Supreme Court reserves verdict on pleas against HC order asking West Bengal government to pay DA to employees

The Supreme Court on Monday reserved its verdict on pleas including the one filed by the West Bengal government against the Calcutta High Court 2022 order asking the state to release dearness allowance (DA) arrears since July 2009.

A bench of Justices Sanjay Karol and N Kotiswar Singh heard senior lawyers, including, Abhishek Singhvi and Huzefa Ahmadi, on behalf of the state government and senior advocate P S Patwalia and others for the confederation of state government employees and others before reserving the judgement.

On May 20, 2022, the high court upheld an order of the State Administrative Tribunal (SAT) and directed the TMC government to release DA arrears since July 2009 when the Revision of Pay and Allowances (ROPA) came into effect in the state within three months.


It said the stand of financial inability taken by the state government in not being able to pay DA to its employees, at the rate to be calculated using the methodology of uniform All India Consumer Price Index average, was not acceptable.

The top court heard about four appeals, including the one filed by the state government, against the high court verdict.

One of the key issues raised for adjudication also include whether "the right to receive Dearness Allowance is a fundamental right" or not.

While reserving the verdict, Justice Karol asked the counsel for parties to file "comprehensive written submissions" within two weeks.

In an interim order on May 16, the top court asked the state government to pay 25 per cent of the outstanding Dearness Allowance to its employees within the next three months.

"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," it said.

The tribunal and the high court had acknowledged the right of the employees to receive DA pursuant to the 5th Pay Commission recommendations, it noted.

The high court and the tribunal rejected the plea of paucity of funds as a ground to not to pay the DA, it said.

"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," it said.

It, however, made clear 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.

Earlier, the state government filed a petition in the high court challenging the SAT order of July 2019 that directed it to pay DA at par with the Centre and to clear the amount in three instalments.

"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 HC order said.

To get DA to be calculated at this rate is now the legally enforceable right of the state government employees, the high court said.

"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," it added. PTI