Punjab And Haryana High Court Directs Punjab Government To Release Pension Arrears By April 30

In a recent judgment, the Punjab and Haryana High Court has directed the Punjab government to release pension arrears since pension revision in 2016, along with the dearness allowance (DA) arrears and interest at the rate of 6 per cent in the delayed payments. Justice Harpreet Singh Brar directed the government to clear the dues not only for the petitioners in the case but also for all the pensioners of different departments, boards, and corporations of the state government.  

During the hearing, the Court was informed that more than 35,000 pensioners had died in the last 10 years, since January 1, 2016, awaiting the pension arrears of the revised pension and other related payments. The Court then directed the government to clear the dues by April 30, 2026.

The court noted that the State formed the 6th Pay Commission on December 24, 2016, to evaluate salary and pension revision. On May 30, 2021, the Commission submitted its report. On July 5, 2021, the State notified the Punjab Civil Services (Revised Pay) Rules, 2021, which provide for payments of arrears from January 1, 2016, to June 30, 2021. However, on September 20, 2021, the government amended the rules and issued a notification. Four years have passed since then, but the benefits have not yet been credited to the beneficiaries’ accounts. This is despite the Cabinet's approval of the payment schedule more than a year ago.

The Court noted that there was no dispute that the pension had been revised. The Court observed and highlighted that, as the Pay Commission has given the recommendation, the government has accepted it; the Cabinet has approved the payment schedule, so the implementation of it cannot be deferred indefinitely.  

The Court held that “Keeping a cabinet decision in a state of suspended animation for an inordinately long period is not merely a procedural irregularity,” as per a report by the Hindustan Times. The Court noted that it is against the public interest and the statutory rule of governance. “If decisions taken by the highest executive body are allowed to languish without implementation, the entire exercise of collective deliberation stands reduced to an empty formality,” held the Court.

The petitioners in this case informed that prices of essential items have increased manifold in the last few years. Pensioners have been waiting to get the revised pension arrears, but unfortunately, more than 35,000 pensioners have died in the last 10 years while waiting for their rightful arrears. Despite approval for payment in February 2025, the government has not yet disbursed the funds.

For the DA payment, the Court noted that DA is given to maintain the real income (considering the inflation and price rise) of the employees and pensioners so that they can maintain the same standard of living in their old age, in terms of food, healthcare, etc. It said, “By linking wage adjustments to the price index, the system of DA seeks to ensure that employees and pensioners are not subjected to financial hardship arising from market-driven price escalation and that their standard of living remains reasonably protected.”

On the delay in payment, the Court referred to a Supreme Court ruling, highlighting, “DA is a legally enforceable right… Once the governing rules provide for its payment, the State is under a corresponding obligation to release the same. The plea of financial constraints was expressly rejected by the Court, observing that constitutional obligations cannot be defeated on the ground of paucity of funds.”

The Court directed the chief secretary in the state to submit a compliance report within three months of receiving a copy of the order. The payment needs to be strictly as per the payment schedule, along with a 6 per cent interest on delayed payment. Further, for any deviation from the payment schedule, it imposed a 9 per cent interest per annum until the actual realisation of funds. The Court also allowed the pensioners to file contempt petitions in case of non-compliance by the government. A contempt of court would attract proceedings under Article 215 of the Constitution of India.