The Supreme Court on November 5 stayed criminal contempt proceedings initiated by the Punjab and Haryana High Court against Punjab Chief Secretary KAP Sinha and other State officials over the alleged non-compliance with directions to release pending Dearness Allowance (DA) and Dearness Relief (DR) arrears to government employees and pensioners.
A Bench of Justice BV Nagarathna and Justice R. Mahadevan stayed further proceedings in the criminal contempt case until further orders. The Court also directed that no coercive steps be taken in the connected civil contempt proceedings.
The Bench passed the order after examining the High Court’s orders dated October 12 and October 30, 2026. The latter had directed Sinha to remain personally present before the High Court on November 5 in connection with the criminal contempt proceedings.
During the hearing, Senior Advocate Vikas Singh questioned the proceedings initiated against the Chief Secretary over the State’s decision to challenge the High Court’s directions before the Supreme Court.
Justice Nagarathna questioned the respondents seeking contempt action, asking whether their objective was to secure compliance with the High Court’s order or to send the Chief Secretary to jail. The Court also objected to reliance on an internal communication allegedly issued by the Chief Secretary to State departments advising them against implementing the High Court’s order while the State intended to challenge it before the Supreme Court.
The Court subsequently ordered a stay on further proceedings in the criminal contempt case until further orders.
While granting interim relief, the Bench also asked the Punjab government to come up with a concrete plan for disbursing the pending DA/DR arrears. The Court noted that the current DA rate was 53 per cent and asked the State to indicate how much of the outstanding amount it would be able to release.
The government was asked to provide a plan for disbursement of the pending amounts by March 2027. The matter was directed to be listed in December.
Background of the case
The contempt proceedings arose from the Punjab and Haryana High Court’s August 3, 2026 judgment directing the State government and Punjab State Power Corporation Limited (PSPCL) to release all pending instalments of DA and DR to employees and pensioners at the rates applicable to All India Services officers serving in Punjab, in accordance with the Central Government pattern.
The High Court had directed that the outstanding instalments be released within a fortnight, along with simple interest at 6 per cent per annum on delayed payments. It had also restrained the State from undertaking unproductive expenditure, including large-scale advertising campaigns, until the dues were cleared.
The State government and PSPCL challenged the judgment before the Supreme Court. Meanwhile, employees and pensioners initiated civil contempt proceedings alleging non-compliance with the High Court’s directions.
On October 12, the High Court issued a notice to Chief Secretary KAP Sinha to show cause why criminal contempt proceedings should not be initiated against him. The High Court had taken note of material concerning the status of the State’s appeal before the Supreme Court and an internal communication advising departments against implementing the August 3 directions.