Punjab has been asked to come up with a plan to clear its pending Dearness Allowance and Dearness Relief dues on or before March 2027, as the Supreme Court stayed the criminal contempt proceedings against the Punjab Chief Secretary and barred coercive steps in the parallel civil contempt case.
New Delhi: Further proceedings in the criminal contempt case against Punjab Chief Secretary KAP Sinha and other officers stand stayed after the Supreme Court’s order on Thursday (November 5). The case was initiated before the Punjab and Haryana High Court over the non-implementation of its ruling on payment of Dearness Allowance (DA) and Dearness Relief (DR) to State employees and pensioners [State of Punjab and Others v. Respondents (case title awaited)].
A Bench of Justice BV Nagarathna and Justice R Mahadevan passed the order while hearing the State’s challenge to the orders made in the contempt proceedings.
From the August 3 ruling to the contempt case
The High Court’s judgment of August 3, 2026 directed the State to release all pending DA/DR instalments to its employees and pensioners at the rates paid to All India Services (IAS, IPS and IFS) officers serving in Punjab. It also barred unproductive expenditure, such as large-scale advertising campaigns, until the dues were paid. That judgment is under challenge before the Supreme Court.
The order was not implemented, and civil and criminal contempt proceedings followed. On October 12, the High Court issued notice of motion in the criminal contempt, finding that the applicants had prima facie placed documents bringing the case within criminal contempt. These included an instruction of the Finance Secretary asking department heads not to implement the August 3 ruling, and allegations that the Chief Secretary misrepresented facts about the filing of the State’s appeal. On Thursday, the High Court adjourned the criminal contempt matter after being told that the Supreme Court was hearing the State’s challenge.
What the Supreme Court recorded
The Bench took note of the High Court’s orders of October 12 and October 30, 2026, and of the direction for the Chief Secretary to appear in person before the High Court on Thursday in the criminal contempt case. Its order states:
“We have also been apprised on the background of the dispute between the parties leading to filing of criminal contempt proceedings. Stay in further proceedings in the criminal contempt until further orders.”
No coercive steps are to be taken in the civil contempt case, the Court further directed. It noted that DA is currently paid at 53 percent and asked the Punjab government to come up with a plan for disbursal of the pending amounts on or before March 2027. “You got a breather. Come up with a positive response. How much will you release,” the Bench told the State, adjourning the matter to December.
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Oral remarks on government employees
The Bench orally remarked during the hearing that government employees are a privileged class compared with workers in the unorganised and corporate sectors, observing that they also receive pension apart from DA and other allowances. The Court asked:
“If govt employees were sincere the litigation would come down in this country. Pensions are being received by families after death of govt servant. Where is the accountability of govt servants?”
These were oral observations made during the hearing and do not form part of the written directions. The Supreme Court has not yet ruled on the State’s appeal against the High Court’s DA judgment.
Why the order matters
Punjab’s senior-most civil servant no longer faces the immediate threat of personal criminal contempt action, but the State’s liability is not wiped out. The relief is tied to a disbursal plan by March 2027, which keeps pressure on the State to pay employees and pensioners while the Supreme Court examines the appeal against the DA judgment. No finding of contempt has been recorded against the Chief Secretary or any officer.
Case Title: State of Punjab and Others v. Respondents (case title awaited)
Bench: Justice BV Nagarathna and Justice R Mahadevan
Date of Order: November 5, 2026
Appearances: Senior Advocates Vikas Singh and Shadan Farasat for the State of Punjab and its officers; Senior Advocate PS Patwalia for Punjab State Power Corporation Limited (PSPCL)