The Punjab Government on Tuesday approached the Supreme Court against the Punjab and Haryana High Court’s August 3 order on Dearness Allowance (DA) and Dearness Relief (DR), while assuring that it is willing to provide its employees salary parity with comparable Central Government employees in terms of actual pay.
AdvertisementIn its Special Leave Petition (SLP), the Punjab Government submitted that the high court’s direction to clear the arrears totalling around Rs 14,191 crore in such a short period was “constitutionally impossible”.
AdvertisementThe Punjab Government contended that its rules did not mandate payment of DA at the rate fixed by the Centre for its employees.
Pending final disposal of its SLP, it requested the Supreme Court to stay the “operation, execution and implementation” of the common final judgment and order of the Division Bench of the High Court of Punjab and Haryana dated August 3.
It said that Punjab’s existing DA rate of 42 per cent already resulted in higher aggregate monthly emoluments than the corresponding Central categories in five of seven representative categories cited by the government.
The Punjab Government on Tuesday approached the Supreme Court against the Punjab and Haryana High Court’s August 3 order on Dearness Allowance (DA) and Dearness Relief (DR), while assuring that it is willing to provide its employees salary parity with comparable Central Government employees in terms of actual pay.
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In its Special Leave Petition (SLP), the Punjab Government submitted that the high court’s direction to clear the arrears totalling around Rs 14,191 crore in such a short period was “constitutionally impossible”.
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The high court had directed payment of the pending dues to all its employees and pensioners within a fortnight at rates applicable for officers of the All India Services serving in the state, together with simple interest at 6% per annum in the event of default. It had directed Punjab’s Chief Secretary to file an affidavit of compliance by August 31.
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However, the state’s SLP filed by the Additional Chief Secretary to Government of Punjab, Department of Finance, submitted that “Compliance is not merely difficult; it is constitutionally impossible in the time allowed. According to Article 266(3), no money may be appropriated from the Consolidated Fund of a state except in the manner provided by the Constitution, and that manner is Articles 202 to 206.”
The state paid DA to All India Services officers at the central rate because they were governed by Union law and the state had no power to determine their service conditions, it submitted.
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The Punjab Government contended that its rules did not mandate payment of DA at the rate fixed by the Centre for its employees. The Punjab Civil Services (Revised Pay) Rules, 2021, prescribe no specific index, formula, rate or interval for DA and leave the matter to the state government’s discretion, it said.
While urging the top court to set aside the high court’s verdict, the Punjab Government sought restoration of its discretion to determine DA and the manner and timing of payment of arrears to its employees and pensioners.
Pending final disposal of its SLP, it requested the Supreme Court to stay the “operation, execution and implementation” of the common final judgment and order of the Division Bench of the High Court of Punjab and Haryana dated August 3.
It sought permission to continue to disburse the admitted arrears in terms of the Liquidation Plan dated February 18, 2025 during the pendency of its SLP and a stay on all further proceedings, including any proceeding for contempt or in execution, arising out of or in enforcement of the impugned judgment, during the pendency of the SLP.
It said that Punjab’s existing DA rate of 42 per cent already resulted in higher aggregate monthly emoluments than the corresponding Central categories in five of seven representative categories cited by the government.
“In five of the seven categories, the Punjab employee already draws more at the existing 42 per cent by between Rs 1,832 and Rs 17,852 a month; in the clerk and constable cadres, Punjab’s basic pay alone, Rs 38,600, exceeds the entire Central aggregate of basic pay and DA at 60 per cent, namely Rs 36,960,” the plea said.
“The only two categories at present short, superintendent by Rs 5,676 and police inspector by Rs 7,372, which the petitioner placed on record against its own interest, themselves move into surplus of Rs 4,800 and Rs 2,240,” it said.
The state’s Cabinet had approved a liquidation plan in February 2025 under which arrears of around Rs 14,191 crore were to be paid in phases over five financial years, the SLP submitted.
