Can’t cite funds crunch to stop DA payment: SC to West Bengal govt

Observing that a govt must behave as a ‘model employer’ and lack of funds cannot be a ground to deny its employees their dues, Supreme Court Thursday directed West Bengal govt to pay dearness allowance (DA) to its employees for the 2008-19 period.

A bench of Justices Sanjay Karol and Prashant Kumar Mishra ordered that the first instalment should be paid by March 31 and appointed a committee, comprising its former judge Indu Malhotra, former chief justice of Jharkhand HC Tarlok Singh Chauhan, former HC judge Goutam Bhaduri and Comptroller and Auditor General of India, to monitor implementation of its order.




SC rejected Bengal govt’s defence it lacked funds and said it is not open for the State to shirk its responsibility of paying DA on account of financial difficulty, given that it is an obligation arising out of a statute of its own creation.

“It has often been recognised that the State must set an example for other employers in the country by behaving as a ‘model employer’. Such a position should not be difficult to attain given all the advantages that it has. Its power lies in the volume of employment, its sovereign/constitutional authority to tax, ability to borrow and manage public finances... Leading by example, fulfilling its financial duties in times of fiscal strain, gives it the moral authority to wield the sword of law against private entities, should they not do so.”

SC said the least that is expected of a State in a democracy is that it honours its obligations and commitments arising from a legislation or judicial decisions, for such obligations are not discretionary.

“This clear position protects such statutory obligations, for if such a ground of limited financial ability was readily available to govt, which may undoubtedly in certain situations face tough times, it would render these obligations illusory. When it comes to employees’ dues, this proposition would be extremely dangerous and stifling since the amounts received thereby are not handouts or acts of charity but are earned compensation/consideration for services given,” it said.
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