The main legal point established in the judgment is that the 'no accommodation certificate' is a mandatory requirement for the grant of House Rent Allowance, and employees are not entitled to HRA without fulfilling this condition.

Judgment

Heard.

2. Order dated 18-4-2012 passed by Central Administrative Tribunal, Jabalpur Bench, Jabalpur is being assailed vide this petition under Article 227 of the Constitution of India; whereby claim by respondents for House Rent Allowance from the day they vacated the factory accommodation has been allowed.

3. The respondents are High Skilled employees in Ordnance Factory, Khamaria. While living in Government accommodation allotted to them, they got their individual houses constructed and they shifted in these houses after vacating the government accommodation on 5-12-2005, 8-6-2006, May 2003, 28-1-2005 and 21-5-2006 respectively. Applications were filed by respective respondents for grant of House Rent Allowance but were declined by the petitioners (respondents in Original Application) on the ground that respondents have failed to produce "No Accommodation Certificate".

4. The no accommodation certificate was required, as per the petitioners, because unless established that due to non-availability of government accommodation the employees are required to live in their own accommodation in a rented accommodation, they are not entitled for the house rent allowance. And the same being an allowance and not an element of pay, the condition precedent unless fulfilled did not entitle them for the house rent allowance.

5. The respondents being aggrieved, preferred original application before the Tribunal who by order dated 8-2-2011 allowed the claim of the respondents solely on the ground of promissory estoppel, that, employees having constructed the houses after availing the loan and prior permission would bind the employer. This order, however was set aside by a Division Bench of this Court in W.P. No. 6263/2011 (S) on 25-4-2011 holding that in absence of pleading relating to promissory estoppel, the Tribunal was not justified in allowing the application only on the basis of principle of Promissory Estoppel. The matter was remitted for decision afresh.

6. On remand, the Tribunal by impugned order has allowed the application directing the petitioners herein to grant HRA to the respondents from the date they vacated the government accommodation along with interest @9% per annum if the amount is not paid within 60 days and cost of? 500/-.

7. The Tribunal to arrive at the conclusion in favour of respondents workmen relied upon: (i) ratio of order dated 9-2-2012 in O.A. No. 117/2009, (ii) circular dated 9-4-2003; (iii) letter dated 2-4-2009 and (iv) letter dated 16-11-2009.

8. The employer being aggrieved by the order has filed this petition, assailing the order by. Tribunal on the ground that the Tribunal has committed grave folly in adjudicating the claim in favour of workmen on the basis of superseded circular and contrary to the General Rules and orders issued in respect of entitlement of House Rent Allowance.

9. Contentions and counter-contentions were putforth for and against the claim for House Rent Allowance. Whereas, the petitioners employer placing reliance on various circulars had putforth that the Tribunal erred in granting the claim in absence of no accommodation certificate, an imperative precondition for the said grant. The employees on their part placing reliance on the instances wherein certain employees have been given the House Rent Allowance who are residing in private houses, supports the decision by the Tribunal. The employer during course of hearing have, however, denied the allegation that, the house rent allowance is being paid without obtaining the No Accommodation Certificate.

10. Issue which crops up for consideration is whether a no accommodation certificate is a condition precedent for grant of House Rent Allowance.

11. The House Rent Allowance, trite it is, is not a part of wages but is a compensatory allowance as defined under Fundamental Rule 44, which stipulates :-

"F.R. 44. Compensatory allowance. - Subject to the general rule that the amount of compensatory allowance should be so regulated that the allow