India

Supreme Court Halts Contempt Action Against Punjab Chief Secretary Over DA Arrears

By Utkarsh Anand

The Supreme Court has stayed criminal contempt proceedings that were initiated by the Punjab and Haryana High Court against Punjab chief secretary KAP Sinha. The proceedings were related to the state government’s failure to comply with high court orders to pay pending dearness allowance (DA) arrears to employees and pensioners. A bench of Justices B.V. Nagarathna and R. Mahadevan issued the order after senior advocate Vikas Singh, representing the additional chief secretary and the state government, informed the court that the case had already been disposed of. The bench questioned the need to send the chief secretary to jail and directed a stay on further contempt proceedings until further orders.

The court also took issue with the petitioner’s reliance on an internal communication allegedly issued by Sinha to state departments, instructing them not to comply with court orders. Advocate Ravi Sharma, appearing for petitioner Manjit Singh Randhawa, argued that such internal communication could not be the basis for contempt. The bench asked whether a decision by the chief secretary to advise against compliance because the state intended to approach the Supreme Court could itself amount to criminal contempt.

The order reviewed the high court’s October 12 and October 13 orders directing Sinha to appear before it and to remain personally present. The contempt petition arose from the Punjab government’s failure to implement the high court’s August 3 directions to release pending DA and dearness relief (DR) instalments to employees and pensioners at rates applicable to All India Services officers in the state, in line with the central government pattern. The high court had directed the government and Punjab State Power Corporation Limited to clear the dues within a fortnight, with six per cent annual interest on delayed payments. After the state missed the deadline, employees and pensioners approached the high court alleging non‑compliance.

On October 12, the high court issued a notice to Sinha to show cause why criminal contempt proceedings should not be initiated against him and later directed him to appear personally on November 5. The high court also questioned the government’s continued failure to implement its directions despite having approached the Supreme Court, stating that merely filing an appeal did not absolve the state of its obligation to comply unless the order was stayed or modified by the apex court. The high court imposed costs of ₹1 lakh on the state government for failing to file a reply in the contempt petition and summoned the chief secretary to explain the steps taken toward compliance.

In a status report filed before the high court, Sinha estimated the state’s outstanding DA/DR liability for the period between July 1, 2021, and September 30, 2026, at ₹22,818 crore, while the total outstanding liability toward employees and pensioners stood at ₹32,418 crore. The state government has cited the substantial financial burden involved in clearing the arrears, noting that the present dispensation inherited legacy arrears of around ₹13,000 crore from the previous government.