Breaking: Punjab likely to move Supreme Court in DA Case: Sources
Babushahi Bureau
Chandigarh, August 30, 2026: The Punjab government is likely to approach the Supreme Court against the Punjab and Haryana High Court's order directing the release of pending Dearness Allowance (DA) and Dearness Relief (DR) dues to government employees and pensioners, sources said.
According to sources, the state government is preparing to challenge the Division Bench judgment in the apex court and may file a petition in the coming days. The development comes at a time when the government is also required to submit a compliance affidavit before the Punjab and Haryana High Court by August 31.
On August 3, a Division Bench of the Punjab and Haryana High Court dismissed appeals filed by the Punjab government and Punjab State Power Corporation Limited (PSPCL) against an earlier order concerning payment of pending DA and Dearness Relief (DR) to employees and pensioners.
The court directed the state to release all up-to-date pending DA/DR instalments within a fortnight, at the rates applicable to All India Services officers serving in Punjab in accordance with the Central Government pattern.
The court also directed the Chief Secretary of Punjab to ensure scrupulous compliance and file a compliance report by way of an affidavit before the Registry by August 31, 2026.
If the dues were not cleared within the stipulated period, the unpaid amount would carry simple interest at 6% per annum from the expiry of the deadline until actual payment.
In another significant part of its order, the High Court directed that until the DA/DR dues were cleared, the Punjab government should not resort to “unproductive expenditures”, including large-scale advertising campaigns in print or social media.
The court observed that such expenditure could not justify denying dues to state employees.
Single Bench Order Was Challenged Before Division Bench
The matter had earlier been decided in favour of the employees and pensioners by a single judge of the High Court.
The state subsequently challenged that order before the Division Bench. However, the Division Bench dismissed the appeals and upheld the direction for payment of the pending DA/DR dues, while setting the payment timeline at a fortnight.
The dispute relates to pending DA instalments and the demand of employees and pensioners for payment according to the Central Government pattern.
The August 31 deadline has assumed added significance after a contempt petition was filed alleging non-compliance with the High Court's directions.
During the proceedings, the Punjab government informed the court that it had time until August 31 to submit its compliance report. The matter was subsequently listed for further hearing.
The petitioners have alleged that the government had not fully implemented the court's directions. The controversy intensified further after a Finance Department communication reportedly advised departments not to implement the directions without prior concurrence of the Finance Department or generalised directions.
Punjab Finance Minister Harpal Singh Cheema had earlier said that the government was examining the High Court judgment from legal and constitutional perspectives and considering available legal remedies, including the possibility of approaching the Supreme Court.
The latest information from sources indicates that the government is now preparing to challenge the High Court judgment in the Supreme Court.
However, there is no confirmed information yet that a Supreme Court petition has actually been filed. The proposed move should therefore be viewed as the government's likely next legal step rather than a completed filing.
Employees Already on Protest Path
The possible Supreme Court challenge is likely to further anger employee and pensioner organisations, which have already been protesting over pending DA and other service-related demands.
The employee organisations have also announced further phases of agitation, including demonstrations and a proposed two-day Maha Hartal in October.
The reported pending DA/DR liability has been estimated at around ₹14,191 crore, according to figures cited in the ongoing legal and political debate over the issue.
With the August 31 compliance-affidavit deadline now approaching and the possibility of a Supreme Court challenge emerging, the DA dispute between the Punjab government and its employees and pensioners is expected to intensify further.