Premium

Why the Punjab and Haryana High Court ruled that DA, DR are a right, not a favour

The petitioners had challenged the state government’s delay in releasing pending DA and DR instalments, as well as a controversial plan that staggered arrears based on pensioners’ age.

5 min readChandigarhApr 20, 2026 10:54 AM IST

he court rejected the state’s argument that decisions on DA and DR fall within policy and are therefore beyond judicial scrutiny. (Wikimedia Commons)

A recent 90-page ruling by the Punjab and Haryana High Court has significantly strengthened the rights of government employees and pensioners in Punjab. It held that dearness allowance (DA) and dearness relief (DR) are not discretionary benefits but enforceable entitlements, part of salary and pension structures, linked to inflation.

In a common judgment delivered on April 8, Justice Harpreet Singh Brar disposed of three writ petitions filed by employees and pensioners of Punjab State Power Corporation Ltd and the Municipal Corporation, Ludhiana. The petitioners had challenged the state government’s delay in releasing pending DA and DR instalments, as well as a controversial plan that staggered arrears based on pensioners’ age.

The ruling also sends a broader message on governance, emphasising that the state must act consistently, cannot selectively apply accepted policies, and must treat all employees and pensioners equally.

What was the dispute about?

The case centred on the Punjab government’s implementation of the 6th Punjab Pay Commission recommendations. While the state had formally accepted these recommendations in 2021 and agreed to follow the “Central government pattern” for DA and DR, several instalments remained unpaid or delayed.

In 2025, the government introduced a “liquidation plan” to clear arrears in phases, dividing pensioners into age-based categories. Older pensioners were prioritised, while younger retirees were required to wait longer, in some cases over several years.

Petitioners argued that both the delay in DA/DR payments and the age-based classification violated constitutional guarantees of equality.

What did the court decide on policy matters?

The court rejected the state’s argument that decisions on DA and DR fall within policy and are therefore beyond judicial scrutiny. It held that courts can intervene when policy decisions are arbitrary or violate fundamental rights under Articles 14, 16 and 21.

Story continues below this ad

Also Read | Delhi HC pulls up Sentencing Review Board in Mattoo case: What is premature release?

The judgment underscored that the government cannot use “policy” as a shield to justify inaction or unequal treatment.

Is the state bound by the Central pattern?

Yes. The court held that once Punjab accepted the Pay Commission recommendations and opted to follow the Central government pattern, it was legally bound to implement it fully.

This includes matching the rate of DA, the formula used for calculation, and the timing of revisions. Any partial or delayed implementation, the court said, amounts to a deviation from the accepted framework.

The ruling draws on established Supreme Court precedent that once a Pay Commission’s recommendations are accepted, the benefits accrue as a matter of right and cannot be selectively applied.

Can financial constraints justify delay?

Story continues below this ad

The court answered this in the negative. It held that financial hardship cannot be used as a blanket ground to deny or postpone DA and DR.

Describing DA as a mechanism to offset inflation, the court said withholding it undermines the state’s obligations as a welfare entity. It also referred to earlier rulings that had criticised Punjab’s fiscal management and rejected similar arguments.

What happened to the liquidation plan?

The court struck down the February 18, 2025 liquidation plan as unconstitutional.

It held that all pensioners constitute a single, homogeneous class and that dividing them by age for staggered payments is arbitrary. Inflation, the court noted, affects all retirees equally, and creating artificial categories violates the right to equality under Article 14.

Story continues below this ad

The plan was also criticised for forcing younger pensioners to wait years for dues that were already owed to them.

What about parity across employees?

The judgment makes it clear that all employees and pensioners drawing from the state’s Consolidated Fund must be treated alike.

Also in Explained | Why Karnataka HC ordered implementation of state’s menstrual leave policy

The court held that the government cannot grant DA and DR benefits to higher-ranking officers such as All India Service officers while denying or delaying the same for others. Any such distinction, it said, lacks a rational basis and is constitutionally impermissible.

Does the ruling apply beyond the petitioners?

Yes. In a significant move, the court said the judgment applies “in rem”, meaning it extends to all similarly placed employees and pensioners, not just those who approached the court.

Story continues below this ad

This ensures that the relief benefits a much larger group across the state.

What directions has the court issued?

The court has set a clear timeline for compliance. It directed the state government and its corporations to release all pending DA and DR instalments at Central pattern rates by June 30, 2026.

It also ordered that all pension arrears be paid to pensioners on the same basis as those aged 85 and above, effectively removing the staggered system.

The Chief Secretary has been asked to ensure compliance and file an affidavit by July 2, 2026.

Manraj Grewal Sharma

Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US. With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath. Professional Background & Expertise A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius Her key focus areas include: Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights. International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila. Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok. Recent Notable Articles (Late 2025) Her recent reportage focuses heavily on judicial interventions and regional governance: 1. Environment & Governance "‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land. "High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections. 2. Legal Rights & Social Welfare "HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019. "Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling. "HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits. 3. Human Rights & Identity "As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament. "Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices. Signature Beats Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context. Contact @grewal_sharma on X manrajgrewalsharma on Instagram ... Read More

Loading Recommendations...

May 18: Latest News

Live Blog