DA news: Punjab says paying ₹14,191 crore dues in 14 days ‘constitutionally impossible’, challenges HC order

The Punjab government has approached the Supreme Court, challenging a High Court order directing it to clear all pending dearness allowance (DA) and dearness relief (DR) dues owed to state employees and pensioners within a fortnight. The state has argued that releasing arrears of around ₹ 14,191 crore within such a short timeframe is constitutionally impossible.

The special petition, filed by the additional chief secretary of the finance department, challenges the 3 August judgment of the Punjab and Haryana High Court. The court had directed the state to pay the pending dues at rates applicable to All India Services officers posted in Punjab.

“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 plea said.

The High Court had also ordered the state to pay 6 per cent simple interest if it failed to comply and restrained it from undertaking "unproductive" expenditure until the outstanding dues were settled.

In its Supreme Court petition, the Punjab government argued that its service rules do not require the state to pay DA to its employees at the rate announced by the Centre for its employees.

It said the Punjab Civil Services (Revised Pay) Rules, 2021, do not specify any particular index, formula, rate or periodicity for calculating DA. The decision on these aspects, it said, remains within the state government's discretion.

Punjab has also questioned the High Court's reliance on the DA paid to All India Services officers as a benchmark for determining the entitlement of state employees.

The state contended that All India Services officers receive DA at Central rates because their service conditions are governed by Union law.