The Supreme Court on Monday reserved its judgment on a batch of petitions, including the West Bengal government’s challenge to a 2022 Calcutta High Court order directing the state to release dearness allowance (DA) arrears to its employees dating back to July 2009.
A bench of Justices Sanjay Karol and N Kotiswar Singh heard extensive arguments from senior advocates Abhishek Manu Singhvi and Huzefa Ahmadi representing the state government, and P.S. Patwalia and others appearing for the confederation of state government employees before reserving the verdict.
On May 20, 2022, the Calcutta High Court upheld the order of the State Administrative Tribunal (SAT) and directed the Trinamool Congress-led state government to clear DA arrears within three months. The arrears were to be calculated under the Revision of Pay and Allowances (ROPA) Rules, 2009, based on the uniform All India Consumer Price Index.
The high court had rejected the state’s plea of financial incapacity, holding that denial of DA would have a “demoralising effect” on employees and adversely impact governance. The tribunal and the high court both recognised the employees’ right to DA as a legally enforceable claim under the 5th Pay Commission.
One of the central questions before the Supreme Court is whether the “right to receive dearness allowance is a fundamental right.” The bench indicated that it would address this issue while deciding the appeals.
In May this year, the apex court passed an interim order directing the state to disburse 25% of the outstanding DA arrears to its employees within three months. The court stressed that employees should not be made to “wait endlessly” for their dues. The disbursal, however, was made subject to the final outcome of the petitions.
Before reserving its verdict, Justice Karol directed the parties to file “comprehensive written submissions” within two weeks.
