IndiaPosted at: Nov 5 2026 2:27PM


SC stays contempt proceedings against Punjab chief secretary over Rs 22,818 cr DA arrears, seeks payment plan

Neeraj Bali
New Delhi/Chandigarh, Nov 5 (UNI) The Supreme Court on Thursday stayed criminal contempt proceedings against Punjab Chief Secretary K.A.P. Sinha over the state government's failure to clear Rs 22,818 cr in dearness allowance (DA) and dearness relief (DR) arrears, while seeking a payment roadmap from the government by December 1.
A bench of Justices BV Nagarathna and R Mahadevan also directed that no coercive steps be taken in the related civil contempt proceedings, providing temporary relief to the state's top bureaucrat amid a dispute involving total outstanding employee and pensioner liabilities of Rs 32,418 crore.
The court asked Punjab to indicate how much of the pending dues it proposed to release by March 31, 2027, while making clear that the stay on contempt proceedings did not settle the underlying dispute over payments.
"You got a breather. Come up with a positive response. How much will you release," the bench told the state government during the hearing.
The court questioned the criminal contempt action against Sinha, who had been directed to appear personally before the Punjab and Haryana High Court on Thursday.
"Why are you interested in sending the chief secretary to jail? We will stay the contempt. Other proceedings can go on," the bench observed.
The proceedings arose from the High Court's August 3 judgment directing the Punjab government and Punjab State Power Corporation Limited (PSPCL) to release pending DA and DR instalments to employees and pensioners at rates applicable to All India Services officers serving in Punjab.
The High Court had ordered payment within a fortnight, setting August 18 as the deadline, and stipulated simple interest of six percent annually on amounts remaining unpaid after that date.
It had also restricted the government from undertaking unproductive expenditure, including large-scale advertising campaigns, until the dues were cleared.
The government failed to meet the deadline, prompting employees and pensioners to initiate contempt proceedings.
On October 12, the High Court initiated criminal contempt proceedings after examining allegations concerning official communications discouraging implementation of its directions.
The High Court subsequently directed Sinha to appear personally, while separate civil contempt proceedings continued over non-payment of the dues.
During Thursday's hearing, the Supreme Court questioned whether an internal government communication advising departments against implementing the directions while the state pursued legal remedies could itself justify criminal contempt proceedings.
Senior advocate Vikas Singh, representing Punjab, argued against the contempt action.
The financial implications of the dispute have emerged from a status report submitted by Sinha before the High Court.
According to the report, Punjab's outstanding DA and DR liability between July 1, 2021, and September 30, 2026, stood at Rs 22,818 crore.
The total outstanding liability towards employees and pensioners was estimated at Rs 32,418 crore, while payment of DA at Central government rates would impose an additional recurring annual burden of approximately Rs 4,712 crore.
The government has cited financial constraints in clearing the dues. During earlier proceedings, its counsel said the present administration had inherited approximately Rs 13,000 crore in arrears from the previous government.
The High Court had rejected the argument that financial difficulties or the provision for interest could justify indefinite postponement of payments.
It maintained that the obligation to clear the arrears remained binding unless its directions were stayed or modified by the Supreme Court.
Thursday's order suspends the criminal contempt proceedings and protects officials from coercive action in the civil contempt matter, but does not amount to cancellation of the employees' outstanding claims.
The Supreme Court is expected to examine Punjab's proposed payment arrangements when the matter comes up in December.
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Tags: #SC stays contempt proceedings against Punjab chief secretary over Rs 22#818 cr DA arrears# seeks payment plan
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