SC directs West Bengal Govt to pay DA to its employees for 2008-2019

In a relief to nearly 20 lakh Government employees, the Supreme Court on Thursday directed the West Bengal Government to pay dearness allowance to them for the 2008-to-2019 period, saying it is a legally-enforceable right.

A bench of Justices Sanjay Karol and Prashant Kumar Mishra directed the state Government to pay 25 per cent of the outstanding DA to its employees by March 6.

The court said once DA is defined by linking it to the All-India Consumer Price Index (AICPI) as in the statutory rules, the state could not modify the manner of calculating it through later office memoranda.

“To receive dearness allowance is a legally-enforceable right that has accrued in favour of the respondents-employees of the State of West Bengal....

The employees of the appellant-State shall be entitled to release of arrears in accordance with this judgment for the time 2008-2019,” the bench said, while holding that the employees are not entitled to DA twice a year.

The Supreme Court said dearness allowance emerges as a practical instrument of protection in the hands of a welfare State, which safeguards its employees from the adverse effects of rising prices. DA is not an additional benefit but a means to maintain a minimum standard of living, it said.

Considering the financial implications involved, the bench also formed a committee comprising former Supreme Court judge Indu Malhotra, former High Court judges Tarlok Singh Chauhan and Goutam Bhaduri and the Comptroller and Auditor General of India or the seniormost officer in his establishment, nominated by him.  The court directed the committee to determine, in consultation with the State authorities, the total amount to be paid and the schedule of payments, and periodically verify the release of the amounts.

The payment of the first instalment, subject to the determination of the committee, should be paid by March 31, it said.

“It stands clarified that those employees of the state who have retired in the pendency of this litigation shall also be entitled to benefits in accordance herewith,” the bench said.

It directed the State Government to file a status report after the payment of the first instalment and posted the matter for compliance on April 15.