Kerala government Argues Dearness Allowance Not a Legal Right in High Court Filing
Kerala’s government has asserted that dearness allowance (DA) is a policy-based benefit, not a legally guaranteed right for state employees. this position was outlined in an affidavit submitted to the High Court, detailing the state’s current financial constraints and its evolving approach to DA disbursement.
The government’s filing explains that it is currently unable to provide a definitive timeline for fulfilling outstanding DA payments. A senior official stated that the state is operating under significant financial pressure, exacerbated by central government policies. The affidavit, filed by P.K. Babu at the direction of Finance Department Under secretary K.A. Nawaz and special government Pleader P.K.Nawaz,details a new method for sanctioning DA,making it effective from the month of approval for additional allowances – a change that does not apply to existing arrears.
The state’s financial woes are further compounded by a petition challenging its borrowing limits, currently under review by the Supreme Court. The government’s recent request to borrow Rs 26,226 crore was previously rejected by the court, and a resolution to this issue is seen as crucial for renegotiating DA dues.
The government maintains that DA is a discretionary tool used to mitigate the effects of inflation, and the Supreme Court has previously indicated that judicial intervention in such policy decisions should be limited, emphasizing the importance of considering the government’s financial standing. In a related case involving the West bengal government, the Supreme Court acknowledged the need to avoid indefinite delays in DA payments but stopped short of mandating immediate disbursement.
The current situation stems, in part, from a period between January 1, 2020, and June 30, 2021, when the central government suspended DA payments. The affidavit clarifies that these previously suspended dues remain unpaid.
The case before Justice N. Nagaresh, heard on Thursday, was filed by N. Mahesh, State President of the Federation of University Employees Organizations, and other officials. the hearing was adjourned to January 22 due to the government counsel’s unavailability. Employees are currently owed 15% of their dearness allowance, to be paid in six installments beginning in July 2023.
The government’s position underscores the complex interplay between employee benefits, state finances, and central government policies, leaving the future of DA payments in Kerala uncertain pending further legal developments and a potential improvement in the state’s financial situation.
Here’s a substantive news report answering the “Why, Who, What, and How” questions:
Why: The Kerala government is facing legal challenges regarding its obligation to pay Dearness allowance (DA) to state employees. The core of the dispute centers on whether DA is a legally guaranteed right or a discretionary benefit tied to the state’s financial health.
Who: The case involves the Kerala government, represented by officials including P.K.Babu, K.A. Nawaz, and P.K. Nawaz, and the Federation of University Employees Organizations, led by N. Mahesh, who filed the petition. Justice N. Nagaresh is presiding over the case in the High Court.
What: The Kerala government has filed an affidavit asserting that DA is a policy-based benefit, not a legal right, and is currently unable to provide a firm timeline for paying outstanding dues. Employees are currently owed 15%
