The main legal point established in the judgment is the interpretation and application of the Coal India Executives House Rent Allowance Rules, specifically highlighting the employee's eligibility for HRA at the new station and the distinction between 'accommodation' and 'residence' under the rules.

JUDGMENT

Aniruddha Roy, J. - The writ petitioner was working as a Sales Manager of the first respondent and was posted at its Marketing Headquarters at Park Street, Kolkata during the period October, 2005 till October, 2008. During such posting the petitioner received his due salary including the House Rent Allowance (for short, HRA) at the rate of 30 per cent of the basic salary.

2. In August, 2008 the petitioner was promoted to the post of Deputy Chief Sales manager (re-designated as Chief Manager) and was transferred to Eastern Coalfields Limited (for short, E.C.L.) pursuant to an office order dated August 18, 2008 and accordingly was released from the first respondent by a release order dated October 13, 2008 and immediately joined ECL on October 22, 2008.

3. Pursuant to Coal India Executives House Rent Allowance Rules (for short, the HRA Rules) (corrected upto May 23, 1989), the petitioner contended, that in the event any executive is not provided with the quarter/accommodation at his place of posting he would be entitled to HRA. According to the HRA Rules, even any executive who was drawn HRA, was transferred to another station involving change of residence leaving behind his family members at the old station, he would be eligible for the HRA at the new station for a maximum period of six months from the date of release from the old station provided he was not allotted accommodation by the employer at the new station. However, the period could be extended thereafter with the approval of the competent authority, if the management had not been able to provide accommodation to such employee.

4. The petitioner further contended that an employee, as the petitioner, who had been transferred from first respondent to any of its subsidiary, the concerned rule provides that such employee would be eligible for the HRA at the new station for a maximum period of six months from the date of release of the old station provided that he had taken over the duty in the new station and not been allotted accommodation by the employer Coal Company and also provided that such employee would not draw any HRA for such period at the new station.

5. From the letter of the petitioner dated November 04, 2009 being Annexure P-6 to the writ petition, it appeared that the petitioner admitted that immediately on arrival at the new station the petitioner, was put up and was provided accommodation at Sitalpur Guest House (for short, the said Guest House) by his employer. He stayed there for nine days only, for which he had duly paid the necessary charges on account of his boarding and food at the said Guest House. Since then the petitioner stayed in a Hotel at Asansol and not in the Guest House of the employer, by incurring a considerable expense. Such fact was also corroborated from paragraph 19 of the wit petition. From Annexure P-7 to the writ petition it was also evident that all the necessary charges on account of the said Guest House was duly paid by the petitioner for his stay.

6. The petitioner further contended that in view of the clear terms of the HRA Rules, the petitioner was not required to make application for obtaining an accommodation to be provided by the employer at the newly posted place and the same was the sole obligation of the employer to provide the necessary accommodation to the petitioner commensurating with his rank, by its own volition. This was an automatic process. Referring to Annexure P-3 to the writ petition it was submitted that, the employer had specifically promised that the HRA for six months on account of the petitioner had already been processed and was sent for competent approval and immediately after receiving such approval the same would be communicated to the petitioner. The petitioner was also requested to apply for accommodation and the same was promised to be provided to the petitioner after receiving necessary application from him. Referring to Annexure P-4 to the writ petition it was submitted that, the employer h