The Supreme Court on Thursday stayed criminal contempt proceedings initiated by the Punjab and Haryana High Court against Punjab Chief Secretary KAP Sinha and other officers over the non-implementation of a judgment directing the release of pending Dearness Allowance (DA) and Dearness Relief (DR) to state employees and pensioners. A bench comprising Justice BV Nagarathna and Justice R Mahadevan granted the interim relief while hearing the state's challenge against the High Court's August 3 and subsequent contempt orders.
High Court Direction and Subsequent Contempt Proceedings
On August 3, the High Court directed the Punjab government to release all pending installments of DA and DR to its employees and pensioners at rates equivalent to those applicable to All India Services officers serving in the state. The order further restrained the state from incurring unproductive expenditure, including large-scale advertising campaigns, until the dues were cleared. Following the state's failure to comply and an alleged instruction by the Finance Secretary to departments not to implement the ruling, civil and criminal contempt petitions were filed.
On October 12, the High Court issued a notice of motion for criminal contempt to the Chief Secretary, observing that the applicants had prima facie brought the case within the ambit of criminal contempt by misrepresenting facts regarding the filing of the state's appeal in the Supreme Court. The court also noted the Finance Secretary's instruction against implementation. In the civil contempt proceedings, the High Court imposed costs of Rs 1 lakh on the Chief Secretary for failing to file a compliance report.
Supreme Court Intervenes: Stay and Disbursal Timeline
Taking up the challenge against both contempt proceedings, the Supreme Court bench perused the High Court orders dated October 12 and October 30. The bench noted that the Chief Secretary had been directed to appear in person before the High Court in the criminal contempt matter. The court ordered a stay on further proceedings in the criminal contempt case until further orders and directed that no coercive steps be taken in the civil contempt matter.
The bench granted the Punjab government a breather to formulate a concrete plan for the disbursal of pending dues. The court directed the state to come up with a payment plan on or before March 2027, noting that the present DA rate stands at 53 percent. During the hearing, the bench orally remarked, 'You got a breather. Come up with a positive response. How much will you release,' adjourning the matter to December.
Court's Observations on Government Employee Accountability
During the proceedings, the bench made strong observations regarding the accountability of government employees. The court remarked that government servants constitute a privileged class compared to workers in the unorganised and corporate sectors. It suggested that recruitment should be on a contractual basis to ensure accountability, stating that if government employees were sincere, litigation in the country would reduce. The bench further questioned the accountability of government servants in light of pensions continuing to be received by families after the death of the employee.
What is the current status of the contempt proceedings against the Punjab Chief Secretary?
The Supreme Court has stayed the criminal contempt proceedings against the Punjab Chief Secretary until further orders and restrained the High Court from taking coercive steps in the civil contempt matter. The state has been directed to submit a disbursal plan for pending DA/DR arrears by March 2027.
Aspect | High Court Orders (Aug–Oct 2026) | Supreme Court Order (Current) |
|---|---|---|
Substantive Relief | Directed release of pending DA/DR at AIS rates; barred unproductive expenditure. | Upheld interim relief; directed state to submit phased payment plan by March 2027. |
Criminal Contempt | Issued notice to Chief Secretary for misrepresentation and non-compliance. | Stayed proceedings until further orders. |
Civil Contempt | Imposed Rs 1 lakh costs on Chief Secretary for non-filing of compliance report. | Directed no coercive steps to be taken. |
Next Hearing | Adjourened upon intimation of Supreme Court hearing. | Matter adjourned to December for state's payment plan. |
Senior Advocate Vikas Singh represented the State of Punjab and its officers, assisted by Additional Advocates General Vivek Jain, Rajat Bharadwaj, and Mohd Irshad. Senior Advocates PS Patwalia and Shadan Farasat appeared for the Punjab State Power Corporation Limited (PSPCL).