The Punjab and Haryana High Court has imposed a fine of Rs 1 lakh on Punjab Chief Secretary K A P Sinha for not submitting a compliance report regarding pending dearness allowance dues for state government employees and pensioners. This decision was made during a hearing on a contempt petition filed by the affected parties, as reported by Press Trust of India.

Justice Harsh Bunger has mandated that Sinha submit a personal affidavit by October 30, detailing compliance with previous court orders. Additionally, Sinha is required to appear in person at the next hearing scheduled for November 3. The court’s directives were issued on Tuesday as part of the ongoing legal proceedings.

The contempt petition arose from allegations of non-compliance with an order issued on August 3, which instructed the Punjab government to release dearness allowance and dearness relief dues at rates equivalent to those provided to All India Services officers under the Central government framework.

Government’s Expenditure and Compliance Issues

The court previously directed the Punjab government to refrain from incurring unproductive expenses, including extensive advertising campaigns in print and social media, until the outstanding dues were settled. The court emphasised that such expenditures could not justify withholding legitimate dues owed to state employees.

Furthermore, the court stipulated that any unpaid amounts after the specified deadline would accrue simple interest at a rate of six per cent per annum. The Punjab government filed a special leave petition in the Supreme Court on September 1, contesting the High Court’s ruling.

During the hearing on Tuesday, the petitioners’ counsel noted that the appeal was still pending due to procedural defects and had not yet been scheduled for a hearing. The state’s counsel requested additional time to file a status or compliance report, a request the court deemed unjustified, stating that the circumstances clearly indicated a defiant attitude towards complying with its orders.

Previous Court Orders and Ongoing Legal Proceedings

The court highlighted that the contempt petition had previously been scheduled for August 21, when the state’s counsel was granted time to submit a compliance report. Despite this, no report was presented, even after sufficient time had been allowed.

In addition, the petitioners’ counsel mentioned that criminal contempt proceedings had been initiated against the chief secretary for allegedly submitting a false affidavit regarding the state’s appeal in the Supreme Court. This matter is currently pending before a division bench of the High Court.

As part of the court’s ruling, Sinha is required to file his personal affidavit by October 30, along with the payment of the imposed fine to the High Court Lawyers Welfare Fund. This fine was levied due to the failure to submit the compliance report in a timely manner.

A single-judge bench had previously ruled in favour of the employees on April 8, instructing the state government to clear the pending dearness allowance by June 30. Following the government’s challenge to this order, a division bench upheld the employees’ claims on August 3, directing the state to comply by August 18. The ongoing case highlights the Punjab government’s obligations regarding the clearance of dearness allowance and dearness relief dues, with the chief secretary now facing specific requirements to demonstrate compliance.

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