CHANDIGARH: In a significant development for lakhs of government employees and pensioners, the Punjab and Haryana High Court has taken a stern stance against the Punjab government regarding the non-payment of long-pending Dearness Allowance (DA).
Rejecting the government’s plea to stay an earlier Single Bench order, the High Court has mandated that the state must address the issue of pending DA arrears by the June 30, 2026, deadline.
“Committee” Tactic Criticized
During the latest proceedings, the Punjab government, represented by Senior Advocate D. S. Patwalia, presented a sealed report from a Cabinet Sub-Committee. The report aimed to outline a roadmap for the release of the withheld allowances.
The High Court bench, however, expressed clear dissatisfaction with the state’s approach. In a sharp observation, the court remarked that forming a committee has become an “old tactic” used by governments to intentionally delay administrative responsibilities.
When the government requested more time and a stay on the earlier court order until July 1, the bench was categorical: “Show us something in practice.”
The Legal Standpoint
The High Court’s refusal to grant an immediate stay keeps the original order intact, meaning the state remains legally obligated to clear the arrears by the end of next month.
Key takeaways from the session include:
-
The Order Stands: The directive to release DA by June 30 remains in full force.
-
Transparency Mandated: The court ordered the government to share a copy of its sealed report with the petitioners, ensuring transparency in the government’s proposed roadmap.
-
Next Hearing: The matter is set for further deliberation on July 1, 2026. While the court has issued a notice seeking a response on why the current order should not be stayed, it has yet to provide the government any reprieve.
Background: A Financial Impasse
The state government has consistently cited financial constraints as the primary barrier to releasing the DA, with liabilities estimated in the range of ₹10,000 to ₹15,000 crore. The government has been advocating for a staggered payment model over several years to mitigate the impact on the state’s fiscal health.
However, employee unions and pensioner associations have remained firm, arguing that the DA is a critical adjustment for inflation and not an optional financial benefit that can be indefinitely deferred.
With the next hearing falling just one day after the court-mandated deadline, the state government is now under immense pressure to either find a way to honour the payment or present an exceptionally compelling case to the court.
Leave a Reply