HC: 15-year schedule for sixth pay panel arrears unreasonable

The Punjab and Haryana High Court has termed the State of Punjab’s proposed schedule for releasing arrears under the Sixth Pay Commission as apparently “unjust and unreasonable.” Justice Harkesh Manuja of the high court asserted the dues payable from January 1, 2016, would only be cleared by financial year 2029-30 or 2030-31, spanning a period of nearly 15 years. By the time, the Seventh Pay Commission could even be notified by the government

The assertion by Justice Manuja came on a petition alleging contempt of court filed by Balwant Singh and other petitioners through counsel Sunny Singla. As the matter came up for resumed hearing, a compliance report filed by Principal Secretary Finance Ajoy Kumar Sinha was placed before the Bench.

Far-reaching consequences

The High Court labelling the 15-year delay in releasing Sixth Pay Commission arrears as apparently “unjust and unreasonable” has far-reaching consequences for government employees and pensioners. The arrears directly impact the financial stability of retirees, who depend on the payments to manage daily expenses and healthcare costs. As the Seventh Pay Commission is likely to be implemented by 2026-27, the delay could lead to administrative confusion leaving pensioners and employees caught between two pay commissions

As he appeared before the Bench through videoconferencing, the court apprised him of the concern about the delayed schedule regarding the release of arrears towards revised pension, dearness allowance and leave encashment in terms of the Sixth Pay Commission.

Referring to the schedule put forth by the State, Justice Manuja asserted the arrears, payable from January 1, 2016, would be cleared in favour of government employees and pensioners by the financial year 2029-30 / 2030-31.

“By financial year 2029-30 / 2030-31, a period of around 15 years would go by. In the meanwhile, there is all likelihood that the Seventh Pay Commission could even be notified by the government; somewhere in 2026-27. In such circumstances, the schedule expressed by the respondent appears to be unjust and unreasonable and the same, in no manner, reconciles with the directions issued by the writ court,” Justice Manuja asserted.

Before parting with the case, Justice Manuja accepted the State counsel’s plea for a week’s time to reconsider the entire issue. The case will now come up for further hearing before the Bench in October last week.

Emphasising timely disbursement of pension arrears to retirees, while acknowledging the State’s financial limitations, the high court had earlier made it clear that the pensioners were required to be paid their dues on time. The Bench also made it clear that the government should not sit over its decision for long.

“While this court is firm that the pensioners ought to be provided their dues in time, the state government, considering its financial limitations, can take a decision to pay the arrears according to its financial requirements and position. However, this court is also of the firm view that the state government ought not to sit over its decision for a long time in the matter,” Justice Sanjeev Prakash Sharma had asserted.

The Bench was hearing a petition filed through Singla for release of pension arrears from January 1, 2016, to June 30, 2021. The Bench was told that enhanced pension amount was released in March 2022. The arrears from that date too were paid. But the issue regarding arrears from January 1, 2016, to June 30, 2021, was pending decision.