UNION OF INDIA Vs. SURESH C BASKEY
LAWS(SC)-1995-11-165
SUPREME COURT OF INDIA (FROM: CALCUTTA)
Decided on November 13,1995

UNION OF INDIA Appellant
VERSUS
SURESH C.BASKEY Respondents

JUDGEMENT

KULDIP SINGH - (1.) THE question before the Central Administrative Tribunal Calcutta Bench (the Tribunal) was whether the employees (workmen) working in the Government Mint, Alipur, Calcutta - who were allottees of Government accommodation and as such were not being paid house rent allowance - were entitled to compute the overtime allowance payable to them after taking into account, notionally, the element of house rent allowance. Following its earlier decision in OA 13 of 1987 (decided on 17/04/1990) the Tribunal answered the question by the impugned judgment dated 6/09/1990 in the affirmative and decided the same in favour of the employees. This appeal, by the Union of India is against the judgment of the Tribunal.
(2.) IT is not necessary for us to go into the chequered history of litigation on the question whether the employees of Government Mint were entitled to the overtime allowance. IT is not disputed before us that the employees of the Government Mint who come within the definition of workmen under the Factories Act, 1948 (the Act) are entitled to extra wages for overtime under Section 59 of the Act. IT is further not disputed that all those employees who have not been allotted Government accommodation and are in receipt of house rent allowance are entitled to commute the overtime allowance by including house rent allowance into the "ordinary rate of wages." The short question before us is whether the employees who are occupying Government accommodation and as such are not being paid house rent allowance are entitled to compute the "ordinary rate of wages" by notionally adding the amount of house rent allowance which they would have got had they not been allotted the Government accommodation. The Tribunal accepted the contention of the respondents applicants before it that they were entitled to similar relief as was given to the employees of the Government Mint in OA 13 of 1987. On the concession of the learned counsel for the Union of India, the Tribunal allowed the application by the impugned order in the following terms : "Mr. C. R. Bag very fairly concedes that the facts of this case are identical with those in OA 13 of 87 (Nirmal Ch. Bhowmich v. Union of India) In that view of the matter, we dispose of this application at the admission stage itself with a direction to the respondents to dispose of the representation of the applicants dated 8-12-86 (Annexure-C)in the light of the aforesaid two judgments and pass an appropriate order giving the same benefits within 60 days from today." We may, therefore, examine the judgment of the Tribunal in OA 13 of 1987. It would be useful to reproduce the operative part of the judgment : "It is the grievance of the applicants that although an order has been made on 11/11/1985 directing that overtime should be calculated inclusive of house rent allowance, the respondents are not implementing the same. This application has been taken out for implementation of the order dated 11/11/1984 and Mint Diary Order No.130/84 dated 26/10/1984. Mr. Samir Ghosh appearing for the applicants invites my attention to annexure 'A' of the application which is the letter dated 11/11/1985. The subject matter of this letter is "computation of overtime allowance on the basis of emoluments including house rent allowance-payment of arrears regarding ....". This letter is addressed to The General Manager India Govt. Mint, Bombay/Hyderabad/Calcutta and is written by the Under Secretary to the Govt. of India, Ministry of Finance, Department of Economic Affairs. This letter reads as follows :- "I am directed to convey the approval of the Govt. of India, Ministry of Finance, Department of Economic Affairs, for making payments of arrears of overtime allowance from 1-1-1956 on wards on the basis of emoluments including house rent allowance to the industrial employees as well as the classified staff of the India Government Mints at Bombay, Calcutta and Hyderabad. This issues with the approval of IFA in the department." The latter dated 28 the September, 1984 of the application is addressed to Shri H. N. Gupta General Manager, India Govt. Mint, Calcutta. Paragraph 1 of this letter states as follows :- "Please refer to the correspondence resting with our letter of even number dated 28/06/1984 regarding computationof O.T.A on the basis of emoluments including H.R.A. addressed to the General Manager, India Govt. Mint, a copy of which has been endorsed to you." The third letter annexed to the application is dated 26/10/1984, the subject matter of which is -"computation of overtime allowance on the basis of emoluments including house rent allowance for work between 37 1/2 and 48 hours a day" (Per week). This letter records as follows :- "Computation of overtime allowance on the basis of emoluments under consideration of the Government of India, Ministry of Finance (D.E.A) since quite some time. It has now been decided by the Government that overtime allowance will be computed on the basis of emoluments including house rent allowance with effect from 9/05/1984 for work done between 37 1/2 hours to 48 hours per week in respect of all employees of the three (3) Mints." Going through the annexures to the application, the correctness of which has not been disputed by the respondents, I have no doubt in my mind that overtime allowance payable to the applicants must be computed inclusive of house rent allowance."
(3.) THE Tribunal therefore, allowed OA 13 of 1987 in the following terms : " In view of the facts stated above this application is allowed. THE respondents are directed to give effect to the Government Order dated 11/11/1985 read with Order dated 28/09/1984 and Mint Diary Order No. 130/84 dated 26/10/1984 as appended in annexure 1A' of the application collectively, so far as the applicants are concerned the respondents are directed to draw and disburse the overtime allowance in terms of the said order. This order should be complied with within three months from date. All arrears payable to the applicant be paid to them within the said period. Matter is disposed of. THEre will be no order as to costs." Special leave petition 4854 of 1990 filed against the above quoted judgment of the Tribunal in OA 13 of 1987 was dismissed by this Court on 26/02/1990 by the following order : "We find no grounds to condone the delay. Interlocutory application for condonation of delay is dismissed. Consequently, the special leave petition is dismissed as barred by time." The judgment of the Tribunal in OA 13 of 1987 shows that the Tribunal, after quoting the three Government instructions, directed the Union of India to give effect to the said instructions. It is no doubt correct that the Government instructions specifically provide that "over-time allowance will be computed on the basis of emoluments including house rent allowance," but it is nowhere provided in the said instructions that even these employees who are occupying Government houses and as such are not being paid the house rent allowance are also entitled to include House Rent Allowance, notionally, in their wages for the purposes of computing the overtime allowance. We are of the view that on the plain reading of the instructions relied upon by the Tribunal it is not possible to interpret the same to mean that the employees of the Government Mint who are occupying Government accommodation and as such are not being paid house rent allowance are entitled to compute the overtime allowance by including the house rent allowance, notionally in their emoluments. Since the Tribunal in its judgment in OA 13 of 1987 did not interpret the Government instructions the same shall be read in the light of the interpretation given by us.;


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