Judgment

SAWANT, J.:- This petition is filed as stated in the petition by an Association of about 2000 employees working in 500 Railway Institutes and Clubs in various parts of the country. Their grievance, as in the case of the petitioners in the matters pertaining the Railway Canteens, is that they are not treated as railway employees. It is their case that although the Institutes/ Clubs in which they work are non-statutory, they are on par with the employees in the statutory canteens run in the Railway establishments proper. According to them, the Railway Institutes and Clubs were set up to provide recreational facilities to the railway employees. They are managed by Committees consisting of representatives of all the members of the Institutes/ Clubs elected periodically. The Institute/ Clubs have the following category of employees:- (1) Manager (2) Accountant (3) Clerk (4) Librarian in-charge (5) Librarian (6) Watchman (7) Daftry (8) Watermen (9) Canteen employees (10) Billiards Marker etc. These employees are appointed by the Committee and their salaries are paid out of the contributions received from the members of the respective Institutes/ Clubs and the grants-in-aid given by the Railway Board to the Institutes/ Clubs. The Committee of management is presided over by a president who is the concerned Divisional Railway Manager or his nominee. The Railway Administration has the right to dissolve or to form an ad hoc Committee.

2. According to the petitioners further, the Railway Board has always treated the Institutes and Clubs as an integral part of the Railways, since they not only receive grants in-aid but also other facilities from the Government. Section B of Chapter XXVIII of the Railway Establishment Manual makes a special provision for the Institutes and Clubs. Paragraph 2808 of the Manual states that a Railway Institute should be looked upon as a club provided by the Railway, rent free for the benefit of its employees and, therefore, the Railway should provide everything which a landlord ordinarily would, and the Institute should pay for all that a tenant would usually be liable to pay. Paragraph 2809 states that the Railway Administration will bear (a) the first cost of the building including the cost of electric installations with necessary furniture, roads, fences, tennis courts and other play-grounds. Wherever possible a garden will also be provided; (b) the cost of maintenance and alterations.

In the case of tennis courts and playgrounds the Railway Administration will bear only the cost of ordinary engineering repairs. The said paragraph however requires that the Institute funds should bear (a) the cost of rolling, watering, grass-cutting and other maintenance charges of play-ground is, other than engineering repairs; (b) the cost of maintenance of its gardens and ornamental grounds; (c) the cost of maintenance and renewal, whether partial or complete, of electric installations (which include electric fans) payable at a flat rate of 5 per cent per annum on the capital cost of the installations; (d) the cost of electric current consumed and hire of meter; (e) the occupiers share of municipal taxes for specific direct services rendered to an institute by a municipality such as conservancy, water and the like taxes as distinct from taxes of a general nature; (f) water charges calculated at so much per tap, each Railway Administration fixing its own scale of charges. In cases where large quantities of water are supplied by the Railway Administration, as in the case of swimming baths, the actual cost of water supplied should be recovered. Paragraph 2810 provides that: (i) no rent is recoverable in the case of Railway buildings used as officers club provided conditions stipulated in para 1942-E are fulfilled; (ii) no rent is recoverable in the case of officers clubs if the buildings are specially constructed against amounts specifically sanctioned by the Railway Board (iii) no rent is recoverable in the case of clu