In a major relief to the Punjab Government, the Supreme Court on Thursday (November 5) stayed both criminal and civil contempt proceedings related to the pending Dearness Allowance (DA) payments of Punjab government employees and pensioners.
The proceedings had been initiated by the Punjab and Haryana High Court against the Punjab Government and its Chief Secretary over the delay in clearing the pending DA dues. With the Supreme Court's latest order, no coercive action will be taken against the state government in either of the two contempt matters for now.
A bench comprising Justice BV Nagarathna and Justice R. Mahadevan heard the matter and examined the orders passed by the Punjab and Haryana High Court on October 12 and October 30, 2026.
The October 30 order had directed Punjab's Chief Secretary to appear personally before the High Court on November 5 in connection with the criminal contempt proceedings.
However, after considering the background of the dispute and the High Court's orders, the Supreme Court stayed further proceedings in the criminal contempt case until further orders. It also directed that no coercive steps be taken against the Punjab Government in the civil contempt matter.
Along with granting relief, the Supreme Court has sought details from the Punjab Government regarding its plan to clear the pending payments. The state government has been directed to submit details of its liquidation plan by December 1.
The court has also sought information on the payments that the government proposes to make to employees by March 31, and this will require the state government to provide clarity on how it plans to clear the outstanding DA dues within the given timeline.
The development comes amid a dispute over pending Dearness Allowance payments to Punjab government employees and pensioners. The matter had reached the Punjab and Haryana High Court following the delay in clearing the dues, leading to contempt proceedings.
While the Supreme Court's order provides immediate relief to the Punjab Government from the contempt proceedings, the state will now have to place its payment plan and proposed disbursement details before the court.