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1972 Supreme(Del) 40

High Court Of Delhi
NATIONAL SIDS CORPORATION EMPLOYEES UNION - Appellant
Versus
NATIONAL SEEDS CORPORATION LIMITED - Respondent
Civil 27 of 1972
Decided On : 02/08/1972

Advocates Appeared:
B.S.Charya, K.C.Sharma

A writ of mandamus cannot be issued to a company registered under the Companies Act, 1956, and house rent allowance is not wages within the meaning of the Industrial Disputes Act, 1947.

Headnote:

HOUSE RENT ALLOWANCE - NATIONAL SEEDS CORPORATION - INDUSTRIAL DISPUTES ACT, 1947 - SECTION 9A - MANDAMUS - WRIT OF MANDAMUS CANNOT BE ISSUED TO A COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956 - HOUSE RENT ALLOWANCE IS NOT WAGES WITHIN THE MEANING OF THE INDUSTRIAL DISPUTES ACT, 1947 - PETITION DISMISSED.

Fact of the Case:

The National Seeds Corporation Employees Union and its General Secretary filed a petition under Article 226 of the Constitution of India, seeking a writ of mandamus directing the National Seeds Corporation to restore the enhanced house rent allowance that was withdrawn by an office order dated 1st January, 1972. The petitioners contended that the enhanced house rent allowance formed part of the wages as defined by the Industrial Disputes Act, 1947, and that the withdrawal of the allowance without complying with the provisions of Section 9a of the Act was arbitrary, illegal, and against the principles of natural justice.

Finding of the Court:

The court held that a writ of mandamus cannot be issued to a company registered under the Companies Act, 1956, as the company is not a person or authority to whom a writ can be issued under Article 226 of the Constitution. The court further held that house rent allowance is not wages within the meaning of the Industrial Disputes Act, 1947, and that the withdrawal of the enhanced house rent allowance did not violate Section 9a of the Act.

Issues: 1. Whether a writ of mandamus can be issued to a company registered under the Companies Act, 1956? 2. Whether house rent allowance is wages within the meaning of the Industrial Disputes Act, 1947?

Ratio Decidendi: 1. A writ of mandamus can only be issued to a person or authority to whom, according to well-established principles, a writ would issue. A company registered under the Companies Act, 1956, is not a person or authority to whom a writ can be issued. 2. House rent allowance is not wages within the meaning of the Industrial Disputes Act, 1947. The Act defines wages as "all remuneration capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a workman in respect of his employment or of work done in such employment, and includes house rent allowance, but does not include- (i) the value of any housing accommodation, supply of light, water, medical attendance or other amenity or any service excluded by agreement or contract of service from the computation of wages, (ii) any contribution paid by the employer to any pension fund or provident fund or for the benefit of the workman under any law for the time being in force, (iii) any travelling allowance or the value of any travelling concession, (iv) any sum paid to the workman to defray special expenses entailed on him by the nature of his employment, (v) any gratuity payable on discharge, (vi) any commission payable to a workman."

Final Decision: The petition was dismissed.

Prakash Narain, J.

( 1 ) THIS petition under Article 226 of the Constitution of India has been filed by two petitioners, namely, The National Seeds Corporation Employees Union through its General Secretary and Shri J. P. Singh, the General Secretary of the first petitioner against the National Seeds Corporation, F-44/a, South Extension, Part-1, New Delhi through its Chairman. By this petition a prayer is made for the issuance of a writ of mandamus against the respondent-corporation directing it to restore the enhanced house-rent allowance which the employees of the respondent were getting by virtue of a resolution passed at the 45th meeting of the Board of Directors of the respondent-corporation on 27th September, 1971. The benefit of the enhanced houserent allowance was made applicable to the employees of the respondent w. e. f. 1st October, 1971. This order was revoked by an office order No. 741 (Part-I) issued on 1st January, 1972. Aggrieved by the said order of revocation the petitioners have come to this court and challenged the order dated 1st January, 1972 as being arbitrary, illegal, capricious, against the principles of A natural justice and passed in violation of the provisions of Section 9a of the Industrial Disputes Act, 1947.

( 2 ) ACCORDING to the petitioners the payment of house-rent allowance is compulsory in terms of the rules of service applicable to the employees of the respondent and it is contended that the house-rent allowance forms part of the wages as defined by the Industrial Disputes Act, 1947. The contention is that inasmuch as the terms of service of the employees of the respondent have been changed to their detriment without the respondent complying with the provisions of the Industrial Disputes Act, 1947, the said order dated 1st January, 1972 be struck down and a mandamus be issued to the respondent directing it to restore the payment of house-rent allowance at the enhanced rate.

( 3 ) NOTICE to show cause why the petition should not be admitted was issued to the respondent which filed a reply in opposition to the admission of the writ petition. The petitioners filed a rejoinder thereto. In the reply filed on behalf of the respondent it was contended that the respondent being a company registered under the Companies Act, 1956, no writ of mandamus could be issued to it; that inasmuch as the respondent had adopted all Government rules and Regulations including Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary) Rules, Revised Leave Rules, Civil Services Regulations etc. , the provisions of Section 9a of the Industrial Disputes Act would not be attracted in the case of the respondent-, that assuming that Section 9a of the Industrial Disputes Act is attracted to the facts of the case, the petitioners have the alternative remedy of raising an industrial dispute and so, should not be allowed to invoke the writ jurisdiction of the High Court; that house-rent allowance is being paid to the employees of the respondent but the enhanced house-rent allowance adopted by resolution No. 16 in the 45th meeting of the Board of Directors of the respondent and held on 27th September, 1971, is to remain inoperative in view of the grave situation created in the country by influx of refugees from Bangla Desh and need to conserve money; the respondent being a public-sector enterprise has to follow instructions received from the Government of India from time to time in various matters particularly, with regard to finance; that the enhanced house-rent allowance was agreed to also in view of Governmental instructions and has been kept in abeyance again in view of Governmental instructions; that the order revoking the earlier decision to increase the house-rent allowance was neither arbitrary nor illegal nor capricious nor against the principles of natural justice; and that the house-rent 5-1 H. C. Delhi/72 allowance was a fringe benefit and not wages















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