NATIONAL BUILDING CONST. CORPN. vs S RAGHUNATHAN — C.A. No. 4483/1998

Case Summary: NBCC v. S. Raghunathan (1998) The Supreme Court reversed the Delhi High Court's order directing NBCC to pay Foreign Allowance at 125% of revised basic pay to employees deputized to Iraq. The Court held that Foreign Allowance was not part of the original deputation agreement and constituted a discretionary compensatory allowance under Fundamental Rule 51(2), not a salary component. NBCC's policy decision to freeze Foreign Allowance at pre-revised pay rates was upheld as a valid exercise of discretion based on Iraq's financial conditions, rejecting the respondents' "legitimate expectation" doctrine claim as insufficiently pleaded and speculative. This case analysis is maintained by casestatus.in based on publicly available court records.