New Delhi, February 5: The Supreme Court ruled on Thursday that employees of the West Bengal government are entitled to receive Dearness Allowance (DA) under legal pay regulations. The court recognized this as a legal right of the employees and directed the state government to pay the pending dues from 2008 to 2019.
A high-level committee will be formed to finalize a binding payment schedule. The bench, led by Justices Sanjay Karol and Prashant Kumar Mishra, partially upheld the 2022 Calcutta High Court decision that favored state government employees and instructed the payment of DA equivalent to that of central government employees.
While deciding on appeals filed by the West Bengal government, the Supreme Court stated that once the Dearness Allowance is defined in accordance with the All-India Consumer Price Index (AICPI) under the West Bengal Services (Revision of Pay and Allowances) Rules, 2009, the state government cannot alter its calculation method through subsequent office memorandums.
The bench, presided over by Justice Karol, emphasized that receiving Dearness Allowance is a legally enforceable right granted to employees of the West Bengal state. It also noted that the AICPI included in the ROPA rules serves as the standard for determining DA.
However, the Supreme Court partially accepted the state government’s appeals, stating that employees are not entitled to receive DA biannually simply because the central government follows such a pattern. Dismissing the argument that the state government’s financial constraints could justify denying DA, the Supreme Court asserted that fiscal policy cannot negate earned legal rights.
Justice Karol’s bench remarked that once an individual is granted a right, fiscal policy cannot obstruct the distribution of those rights.
The Supreme Court directed that employees should receive their DA dues from 2008 to 2019 and clarified that no amounts paid under interim orders or this ruling would be reclaimed, even if there are subsequent changes in the law.
To implement its directives and balance employees’ legal rights with the state government’s financial autonomy, a committee will be established.
The committee will be chaired by former Supreme Court Justice Indu Malhotra and will include former Chief Justice of Jharkhand High Court Tarlok Singh Chauhan, former Judge Gautam Bhiduri, and a senior officer nominated by the Comptroller and Auditor General of India (CAG). The committee is tasked with consulting the state government to determine the total amount due and establish a phased payment schedule. The Supreme Court has mandated that this work be completed by March 6, 2026, with the first installment to be disbursed by March 31, 2026.
The Supreme Court also instructed the West Bengal government to provide full logistical support to the committee and bear all related expenses. After the first installment payment, the committee will submit a final status report detailing the payment schedule and compliance status.
