D.S. Nakara & Others vs Union Of India on 17 December, 1982
"Category-I
Para 22. If the person retiring is eligible for pension at the time of his
retirement and if he survives till the time of subsequent amendment of the
relevant pension scheme, he would become eligible to get enhanced pension
or would become eligible to get more pension as per the new formula of
computation of pension subsequently brought into force, he would be
entitled lo get the benefit of the amended pension provision from the date
of such order as he would be a member of the very same class of pensioners
when the additional benefit is being conferred on all of them. In such a
situation, the additional benefit available to the same class of pensioners
cannot be denied to him on the ground that he had retired prior to the date
on which the aforesaid additional benefit was conferred on all the members
of the same class of pensioners who had survived by the time the scheme
granting additional benefit to these pensioners came into force. The line
of decisions tracing their roots to the ratio of Nakara case would cover
this category of cases
Category-II
Para 23. However, if an employee at the time of his retirement is not
eligible for earning pension and stands outside the class of pensioners, if
subsequently by amendment of the relevant pension rules any beneficial
umbrella of pension scheme is extended to cover a new class of pensioners
and when such a subsequent scheme comes into force, the erstwhile non-
pensioner might have survived, then only if such extension of pension
scheme to erstwhile non-pensioners is expressly made retrospective by the
authorities promulgating such scheme; the erstwhile non-pensioner who has
retired prior to the advent of such extended pension scheme can claim
benefit of such a new extended pension scheme."