Supreme Court to deliver verdict in West Bengal Dearness Allowance case today. The judgment on DA parity, arrears since 2009, and the state government’s challenge to the Calcutta High Court order is expected to impact lakhs of employees.
The Supreme Court of India is set to deliver its much-awaited verdict on Thursday in the long-running Dearness Allowance (DA) dispute involving the West Bengal government and its employees. The judgment is expected to have far-reaching implications for lakhs of state government employees who have been demanding DA parity with central government employees for over a decade.
The verdict will be pronounced by a Division Bench comprising Justice Sanjay Karol and Justice Prashant Kumar Mishra. The case revolves around a plea filed by the West Bengal government challenging a 2022 Calcutta High Court order that directed the state to pay Dearness Allowance at rates equal to those of the Central Government and release arrears dating back to July 2009.
The hearing in the matter concluded in September last year, after which the apex court reserved its judgment. After nearly five months of waiting, the Supreme Court is now expected to bring clarity to the contentious issue, which has remained a major point of dispute between the state government and employee unions.
Earlier in the proceedings, the Supreme Court had directed the West Bengal government to clear 25 percent of the outstanding DA dues within six months. However, the state government failed to comply with the directive and subsequently sought an extension of six additional months, citing financial constraints. This application led to intensive hearings conducted daily for three consecutive days in August, followed by further arguments in September.
The legal battle over Dearness Allowance began at the State Administrative Tribunal before moving to the Calcutta High Court. In its landmark 2022 judgment, the High Court ruled in favour of state government employees, stating that Dearness Allowance was a legitimate right and that employees were entitled to receive it at par with central government staff.
The West Bengal government, however, challenged this ruling in the Supreme Court. Its counsel argued that Dearness Allowance was neither a fundamental right nor a mandatory entitlement under constitutional provisions. The state maintained that it was not legally bound to match the DA rates of the Central Government.
The government further contended that the financial structure and revenue capacity of the state differed significantly from that of the Centre. As such, equating state DA payments with central rates would impose an unsustainable financial burden on the state exchequer.
On the other hand, employee representatives argued that prolonged denial of DA parity amounted to discrimination and financial injustice, particularly in the face of rising inflation and cost of living.
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As the Supreme Court prepares to deliver its final order, expectations remain high among state government employees. The verdict is likely to determine not only the future of DA payments in West Bengal but could also influence similar disputes in other states.
All eyes are now on the apex court to see whether the judgment brings long-awaited relief to employees or upholds the state government’s position.
