SC rules in favour of employees, orders 25% DA dues to be paid immediately

The Supreme Court on Thursday (February 5) ruled that receiving dearness allowance (DA) is a legal right of government employees, delivering a significant verdict in the long-running DA dispute involving West Bengal government staff.

SC also directed the formation of a committee to address the issue of pending DA payments to state government employees. The committee will include former Supreme Court Justice Indu Malhotra and two other judges. It will hold discussions with the state government and determine the roadmap for DA payments. In its judgment, the court further directed the state to clear 25 percent of the pending DA by March 31.

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Justice Prashant Kumar Mishra-led bench directs Bengal government

The Supreme Court also ordered that a compliance report be submitted by May 15, detailing whether its directions have been implemented. The verdict was delivered by a bench comprising Justice Sanjay Karol and Justice Prashant Kumar Mishra. According to sources, the state government may have to pay around ₹10,400 crore towards clearing the DA arrears.

State government employees have been engaged in a prolonged legal battle demanding DA at par with central government employees, along with payment of accumulated arrears. The case initially moved from the State Administrative Tribunal (SAT) to the Calcutta High Court.

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On May 20, 2022, a Division Bench of the Calcutta High Court ruled in favour of the employees and directed the state to provide DA at rates equivalent to those paid by the Centre. The state government subsequently challenged this order in the Supreme Court.

The Supreme Court concluded hearings in the matter on September 8 last year. At present, state government employees receive DA at 18 percent, while central government employees receive DA at 58 percent-a gap of 40 percent.

It may be recalled that on May 16 last year, the Supreme Court had already directed the state to clear 25 percent of the pending DA within four weeks. That deadline expired on June 27, following which the state approached the court seeking an additional six months.

Suvendu Adhikari welcomes DA move

Opposition leader Suvendu Adhikari posted on X (formerly Twitter), "After a long wait, after years of struggle, state government employees are finally set to receive their rightful dearness allowance as per the directive of the Honourable Court. Mamata Banerjee's insensitive government has deprived state government employees of their rightful dearness allowance for a long time. Even after winning one legal battle after another from the tribunal to the Honourable Calcutta High Court, Mamata Banerjee has squandered crores of rupees of the state by engaging top lawyers of the country solely to deprive state government employees of their rightful dearness allowance. When employees protested, police batons came down upon them, yet they patiently carried out their duties and, relying on the country's legal system, fought through legal channels."

He concluded, highlighting the struggle of government employees, "This victory is the triumph of the collective struggle of state government employees; I salute this uncompromising fight for rightful entitlements. I extend my heartfelt congratulations to every state government employee, including those with a nationalist mindset."