A division bench comprising Justices Debasish Kar Gupta and Sekhar Bobby Saraf set aside a State Administrative Tribunal (SAT) order that had said that DA cannot be claimed as a right by the state government employees.
The bench held that the employees’ claim for DA as per the central government DA rates would be decided by the SAT, which was asked by the court to rehear the issue.
It also asked the tribunal to decide whether the state government was justified to pay differential rates to its employees posted at Delhi and Chennai.
The division bench observed that the central government fixes DA of its employees across the country at the same rate without discriminating on the place of posting.
The court said it cannot be said that employees in Kolkata were affected differently from inflation compared to those posted in Delhi or Chennai.
During an argument of the case, the state Advocate General had claimed that DA was not a right of the employees, but a benevolence on the part of the government
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