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Informist, Thursday, Feb. 5, 2026

 

NEW DELHI – The Supreme Court Thursday directed the West Bengal government to pay arrears of dearness allowance to its employees for 2008-19 (Apr-Mar) by following All-India Consumer Price Index as the standard for determination of 'existing emoluments'.  It also formed a committee to monitor the implementation of its directions. Observing that receiving dearness allowance was a legally enforceable right, the Supreme Court said that state government did not pay the requisite allowance every month and it was a wrong committed against its employees.

 

The top court said that it was not open for the state government to shirk away from its responsibility from paying dearness allowance on reasons of financial difficulty that it may face in doing so. It is an obligation arising out of the statute of its own creation and it must be met by the state government, said the court.

 

It has often been recognised that a 'state' must set an example for other employers in the country by behaving as a 'model employer', said the court. Such a position should not be difficult to attain given all the advantages that it has, it said. In embodying the 'model employer', the 'state' not only fulfils its obligation but also instils and maintains public confidence in the rule of law, governance and administration of justice, said the apex court.

 

When it comes to employees' dues, the proposition of not paying dues because of financial inability would be extremely dangerous and stifling, said the court. Since the amounts received thereby are not handouts or acts of charity but are earned compensation and consideration for services given, the denial of such consideration would have a direct impact on the right to life and livelihood enshrined in Article 21 of the Constitution, said the apex court. 

 

"...we have not given any finding with respect to DA (dearness allowance) being a facet of Article 21 but at the same time it has to be acknowledged that DA is an integral part of salary which is the means by which various other facets of right to life under Article 21 can be seen to a logical and desirable end," the court added. 

 

The Bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra said that the state government will comply with the court's last year order directing them to release at least 25% of the amount due and payable to employees. Those employees of the state who have retired in the pendency of this litigation shall also be entitled to benefits of their dues ,clarified the top court. However, it rejected Calcutta High Court's order directing the state government to pay the dearness allowance to employees twice a year till the implementation of the 6th pay commission of the state.

 

Considering the financial implications involved and also recognising the need for a structured release of funds so as to not prejudicially impact the state government's exchequer while at the same time balancing the rights of the employees to receive emoluments due to them, the top court constituted a committee to monitor the implementation of its directions. The committee will comprise retired Supreme Court judge Indu Malhotra, former chief justice of Jharkhand High Court Tarlok Singh Chauhan and former chief justice of Chhattisgarh High Court Goutam Bhaduri, comptroller and auditor general of India K. Sanjay Murthy or senior most officer in his establishment, nominated by him. 

 

The committee, in consultation with the state authorities, will determine the total amount to be paid to employees in dearness allowance, schedule of payments which then the state shall be bound to follow, and periodically verify the release of the amounts, said the court. The exercise to determine the amount and schedule of payments shall be carried out before Mar. 6, the next consequential step of the payment of the first instalment, subject to the determination of the committee, should be paid by Mar. 31, said the apex court. 

 

The apex court was hearing an appeal from the state government against the Calcutta High Court's 2022 order. The state government has challenged the high court's declaration of dearness allowance as a facet of Article 21 of the Constitution of India and directed them to pay the said allowance at the rate prevalent with respect to the central government employees in accordance with the All-India Consumer Price Index for the period 2008-19.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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