E-Paper
Dearness allowance case: HC defers hearing for May 25
The government’s argument has been that on the issue of release of arrears to employees/pensioners, a division bench in 2025 had already approved a plan in which the government had got time till 2028.
The Punjab and Haryana high court on Thursday deferred the hearing on the plea from the Punjab government challenging a single-judge’s order directing the state to pay pending dearness allowance (DA) to employees and pensioners by June 30 on a par with rates paid to All-India Services (IAS/IPS/IFS) officers on central government pattern.
The government has been pressing for a stay on the April 8 order as the June 30 deadline by a single judge nears. However, the government has not been successful so far. Lawyers associated with the case said the court on Thursday has orally asked the government to come up with a “plan” on DA release by Monday and that court would see if the demand is to be considered.
The government’s argument has been that on the issue of release of arrears to employees/pensioners, a division bench in 2025 had already approved a plan in which the government had got time till 2028. The single-judge bench could not have overruled the division bench directions, the government has argued.
A division bench in 2025 had approved a liquidation plan proposed by the cabinet sub-committee of Punjab in which total liability was pegged at ₹14,191, to be released in a phased manner up to 2028.
There is one more petition attached in the case filed by Punjab State Power Corporation Limited (PSPCL) against the same order.
The PSPCL argument is that it was not even a party before the single bench and that the April 8 order was passed without hearing it. Another argument from the PSPCL is that employees of the corporation can’t claim parity with state government employees.
The order was passed by the single judge court on April 8 and released on April 19. Rough estimates suggest the liability for the government would be anywhere between ₹10,000 crore and ₹14,000 crore.
The single-judge bench had underlined that once the government has accepted the recommendation of the 6th Pay Commission, the benefits arising from it cannot be denied to the petitioners. It had also asserted that the state cannot deny the payment on the ground of its financial position and priorities.
