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In Railways there are certain employees such as Drivers, Guards, Shunters, etc, who are connected with the movement of trains and are categorised as "running staff". In addition to the pay the running staff entitled to payment of Running Allowance. Under the relevant rules com-putation of pension after retirement is made on the basis of average emoluments and a part of the Running Allowance is included in average emoluments. Provision in this regard is contained in clause (g) of Rule 2544 of the Indian Railway Establishment Code. Prior to its amendment by the impugned notifications Rule 2544 provided as follows :

"Rule 2544 (C.S.R. 486) - Emoluments and Average Emoluments : The term "Emoluments", used in these Rules, means the emolu-ments which the Officer was receiving immediately before the retirement and includes : (a) pay other than that drawn in tenure post;

(b) Personal allowance, which is granted (i) in lieu of loss of substantive pay in respect of a permanent post other than a tenure post, or

(ii) with the specific sanction of the Government of India, for any other personal consideration.

Note: Personal pay granted in lieu of loss of substantive pay in respect of a permanent post other than a tenure post shall be treated as personal allowance for the purpose of this article. Personal pay granted on any other personal considerations shall not be treated as personal allowance unless otherwise directed by the President.

(e) deputation (duty) allowances;

(f) duty allowances (special pay); and

(g) (i) For the purpose of calculation of average emoluments : Actual amount of running allowances drawn by the Railway servant during the month limited to a maximum of 75% of the other emoluments reckoned in terms of

(a) to (f) above.

(ii) For the purpose of gratuity and/or death-cum-retirement gratuity : The monthly average of running allowance drawn during the three hundred and sixty five days of running duty immediately preceding the date of quitting service limited to 75% of the  monthly average of the other emoluments reckoned in terms of items (a) to (f) above drawn during the same period. Note : In the case of an Officer with a substantive appointment who officiates in another appointment or holds a temporary ap-pointment, "Emoluments" means :

173).

Rule 2301 of the Indian Railway Establishment Code incorporates this principle. It lays down :

"A pensionable; railway servant's claim to pension is regulated by the rules in force at the time when he resigns or is discharged from the service of Government."

The respondents in these cases are employees who had retired after January 1, 1973 and before December 5, 1988. As per Rule 2301 of the Indian Railway Establishment code they are entitled to have their pension computed in accordance with Rule 2544 as it stood at the time of their retirement. At that time the said rule prescribed that Running Allowance limited to a maximum of 75% of the other emoluments should be taken into account for the purpose of calculation of average emoluments for computation of pension and other retiral benefits. The said right of the respondents employees to have their pension computed on the basis of their average emoluments being thus calculated is being taken away by the amendments introduced in Rule 2544 by the impugned notifications dated December 5, 1988 inasmuch as the maximum limit has been reduced from 75% to 45% for the period from January 1, 1973 to March 31, 1979 and to 55% from April 1, 1979 onwards. As a result the amount of pension payable to the respondents in accordance with the rules which were in force at the time of their retirement has been reduced.