New Delhi: The Punjab government has moved the Supreme Court challenging a high court order directing it to release all pending dearness allowance and dearness relief dues to state employees and pensioners within a fortnight, contending that the direction to pay arrears totalling around Rs 14,191 crore in such a short period was constitutionally impossible.
The special leave petition filed by the additional chief secretary in the finance department challenges the August 3 judgment of the Punjab and Haryana High Court, which directed payment of the pending dues at rates applicable for officers of the All India Services serving in the state.
“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.
On August 3, 2026, a Division Bench of the High Court dismissed the state’s Letters Patent Appeal (LPA). It ordered the immediate release of ₹14,191 crore in outstanding DA and Dearness Relief (DR) to nearly six lakh employees and pensioners within 15 days. The High Court stated that failing to release the funds within the stipulated timeline would attract a 6% annual interest penalty on the unpaid amount.
In a stern rebuke, the High Court barred the state government from executing any unproductive expenditures or large-scale promotional advertising campaigns until employee dues are thoroughly cleared.
Punjab Finance Minister Harpal Singh Cheema clarified that the massive debt burden was inherited from past administrations. The government argues it already provides some of the highest basic pay scales in the country, making the simultaneous implementation of central DA rates unsustainable.
Over 3 lakh government employees and contractual workers organized a massive statewide strike (“Maha Hartal”) on August 27, 2026, to protest the delay. In retaliation to the service disruption, the state government hardened its stance by directing officers to issue show-cause notices to employees for unauthorized absences.
Angered by the state’s decision to approach the Supreme Court, employee unions have announced escalated protest phases, including targeted demonstrations against ministers and a planned multi-day strike in October.
