JUDGEMENT
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(1.)The decision taken by the State Government to discontinue with effect from 1-4-1994 the payment of House Rent Allowance (hereinafter referred to as 'HRA') and City Compensatory Allowance (hereinafter referred to as 'CCA') to the employees of Mangalore University and the consequential action taken by the State Government and the University to recover the excess payments made after 1-4-1994 in instalments was called in question by the respondents herein by filing Writ Petitions under Article 226. The learned single Judge of the Karnataka High Court declined to grant relief and dismissed the Writ Petitions. However, on an intra-court appeal by the aggrieved employees/association of employees, the Division Bench of the High Court reversed the order of the learned single Judge and set aside the impugned orders of the Government, thereby allowing the Writ Petitions. It is against this judgment of the Division Bench, these appeals are preferred by the State of Karnataka.
(2.)The campus of the Mangalore University which was established in the year 1980 is situated at a place called 'Konaje' which is at a distance of about 5 Kms. from the boundary of the Mangalore City Corporation. The payment of allowances - HRA and CCA to the teaching and non-teaching staff of University is regulated by the various Government Orders issued from time to time. The State Government makes the fund available to the University for meeting the expenditure towards pay and allowances of the employees. It appears that on account of inadequate housing facilities in the campus, the Government by a G.O. dated 30-11-1984 allowed the HRA and CCA to be paid to the employees residing within the City Corporation area on par with the employees working within the limits of the Corporation. Sanction for such payment was given for three years. The payment was being made in terms of the Government Order dated 30-11-1984, even after the expiry of three years. The Government by an order dated 12-10-1993 extended the benefit for one year from 1-4-1993. It is not in dispute that the payment towards HRA and CCA was made even thereafter at the same rate till the impugned orders came to be passed during the year 1996/1997 to which reference will be made a little later. While so, on the basis of the objection raised by Accountant-General, the Government reconsidered the issue and passed orders on 13-2-1996 in G.O. No. ED:42:UDK-93. It is stated therein that "since Konaje is not under the jurisdiction of Mangalore City Corporation area, HRA and CCA cannot be paid at the same rates from 1-4-1994 onwards". Accordingly, the following order was passed by the Government:-
"Employees of Mangalore University at Konaje have been exempted from the recovery of HRA and CCA paid from 1988-89 to 1992-93 only if they have been resident in the jurisdiction of Mangalore City Corporation Area.
This is subject to the condition that employees of Mangalore University at Konaje shall not be paid HRA and CCA from 1-4-1994 at the rates applicable in the Mangalore City Corporation area."
(3.)Though in the first para extracted above, recovery was waived up to 1992-93, actually such waiver was up to 31-3-1994 as is evident from what is stated in the subsequent G.O. No. ED:131:UDV:96, dated 24-5-1997. By that G.O. dated 24-5-1997 as well as earlier G.O. dated 5-3-1997 the Government directed the University authorities to recover the excess amount of HRA and CCA paid to the employees of Mangalore University w.e.f. 1-4-1994 in compliance with G.O. No. ED:42:UDK:93, dated 13-2-1996 in 100 monthly instalments as proposed by the Vice-Chancellor of Mangalore University. The suggestion of the Vice-Chancellor to reconsider the decision in the light of inclusion of Konaje within the extended area of Mangalore Urban Development Authority w.e.f. 2-12-1996 was not accepted by the Government. This led to the filing of Writ Petitions in the High Court. The legality of the orders issued by the Government on 13-2-1996, 5-3-1997 and 24-5-1997 was assailed in the Writ Petitions and a direction was sought to pay HRA and CCA to teaching and non-teaching employees of the University at the same rate as is applicable to the 'C' category city/town. It may also be mentioned at this juncture that the Vice-Chancellor of the University by his communication dated 5-3-1997 addressed to the Chief Secretary requested the Government to waive the excess payment up to 31-3-1997 and continue to pay the HRA at the same rate. It indicates that notwithstanding the G.O. dated 13-2-1996, status quo in regard to the payment of the allowances continued up to 31-3-1997 and that was the position till the date of filing of the Writ Petition in the year 1997.
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