Chandigarh: The Punjab and Haryana High Court has issued a notice to the Punjab Government in the pending Dearness Allowance (DA) arrears case involving state employees and pensioners. The notice relates to an affidavit filed by Punjab Chief Secretary KAP Sinha (IAS: 1992: Punjab cadre) and the ongoing criminal contempt proceedings over allegedly misleading information submitted to the court.
The state government has been directed to file its reply by October 30, 2026, when the matter is scheduled for its next hearing. Around 8 lakh Punjab government employees and pensioners are awaiting the payment of their outstanding DA arrears.
The proceedings concern the implementation of an earlier High Court order directing the state government to release the pending dues within a specified deadline.
Punjab Chief Secretary Appears Before High Court Through Video Conference
Chief Secretary KAP Sinha appeared before the court through video conference. During the proceedings, Justice Vinod Bhardwaj questioned him about the Special Leave Petition (SLP) filed by the Punjab Government in the Supreme Court against the High Court’s order on DA arrears.
Sinha told the court that he would consult the advocate concerned and submit an affidavit explaining the current status of the petition. He also sought additional time to respond to the criminal contempt proceedings initiated against him. Advocate Chetan Mittal, appearing for the employees, informed the court that approximately 8 lakh employees and pensioners were still waiting for their outstanding DA payments.
Court Seeks Government’s Reply by October 30
The High Court directed the Punjab Government to submit its response to the notice on or before October 30, 2026.
The court also appointed senior advocate RS Cheema as amicus curiae, or a friend of the court, to assist it on the technical aspects of the case. The matter will be taken up again on October 30. The proceedings follow an earlier decision by a bench led by Chief Justice Ashwani Kumar Mishra to move the matter from regular contempt proceedings to criminal contempt.
The case centres on whether the state government provided accurate information about the status of its Supreme Court appeal while the High Court’s directions on DA arrears remained unimplemented.
Why the Punjab Government Faces Criminal Contempt Proceedings
During an earlier hearing, senior advocate Sanjay Kaushal, representing the employees, told the court that the state government had challenged the High Court’s DA arrears order in the Supreme Court, but the appeal had not been listed for hearing.
Kaushal compared the delay with a separate matter linked to the Enforcement Directorate, in which the state had filed an appeal and obtained a hearing date more quickly. He questioned why a case affecting lakhs of employees and pensioners had not progressed similarly.
Representing the Punjab Government, senior advocate Vikas Singh argued that the outstanding DA dues related to the tenures of previous governments rather than the current administration.
The High Court responded that it had examined the complete record before passing its judgment. It clarified that the government was entitled to challenge the order before the Supreme Court but said that inaccurate information submitted to the court could not be accepted. The court also questioned why defects in the state’s Supreme Court appeal had not been rectified earlier and said the criminal contempt proceedings would be heard by the appropriate bench under the court’s roster.
Punjab DA Arrears Case: Key Dates and Developments
The dispute has progressed through several hearings and court directions during 2026.
- April 8, 2026: The High Court began detailed hearings on petitions filed by employees challenging the Punjab Government’s policy of withholding DA increases in line with the Central Government pattern.
- August 3, 2026: A Division Bench comprising Justice Ashwani Kumar Mishra and Justice Rohit Kapoor delivered its judgment. It rejected the government’s financial difficulty argument and directed the release of DA arrears for approximately 8 lakh employees and pensioners within 15 days. The court also barred the government from issuing large-scale advertisements in print or on social media until the dues were paid.
- August 31, 2026: The deadline for the Chief Secretary to submit a compliance affidavit expired, but the outstanding payments had not been made.
- September 1, 2026: The Punjab Government filed a Special Leave Petition in the Supreme Court challenging the High Court’s order.
- September 10, 2026: The High Court sought a response regarding non-compliance. The state informed the court that the matter was before the Supreme Court. The High Court gave the government 10 days to rectify defects in its appeal.
- October 1, 2026: According to the Advocate General and the Chief Secretary, the defects had been removed and the appeal had been resubmitted to the Supreme Court registry.
- October 6, 2026: The High Court sought a status report from the Supreme Court registry. The report indicated that the appeal remained affected by defects and was not ready for listing. The High Court treated the discrepancy as misleading information and issued a criminal contempt show-cause notice to Chief Secretary KAP Sinha, directing him to appear in person on October 9.
- October 9, 2026: The Chief Secretary appeared before the court in person. His counsel offered an unconditional apology. The Chief Justice-led bench described the state’s conduct as deeply painful, declined to accept the apology and transferred the matter to the division bench responsible for criminal contempt cases.
- October 30, 2026: The next hearing is scheduled, with the Punjab Government required to submit its reply by this date.
Around 8 Lakh Employees and Pensioners Await DA Arrears
The outcome of the proceedings is significant for approximately 8 lakh Punjab government employees and pensioners who are awaiting their outstanding DA payments.
The High Court’s August 3 judgment directed the state government to release the arrears within 15 days, rejecting the financial constraints cited by the government. However, the dues remained unpaid after the deadline, leading to further proceedings over compliance with the order.
The immediate focus is now on the Punjab Government’s response to the criminal contempt notice and the status of its appeal before the Supreme Court. The next hearing on October 30 is expected to address the government’s explanation and the continuing dispute over compliance with the High Court’s directions.
Read also: Punjab DA Case: Why The High Court Called The State’s Conduct “Very Painful”
