The Supreme Court on November 5, 2026, stayed two contempt cases against the Punjab government relating to the dearness allowance issue. A bench of Justice BV Nagarathna and Justice R. Mahadevan ordered the stay on criminal and civil contempt proceedings against the Punjab chief.

Background of the high court directives

The Punjab and Haryana High Court had issued directives on August 3 directing the release of pending installments to employees and pensioners. Subsequently, the High Court issued orders on October 12, 2026, and October 30, 2026. Employees and pensioners are currently receiving dearness allowance at the rate of 53 percent.

Liquidation plan sought by court

The Supreme Court has directed the Punjab government to provide details of a liquidation plan by December 1. The court sought information regarding the payment to employees and pensioners until March 31, 2027.