Chandigarh: The Punjab government is facing a contempt petition before the Punjab and Haryana High Court over the alleged non-release of pending Dearness Allowance (DA) and Dearness Relief (DR) installments to state employees and pensioners.
The petition was filed after the deadline set by the High Court for implementing its August 3 order expired on August 17. The petitioners have alleged that the state authorities failed to comply with the court’s direction and instead issued instructions that restricted departments from implementing the order without prior concurrence from the Finance Department.
What Did the High Court Order?
On August 3, a Division Bench of the Punjab and Haryana High Court dismissed appeals filed by the Punjab government and Punjab State Power Corporation Limited (PSPCL) against an earlier order concerning DA/DR arrears.
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The court directed Punjab and PSPCL to:
- Release all up-to-date pending DA/DR installments to eligible employees and pensioners.
- Pay the dues at the rates applicable to IAS, IPS and IFS officers serving in Punjab, following the Central Government pattern.
- Complete the payment within two weeks.
- Pay 6% simple interest on unpaid amounts if the stipulated deadline was missed.
- File a compliance report through an affidavit before the court registry by August 31, 2026.
The court had also directed the state to refrain from large-scale advertising expenditure until the outstanding dues were cleared.
Petitioners Allege Non-Compliance
The contempt petition has been filed by employees and pensioners, including Nirmal Singh Dhanoa and others. They have sought action against Punjab Chief Secretary Kumar Anugreh Prasad Sinha, Additional Chief Secretary (Finance) Alok Shekhar, PSPCL Chairman-cum-Managing Director Basant Garg and Under Secretary (Finance) Saroj.
According to the petitioners, the Finance Department issued a communication on August 17, stating that orders related to the matter should not be implemented without prior Finance Department concurrence or general directions.
They have alleged that the communication effectively restricted implementation of the High Court’s August 3 order. The allegations are part of the contempt proceedings and have not been finally adjudicated by the court.
Court Gives Punjab Time to File Status Report
The contempt matter came up before Justice Harsh Bunger on August 21. The Punjab government’s counsel sought time to submit a status and/or compliance report.
The court subsequently adjourned the matter to September 27, 2026. The government’s compliance position is therefore expected to be examined at the next hearing.
DA Dispute Dates Back to Earlier Court Proceedings
The current contempt proceedings follow an earlier judgment dated April 8, under which Punjab and the concerned corporations were directed to release pending DA/DR installments to employees and pensioners at rates applicable to All India Services officers serving in the state, in accordance with the Central Government pattern.
The Division Bench’s August 3 order subsequently set the deadline for compliance at two weeks.
The latest proceedings will now determine whether the state has complied with the court’s directions and how the pending DA/DR issue is addressed.
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