Archive · 23 Jul 2026
Punjab HC Reserves Judgment on DA Release
The Punjab and Haryana High Court has reserved its judgment on a case involving the Punjab government and the Punjab State Power Corporation (PSPCL) against a previous court order.
This order directed the release of Dearness Allowance (DA) for state employees and pensioners by 30 June.
The DA is estimated at ₹14,191 crore and is meant to be on par with rates paid to officers in All India Services.
The Punjab government and PSPCL argue that releasing the DA would impose a significant financial burden and disrupt fiscal planning.
They also contend that the court's order infringes on their independent rules.
On the other hand, employees and pensioners are demanding the release of DA and other benefits, including the restoration of the Old Pension Scheme (OPS), implementation of the 4-9-14 Assured Career Progression (ACP) Scheme, regularization of contractual employees, revision of pensions, restoration of withdrawn allowances, enhancement of retirement gratuity, implementation of the 6th Punjab state pay commission’s remaining recommendations, and extension of minimum wages to women working on honorarium.
The Punjab government has announced that it will consider paying pending DA and DR dues for the period between 1 July 2021 and 31 March 2024.
The Punjab and Haryana High Court reserved judgment on pleas by the Punjab government and PSPCL against a court order directing the release of DA for state employees and pensioners.
The DA is estimated at ₹14,191 crore and is meant to be on par with rates paid to officers in All India Services.
The Punjab government and PSPCL argue that releasing the DA would impose a significant financial burden and disrupt fiscal planning.
Employees and pensioners are demanding the release of DA and other benefits, including the restoration of the Old Pension Scheme (OPS) and regularization of contractual employees.
The Punjab government has announced that it will consider paying pending DA and DR dues for the period between 1 July 2021 and 31 March 2024.
- Who
- Punjab government, Punjab State Power Corporation (PSPCL), state employees and pensioners
- What
- Punjab and Haryana High Court reserved judgment on pleas against a previous court order directing the release of Dearness Allowance (DA) for state employees and pensioners
- When
- 22 July
- Where
- Punjab and Haryana High Court
- Why
- The Punjab government and PSPCL are seeking a stay on the release of DA, arguing financial burden and infringement of independent rules, while employees and pensioners demand the release of DA and other benefits.
Punjab Government and PSPCL
Employees and Pensioners
Financial Burden
Punjab Government and PSPCL
The Punjab government argues that releasing the DA would impose an immediate and substantial financial burden, disrupt fiscal planning, and have wide-ranging administrative consequences.
Employees and Pensioners
Employees and pensioners demand the release of DA as it is a rightful benefit and necessary for their livelihood.
Judicial Review
Punjab Government and PSPCL
The Punjab government contends that the single-judge bench's order enters into the domain of fiscal policy and financial administration, which is beyond the permissible limits of judicial review.
Employees and Pensioners
Employees and pensioners support the court's order, arguing that the state has accepted the recommendations under the 6th pay commission and thus cannot deny the payment of benefits.
Parity with All India Services
Punjab Government and PSPCL
The Punjab State Power Corporation (PSPCL) argues that its employees cannot claim parity with state government employees as they are subject to independent rules and regulations.
Employees and Pensioners
Employees and pensioners demand parity with All India Services, arguing that they should receive the same benefits as other government employees.
- Date of Judgment Reservation
- 22 July
- Estimated DA Amount
- ₹14,191 crore
- Date of Single-Judge Bench Order
- 8 April
- Period of Pending DA Dues
- 1 July 2021 to 31 March 2024
- Key Demands by Employees and Pensioners
- 18% DA hike, restoration of OPS, implementation of ACP Scheme, regularization of contractual employees, revision of pensions, restoration of withdrawn allowances, enhancement of retirement gratuity, implementation of 6th Punjab state pay commission’s remaining recommendations, extension of minimum wages to women working on honorarium