DA – a legally enforceable right’: SC asks West Bengal govt to pay employees arrears from 2008–19

February 5, 2026

New Delhi: The Supreme Court on Thursday delivered a landmark verdict, holding that West Bengal government employees have a legally enforceable right to Dearness Allowance (DA).

The Bench directed the state government to pay arrears dating back to the period between 2008 and 2019, dismissing the state’s plea of financial constraints.

While constituting a high-level committee to finalize a binding payment schedule, a Bench of Justices Sanjay Karol and Prashant Kumar Mishra partly upheld the 2022 Calcutta High Court judgment. That previous ruling had favored state employees and directed DA payments to be at par with Central government rates.

DA Tied to Statutory Rules, Not State Discretion

The Apex Court held that once DA is defined in the West Bengal Services (Revision of Pay and Allowances) Rules, 2009 (ROPA) by linking it to the All-India Consumer Price Index (AICPI), the state cannot alter the calculation through simple office memos.

“To receive a Dearness Allowance is a legally enforceable fact that has accrued in favour of the employees of the State of West Bengal,” the Bench observed. It clarified that while the AICPI is the standard, employees are not automatically entitled to twice-yearly hikes just because the Central government follows that specific pattern.

Rights Over Fiscal Policy

Rejecting the argument that the state’s “financial burden” justified denying payments, the Court ruled that fiscal policy cannot override established legal rights.

“Once there is a right which is conferred upon a person, then fiscal policy cannot come in the way of the disbursement of such rights,” the Justice Karol-led Bench stated.

The Court further clarified that any DA amounts already paid under interim orders will not be recovered from employees, regardless of any future changes in the law.

High-Level Committee to Oversee Payments

To balance the employees’ rights with the state’s financial autonomy, the Court formed a committee chaired by former Supreme Court judge Justice Indu Malhotra. The committee also includes:

• Former Jharkhand HC Chief Justice Tarlok Singh Chauhan

• Former judge Gautam Bhiduri

• The Comptroller and Auditor General (CAG) or a senior nominee

The committee must determine the total amount owed and fix a phased payment plan by March 6, 2026. The Supreme Court has ordered the first installment to be released to employees by March 31, 2026, with the state government required to provide full logistical and financial support for the committee’s work.