Appeal to unfreeze the DA/DR is dismissed by Delhi High Court Order

Delhi high court order on dearness allowance

Appeal to unfreeze the DA/DR is dismissed by Delhi High Court Order

IN THE HIGH COURT OF DELHI AT NEW DELHI

W.P.(C) 3308/2020
HITESH BHARDWAJ ….. Petitioner

Through: Dr. Pradeep Sharma with Mr. Harsh,
Advs.
versus
MINISTRY OF FINANCE, UNION OF INDIA AND ANR
….. Respondent
Through: Mr. Jasmeet Singh, CGSC.
Ms. Shobhana Takiar, ASC, GNCTD.

CORAM
HON’BLE MR. JUSTICE VIPIN SANGHI
HON’BLE MR. JUSTICE RAJNISH BHATNAGAR

O R D E R

01.06.2020

CM APPL. 11606/2020

Exemption allowed, subject to all just exceptions.
The Court fees be paid within a week.
The application stands disposed of.

W.P.(C) 3308/2020

The present writ petition has been preferred in public interest seeking following reliefs:

a) Issue a Writ of Mandamus or any other appropriate Writ, order or direction to the Respondents to withdraw the notification issued by the Ministry of Finance, Government of India

b) Issue a Writ of Mandamus or any other appropriate Writ, order or direction to the Respondents to withdraw the endorsement against the notification, issued by the Ministry of Finance, Government of NCT of Delhi.

c) Issue a Writ of Mandamus or any other appropriate Writ, order or direction to the Respondents to defreeze and release the enhanced Dearness Allowance to the Central Government Servants and pensioners as per norms.

d) Issue a Writ of Mandamus or any other appropriate Writ, order or direction to the Respondents to defreeze and release the enhanced Dearness Allowance to the Government Servants and pensioners of GNCTD as per norms.”
 
The respondent no. 1/Union of India issued an Office Memorandum dated 23.04.2020 which is the cause for the petitioner’s grievance in the present writ petition. The said Office Memorandum reads as follows:

Freezing of Dearness Allowance to Central Government employees and Dearness Relief to Central Government pensioners at current rates till July 2021.

The petitioner is also aggrieved by the consequent order issued by respondent no. 2/GNCTD dated 24.04.2020, whereby the GNCTD has followed suit in terms of the Office Memorandum dated 23.04.2020 issued by respondent no. 1. The Office Memorandum dated 23.04.2020, in effect, conveys the decision of the Central Government that Dearness Allowance due to the Central Government Employees and Dearness Relief due to the Central Government Pensioners from 01.01.2020 shall not be paid. It also states that additional installment of the Dearness Allowance and Dearness Relief due from 01.07.2020 and 01.01.2021 shall also not be paid. Pertinently, Dearness Allowance and Dearness Relief at the current rates would continue to be paid. The said Office Memorandum further states that as and when the decision to release future installment of Dearness Allowance and Dearness Relief due from 01.07.2021 is taken by the Government, rates of the Dearness Allowance and Dearness Relief as effective from 01.01.2020, 01.07.2020 and 01.07.2021 will be restored prospectively, and will be subsumed in the cumulative revised rate effective from 01.07.2020. No arrears from the period 01.01.2020 till 30.06.2021 shall be paid.

The first submission of the petitioner is that Central Government Employees and Central Government Pensioners have a vested right to receive the enhanced Dearness Allowance/ Dearness Relief which has already been declared effective from 01.01.2020. The said increase was declared at 4%. The petitioner also claims that such employees and pensioners also have vested right to continue to receive enhancement in Dearness Allowance/ Dearness Relief on and from 01.07.2020 and 01.01.2021.

To examine the merit of this submission, we may refer to the All India Services (Dearness Allowance) Rules, 1972. These statutory rules have been framed by the Central Government after consultation with the Government of the States concerned in exercise of powers conferred by SubSection (1) of Section 3 of All India Services Act,1952. Rule 3 of the said Rule is relevant and which reads as follows:

“3. Regulation of dearness allowance:
Every member of the Service and every officer, whose initial pay is fixed in accordance with sub-rule (5) or sub-rule (6A) of rule 4 of the Indian Administrative Service (Pay) Rules, 1954 or sub-rule (5) of rule 4 of the Indian Police Service (Pay) Rules, 1954 or sub-rule (6) of rule 4 of the Indian Forest Service (Pay) Rules, 1968, shall be entitled to draw dearness allowance at such rates, and subject to such conditions, as may be specified by the Central Government, from time to time, in respect of the officers of Central Civil Services, Class I.”
(emphasis supplied)

From the above Rule, it would be seen that Central Government servants shall be entitled to draw Dearness Allowance “at such rates, and subject to such conditions, as may be specified by the Central Government, from time to time, in respect of officers of the Central Civil Service, ClassI”. We may notice that there is no other statutory rule brought to our notice relating to payment of Dearness Allowance or Dearness Relief and it appears that the said Rule governs the payment of Dearness Allowance and Dearness Relief to Government servants and Government Pensioners of the Union in respect of all the classes of employees.

The above rule shows that the entitlement to draw Dearness Allowance and Dearness Relief is determined by the Central Government. The same may be specified by the Central Government from time to time, subject to whatever conditions the Government may deem fit to impose.

From the above Rule, it is clear to us that, firstly, there is no statutory rule which obliges the Central Government to continue to enhance the Dearness Allowance or Dearness Relief at regular intervals i.e. to revise the same upwards from time to time. Consequently, there is no vested right in the Central Government Employees, or Central Government Pensioners to receive higher Dearness Allowance or Dearness Relief on regular intervals.

Pertinently, by the impugned Office Memorandum, the Central Government has frozen – and not withdrawn, the Dearness Allowance and Dearness Relief being paid to Central Government Employees and Central Government Pensioners at the time of issuance of the said Office Memorandum.

Also check: Appeal to unfreeze the DA by the petitioner at Delhi High Court

So far as the submission with regard to increase of 4% Dearness Allowance or Dearness Relief with effect from 01.01.2020 is concerned, the impugned Office Memorandum does not seek to take it away. All that it does is to postpone its payment till after 01.07.2021. That power, in our view, resides with the Central Government, by virtue of Rule 3 of the All India Services (Dearness Allowance) Rule, 1972, since the Central Government is empowered to take the decision to make payment of Dearness Allowance / Dearness Relief, subject to such conditions as the Central Government may specify from time to time.

The submission of learned counsel for the petitioner is that the Central Government in the impugned Office Memorandum has referred to COVID19 pandemic as the reason for its decision contained in the said Office Memorandum. However, the impugned Office Memorandum has not been issued by the competent authority under the Disaster Management Act. We do not find merit in this submission. The provisions of the Disaster Management Act are not the only repository of the power of the Government to take action in the light of the pandemic. As noticed above, the power to determine as to how much Dearness Allowance is to be paid, i.e. at what rates, and subject to what condition, resides with the Central Government by virtue of Rule 3 of All India Services (Dearness Allowance) Rules, 1972. Merely because the said impugned Office Memorandum makes reference to the COVID-19 pandemic, it does not follow that the only provision which the respondents could have invoked are those contained in the Disaster Management Act. The Central Government, by referring to COVID-19 pandemic in the impugned communication, has merely provided its reasons and justification for its decision contained in the said Office Memorandum.

The next submission of the learned counsel for the petitioner is that the impugned Office Memorandum is also in violation of Article 360(4) (a)(i) of the Constitution of India. Article 360 of the Constitution of India contains the provision as to financial emergency, and it provides that if the President is satisfied that a situation has arisen whereby the financial stability of credit in India or any part of the territory thereof is threatened, he may, by a proclamation make declaration to that effect. The submission is that President of India has not declared financial emergency. The further submission is that it is only during financial emergency declared by the President, that by virtue of Sub-Article 4(a)(i) – a provision could be made requiring reduction of salaries and allowances of all or any class of persons serving in connection with the affairs of the State. Since no financial emergency has been declared, the Office Memorandum in question could not have been issued which is referable to Article 360(4)(a)(i) of the Constitution of India.

We find this submission to be completely misplaced. This is for the reason that Article 360(4)(a)(i) deals with a situation where the Government seeks to reduce the salary or allowance of all, or any class of persons, serving in connection with the affairs of the State. In the present case, the Office Memorandum does not seek to reduce either the salaries or allowances, which includes Dearness Allowance and Dearness Relief in respect of serving Government servants, or its pensioners. All that it does is to freeze the payment of Dearness Allowance and Dearness Relief at the pre-existing level, and to put in abeyance any increase in Dearness Allowance and Dearness Relief till July, 2021. The said freeze does not tantamount to reduction of either salary, or allowances, of persons serving in connection with the affairs of the State.

The further submission submission of learned counsel for the petitioner is that the Office Memorandum could not have been issued by mere issuance of an office order, and the same should have been either framed as a statutory rule, or by issuing a gazette notification. We do not find any basis for this submission. We have noticed Rule 3 of the All India Services (Dearness Allowance) Rules, 1972. The said Rule does not state that the Central Government can form, or communicate, its decision with regard to entitlement to draw Dearness Allowance, subject to conditions, only by framing another rule, or by a gazette notification. There is no such requirement in law. Therefore, we do not find any merits in this submission as well.

Also check: Expected DA 2020

So far as the right to receive the increase of Dearness Allowance / Dearness Relief already declared by the Government with effect from 01.01.2020 is concerned, it falls well within the domain of the Central Government to decide as to when to disburse the said increase. There is no obligation in law upon the Central Government to disburse the increase in Dearness Allowance/ Dearness Relief within a time bound manner. Rule 3 of All India Services (Dearness Allowance) Rules referred to above, itself empowers the Central Government to lay down the conditions subject to which Dearness Allowance may be drawn by officers of Central Government.

For the aforesaid reasons we do not find any merit in this petition and the same is, accordingly, dismissed.

VIPIN SANGHI, J
RAJNISH BHATNAGAR, J

JUNE 01, 2020

Download: Freezing of DA/DR Delhi high court order 01-06-2020

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7th CPC Dearness Allowance from January, 2019 hike from 9% to 12% - Department of Expenditure, MoF Order

7th CPC Dearness Allowance from January, 2019 hike from 9% to 12% - Department of Expenditure, MoF Order

No. 1/1/2019-E-II (B)
Government of India
Ministry of Finance
Department of Expenditure

---

North Block, New Delhi
Dated the 27th February, 2019.

OFFICE MEMORANDUM

Subject: Grant of Dearness Allowance to Central Government employees - Revised Rates effective from 1.1.2019.

The undersigned is directed to refer to this Ministry's Office Memorandum No. 1/2/2018-E-ll (B) dated 7th September, 2018 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 9% to 12% of the basic pay with effect from 1st January, 2019 .

2. The term 'basic pay' in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government , but does not include any other type of pay like special pay, etc.

3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).

4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.

5. The payment of arrears of Dearness Allowance (from January to March) shall not be made before the date of disbursement of salary of March, 2019.

6. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees , separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

7. In so far as the employees working in the Indian Audit and Accounts Department are concerned , these orders are issued with the concurrence of the Comp r ler and Auditor General of India.

Sd/-
(Nirmala Dev)
Deputy Secretary to the Government of India

To
All Ministries/Departments of the Government of India (as per standard distribution list).
Copy to: C&AG, UPSC, etc. as per standard endorsement list.

Source: DoE

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Expected DA from January 2018: Confirm 7th CPC DA @ 7% & Expected 6th CPC @ 143% - CPI(IW) Index of Oct, 17 released

Expected DA from January 2018: Confirm 7th CPC DA @ 7% & Expected 6th CPC @ 143% - CPI(IW) Index of Oct, 17 released

All India Consumer Price(Industrial Workers) Index Number [CPI(IW)] of Oct, 2017 has been released yesterday by Labour Bureau and increased by 2 points and pegged at 287 (two hundred and eighty seven). With this increase 7th CPC Dearness Allowance/Dearness Relief for Central Govt Employees and Pensioner w.e.f. the month from January, 2018 will be 7% with 2% increase in July, 2017 DA/DR. On the other hand the 6th CPC DA speculated to be 143% with 4% increase in present DA Rate.

The speculation of month of Sept, 2017 while 5 points increase in All India Consumer Price (Industrial Workers) Index Number [CPI(IW)] of July, 2017 was indicating 7% 7th CPC Dearness Allowance with 2% increase & 142% 6th CPC DA with 3% increase in 6th CPC Dearness Allowance from January, 2018 has comes true after 3 months.

Only two months index is to be needed to give the calculated figure for the January, 2018 DA/DR but the confirm speculation is being given through the undermentioned table. The undermentioned speculations are checking the Expected DA 2018 by extreme up and down level of CPI(IW) Number. A major ups and down in index will give the confirm 7% 7th CPC DA and a minor change will give variation in 6th CPC DA as 142% or 143%. Have a look on expected DA table:

Expected DA from Jan, 2018: ACPIN (IW) for Oct, 2017 released - 2 Points increased

No. 5/1/2017-CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

'CLEREMONT’, SHIMLA-171004
DATED: 30th November, 2017

Press Release

Consumer Price Index for Industrial Workers (CPI-IW) - October, 2017

The All-India CPI-IW for October, 2017 increased by 2 points and pegged at 287 (two hundred and eighty seven). On l-month percentage change, it increased by (+)0.70 per cent between September, 2017 and October, 2017 when compared with the increase of (+) 0.36 per cent for the corresponding months of last year.

The maximum upward pressure to the change in current index came from Food group contributing (+) 1.94 percentage points to the total change. At item level, Rice, Milk (Buffalo), Onion, Bitter Gourd, Brinjal, Cabbage, Cauliflower, Carrot, Gourd, Coconut, French Beans, Green Coriander Leaves, Lady’s Finger, Parval, Potato, Tomato, Torai, Cigarette, Cooking Gas, Doctor’s Fee, Cinema Charges, Repair Charges, Tailoring Charges, etc. are responsible for the increase in index. However, this increase was checked by Arhar Dal, Fish Fresh, Poultry (Chicken), Chillies Green, Peas, Apple, Banana, Orange, Petrol, etc., putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 3.24 per cent for October, 2017 as compared to 2.89 per cent for the previous month and 3.35 percent during the corresponding month of the previous year. Similarly, the Food inflation stood at 2.26 per cent against 1.30 per cent of the previous month and 2.99 per cent during the corresponding month of the previous year.

At centre level, Darjeeling and Tiruchirapally reported the maximum increase of (10 points each) followed by Munger-Jamalpur (8 points) and Puducherry (7 points). Among others, 6 points increase was observed in 2 centres, 5 points in 8 centres, 4 points in 7 centres, 3 points in 8 centres, 2 points in 19 centres and 1 point in 14 centres. On the contrary, Mercara recorded a maximum decrease of 4 points. followed by Goa and Bhavnagar (3 points each). Among others, 2 points decrease was observed in l centre and 1 point in another 6 centres. Rest of the 6 centres’ indices remained stationary.

The indices of 33 centres are above All-India Index and 43 centres'  indices are below national average. The indices of Madurai and Amritsar centres remained at par with All-India Index.

The next issue of CPHW for the month of November, 2017 will be released on Friday, 29th December, 2017. The same will also be available on the office website www.labourbureaunew. gov. in.

(AMRIT LAL JANGID)
DEPUTY DIRECTOR

PIB

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7% of 6th CPC Dearness Allowance Increased from 1.7.2016 – Finmin Order

7% of 6th CPC Dearness Allowance Increased from 1.7.2016 – Finmin Order

"who continue to draw their pay in the pre-revised pay band/grade pay as per 6th CPC recommendations, shall be enhanced from the existing 125% to 132% w.e.f. 01.07.2016"

Rate of Dearness Allowance applicable w.e.f. 1.7.2016 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the re-revised pay scale/grade pay as per 6th Central Pay Commission

No.1/3/2008-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, dated the 9th November, 2016.

OFFICE MEMORANDUM

Subject: Rate of Dearness Allowance applicable w.e.f. 1.7.-2016 to employees of Central Government and Central Autonomous Bodies continuing to draw their pay in the pre-revised pay scale/grade pay as per 6th Central Pay Commission Dearness Allowance calculator for DA from January 2017

Consequent upon acceptance of the recommendations of the Seventh Central Pay Commission by the Government, this Department vide O.M.No. 1/2/2016-E.II(B) dated 4th November, 2016 had. issued orders on rate of Dearness Allowance (DA) payable to Central Government employees based on the revised pay structure that came into effect from 01.01.2016.

2. The above rate, however, is not applicable to- those Central Government employees who had exercised an option to continue in the pre-revised scales of pay based on 6th CPC's recommendations or to those whose pay and allowances had not been revised, for different reasons.

3. Further, as the recommendations of 7th CPC have not been made applicable to the employees of Central Autonomous Bodies as of now, they continue to draw their pay in the pre-revised pay band/grade pay as per 6th CPC recommendations. Therefore, the above rate of DA is also not applicable to these employees also.

4. The rate of DA w.e.f.01.01.2016 for Central Government employees and employees of Central Autonomous Bodies in pre-revised scale of pay, were issued by Department of Expenditure vide O.M.No. 1/1/2016-E.II(B) dated 7th April, 2016.

5. Accordingly, the rate of DA admissible to employees of Central Government and Central Autonomous Bodies who continue to draw their pay in the pre-revised pay band/grade pay as per 6th CPC recommendations, shall be enhanced from the existing 125% to 132% w.e.f. 01.07.2016.

6. The contents of this Office Memorandum may also be brought to the notice of the Organisations under the administrative control of the Ministries/Departments which have adopted the Central Government scales of pay.

sd/-
(Nirmala Dev)
Deputy Secretary to the Govt. of India

Click to view the  order
Authority: http://finmin.nic.in/

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