Summary of this article
The Punjab and Haryana High Court struck down Punjab’s staggered, age-based liquidation plan for paying pension arrears and DA/DR.
It termed the liquidation plan arbitrary and violative of Article 14.
The court ordered the State to release pension arrears and DA/DR to employees and pensioners by June 30, 2026.
The employees and pensioners in Punjab will soon get their pension arrears and dearness allowance (DA) and dearness relief (DR). The Punjab and Haryana Court called the Punjab government’s staggered payment plan to employees arbitrary and against Article 14 of the Constitution, and directed the State to release the arrears, DA, and DR in line with the central government pattern.
The court directed the State to pay the pension dues along with the revised DA/DR as per the 6th Punjab Pay Commission within two months, by June 30 2026. The State has never denied the payment but has delayed it, citing financial constraints. It devised an age-based liquidation plan for arrears payment according to which it paid the pension first to those aged 85 years and above.
The other pensioner filed a petition against such a policy under which not only aged pensioners, but also officers from administrative services, such as IAS, IPS, and IFS, were paid the dues timely, but State employees and pensioners were denied the revised DA/DR, as per the Live Law report.
While hearing the matter, the court highlighted that although policy decisions do not fall under the judicial purview, in case such a decision is arbitrary and violative of constitutional provisions, the court has the power to ascertain accountability to safeguard fundamental rights.
On the payment delay, the court clarified that if the State follows the central government’s DA/DR payment patterns, it should follow them completely. It means not only following the DA/DR calculation, but also the payment timing and frequency. Also, once the DA/DR recommendations are accepted, implementation should not be denied.
At the same time, the court rejected the State’s argument of financial constraints. It held that DA/DR are not optional payments, it is inflation-linked payments necessary to maintain the real value of income.
The court noted that the financial constraint is a problem created by the State itself and cannot be used as an excuse to discriminate against pensioners for pension payment.
It, then, quashed the State’s liquidation plan dated February 18, 2025, and directed the State to release the arrears and other dues within two months to all employees and pensioners, not just the petitioners.
It also directed the Chief Secretary to file a compliance report by July 2, 2026, and in case of failure to release the dues, it might award interest on delayed payment.
