Supreme Court Stays Criminal Contempt Proceedings Against Punjab Chief Secretary in DA Arrears Dispute

A bench comprising Justices B.V. Nagarathna and R. Mahadevan also directed that no coercive action be taken against the Chief Secretary in the related civil contempt proceedings.

However, the court asked the state government to present a concrete plan for clearing the outstanding dues by March 2027, signalling that it expects progress on the release of the arrears.

"You got a breather. Come up with a positive response. How much will you release?" the bench orally observed while adjourning the matter to December.

Taking into account the circumstances surrounding the dispute, the Supreme Court ordered that the criminal contempt proceedings would remain stayed until further orders.

Punjab Government Challenges High Court Orders

The matter reached the Supreme Court after the Punjab government challenged orders passed by the Punjab and Haryana High Court in civil and criminal contempt proceedings. The cases arose from the state's alleged failure to implement directions for releasing pending DA and Dearness Relief (DR) instalments.

During the civil contempt proceedings, the High Court had imposed costs of Rs 1 lakh on Chief Secretary Sinha for failing to submit a compliance report as directed.

The dispute originates from an August 3 judgment of the High Court, which directed the Punjab government and the Punjab State Power Corporation Ltd (PSPCL) to release all outstanding DA and DR instalments to their employees and pensioners.

The court had ordered that the payments be made at rates equivalent to those applicable to All India Services officers serving in Punjab, following the Central government's pattern.

The High Court had given the state government a fortnight to clear the dues and directed that any delay beyond that period would attract simple interest at six per cent per annum until the payments were made.

High Court Had Issued Contempt Notice

Following the alleged non-compliance with its directions despite repeated opportunities, the High Court initiated contempt proceedings against the state government.

On November 3, it issued a contempt notice to Chief Secretary Sinha and sought his response by November 17 over the continued failure to implement the payment directions.

The Punjab government had informed the High Court that it had challenged the August 3 judgment before the Supreme Court. However, the High Court clarified that merely filing an appeal does not suspend the operation of its directions unless the Supreme Court grants a stay.

Meanwhile, the Punjab and Haryana High Court on Thursday adjourned the criminal contempt matter after being informed that the Supreme Court was hearing the state's special leave petition challenging the orders passed in the contempt proceedings.