The Supreme Court has reserved its verdict on the West Bengal government’s plea challenging the Calcutta High Court order directing payment of DA arrears since 2009. The case also raises the question of whether receiving Dearness Allowance is a fundamental right.
New Delhi: The Supreme Court on Monday reserved its verdict on a set of petitions, including the one filed by the West Bengal government, challenging the Calcutta High Court’s 2022 order directing the state to release pending Dearness Allowance (DA) arrears dating back to July 2009.
A bench of Justices Sanjay Karol and N Kotiswar Singh heard extensive arguments from senior advocates. Abhishek Singhvi and Huzefa Ahmadi represented the West Bengal government, while senior advocate P S Patwalia and others appeared for the confederation of state government employees before the bench decided to reserve its judgement.
The dispute goes back to May 20, 2022, when the Calcutta High Court upheld the order of the State Administrative Tribunal (SAT) and asked the Trinamool Congress (TMC)-led state government to pay arrears of DA within three months.
These arrears were to be calculated from July 2009, when the Revision of Pay and Allowances (ROPA) rules came into effect. The High Court also observed that the plea of financial inability advanced by the state government could not be accepted.
It held that the DA must be paid using the uniform All India Consumer Price Index (CPI) average method.
The Supreme Court is currently examining four appeals, including the state government’s challenge, against the 2022 High Court ruling. One of the central legal issues before the court is whether the “right to receive Dearness Allowance is a fundamental right” or not.
While reserving the verdict, Justice Karol directed all counsels to file “comprehensive written submissions” within two weeks.
Earlier, on May 16 this year, the Supreme Court had passed an interim order directing the West Bengal government to release part of the arrears.
The bench had stated:
“The petitioner state should release at least 25% of the amount due and payable to all the employees in terms of the impugned judgment dated May 20, 2022 passed by the High Court at Calcutta …, within a period of six weeks from today.”
In its observations, the top court noted that both the Tribunal and the High Court had recognised the employees’ right to receive DA under the 5th Pay Commission recommendations.
The High Court had dismissed the argument of shortage of funds as a valid reason to deny the employees their dues.
The Supreme Court further recorded:
“Whether or not the right to receive Dearness Allowance is a fundamental right is an issue, amongst others, this Court is called upon to consider. We shall do so. However, pending such consideration, we are of the considered view that the employees need not be kept waiting endlessly to receive the money in question.”
The court also clarified that
“the disbursal of such an amount shall be without prejudice to the respective rights and contentions of the parties and subject to the outcome of the instant petition.”
The case traces back to 2019, when the SAT had first directed the West Bengal government to pay DA at par with central government employees and clear arrears in three instalments. The state challenged this order in the High Court, which dismissed the petition in May 2022.
In its ruling, the High Court said:
“The petitioners are directed to release the Dearness Allowance and Arrear Dearness Allowance to its employees at the rate to be calculated on the basis of All India Consumer Price Index average 536(1982=100) commensurate with their pay as per the ROPA Rules, 2009 as directed by the Tribunal within three months from date.”
The High Court added that calculation of DA in this manner had become a legally enforceable right for state government employees.
It emphasised:
“We feel that denial or deprivation of the legitimate claim of Dearness Allowance of the employees to sustain their livelihood in a dignified manner may have a demoralising effect upon them which may in turn adversely affect the smooth functioning of the government.”
The final decision now rests with the Supreme Court, which will deliver its verdict after considering the written submissions of all parties.
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