SUPREME COURT OF INDIA
B.L.Hansaria : Kuldip Singh
Union Of India
Versus
Suresh C.Baskey
Case No. : .
Date of Decision : 11/13/95
Advocates Appeared: Fazi S. : Kiran Shashi : Mahajan Krishan : Mahajan V.C. : Mahra D.S. : Parekh P.H. : Prasad B.K. : Puri H.K. : Rao C.V.Subba : Ray Tapas : Terdal S.N.
Factories Act, 1948 - Receipt of house rent allowance - Payments of arrears overtime allowance - Question before the central Administrative Tribunal Calcutta bench was whether employees working in government Mint Calcutta who were allottees government accommodation and as such were not being paid house rent allowance were entitled compute overtime allowance payable after taking into account notionally element house rent allowance - Following its earlier decision Union India tribunal answered question by impugned judgment in affirmative and decided same in favour of employees - This appeal by Union India is against judgment of Tribunal – Held, Purposes ordinary rate of wages means basic wages plus such allowances including cash equivalent of advantage accruing through concessional sale to workers foodgrains and other articles as worker is for time being entitled to but does not include bonus and wages for overtime work - Overtime allowance has to be computed on basis of ordinary rate wages - Section of Act defines ordinary rate of wages to mean basic wages plus such allowances as worker is for time being entitled to but does not include the bonus and wages for overtime work - In other words ordinary rate of wages is basic wages plus allowances to which worker is entitled for time - If worker is not entitled to particular allowance same cannot be included in ordinary rate wages - In present case admittedly respondents are not entitled to house rent allowance and as such same cannot be included while determining ordinary rate of wages - It would be wholly fallacious to include an allowance notionally which has been excluded specifically - Legislature in its wisdom included cash equivalent advantage accruing through concessional sale to workers food grains and other articles in definition of ordinary rate of wages - Legislature has not done so in respect of the house rent allowance – Order accordingly
JUDGMENT
KULDIP SINGH, J.
(1) THE question before the central Administrative Tribunal Calcutta bench (the tribunal) was whether the employees (workmen) working in the government Mint, Alipur, Calcutta who were allottees of government accommodation and as such were not being paid house rent allowance were entitled to compute the overtime allowance payable to them after taking into account, notionally, the element of house rent allowance. Following its earlier decision in Nirmal Chandra Bhowmick v. Union of India (decided on 1/9/1989 the tribunal answered the question by the impugned judgment dated 6/9/1990 in the affirmative and decided the same in favour of the employees. This appeal, by the Union of India is against the judgment of the Tribunal.
(2) IT is not necessary for us to go into the chequered history of litigation on the question whether the employees of the government Mint were entitled to the overtime allowance. It is not disputed before us that the employees of the Government Mint who come within the definition of workmen under the Factories Act, 1948 (the Act) are entitled to extra wages for overtime under Section 59 of the Act. It is further not disputed that all those employees who have not been allotted government accommodation and are in receipt of house rent allowance are entitled to compute the overtime allowance by including house rent allowance into the "ordinary rate of wages". The short question before us is whether the employees who are occupying government accommodation and as such are not being paid house rent allowance, are entitled to compute the "ordinary rate of wages" by notionally adding the amount of house rent allowance which they would have got, had they not been allotted the government accommodation.
(3) THE tribunal accepted the contention of the respondents applicants before it that they were entitled to similar relief as was given to the employees of the Government Mint in OA No. 13 of 1987. On the concession of the learned counsel for the Union of India, the tribunal allowed the application by the impugned order in the following terms:
"MR C.R. Beg very fairty concedes that the facts of this case are identical with those in OA No. 13 of 1987 (Nirmal Ch. Bhowmick v. Union of india.
IN that view of the matter, we dispose of this application at the admission stage itself with a direction to the respondents to dispose of the representation of the applicants dated 8/12/1986 (Annexure C) in the light of the aforesaid two judgment and pass an appropriate order g:ving the same benefits within 60 days from today."
(4) WE may, therefore, examine the judgment of the tribunal in Nirmal Chandra Bhowmick v. Union of India. It would be useful to reproduce the operative part of the judgment:
"IT is the grievance of the applicants that although an order has been made on 11/11/1985 directing that overtime should be calculated inclusive of house rent allowance, the respondents are not implementing the same. This application has been taken out for implementation of the order dated 11/11/1985 read with order dated 28/9/1984 and Mint Diary Order No. 130 of 1984 dated 26/10/1984.
Mr Samir Ghosh appearing for the applicants invits my attention to Annexure A at p. 22 of the application which is the letter dated 11-11- 1985. The subject-mailer of this letter is computation of overtime allowance on the basis of enroluments including house rent allowance payment of arrears regardmg This letter is addressed to the General Manager, India Government Mint. Bombay/Hyderabad/Calcutta and is written by the Under secretary to the government of India, Ministry of Finance, Department of Economic Affairs.
THIS letter reads as follows:
I am directed to convey the approval of the government of India, Ministry of Finance. Department of Economic Affairs, for making payments of arrears of overtime allowance from 1/1/1956 onwards on the basis of emoluments including hou
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