pensioners.
  2. Whether financial constraints of KSRTC justify such differential rates.

Provisions considered

Held

Result

Appeals by the State of Kerala and KSRTC dismissed; High Court Division Bench judgment granting pensioners dearness relief at par affirmed; no order as to costs; pending applications disposed of.

Judgment PDF: Supreme Court of India, [2026] 5 S.C.R. 119.