Supreme Court Stays Contempt Case Against Punjab Chief Secretary in DA Rowਸੁਪਰੀਮ ਕੋਰਟ ਨੇ ਡੀਏ ਮਾਮਲੇ ਵਿੱਚ ਮੁੱਖ ਸਕੱਤਰ ਵਿਰੁੱਧ ਤੋਹੀਨ ਕੇਸ ਉੱਤੇ ਰੋਕ ਲਾਈ

The Supreme Court on Thursday, 5 November stayed the criminal contempt proceedings against Punjab Chief Secretary KAP Sinha in the dearness allowance (DA) arrears case, giving the state's top bureaucrat interim relief on the day he was due to appear in person before the Punjab and Haryana High Court. A bench of Justice BV Nagarathna and Justice R Mahadevan stayed further proceedings in the criminal contempt case until further orders, and said no coercive steps be taken in a connected civil contempt case.

State asked for an arrears plan by March 2027

The bench was told the state has already raised DA from 43 per cent to 53 per cent, and it asked Punjab to file a proposal setting out how much of the pending arrears it can clear by 31 March 2027. Reports of the hearing said the court questioned the basis for criminal contempt, which rested in part on an internal departmental communication, and observed that such correspondence could not by itself justify criminal contempt proceedings. The Supreme Court is now seized of three connected cases: two challenges to the High Court's main DA judgment, by the state and by Punjab State Power Corporation Limited (PSPCL), and one against the criminal contempt move.

How the case reached the Supreme Court

On 3 August, the High Court directed the Punjab government and PSPCL to release all pending DA and dearness relief instalments to employees and pensioners at the rates paid to All India Services officers serving in Punjab, within a fortnight, with 6 per cent annual interest on any unpaid amount afterwards. It also barred unproductive expenditure, such as large advertising campaigns, until the dues were cleared. On 12 October, the High Court issued a criminal contempt notice to the Chief Secretary, later directed him to appear in person on 5 November, and imposed costs of Rs 1 lakh on the state for failing to file its reply.

A liability of Rs 32,418 crore

In a status report before the High Court, the Chief Secretary put Punjab's outstanding DA and dearness relief liability for July 2021 to September 2026 at Rs 22,818 crore, and the state's total outstanding liability towards employees and pensioners at Rs 32,418 crore. The state told the Supreme Court it had inherited around Rs 13,000 crore of legacy arrears from the previous government. No finding of contempt has been recorded against the Chief Secretary, and the stay leaves the underlying DA dispute, and what employees and pensioners are still owed, to be decided in the connected cases.

What did the Supreme Court order in the DA case?

It stayed further proceedings in the criminal contempt case against the Chief Secretary until further orders, and directed that no coercive steps be taken in the connected civil contempt case.

What must Punjab do by March 2027?

The court asked the state, which says DA has risen from 43 per cent to 53 per cent, to file a proposal on how much of the pending arrears it can clear by 31 March 2027.

How large are Punjab's DA arrears?

The Chief Secretary's status report put DA and dearness relief arrears for July 2021 to September 2026 at Rs 22,818 crore, within a total outstanding liability of Rs 32,418 crore.