P&H: Notification of DA/DR payment in installments by PSPCL quashed; directions issued to clear pending DA/DR dues within a fortnight

punjab-haryana
⚖️ Order Date: 03 Aug 2026
Headnotes

(i) Punjab Civil Services (Revised Pay) Rules, 2021, Rr.3(c), 3(j), 9, Punjab State Power Corporation Limited (Revised Pay) Regulations, 2021, Regulation 3(j), 9 — Dearness Allowance and Dearness Relief — 6th Punjab Pay Commission recommended continuation of DA/DR on the Central Government pattern based on...

(ii) Punjab Civil Services (Revised Pay) Rules, 2021, R.9, Punjab State Power Corporation Limited (Revised Pay) Regulations, 2021, Regulation 9 — Arrears of revised pay and DA/DR — Rule 9 is an enabling provision for the manner and time of payment of arrears — State/PSPCL...

(iii) Constitution of India, Arts.166(1), 163(3), 309, Punjab Civil Services (Revised Pay) Rules, 2021, R.9, Punjab State Power Corporation Limited (Revised Pay) Regulations, 2021, Regulation 9 — Cabinet decision and enforceable right — Decision of 18.06.2021 was not mere file noting — It was communicated, translated...

(iv) Constitution of India, Article 14, Arts.21, 300A, Punjab Civil Services (Revised Pay) Rules, 2021, R.9, Punjab State Power Corporation Limited (Revised Pay) Regulations, 2021, Regulation 9 — Liquidation Plan — Plan dated 18.02.2025 was quashed to the extent it created an age-based tiered schedule for...

(v) Constitution of India, Art.226 — Non-joinder, misjoinder and hearing — PSPCL was arrayed in connected writ petition and was heard in appeals — No actual prejudice was shown — Plea of breach of natural justice failed and the writ petitions were not vitiated on...

(vi) Contempt of Courts Act, 1971, , Punjab Civil Services (Revised Pay) Rules, 2021, R.9, Punjab State Power Corporation Limited (Revised Pay) Regulations, 2021, Regulation 9 — Effect of contempt order and sub silentio decision — Order dated 21.02.2025 in contempt proceedings only recorded compliance and did...

(vii) Constitution of India, Art.14, 21, 38, 39, 43 — Judicial review and fiscal Policy — Directions did not amount to formulation of fiscal policy — Directions enforces standard already adopted by State — Financial autonomy does not permit indefinite non-performance of an accepted obligation,...

(viii) Constitution of India, Arts.12, 14, , Punjab Civil Services (Revised Pay) Rules, 2021, R.9, Punjab State Power Corporation Limited (Revised Pay) Regulations, 2021, Regulation 9 — PSPCL’s separate legal identity — Separate legal identity, may be shield against confusion of legal identities, however, it is not...

(ix) Constitution of India, Arts.12, 14, , Punjab Civil Services (Revised Pay) Rules, 2021, R.9, Punjab State Power Corporation Limited (Revised Pay) Regulations, 2021, Regulation 9 — PSPCL’s successive DA notifications not challenged — Petitioners grievance is not against what those notifications gave, but against what has...


Facts of the Case

P&H: Notification of DA/DR payment in installments by PSPCL quashed; directions issued to clear pending DA/DR dues within a fortnight

The Punjab and Haryana High Court has dismissed a batch of appeals filed by the State of Punjab and the Punjab State Power Corporation Limited over the release of pending dearness allowance and dearness relief dues for employees and pensioners. The court held that the State had accepted the 6th Punjab Pay Commission’s recommendation to continue DA/DR on the Central Government pattern and could not later withhold the accrued instalments indefinitely.

The dispute arose after the State and PSPCL adopted a “Liquidation Plan” to pay arrears in instalments over several years. Employees and pensioners challenged the plan, saying it unfairly...

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