• DA freeze by central govt

Today the central govt stopped the payment of Dearness allowance to its employees. Dearness allowances to employees are granted through pay commission recommendations . the pay commission itself headed by a sitting judge of the honbl Supreme court of India.
Is it legally valid to stop the payment?
Is there any precedence of doing so?
Asked 5 years ago in Labour

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29 Answers

1. Well, it's well settled that no vested right accuses in favour of the employee in respect of DA .

2. So this is a policy decision of a government whether to release this sum if money or not.  

3. The inaction or refusal of the government on non payment of DA can not be brought under judicial review through writ of Mandamus. 

4. So wait till the government releases the DA.

Devajyoti Barman
Advocate, Kolkata
23655 Answers
537 Consultations

Due to the present medical emergency in India, the Central Government has temporarily freezed the payment of DA to it's employees and pensioners. This will be operational till July 2021. It's legally valid due to the act of God or force majeure which is beyond the control of the Central Government.

Shashidhar S. Sastry
Advocate, Bangalore
5624 Answers
339 Consultations

Hi

Can you please elaborate the reasons to stop the payment of the DA to the employees.

There could be the deduction due to the global pandemic of Covid-19

Thanks

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

DA freeze would be legally valid as govt needs to conserve funds on account of pandemic 

Ajay Sethi
Advocate, Mumbai
99785 Answers
8145 Consultations

1. First of all central govt have suspended the increase in DA and have not stopped payment of DA

2. Yes it is legally valid to suspend increase of DA under these pandemic conditions as the govt in India is under Deficit due to COVID issue. 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

They have not stopped the payment of Dearness allowance to all govt employees.

 

The additional installment of DA and DR due from July 1, 2020, and January 1, 2021, shall also not be paid," the Department of Expenditure said in an office memorandum. However, DA and DR at current rates will continue to be paid.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

You may go through the orders properly before raising the question.

The government has not stopped the payment of dearness allowance. 

The government has put on hold increase in DA for its employees because of the strain on its finances due to corona virus.

The government’s tax revenues have plummeted because of the Covid-19 lock down while expenses have shot up because of the support provided to the vulnerable groups.

The government revises dearness allowance twice a year to compensate for the rise in prices. Next revision is now scheduled in July.

This is the first corona virus impact on central government employees. The government had earlier cut salaries of ministers, PM, president and members of parliament by 30%. In addition, there MPLADs scheme has also been suspended for two years to provide more funds to fight the corona virus pandemic.

So this is a temporary measure alone and not a permanent hold.

You may go through the news that the increase in  DA shall be restored from 01 July 2021.

This is a decision taken by union government in a cabinet meeting, hence there is no legal infirmity in this.

 

T Kalaiselvan
Advocate, Vellore
89986 Answers
2493 Consultations

1. DA freeze is legally valid as the Government arranging funds on account of pandemic,

2. only the additional payment is stopped, 

 

Suneel Moudgil
Advocate, Panipat
2386 Answers
6 Consultations

Dear Sir/Madam,

Though the DA cut by the central govt is very unfortunate but it is done in keeping in mind the circumstances occurred due to COVID 19 pandemic. The government has power of doing it and the writ may be filed in high court or supreme court, but the same may not succeed because the present move of stopping DA is done in the interest of saving economy of country to some extent.   

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

The reasons for the same has to be known and the notification or circular for the same needs to be challenged before HC in writ petition

Prashant Nayak
Advocate, Mumbai
34520 Answers
249 Consultations

SC judge was head of pay commission. Recomandstions are given the commission. Prerogative of govt. To accept recomandstion or not. 

So for stopping DA dose not require consultation with the head of pay commission.

 

Yogendra Singh Rajawat
Advocate, Jaipur
23081 Answers
31 Consultations

Since the country is passing through a difficult financial phase the govt can do this.Even the MPs have reduced their salary by 30%. Nothing illegal in this.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

Due to the on going pandemic which has impacted entire world / economy and has brought humanity to standstill. 

Under the above circumstances, stopping of Dearness Allowance by CG is legally valid.

The  said stopping of DA is temporary and for time being only to support and address the other important issues. 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

Dear Sir,

You question involves constitutional point. It needs to be decided by the Supreme Court and you may ask any NGO or Employees union to file writ petition (PIL) under Article 32 of Constitution of India. You will get answer to your question.

Kishan Dutt Kalaskar
Advocate, Bangalore
6230 Answers
499 Consultations

Dear Sir/Madam,

It can be taken to court by the medium of writ and High court would be the best court because it has ample powers under article 226/227 of our constitution.  

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

Your legal right is effected, can file writ but no surety of success.

Yogendra Singh Rajawat
Advocate, Jaipur
23081 Answers
31 Consultations

My answer is in negative as  advised above. 

Devajyoti Barman
Advocate, Kolkata
23655 Answers
537 Consultations

You can take anything to a Writ court for the sake of taking it, but no unconstitutionality can be attributed to this decision.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

You are at liberty to file writ petition in HC against govt order freezing DA for central govt employees 

Ajay Sethi
Advocate, Mumbai
99785 Answers
8145 Consultations

Yes the matter can/should be taken to court.

I think there is some writ already filed against this decision (not sure)

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

The government policy cannot be challenged especially at the time of national economic crisis. 

The court may not entertain any such writ petition. 

However for your satisfaction you may file a PIL  before supreme court. 

 

T Kalaiselvan
Advocate, Vellore
89986 Answers
2493 Consultations

No, the action of the CG cannot be questioned in the above circumstances. 

However, the action of the Government can be questioned by way of filing "Writ Petition", questioning the said action, in all probability it will be a futile exercise. 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

Yes you can challenge the notification before HC. You don't need any precedent. There are many such notification earlier challenged before HC in writ Petition

Prashant Nayak
Advocate, Mumbai
34520 Answers
249 Consultations

- The government is not the law making body in India.  Enacting a law is the function of Parliament and state legislatures.

-  Under the Indian Constitution, the Supreme Court and the High Courts have the power to protect fundamental rights and to interpret law.  The Constitution does not give power to Courts to direct the framing of a law.

- Since, the pay commission is headed by a sitting judge under the Supreme Court , hence without the approval and recommendation , government has no jurisdiction to stop the payment . 

- However, due to the present medical expenditure and lock down etc , the Central Government has temporarily freezed the payment of DA to it's employees and pensioners. 

- But the said expenditures can be fulfilled after stopping other unimportant projects as well. 

- Hence, it can be taken to court of law through WRIT . 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Pay commission recommendations cannit always be accepted by the government although they are almost always accepted. In the situation we have here the government has suspended the DA. I think it is legally justifiable act.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

You may file a writ petition against such a decision as it concerns you pay and perks.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Yes writ can be filed before Supreme Court.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

In view of the crisis arising out of COVID-19..Central Govt Freeze DA and it is legally valid . 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

you can file a writ petition in SC. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

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