{"id":174162,"date":"1995-11-13T00:00:00","date_gmt":"1995-11-12T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/union-of-india-ors-vs-suresh-c-baskey-on-13-november-1995"},"modified":"2015-11-25T01:26:56","modified_gmt":"2015-11-24T19:56:56","slug":"union-of-india-ors-vs-suresh-c-baskey-on-13-november-1995","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/union-of-india-ors-vs-suresh-c-baskey-on-13-november-1995","title":{"rendered":"Union Of India & Ors vs Suresh C. Baskey & … on 13 November, 1995"},"content":{"rendered":"
Supreme Court of India<\/div>\n
Union Of India & Ors vs Suresh C. Baskey & … on 13 November, 1995<\/div>\n
Equivalent citations: 1996 AIR 849, \t\t JT 1995 (9)\t661<\/div>\n
Author: K Singh<\/div>\n
Bench: Kuldip Singh (J)<\/div>\n
           PETITIONER:\nUNION OF INDIA & ORS.\n\n\tVs.\n\nRESPONDENT:\nSURESH C. BASKEY & ORS.ETC.ETC.(WITH C.A. NO. 4347\/1993 & SL\n\nDATE OF JUDGMENT13\/11\/1995\n\nBENCH:\nKULDIP SINGH (J)\nBENCH:\nKULDIP SINGH (J)\nHANSARIA B.L. (J)\n\nCITATION:\n 1996 AIR  849\t\t  JT 1995 (9)\t661\n 1995 SCALE  (6)328\n\n\nACT:\n\n\n\nHEADNOTE:\n\n\n\nJUDGMENT:\n<\/pre>\n
\t\t      J U D G M E N T
\nKuldip Singh,J.\n<\/p>\n
     The question before the Central Administrative Tribunal
\nCalcutta Bench\t(the Tribunal)\twas  whether  the  employees
\n(workmen) working in the Government-Mint, Alipur, Calcutta –
\nwho were  allottees of\tGovernment accommodation and as such
\nwere not  being paid house rent allowance – were entitled to
\ncompute the over-time allowance payable to them after taking
\ninto  account,\t nationally,  the   element  of\t house\trent
\nallowance. Following  its earlier  decision in OA 13 of 1987
\n(decided on  April  17,\t 1990)\tthe  Tribunal  answered\t the
\nquestion by the impugned judgment dated September 6, 1990 in
\nthe affirmative\t and decided  the  same\t in  favour  of\t the
\nemployees. This appeal, by the Union of India is against the
\njudgment of the Tribunal.\n<\/p>\n
     It is  not necessary  for us  to go  into the chequered
\nhistory of  litigation on the question whether the employees
\nof Government-Mint were entitled to the over-time allowance.
\nIt is  not disputed  before us\tthat the  employees  of\t the
\nGovernment-Mint who  come within  the definition  of workmen
\nunder the  Factories Act,  1948 (the  Act) are\tentitled  to
\nextra wages for over-time under Section 59 of the Act. It is
\nfurther not  disputed that  all those employees who have not
\nbeen allotted Government accommodation and are in receipt of
\nhouse rent  allowance are  entitled to commute the over-time
\nallowance  by\tincluding  house  rent\tallowance  into\t the
\n“ordinary rate\tof wages.”  The short  question before us is
\nwhether\t the   employees  who\tare   occupying\t  Government
\naccommodation and  as such  are not  being paid\t house\trent
\nallowance, are\tentitled to  compute the  “ordinary rate  of
\nwages”\tby  nationally\tadding\tthe  amount  of\t house\trent
\nallowance which\t they would  have got,\thad  they  not\tbeen
\nallotted the Government accommodation.\n<\/p>\n
     The   Tribunal   accepted\t the   contention   of\t the
\nrespondents-applicants before  it that they were entitled to
\nsimilar\t relief\t as  was  given\t to  the  employees  of\t the
\nGovernment-Mint in  OA 13  of 1987. On the concession of the
\nlearned counsel for the Union of India, the Tribunal allowed
\nthe application by the impugned order in the following terms
\n     “Mr. C.R.\tBag very fairly concedes that
\n     the facts\tof this\t case  are  identical
\n     with those\t in OA\t13 of  87 (Nirmal Ch.\n<\/p>\n
     Bhowmich & Ors VS Union of India & Ors)
\n\t  In that  view\t of  the  matter,  we
\n     dispose  of   this\t application  at  the
\n     admission stage  itself with a direction
\n     to the  respondents to  dispose  of  the
\n     representation of\tthe applicants\tdated
\n     8.12.86 (Annexure-C) in the light of the
\n     aforesaid\ttwo  judgments\tand  pass  an
\n     appropriate  order\t  giving   the\t same
\n     benefits within 60 days from today.”\n<\/p>\n
     We may, therefore, examine the judgment of the Tribunal
\nin OA  13 of  1987. It\twould be  useful  to  reproduce\t the
\noperative part of the judgment:\n<\/p>\n
     “It is  the grievance  of the applicants
\n     that although  an order has been made on
\n     11th  November,   1985  directing\t that
\n     overtime should  be calculated inclusive
\n     of house rent allowance, the respondents
\n     are  not  implementing  the  same.\t This
\n     application  has\tbeen  taken  out  for
\n     implementation of\tthe order  dated 11th
\n     November, 1985  read  with\t order\tdated
\n     28th  September,  1984  and  Mint\tDiary
\n     Order  No.130\/84\tdated  26th  October,
\n     1984.\n<\/p><\/blockquote>\n
\t  Mr. Samir  Ghosh appearing  for the
\n     applicants\t invites   my  attention   to
\n     annexure  `A’   at\t page\t22   of\t  the
\n     application which\tis the\tletter\tdated
\n     11th November,  1985. The subject matter
\n     of\t this\tletter\tis   “Computation  of
\n     Overtime  allowance   on  the  basis  of
\n     emoluments\t   including\thouse\t rent
\n     allowance\t –    payment\tof    arrears
\n     regarding…”. This  letter is addressed
\n     to\t The  General  Manager,\t India\tGovt.
\n     Mint, Bombay\/Hyderabad\/Calcutta  and  is
\n     written by\t the Under  Secretary to  the
\n     Govt. Of  India,  Ministry\t of  Finance,
\n     Department\t of  Economic  Affairs.\t This
\n     letter reads as follows:-\n<\/p><\/blockquote>\n
\t  “I  am   directed  to\t  convey  the
\n     approval of the Govt. of India, Ministry
\n     of\t Finance,   Department\tof   Economic
\n     Affairs, for  making payments of arrears
\n     of\t overtime   allowance  from  1.1.1956
\n     onwards  on   the\tbasis  of  emoluments
\n     including house  rent  allownce  to  the
\n     industrial\t employees  as\twell  as  the
\n     classified staff of the India Government
\n     Mints at Bombay, Calcutta and Hyderabad.\n<\/p><\/blockquote>\n
\t       xx    xx\t   xx
\n\t  This issues  with the\t approval  of
\n     IFA in  the department  vide their\t U.O.
\n     No. 3825\/IFA\/85 dated 7.11.1985.”
\n     The letter dated 28th September, 1984 at
\n     page 23  of the application is addressed
\n     to Shri  H.N.  Gupta,  General  Manager,
\n     India Govt.  Mint, Calcutta. Paragraph 1
\n     of this letter states as follows:-
\n\t  “Please refer to the correspondence
\n     resting with  our letter  of even number
\n     dated   28th    June,   1984   regarding
\n     computation of  O.T.A on  the  basis  of
\n     emoluments including H.R.A. addressed to
\n     the General Manager, India Govt. Mint, a
\n     copy of which has been endorsed to you.”
\n     The  third\t  letter   annexed   to\t  the
\n     application at  page 24  is  dated\t 26th
\n     October, 1984,  the  subject  matter  of
\n     which  is\t–  “Computation\t of  overtime
\n     allowance on  the\tbasis  of  emoluments
\n     including house  rent allowance for work
\n     between 37 1\/2 and 48 hours a day”. This
\n     letter records as follows:-
\n\t  “Computation of  overtime allowance
\n     on the  basis  of\temoluments  including
\n     house   rent    allowance\t was\tunder
\n     consideration  of\t the  Government   of
\n     India,  Ministry\tof  Finance  (D.E.A.)
\n     since quite  some time.  It has now been
\n     decided by\t the Government that overtime
\n     allowance will  be computed on the basis
\n     of\t emoluments   including\t house\t rent
\n     allowance with effect from 9th May, 1984
\n     for work done between 37 1\/2 hours to 48
\n     hours  per\t  week\tin   respect  of  all
\n     employees of the three (3) Mints.” Going
\n     through\tthe    annexures    to\t  the
\n     application, the  correctness  of\twhich
\n     has   not\t  been\t disputed    by\t  the
\n     respondents, I  have no doubt in my mind
\n     that overtime  allowance payable  to the
\n     applicants must be computed inclusive of
\n     house rent allowance.”<\/p><\/blockquote>\n
     The Tribunal,  thereafter, allowed OA 13 of 1987 in the
\nfollowing terms :\n<\/p>\n
     “In view of the facts stated above, this
\n     application is  allowed. The respondents
\n     are  directed  to\tgive  effect  to  the
\n     Government Order  dated  11th  November,
\n     1985  read\t  with\t order\t dated\t 28th
\n     September, 1984  and  Mint\t Diary\tOrder
\n     No.130\/84 dated  26th October,  1984, as
\n     appended  in   annexure   `A’   of\t  the
\n     application collectively,\tso far as the
\n     applicants are concerned the respondents
\n     are directed  to draw  and disburse  the
\n     overtime allowance\t in terms of the said
\n     order. This  order\t should\t be  complied
\n     with within  three months from date. All
\n     arrears payable to the applicant be paid
\n     to them within the said period.
\n\t  Matter is  disposed of.  There will
\n     be no order as to costs.”\n<\/p><\/blockquote>\n
Special leave  petition 4854 of 1990 filed against the above
\nquoted judgment\t of the\t Tribunal  in  OA  13  of  1987\t was
\ndismissed  by  this  Court  on\tFebruary  26,  1990  by\t the
\nfollowing order:\n<\/p>\n
     “We  find\tno  grounds  to\t condone  the
\n     delay.  Interlocutory   application  for
\n     condonation  of   delay  is   dismissed.
\n     Consequently, the special leave petition
\n     is dismissed as barred by time.”<\/p><\/blockquote>\n
     The judgment  of the  Tribunal in\tOA 13  of 1987 shows
\nthat  the  Tribunal,  after  quoting  the  three  Government
\ninstructions, directed\tthe Union of India to give effect to
\nthe said  instructions. It  is no  doubt  correct  that\t the
\nGovernment instructions specifically provide that “over-time
\nallowance will\tbe  computed  on  the  basis  of  emoluments
\nincluding house rent allowance”, but it is no where provided
\nin the\tsaid instructions  that even those employees who are
\noccupying Government  houses and  as such are not being paid
\nthe house rent allowance, are also entitled to include House
\nRent Allowance,\t nationally, in their wages for the purposes
\nof computing  the over-time  allowance. We  are of  the view
\nthat on the plain reading of the instructions relied upon by
\nthe Tribunal  it is  not possible  to interpret\t the same to
\nmean that  the employees  of  the  Government-Mint  who\t are
\noccupying Government accommodation and as such are not being
\npaid house rent allowance, are entitled to compute the over-
\ntime allowance\tby including  the  house  rent\tallowance  –
\nnationally –  in their emoluments. Since the Tribunal in tis
\njudgment in  OA 13  of 1987 did not interpret the Government
\ninstructions the  same shall  be read  in the  light of\t the
\ninterpretation given by us.\n<\/p>\n
     This Court on July 26, 1994 passed the following order:
\n     “C.A. No.1837\/91 This appeal is directed
\n     against  the  judgment  of\t the  Central
\n     Administrative Tribunal,  Calcutta Bench
\n     dated  September\t6,   1990   in\t O.A.\n<\/p>\n
     No.983\/90. The  Tribunal in  turn relied
\n     upon  its\t earlier  judgment   in\t O.A.\n<\/p>\n
     No.13\/87 decided  on September  1, 1989.
\n     Special  Leave   Petition\tagainst\t  the
\n     judgment  of   the\t Tribunal   in\t O.A.\n<\/p>\n
     No.13\/87 was  dismissed by this Court on
\n     the ground of delay.\n<\/p>\n
\t  Since this  Court has granted leave
\n     to appeal\tagainst the  judgment of  the
\n     Calcutta Bench  in O.A.  No.983\/90,  the
\n     matter has\t to  be\t finally  decided  on
\n     merits. There  is a  connected appeal on
\n     the same  point from the judgment of the
\n     Central Administrative Tribunal, Bombay.
\n\t  We are Prima facie of the view that
\n     any decision  on  merits  in  these  two
\n     appeals  is   likely   to\t affect\t  the
\n     respondents in  SLP (C)… (CC No.23481)
\n     filed  against   the  judgment   of  the
\n     Central\t Administrative\t    Tribunal,
\n     Calcutta Bench,  in O.A.  No.13\/87.  The
\n     Special leave  petition was dismissed on
\n     the ground\t of  delay  on\tFebruary  26,
\n     1990. We  direct the  Registry to\tissue
\n     notices to\t the respondents in S.L.P.(C)
\n     No…(CC No.23481)\t which was  dismissed
\n     on February  26, 1990.  The notice shall
\n     be returnable  on September 7, 1994. The
\n     Union of  India to\t obtain dasti process
\n     in addition to serve those respondets”.
\n     In response  to the  above\t quoted\t order,\t Nirmal\t Ch.
\nBhowmich has filed affidavit on behalf of the respondents in
\nSLP 4854\/90.\n<\/p>\n
     We have heard learned counsel for the parties. We agree
\nwith the contention of the learned counsel for the appellant
\nthat a\tbare reading  of the  Government instructions relied
\nupon by the Tribunal goes to show that the said instructions
\ndo  not\t give  any  right  to  the  respondents\t and  others
\nsimilarly situated to have the house rent amount included in
\ntheir emoluments  for the  purpose  of\tcomputing  over-time
\nallowance.\n<\/p>\n
     Even otherwise  the Government  instructions have to be
\nread in conformity with the provisions of the Act. The claim
\nof the respondents for grant of over-time allowance is based
\non Section 59 of the Act. Sub-Section (1) and (2) of Section
\n59 of the Act, which are relevant, are as under :\n<\/p>\n
     “Extra wages for over-time – (1) Where a
\n     worker works  in a factory for more than
\n     nine hours\t in any\t day or for more than
\n     forty eight hours in any week, he shall,
\n     in respect of overtime work, be entitled
\n     to\t wages\tat  the\t rate  of  twice  his
\n     ordinary rate of wages.\n<\/p><\/blockquote>\n
\t  (2) For the purposes of sub-section
\n     (1), `ordinary  rate of wages’ means the
\n     basic  wages   plus   such\t  allowances,
\n     including the  cash  equivalent  of  the
\n     advantage\t  accruing     through\t  the
\n     concessional   sale    to\t workers   of
\n     foodgrains and  other articles,  as  the
\n     worker is\tfor the\t time being  entitled
\n     to, but  does not\tinclude a  bonus  and
\n     wages for overtime work”.<\/p><\/blockquote>\n
     The over-time allowance has to be computed on the basis
\nof the\t“ordinary rate of wages”. Sub-section (2) of Section
\n59 of  the Act\tdefines “ordinary rate of wages” to mean the
\nbasic wages  plus such\tallowances as  the worker is for the
\ntime being  entitled to,  but does not include the bonus and
\nwages for  over-time work. In other words, the ordinary rate
\nof wages  is the  basic wages plus the allowances to which a
\nworker is  entitled for\t the time  being. If a worker is not
\nentitled to  a\tparticular  allowance  the  same  cannot  be
\nincluded in  the “ordinary  rate of  wages”. In\t the present
\ncase, admittedly,  the respondents  are not  entitled to the
\nhouse rent allowance and as such the same cannot be included
\nwhile determining  the ordinary\t rate of  wages. It would be
\nwholly fallacious to include an allowance `nationally’ which
\nhas been  excluded  specifically.  The\tlegislature  in\t its
\nwisdom\tincluded   the\tcash  equivalent  of  the  advantage
\naccruing  through   the\t concessional  sale  to\t workers  of
\nfoodgrains and other articles in the definition of “ordinary
\nrate of\t wages’. The  legislature has not done so in respect
\nof the house rent allowance.\n<\/p>\n
     We respectfully  agree with  the law  laid down by this
\nCourt  in  Govind  Bapu\t Salvi\tand  Others  vs.  Vishwanath
\nJanardhan Joshi and Others<\/a> 1995 Supp. (1) SCC 148 and in The
\nMaster of the Mint vs. Kashi Nath Dutta and another, in C.A.
\nNos. 2376-2377\/77 decided on October 31, 1995.\n<\/p>\n
     We are  inclined to  agree with the learned counsel for
\nthe  appellant\t that  despite\tthe  respondents  getting  a
\nslightly lessor\t rate for  computing the over-time allowance
\nthey are  placed in  an advantageous position as compared to
\nthose who are not in occupation of Government accommodation.
\nIn the\tadditional affidavit filed on behalf of the Union of
\nIndia,\tmultiple  benefits  which  accrue  to  a  Government
\nemployee, who  is allotted  Government\taccommodation,\thave
\nbeen shown as under :\n<\/p>\n
     “Government\t\tPrivate
\n     Accommodation\t       Accommodation
\n     (1) Nominal Licence fee  exorbitant rent
\n      upto 10% of basis pay    incremental at
\n\t\t\t       the mercy of
\n\t\t\t       landlord.\n<\/p><\/blockquote>\n
     (2) No HRA payable\t      -HRA admissible
\n\t\t\t     approx Rs. 250\/-\n<\/p><\/blockquote>\n
\t\t\t    for this category
\n\t\t\t    of employees.\n<\/p><\/blockquote>\n
     (3) In the vincity of  -Far from Mint.<\/p><\/blockquote>\n
\n     (4) No expenditure\t   -some expenditure\n\t on transport.\t   on transport and\n\t\t\t   inconvenience.\n<\/pre>\n
     (5) Little time taken -some time taken
\n\t to reach Mint\t   to reach Mint.<\/p><\/blockquote>\n
     (6) Free maintenance  -minor maintenance
\n\t by
\n     Government\t\t   has to be attended
\n\t\t\t   by the allottee –\n<\/p>\n
\t\t\t   all other mainten-\n<\/p>\n
\t\t\t   ance by the land-\n<\/p>\n
\t\t\t   lord at his
\n\t\t\t   convenience.\n<\/p>\n
     (7) One can live till -at the mercy of
\n\t age of superannu-  landlord.\n<\/p>\n
\t ation and 6 months
\n\t thereafter.<\/p>\n
     (8) In case of ‘die in  -No such
\n\t harness’ the quarte provisions
\n\t is allotted to\t     exists.\n<\/p>\n
\t deceased dependent.\n<\/p>\n
     We, therefore,  hold that\tthe respondents\t and  others
\nemployees  of\tthe  Government-Mint   who   are   occupying
\nGovernment accommodation  are not  entitled to\tinclude\t the
\nhouse rent  allowance as  a part  of the  “ordinary rate  of
\nwages” for computing the over-time allowance.\n<\/p>\n
     We allow  the appeals, set aside the impugned judgments
\nof the\tTribunal. We, however, direct that the respondets or
\nother employees\t of the\t Government-Mint similarly  situated
\nwho have  already been\tpaid over-time allowance in terms of
\nthe Tribunal  judgments shall  not be  asked to\t refund\t the
\nsame.\n<\/p>\n
     In OA  13\tof  1987  the  Tribunal\t directed  that\t the
\nGovernment instructions\t relied\t upon  by  the\tTribunal  be
\nimplemented.  Since   we  have\tinterpreted  the  Government
\ninstructions and  also the  provisions of  Section 59 of the
\nAct, it\t would be  in the  interest of\tjustice that the law
\nlaid down  by us  be made applicable to the applicants in OA
\n13 of  1987 (respondents  in SLP 4854\/90) prospectively from
\nthe date of this judgment. No costs.<\/p>\n","protected":false},"excerpt":{"rendered":"
Supreme Court of India Union Of India & Ors vs Suresh C. Baskey & … on 13 November, 1995 Equivalent citations: 1996 AIR 849, JT 1995 (9) 661 Author: K Singh Bench: Kuldip Singh (J) PETITIONER: UNION OF INDIA & ORS. Vs. RESPONDENT: SURESH C. BASKEY & ORS.ETC.ETC.(WITH C.A. NO. 4347\/1993 & SL DATE OF […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-174162","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"\nUnion Of India & Ors vs Suresh C. 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