Inflation hits all: HC rejects Punjab’s ‘selective’ DA policy

Chandigarh: Observing that all employees and pensioners are equally affected by inflation, the Punjab and Haryana high court has held that any classification by the Punjab govt between the officers of All India Services and state employees in payment of dearness allowance (DA)/dearness relief (DR) amounts to arbitrary classification and would be violative of the right to equality.On the Punjab govt plea of denying DA/DR to its state employees citing financial constraints, the HC held that if the state is indeed facing financial constraints, then, as a welfare state, the burden of austerity must begin from the top rather than imposing it upon employees at the bottom of the pyramid. "For employees in lower pay scales and retired pensioners, DA/DR forms a substantial component of their livelihood. Since their income remains fixed while the cost of living continues to rise, withholding DA/DR from employees and pensioners effectively reduces the real value of their pay/pension and undermines their post-retirement dignity," the HC held in its detailed order released on Sunday. According to the HC, such treatment results in reverse welfare, where the financially secure receive preferential treatment. It amounts to economic discrimination against the most vulnerable. In a welfare state governed by the Constitution, public policy must operate to protect the weaker sections of society rather than reinforce hierarchical privilege within the administrative structure, the HC observed. A bench of Justice Harpreet Singh Brar passed these orders while allowing the petitions filed by state govt employees contending the instalments of DA with effect from July 1, 2023, onwards were not released to the serving employees and pensioners. It was also alleged that differential treatment is being accorded to serving All India Service officers (IAS/IPS/IFS) and judicial officers within the state. Petitioners argued that these officers have been receiving dearness allowance regularly from the actual due dates of the respective instalments on the pattern applicable to central govt employees, whereas the petitioners, along with other serving employees and pensioners, have been subjected to hostile discrimination. During the hearing of the case, the Punjab govt contended that DA/DR is paid to officers of the All India Services (IAS/IPS/IFS) under a different set of rules. However, the state counsel was unable to point out any rational basis or distinguishing circumstance that would justify granting such officers preferential treatment. On the Punjab govt's claim of financial hardship as the reason for delay in releasing DA/DR, Justice Brar held that the state cannot deny the payment of dearness allowance (DA) to its employees on the ground of its financial position and priorities. In its 99-page order, the HC directed the Punjab govt to release all pending DA/DR instalments at par with central govt rates and pay arrears of revised pension and DR to all pensioners without discriminatory categorisation by June 30. Court directed the chief secretary, Punjab, to file compliance of these orders by July 2. Protection against rising prices "As the lower-rank govt employees and pensioners depend heavily on DA/DR adjustments to maintain basic economic stability, denying them such protection against inflation while extending the benefit to the highest-paid officers creates a structural imbalance in the service framework. Further, while service hierarchies may justify differences in basic pay, they cannot justify selective denial of inflation-neutralising benefits whose purpose is universal protection against rising prices" Justice Harpreet Singh Brar. MSID:: 130370339 413 |