Supreme Court Orders West Bengal to Revise DA for 2008–2019, Sets Up Justice Indu Malhotra Committee
Court Says State Employees Cannot Be Denied Fair Compensation Compared to Central Staff
Committee to Monitor DA Arrears, Ensure Transparency in Implementation
By Legal Reporter
New Delhi: February 07, 2026:
In a landmark judgment, the Supreme Court of India has directed the West Bengal government to re-fix the Dearness Allowance (DA) of its employees for the period 2008–2019, aligning it with the rates applicable to central government employees. The Court observed that denying parity in DA payments amounted to discrimination and violation of equality under Article 14 of the Constitution. To ensure compliance, the Court constituted a committee led by Justice Indu Malhotra, tasked with monitoring the recalculation and disbursement of arrears.
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Background of the Case
- The dispute dates to 2008, when West Bengal employees alleged that their DA was fixed at rates lower than those of central government employees.
- Employee unions argued that DA is not a privilege, but a right linked to inflation and cost of living.
- The matter reached the Supreme Court after prolonged litigation in the Calcutta High Court.
- The apex court ruled in favour of employees, directing the state to refix DA retrospectively for 2008–2019.
Supreme Court’s Observations
- The Court held that DA is a component of salary, not a discretionary allowance.
- It emphasized that state employees cannot be treated unequally compared to their central counterparts.
- The bench noted that inflation affects all employees equally, and DA must reflect this reality.
- The Court directed the formation of a monitoring committee to ensure transparency and timely compliance.
Committee Led by Justice Indu Malhotra
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- The committee will be headed by Justice Indu Malhotra, retired Supreme Court judge.
- It will include representatives from the West Bengal government, employee unions, and financial experts.
- The committee’s mandate is to:
- Recalculate DA arrears for 2008–2019.
- Ensure disbursement to eligible employees.
- Submit compliance reports to the Supreme Court.
Key Takeaways
- DA parity ensured: West Bengal employees will receive DA at central government rates for 2008–2019.
- Arrears payable: Employees are entitled to arrears for the entire period.
- Committee oversight: Justice Indu Malhotra’s panel will monitor implementation.
- Equality principle upheld: Court reinforced Article 14’s guarantee of equal treatment.
Why This Matters
- For employees: Ensures fair compensation and recognition of rights.
- For governance: Reinforces accountability of state governments in employee welfare.
- For law: Strengthens constitutional principles of equality and non-discrimination.
Wider Implications
- Financial impact: The ruling may impose a significant burden on West Bengal’s exchequer, requiring careful fiscal planning.
- National precedent: Other states may face similar demands for DA parity.
- Judicial activism: Demonstrates the Court’s role in protecting employee rights.
Expert Reactions
- Employee unions hailed the judgment as a “historic victory.”
- Legal experts noted that the ruling reinforces the principle that DA is a statutory right, not a concession.
- Economists warned that while fair, the ruling could strain state finances.
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Conclusion
The Supreme Court’s directive to refix DA for West Bengal employees for 2008–2019 marks a major victory for workers’ rights. By constituting a committee led by Justice Indu Malhotra, the Court has ensured transparency and accountability in implementation. The ruling reinforces the principle that employee welfare cannot be compromised by state discretion, setting a precedent for fair treatment across India.
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