The British Army has been accused of "monstrous and scandalous" discrimination against a former Gurkha soldier now living in Wales.

Robin Allen QC told an employment tribunal Hari Thapa was paid a pension of just �58 a month when a white soldier with the same length of service would get �500 a month.

John Thomas, the tribunal chairman, has agreed that a full hearing of Mr Thapa's complaints of race discrimination against the Army should take place in October next year.

In the meantime, counsel for the Ministry of Defence, Mr Rabinda Singh, said that a special Army board would sit and decide his case by the middle of next year.

After the case Mr Thapa's partner, Nicola King, said they were happy that some progress had been made in the case.

The case of Lance Corporal Hari Thapa, 37, is seen as a landmark for hundreds of other soldiers.

Mr Thapa lives in Cwmbran, south Wales with his partner Ms King and their baby daughter.

He claims his pay, conditions and pensions are all inferior to those of soldiers recruited in Britain.

He was discharged after 15 years service - the maxium permitted for Gurkhas - with a pension of just �17 a month.

It has since been increased to between �50 and �90 a month - the amount fluctuates with the value of the Nepalese currency.

Backing

Mr Thapa wants his pension increased to �500, the same rate as a British Army Lance Corporal.

The hearing on Monday was asked to decide whether Race Discrimination legislation applied to the Ministry of Defence in cases before 1997.

The Commission for Racial Equality is backing Mr Thapa's case.

The Ministry of Defence has always argued that Gurhka pensions, which have been increased substantially, are enough to support soldiers when they return to Nepal, as they are expected to do.

British passport-holder Mr Thapa was born in Hampshire, where his Gurkha father, who was later killed in action, was stationed.

He now works as a security guard.