Supreme Court Pauses Contempt Case, Sets Punjab DA Deadlines

“You got a breather. Come up with a positive response,” the Supreme Court told Punjab’s government as it paused the criminal contempt case against Chief Secretary K.A.P. Sinha. The state must submit a plan by December 1 and explain how much of the overdue allowance it will pay by March 31, 2027. The judges also barred forceful action in a related civil contempt case. ^1,2

The deadlines follow a dispute over orders from the Punjab and Haryana High Court. In August, the High Court directed Punjab and the Punjab State Power Corporation Limited to pay overdue Dearness Allowance and Dearness Relief to employees and pensioners. These were to be paid at rates paid to All India Services officers serving in the state. The court set a two-week deadline and ordered six percent annual interest on late payments. After the state did not comply, contempt proceedings began. Punjab challenged the ruling in the Supreme Court. ^1,3

Those overdue payments matter because Dearness Allowance helps government workers keep up with rising living costs, and the dispute affects both current employees and pensioners. Punjab told the Supreme Court it had raised DA from 43 percent to 53 percent, but that does not settle the question of past payments. The High Court’s contempt case also raised claims about an internal instruction not to follow its order and whether the Chief Secretary had accurately described the status of Punjab’s appeal. The Supreme Court’s pause protects Sinha from further criminal contempt proceedings for now, while it presses the government for a payment plan. ^1,2

The Supreme Court has not, according to these reports, made a final decision on Punjab’s challenge to the original payment order. Its immediate next steps are clear: the state must file its payment plan by December 1 and tell the court what it will pay toward arrears by March 31, 2027. The pause in the contempt case remains in place until further orders. ^2,5