The Punjab and Haryana High Court has formally issued a contempt notice to K.A.P. Sinha, the Chief Secretary of the Government of Punjab, following the persistent failure of the State and the Punjab State Power Corporation Limited (PSPCL) to disburse pending Dearness Allowance (DA) and Dearness Relief (DR) to employees and pensioners. Justice Harsh Bunger ordered the Chief Secretary to show cause as to why contempt proceedings should not be initiated against him for wilful disobedience of the directions issued by a Division Bench on August 3, 2026.

The legal impasse stems from the State’s failure to adhere to court-mandated timelines for clearing significant financial arrears. While the State argued that it was pursuing legal remedies through a Special Leave Petition (SLP) before the Supreme Court of India, the High Court emphasized that the mere filing or pendency of an appeal, in the absence of a stay order, provides no justification for continued non-compliance with binding judicial directives.

Enforcement of Financial Obligations During the proceedings, the court scrutinized the State’s conduct, noting that despite being granted multiple opportunities, the government failed to comply with the directions issued by both the writ court on April 8, 2026, and the subsequent order by the Division Bench on August 3, 2026. The Division Bench had modified the original timeline, requiring the State and the PSPCL to release all up-to-date installments of DA and DR in accordance with the Central Government pattern within a fortnight.

The court flatly rejected the argument put forth by the State that the inclusion of a 6% interest provision for delayed payments served as an alternative mode of compliance. Justice Bunger observed that such an interpretation would essentially allow the State to withhold public money indefinitely, provided it paid interest. In the court’s view, the interest provision was designed as a compensatory measure for aggrieved employees rather than a bypass for institutional obligations. The court stated, “The obligation to release the amounts within the stipulated period was independent of, and in addition to, the liability to pay interest in the event of default.”

Judicial Authority and Rule of Law In its order, the court highlighted that the current situation requires strict judicial oversight to prevent the erosion of public faith in the judiciary. Citing the Supreme Court’s observations in Israr Ahmad Khan v. Amarnath Prasad (2026) , Justice Bunger noted that the practice of utilizing delayed appeals as a shield against contempt in high-stakes litigation undermines the administration of justice. The judgment underscored that courts must act with an "iron hand" when dealing with state instrumentalities that choose to ignore established mandates.

Further referencing the landmark case Maninderjit Singh Bitta v. Union of India (2012) , the court reinforced the principle that inaction or dormant behavior by government officials in the highest echelons constitutes disobedience. The court remarked, “Inordinate delay of years in complying with the orders of the court or in complying with the directed stipulations within the prescribed time, has been viewed by this Court seriously and held to be the contempt of court, as it undermines the dignity of the court.”

Financial Liability and Accountability The status report filed by the Chief Secretary acknowledged that the pending liability for these claims stands at approximately ₹32,418 Crores, with an annual recurring liability of ₹4,712 Crores to maintain parity with Central Government patterns. Despite admitting the validity and binding nature of the court orders, the State has yet to clear these dues, citing financial constraints and the ongoing process of filing an SLP.

The High Court observed that the State’s conduct, particularly in light of the significant timeline provided since August 2026, reflects a lackadaisical approach that cannot be countenanced. The court clarified that the responsibility for the non-compliance rests at the top level of the administration, noting that even a lack of willful intent does not provide a sufficient defense in contempt proceedings if the final result is a failure to uphold judicial orders.

Procedural Next Steps Following the issuance of the notice, K.A.P. Sinha, who appeared in person before the court, acknowledged receipt of the notice. The High Court has granted the respondent ten days to file a formal reply. The Chief Secretary is required to submit this response by November 13, 2026, with an advance copy served to the petitioners' counsel. The matter has been scheduled for further hearing on November 17, 2026. The court has strictly directed that the Chief Secretary must remain physically present during the next session to address the ongoing concerns regarding the non-compliance of the Dearness Allowance disbursement directives. Until the matter is resolved, the burden of ensuring that these statutory payments reach the thousands of employees and pensioners across Punjab remains a central focus of the court's oversight.