The court also observed that if the state came up with a reasonable plan for the release of DA dues to employees and pensioners, it might consider granting relief with respect to the liquidation plan quashed by the Single Judge.The Punjab and Haryana High Court has asked the Punjab Government to examine and submit a plan indicating how much it can presently pay towards pending Dearness Allowance (DA) dues of serving and retired employees, and within what timeframe the remaining amount can be released.The direction came during the hearing of a Letters Patent Appeal (LPA) filed by the Principal Finance Secretary, Punjab, against Nirmal Singh Dhanoa and others, challenging the April 8, 2026, order passed in the case of Nirmal Singh Dhanoa versus PSPCL.The Single Judge had directed the state to release all pending DA/DR instalments, along with arrears, in line with the Central Government pattern.The LPA came up before a Division Bench of Justice Jasgurpreet Singh Puri and Justice Amarjot Bhatti.Appearing for the state, Senior Additional Advocate General Anu Chatrath submitted that the Single Judge’s order was unsustainable in law. She argued that the Single Judge had quashed the state’s liquidation plan for payment of arrears arising from the revision of pay scales for pensioners, though the plan had earlier been approved by a Division Bench, which had issued a mandamus for its implementation.The Bench orally observed that, prima facie, it agreed with the state on this aspect. However, with regard to the DA component, the Bench asked the state to examine its financial position and indicate how much it could pay immediately and in what manner the remaining dues could be released in future. The state is expected to place the payment plan before the court on May 25.The state maintained that, so far as arrears arising from the revision of pay scales were concerned, these were already covered by the liquidation plan approved by a Division Bench. The proposed payment plan, therefore, would relate only to the pending DA dues.Story continues below this adDuring the hearing, the state submitted that it was willing to release the pending DA instalments but was unable to do so immediately due to financial constraints.State counsel further submitted that the government was making all possible efforts to meet the obligation and had constituted a committee to assess its financial position for releasing the pending benefits.The state also argued that the Single Judge’s direction to release all pending arrears, amounting to around Rs 14,000 crore, by June 30 was not feasible.The Bench indicated that the matter would be considered further on May 25 after the state places its proposed payment plan on record.Story continues below this adThe court also observed that if the state came up with a reasonable plan for the release of DA dues to employees and pensioners, it might consider granting relief with respect to the liquidation plan quashed by the Single Judge.On the request of the state, the matter was adjourned to May 25.