PETITIONER: GOVIND BAPU SALVI AND OTHERS Vs. RESPONDENT: VISHWANATH JANARDHAN JOSHI DATE OF JUDGMENT22/09/1993 BENCH: SAWANT, P.B. BENCH: SAWANT, P.B. MOHAN, S. (J) BHARUCHA S.P. (J) CITATION: 1995 SCC Supl. (1) 148 ACT: HEADNOTE: JUDGMENT:
ORDER
1. The appellants are employees of the respondent-Mint and
are also in occupation of the official quarters. They filed
a claim under Section 33-C(2) of the Industrial Disputes
Act, 1947 before the labour court for calculating their
overtime wages on the basis of their basic wages plus the
house rent allowance to which, according to them, they were
entitled. Their contention was that even if they were
occupying the official accommodation, since under the rules
they were entitled to house rent allowance when no official
accommodation was given to them, under Section 59(2) of the
Factories Act the overtime wages payable to them should be
calculated taking into consideration the house rent
allowance as well. The labour court accepted their
contention and granted the appellants’ claim. However, in
writ petition filed by the respondents, the High Court held
that since the appellants were occupying the official
accommodation,
149
they were not entitled to the payment of the house rent
allowance within the meaning of Section 59(2) of the
Factories Act. Hence the said allowance could not to be
taken into consideration for calculating the overtime wage.
In this view of the matter, the High Court set aside the
order of the labour court and allowed the writ petition. It
is this order which is challenged before us.
2. Section 59(2) of the Factories Act reads
as follows
“59. Extra wages for overtime.- (1) ….
(2)For the purposes of sub-section ( 1)
‘ordinary rate of wages’ means the basic wage
s
plus such allowances, including the cash
equivalent of the advantage accruing through
the concessional sale to workers of foodgrains
and other articles, as the worker is for the
time being entitled to, but does not include a
bonus and wages for overtime work.”
The language of this section is very clear. It says that
the ordinary rate of wages which is referred to in sub-
section (1) of Section 59 means basic wages plus such
allowance … as the worker is for the time being entitled
to, but excludes bonus and wages for overtime work.
3.Admittedly, the appellants are not entitled to the
payment of the house rent allowance since they are occupying
the official quarters. Hence for calculating the overtime
wages, the house rent allowance cannot be taken into
account. What Section 59(2) contemplates is the eligibility
to the payment of the house rent allowance. The service
conditions envisage employees who are and who are not
provided with the official accommodation and provide for
house rent allowance only to those who are not provided with
the accommodation. The mere fact, therefore, that the
service rules provide for house rent allowance when no
accommodation is given, will not entitle the employees to
succeed in their present claim. The labour court had
obviously erred in holding otherwise. We are, therefore, in
agreement with the view taken by the High Court.
4. In this view of the matter, we dismiss the appeal with
no order as to costs. However, if the appellants are
entitled to the calculation of the overtime wages by
including house rent allowance otherwise than under Section
59(2) of the Factories Act, they are free to pursue that
claim.
150