Gurkhas fighting for equal pension rights have suffered a setback in the High Court.

Three Gurkhas, Kumar Shrestha, Kamal Purja and Sambahadur Gurung, challenged the government’s pension policy in court.

They are among many Gurkhas who are launching legal claims over their rights to remain in the UK, as well as their pensions.

But the judge ruled against them, and the trio will have to take their case to appeal. Many Gurkhas are based in Folkestone, which has a substantial Nepalese community.

Government changes to Gurkha pensions were marketed as an end to previous inequalitites, but solicitors acting for the three men say a Gurkha who has recently retired through ill health can still be 27 per cent worse off than an equivalent UK soldier.

The case hinged on the ability of solicitors Bolt Burdon Kemp to persuade a judge of the illogicality of the Government’s position.

Phillipa Tuckman, of Bolt Burdon Kemp, said: "What we were saying was that the illogicality of it was until recently no Gurkhas got pensions higher than 1/6th of a normal soldier. We said those pensions are no longer fit for purpose."

The legal arguments were quite complex and the decision to refuse the Gurkhas’ application was not clear cut.

Ms Tuckman said: "What was said was that it was a money decision and courts should not interfere in a such a matter. We said they can interfere if it is illogical enough, but the judge felt there was not enough to say that.

"The actual result is that my clients are 27 per cent worse off.

"It will undoubtedly be used as a precedent, but probably over nitpicking matters. It’s a High Court case and we are hoping it will be heard at at least an appeal court."

A Gurkha medically retired last year after 17 years service would get just over £4,650 a year to live on, compared with £6,400 to a UK soldier. Neither is generous but the Gurkhas are given £1,750 less.

The previous reason for offering Gurkhas lower pensions was that they were retiring to Nepal, which has a lower cost of living. Since the rules changed in 2004, Gurkhas who retired after 1997 have had the right to settle in the UK.

Before 1997 the Gurkhas were based in Hong Kong, hence the change in rules.

Two of the Gurkhas were from Camberley and other from the West Midlands.