Union of India & Anr. v. Tarsem Singh & Ors.

The Union of India appealed against an Armed Forces Tribunal order that extended the benefit of rounding off (broad-banding) of disability pension to Tarsem Singh and other ex-servicemen discharged before the 2001 policy change. The Supreme Court dismissed the appeal, holding that the broad-banding benefit is intrinsically linked to the degree of disability and constitutes a continuing right, not confined by the date of retirement. The Court directed the release of arrears with interest, emphasizing that beneficial provisions for disabled soldiers must receive liberal interpretation to fulfill the state’s welfare obligations.

The Supreme Court dismissed the Union's appeal, affirmed the Armed Forces Tribunal's decision, and ruled that the broad-banding benefit must be granted to all disabled ex-servicemen irrespective of their retirement date, with payment of arrears.

Whether the rounding off benefit for disability pension applies retrospectively to armed forces personnel who retired before the 2001 policy amendment.

The judgment established parity among disabled veterans, directly benefiting thousands of ex-servicemen previously denied enhanced pension, and reinforced the constitutional duty of care towards soldiers disabled in service.