Punjab DA Case: High Court summons Chief Secretary, personal appearance on October 5

September 22, 2026

Mohali: The Punjab and Haryana High Court has taken a tough stand on the pending Dearness Allowance (DA) payment issue for Punjab government employees and pensioners. The court has summoned Punjab Chief Secretary KAP Sinha and directed him to appear in person at the next hearing. The next hearing will be held on October 5.

The case relates to the payment of pending DA and Dearness Relief (DR) installments to employees and pensioners. Previously, the High Court had directed the government to pay the pending DA/DR payments within 15 days.

During the hearing, the court asked the government why its earlier order had not been complied with. The state government stated that it had challenged the High Court’s order in the Supreme Court.

However, the High Court clarified that merely challenging an order does not automatically prevent its implementation.

Recommendations of the 6th Pay Commission also became the basis

A major basis for the DA dispute is the recommendations of the 6th Punjab Pay Commission. The Commission recommended continuation of DA as per the Central Government pattern, which was accepted by the Punjab Government.

On August 3, 2026, a division bench of the Punjab and Haryana High Court dismissed the appeals of the Punjab Government and PSPCL and directed the release of pending DA/DR installments to employees and pensioners as per the Central pattern.

The court gave the government 15 days to make the payment. It also stated that if the payment is not made within the stipulated period, simple interest at the rate of 6 percent per annum will be charged on the outstanding amount. This interest will apply after the expiry of the stipulated deadline until the date of actual payment.

The court also directed the government to refrain from spending on print and internet advertisements until the DA payment is made.

Punjab Government Approaches the Supreme Court

The Punjab Government filed a Special Leave Petition (SLP) in the Supreme Court against the High Court order. The state government also sought a stay on the order.

The Punjab government filed a Special Appeal (SLP) on September 1, 2026. The Supreme Court Registry raised nine technical objections to the petition.

Subsequently, on September 11, the High Court granted the state government 10 days to address these objections and pursue its challenge in the Supreme Court.

The government argued that releasing the full amount in such a short time would impose a significant financial burden on the state. The government also stated that the Punjab Pay Rules, 2021, do not mandate the central government’s prescribed pattern or formula for DA, and that the state has the right to determine its own DA rate.

Approximately ₹6,000 crore paid according to the government

During the hearing, the Punjab government informed the court that approximately ₹6,000 crore had already been paid as part of the process to settle pending liabilities.

According to the government, payments to pensioners and other arrears of different age groups are being made in a phased manner.

Meanwhile, employee unions are continuously demanding payment of pending DA installments and arrears. Employees protested across the state in August and September over this issue.

On September 8, the government issued a “no work, no pay” order for employees who were absent from duty during the protest. Following this, employee representatives met with Chief Secretary KAP Sinha, paving the way for a meeting with Chief Minister Bhagwant Mann.

Employees Claim Arrears of ₹14,200 Crore

Employee unions say that the state’s tax revenue has increased and that the pending DA arrears of approximately ₹14,200 crore can be paid.

On the other hand, the government maintains that increased revenue does not mean that the entire amount is immediately available for DA payment. The government also cited other financial responsibilities such as salaries, pensions, interest on loans, and loan installments.

The state government also states that it is already paying higher salaries to employees.

Government agrees on 50% DA

Amid the DA dispute, an agreement was reached between the Punjab government and employee representatives. After a meeting with Chief Minister Bhagwant Mann, it was decided to increase the DA to 50 percent.

The government also agreed to release the employees’ pending demand for 8 percent DA. This is estimated to put an additional burden of approximately ₹248 crore on the state treasury.

The next hearing in the DA case will be held in the High Court on October 5, with Chief Secretary KAP Sinha scheduled to appear in person.