Punjab and Haryana High Court Orders Release of Pension and DA Arrears by April 30
The Punjab and Haryana High Court has directed the Punjab government to release all pending installments of revised pension, Dearness Allowance (DA) arrears, and related dues to pensioners of the state government, boards, and corporations by April 30, 2026, along with 6% interest on delayed payments. The ruling comes after a petition highlighted the plight of over 35,000 pensioners who had died since January 1, 2016, even as awaiting the release of their arrears.
Background of the Case
Justice Harpreet Singh Brar’s bench heard arguments stating that the state government had constituted the Sixth Pay Commission on December 24, 2016, to revise salaries, and pensions. The commission submitted its report on May 30, 2021, and the state government subsequently notified the 2021 Rules on July 5, 2021, providing for the payment of arrears from January 1, 2016, to June 30, 2021. These rules were amended further on September 20, 2021.
Court’s Observations on Delays
Despite the notification of the 2021 Rules and Cabinet approval of a payment schedule, the benefits had not been released as scheduled. The court emphasized that the dispute wasn’t about the existence of the right to revised pension and DA arrears, as the state did not dispute the pensioners’ entitlement. Instead, the core issue was whether the government could indefinitely delay the implementation of these statutory and policy decisions.
Cabinet Decisions and Public Interest
Justice Brar asserted that keeping a Cabinet decision “in a state of suspended animation for an inordinately long period” was not merely a procedural irregularity but detrimental to public interest and contrary to the statutory scheme of governance. The judge stated that allowing Cabinet decisions to languish without implementation renders the entire process of collective deliberation meaningless and erodes public confidence in the executive process and the rule of law.
Dearness Allowance: A Constitutional Right
The court underscored the importance of DA as a cost-of-living adjustment linked to the Consumer Price Index, designed to aid government employees and pensioners maintain their purchasing power and standard of living. Justice Brar noted that timely disbursement of DA is crucial, as delayed payments defeat its purpose. The court referenced the constitutional basis for DA, citing the Preamble’s commitment to social and economic justice, as well as Articles 14 and 21 of the Constitution, and Article 43 of the Directive Principles of State Policy.
Supreme Court Precedent
Referring to previous rulings by the Supreme Court, Justice Brar reiterated that DA is a legally enforceable right, not a discretionary benefit. The court stated that “the plea of financial constraints cannot defeat constitutional obligations” and that once governing rules provide for the payment of DA, the state is obligated to release it.
Court Directives
The High Court directed the Chief Secretary to ensure the release of all admissible benefits to eligible pensioners of the state government, boards, corporations, and other statutory bodies. The court also ordered the release of arrears of leave encashment payable up to April 2026. A compliance affidavit must be filed through a responsible officer within three months of receiving the order. The judgment operates in rem, extending its benefits to all similarly situated pensioners across the state, regardless of whether they approached the court directly.