The Supreme Court declared that West Bengal government employees have a legal right to Dearness Allowance (DA) under statutory pay rules. The court directed the state government to pay arrears from 2008 to 2019. A high-level committee will be formed to finalize a payment schedule based on the 2022 Calcutta High Court judgment.
The Apex Court upheld that DA, linked to the All-India Consumer Price Index in the West Bengal Services Rules, cannot be altered. It emphasized that DA is a legal entitlement for state employees. However, the court ruled against receiving DA twice a year, aligning with Central government practices.
The Supreme Court dismissed the argument of financial constraints justifying DA denial. It emphasized that fiscal policy cannot override legal rights. Employees will receive arrears without recovery, even if laws change. A committee, led by Justice Indu Malhotra, will oversee the payment process and balance statutory rights with financial considerations.
