Punjab and Haryana High Court Criticizes Government Spending
In a significant ruling, the Punjab and Haryana High Court has reproached the Punjab government for its financial management, specifically highlighting excessive spending on non-essential giveaways and advertising while neglecting to pay its own employees. The court emphasized that financial constraints were being used as a defense for delaying the payment of legitimate dues.
The Division Bench, comprising Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor, issued a directive on Monday mandating the Punjab government to immediately clear pending installments of dearness allowance (DA) and dearness relief (DR) owed to its employees and pensioners. The court further instructed the state to refrain from engaging in extravagant advertising campaigns until these dues are fully paid.
Observations by the Court
The bench underscored that while the state cited financial constraints as a reason for withholding dues, public records showed substantial expenditures on non-essential items. These included grants of freebies, extensive advertising campaigns, and other non-urgent expenses. The court noted that such expenditures should not obscure the state’s obligations to its employees.
“The legitimate dues payable to the employees of the State cannot be withheld on the ground of any new alleged welfare schemes,” the bench stated. The judges highlighted that large-scale advertising and other non-productive expenses do not justify the denial of dues.
Background and Legal Proceedings
The court’s decision came in response to appeals by the Punjab government and Punjab State Power Corporation Limited (PSPCL) against a single-judge ruling. The said ruling, delivered on April 8, required the state and PSPCL to release all pending DA/DR installments by June 30, aligning them with the rates paid to All India Services (IAS/IPS/IFS) personnel.
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In 2021, Punjab had agreed to implement the 6th Pay Commission’s recommendations to align its DA/DR payments with those of the Central government. Despite this decision, the payments were not released, prompting multiple petitions to the High Court. Pensioners further challenged a government plan that proposed distributing pension and DA/DR payments over five years, with younger pensioners facing even longer delays.
The High Court clarified that Punjab must adhere to its policy of mirroring the Central government’s DA/DR payment pattern. The court prohibited any staggered payment approach over five financial years and condemned the discriminatory practice of distributing arrears over 42 installments for pensioners below 75 years, particularly without interest.
Legal Representation
The state was represented by Advocate General Maninderjit Singh Bedi, Additional Advocate General Maninder Singh Garcha, and Senior Deputy Advocate Generals Salil Sabhlok and Rajeev Madan. Senior Advocate Anu Chatrath, along with Advocate Ratik Chatrath Kapur, also appeared for state authorities.
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PSPCL was represented by Senior Advocate Chanchal K Singla with Advocates Kavita Joshi and Medha Dewan, and Senior Advocate Rahul Sharma with Advocate Yash Tayal. Senior Advocate Sanjay Kaushal, along with Advocates Sunny Singla, Riti Aggarwal, Arjun Kaushal, and Ankit Rana, represented private respondents, while Senior Advocate Chetan Mittal, with Advocates Gagneshwar Walia, Jatinder Singh Gill, and Fateh Singh Dhillon, represented intervenors.
