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State government employees received major relief as the Supreme Court ruled that dearness allowance is a statutory right and not a discretionary benefit. Hearing the state government’s petition, a bench of Justices Sanjay Karol and Manoj Mishra directed that 25 percent of the total DA arrears be released immediately.
The court ordered that the amount be paid in two instalments, with the first due by March 31 and the second by May 15. The bench made it clear that the government is legally bound to pay DA and cannot delay payments indefinitely.
At the same time, the Supreme Court partly accepted the state government’s submission that DA is a variable component. It directed the formation of a special committee, headed by retired Justice Indu Malhotra, to examine the financial aspects and determine the remaining dues.
The committee is to be constituted by March 6 and will submit its report by May 15. The case reached the apex court after the state challenged a High Court order directing full payment of DA arrears. Employee organisations welcomed the ruling but warned of protests if the order is not implemented.