Punjab government employees and pensioners have come together and filed a caveat against the state administration in the Supreme Court in anticipation of the state government challenging a High Court order in favour of the employees and pensioners with respect to payment of their Dearness Allowance (DA) and Dearness Relief (DR), The Indian Express reported.
The division bench of the Punjab and Haryana High Court had dismissed the Punjab government’s appeal against an earlier single judge’s order and directed the state to release the pending DA dues—estimated to be around Rs 25,000 crore—within two weeks.
“Employees of PSPCL [Punjab State Power Corporation Ltd], school education department, Punjab civil secretariat have all got together to file this caveat. We had filed eight writ petitions for the DA in the high court earlier,” said Sukhchain Singh Khaira, president of the Punjab Government Employees Association, according to The Indian Express report.
What’s the matter at heart?
The employees have been seeking release of 18 per cent DA, pending since January 2023.
Earlier this year, the state had offered to release DA arrears in 42 installments. The single judge of the High Court had then struck down the state’s decision, saying that the government was required to pay DA and DR in accordance with the pattern followed by the central government.
The bench in April 2026 asked the PSPCL and the state government to clear the Dearness Allowance (DA) and Dearness Relief (DR) dues by June 30. The state had challenged that order before a division bench.
The state government then approached a bigger bench to get a stay. The division bench gave its verdict in favour of the employees and pensioners, and on August 3 asked the state to pay the dues with a 6 per cent interest if they fail to honour the order in the next 14-15 days.
What is a caveat appeal and why is it filed?
A caveat is a legal precaution filed by a party who anticipates that an opposing party may approach a higher court. Expecting the government to challenge the High Court order and attempt to stall the immediate payment clause, the Punjab Government Employees Association filed a caveat in the Supreme Court on August 5 on behalf of employees and pensioners.
What does the state administration wants?
According to the IE report, the state wanted to release DA arrears in 42 installments. Though the Punjab government is yet to file an appeal before the Supreme Court, Finance Minister Harpal Cheema indicated on Tuesday that the government was considering legal options.
Punjab’s total outstanding debt liability is estimated to reach ₹4.47 lakh crore by March 31, 2027, according to state budget documents. The estimate is driven by ongoing market borrowings and legacy liabilities.