In a significant ruling, the Supreme Court of India has directed the West Bengal government to immediately release 25 percent of the pending Dearness Allowance arrears to its employees. The court stressed that a state government must function as a Model Employer and cannot delay legitimate dues owed to its workforce.

A bench comprising Justice Sanjay Karol and Justice Prashant Kumar Mishra said employees are entitled to timely financial justice and prolonged litigation should not work to their disadvantage. To ensure proper implementation of its order, the court has set up a committee headed by former Supreme Court judge Justice Indu Malhotra, along with Justice Tilak Singh Chauhan and Justice Gautam Maghuria.

The committee has been asked to assess the total DA arrears payable and submit a clear payment schedule by March 6. As per the court’s directions, the first installment of the remaining 75 percent arrears must be paid by March 31. The West Bengal government must also file a detailed compliance report by April 15, when the matter will be taken up again for hearing.

The dispute relates to DA arrears accumulated between 2008 and 2019 and has resulted in a nearly 40 percent gap between the Dearness Allowance paid to West Bengal government employees and that paid to central government staff. The judgment is expected to benefit around 12 lakh serving and retired employees, including those who retired during the long pendency of the case.