
The Punjab government is likely to approach the Supreme Court against the Punjab and Haryana High Court’s order directing it to release pending Dearness Allowance (DA) and Dearness Relief (DR) to state employees and pensioners, even as a crucial compliance deadline approaches on August 31.
Sources said the government is preparing to challenge the Division Bench judgment and may file a petition in the coming days. However, there is no confirmation yet that a Supreme Court petition has actually been filed.
The development comes amid growing confrontation between the government and its employees. More than three lakh state government employees recently joined a mass leave agitation on August 27 under the banner of the Punjab Sanjha Mulazam Manch, demanding payment of pending DA, implementation of the Old Pension Scheme and other service-related demands. More than 150 employee organisations had supported the ‘Maha Hartal’, disrupting public services.
The Personnel Department has directed heads of departments and administrative secretaries to issue show-cause notices to employees who remained absent without authorisation during the agitation and initiate disciplinary action according to rules.
The standoff has also acquired political significance with Assembly elections due in the state in the coming months. Employee organisations constitute a sizeable constituency capable of influencing the electoral outcome.
On August 3, the High Court’s Division Bench dismissed appeals filed by the Punjab government and Punjab State Power Corporation Limited (PSPCL) against an earlier order favouring employees and pensioners. The court directed the government to release all up-to-date pending DA/DR instalments within a fortnight, at rates applicable to All India Services officers serving in Punjab and in accordance with the Central government pattern.
The court also ordered the Chief Secretary to ensure compliance and submit an affidavit by August 31. Failure to clear the dues within the stipulated period would attract simple interest at six per cent annually from the expiry of the deadline until payment.
Significantly, the court directed the government to avoid “unproductive expenditures”, including large-scale print and social media advertising, until the DA/DR dues were cleared.
The deadline has gained importance following a contempt petition alleging non-compliance. A Finance Department communication had reportedly advised departments against implementing the directions without prior concurrence.

Finance Minister Harpal Singh Cheema had earlier said the government was examining the judgment and considering legal remedies, including approaching the Supreme Court.
With employee unions announcing further protests, including a proposed two-day Maha Hartal in October, the dispute over reported DA/DR liabilities of around Rs 14,191 crore threatens to escalate into a major political and administrative confrontation.











