HC directs Punjab govt to clear DA dues within 15 days, restrains it from undertaking large-scale ad campaign

In a setback to the AAP government, the Punjab and Haryana High Court on Monday directed the government to clear dearness allowance (DA) dues of government employees and pensioners within 15 days. 

Also, it restrained the state from undertaking a large-scale advertisement campaign until the dues are paid.

The order to release DA will entail a liability of an estimated Rs 14,191 crore.

A Division Bench of Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor observed that financial constraints cannot be cited as a ground to deny employees and pensioners their accrued service benefits.

“Till all such dues are cleared, the state of Punjab shall not resort to any unproductive expenditures such as large-scale advertising campaigns in print or social media as these expenses cannot justify the denial of dues admissible to state employees,” the Bench observed.

The Bench said the payment be done within a fortnight and in case of default, the unpaid amounts shall carry simple interest of six per cent per annum.

The court said a compliance report be filed before the end of this month.

State counsel Maninderjit Singh Bedi had submitted that the single judge's direction for release of pending DA was “corum non-judice”.

The High Court on July 22 reserved its order on the pleas from the state government and Punjab State Power Corporation Limited (PSPCL) filed against the single-judge order that directed the release of DA to employees and pensioners by June 30.

The single judge on April 8 struck down the state’s “Liquidation Plan” of February 18, 2025, with staggered payment of pension arrears based on age, terming it arbitrary and violative of Article 14 of the Constitution.

The single judge had directed the state and PSPCL to release all up-to-date pending instalments of DA to all its employees and pensioners at the same rates as have been paid to the members of the All India Services serving within Punjab.

The employees’ groups have stated that the government had formally accepted the payment of DA on the Central government pattern, but was delaying payments, citing financial constraints.

“Keeping in view the financial health of the state, the state government, with approval of the state cabinet, had issued a systematic liquidation plan on February 18, 2025. The total financial implication for payment of arrears of revised pay/ pension/ family pensions, including DA/DR, and leave encashment is around Rs 14,191 crore,” the state had informed the High Court in its affidavit.