Gujarat High Court
Association Of Sail Employees (Guj.) ... vs Steel Authority Of India Ltd. & on 19 September, 2017
Author: M.R. Shah
Bench: M.R. Shah, B.N. Karia
C/SCA/4593/2017 JUDGMENT
IN THE HIGH COURT OF GUJARAT AT
AHMEDABAD
SPECIAL CIVIL APPLICATION No. 4593 of 2017
FOR APPROVAL AND SIGNATURE :
HONOURABLE Mr. JUSTICE M.R. SHAH
and
HONOURABLE Mr. JUSTICE B.N. KARIA
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1 Whether Reporters of Local Papers may be allowed to
see the judgment ?
2 To be referred to the Reporter or not ?
3 Whether their Lordships wish to see the fair copy of the
judgment ?
4 Whether this case involves a substantial question of law
as to the interpretation of the Constitution of India or
any order made thereunder ?
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ASSOCIATION OF SAIL EMPLOYEES (GUJ.) AHMEDABAD &
2....Petitioner(s)
Versus
STEEL AUTHORITY OF INDIA LTD. & 1....Respondent(s)
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Appearance :
Mr BHUSHAN B OZA, ADVOCATE for the Petitioner(s) No. 1 - 3
Mr KEYUR GANDHI for M/s NANAVATI ASSOCIATES, ADVOCATE for the
Respondent(s) No. 1 - 2
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CORAM: HONOURABLE Mr. JUSTICE M.R. SHAH
and
HONOURABLE Mr. JUSTICE B.N. KARIA
19th September 2017
ORAL JUDGMENT (PER : HONOURABLE Mr. JUSTICE M.R. SHAH)
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1. Rule. Shri Keyur Gandhi, learned advocate appearing for Nanavati Associates and waives service of notice of rule on behalf of the respondents.
2. In the facts and circumstances of the case, the present petition is taken up for final hearing today.
3. By way of this petition preferred under Article 226 of the Constitution of India, the petitioners-Association of SAIL Employees' [Gujarat] and others have prayed for appropriate writ, order or direction, directing the respondents to forthwith make payment of House Rent Allowance @ 30% of the basic pay to the employees - existing, retired or expired of the respondents, working at Ahmedabad in Marketing Department; Finance Department; Salem Steel and Warehouse, Khodiyar w.e.f 1st April 2015 with arrears.
4. It is the case on behalf of the petitioners that the Government of India has classified/re-classified Ahmedabad as "X" Class City vide Office Memorandum No. 2/5/2014-E.II [B] dated 21st July 2015. It is the case on behalf of the petitioners that therefore, the Page 2 of 9 HC-NIC Page 2 of 9 Created On Mon Oct 02 00:17:09 IST 2017 C/SCA/4593/2017 JUDGMENT employees of the respondents working at Ahmedabad are entitled to HRA @ 30% of the basic pay. It is the case on behalf of the petitioners that despite the above and despite number of representations/requests made, the respondents have continued to pay HRA @ 20% instead of 30% of the basic pay. It is the case on behalf of the petitioners that with respect to all other Central Government employees and/or employees of other Central Government Corporations like BSNL, FCI, etc., they are being paid HRA @ 30% of their basic pay. It is submitted that therefore, the concerned employees of the respondent working at/in Ahmedabad are entitled to HRA @ 30% with effect from the date on which Ahmedabad City has been reclassified as Class "X" City.
4.1 It is also the case on behalf of the petitioners that except in the case of employees working in Ahmedabad and Pune, House Rent Allowance is paid as per the Office Memorandum issued by the Central Government ie., @ 30%. Therefore, it is the case on behalf of the Page 3 of 9 HC-NIC Page 3 of 9 Created On Mon Oct 02 00:17:09 IST 2017 C/SCA/4593/2017 JUDGMENT petitioners that there is an inaction on the part of the respondent in not paying the house rent allowance to the employees working at Ahmedabad.
4.2 Making the above submissions, it is requested to allow the present petition.
5. An affidavit-in-reply is filed on behalf of the respondent, duly affirmed by one Shri Awadhesh Kumar, working as Branch Manager with the State Authority of India Limited.
6. Shri Keyur Gandhi, learned advocate appearing on behalf of the respondent has submitted that as such, the issue with regard to HRA/revision of HRA is required to be taken up by the National Joint Committee for Steel Industry ["NJCS"]. It is submitted that the issue with regard to HRA has been discussed in the sub- committee of NJCS which has been held from time to time. It is submitted that however, NJCS is yet to finalize and submit its report in this regard. It is submitted that the reclassification of cities by the Government of India done vide Office Memorandum Page 4 of 9 HC-NIC Page 4 of 9 Created On Mon Oct 02 00:17:09 IST 2017 C/SCA/4593/2017 JUDGMENT dated 7th September 2015 will also be examined by the Committee constituted by the NJCS, since reclassification of the cities does not affect the respondents only. It is submitted that the reclassification of the cities also include other cities where plants/units of SAIL are located viz., Bokaro, Pune, Siliguri, Jhansi and Rourkela; apart from the Units located in the State of Gujarat. It is submitted that therefore, the issue with regard to reclassification needs to be applied holistically to all the Branch Offices of the respondent no.1 and not only to the Ahmedabad Branch. Therefore, it is requested not to pass any further order with regard to revision of HRA at this stage.
7. Heard learned advocates appearing on behalf of the respective parties at length.
8. At the outset, it is required to be noted that the present petition was adjourned for two to three times at the request of learned advocate appearing on behalf of the respondents so as to enable the respondents; more Page 5 of 9 HC-NIC Page 5 of 9 Created On Mon Oct 02 00:17:09 IST 2017 C/SCA/4593/2017 JUDGMENT particularly NJCS, to take appropriate decision on the revision of HRA, in light of reclassification of the cities by the Government of India done vide Office Memorandum dated 7th September 2015. However today, learned advocate appearing on behalf of the respondents has requested to pass appropriate order on merits. Under the circumstances, we are disposing of the present writ petition on merits.
9. It is not in dispute that in view of the Office Memorandum dated 7th September 2015 issued by the Government of India, Ahmedabad city is reclassified in category "X". It is not in dispute that the employees working in the cities classified in category "X" are entitled to HRA @ 30% of the basic pay. It is also not in dispute that the employees of the respondent-Steel Authority of India are also governed and are required to be paid HRA, as per reclassification of the cities done by the Government of India vide Office Memorandum dated 7th September 2015. Despite the fact that the Government of India has reclassified Ahmedabad in Page 6 of 9 HC-NIC Page 6 of 9 Created On Mon Oct 02 00:17:09 IST 2017 C/SCA/4593/2017 JUDGMENT category "X" city since 15th September 2015, the employees of the respondent working in/at Ahmedabad are being paid HRA @ 20% instead of 30% of their basic pay. More than two years have passed, still for whatever reasons, NJCS has not taken any decision and/or not taken any final decision. The resultant effect would be that there is a permanent loss of 10% of basic pay to all the concerned employees. Merely because NJCS is yet to take a decision, is no ground to deny legitimate claim of the concerned employees; which otherwise they are entitled to, as per the Office Memorandum dated 7th September 2015 issued by the Government of India. At this stage, it is required to be noted that all other Central Government organizations/departments like BSNL, FCI, etc., have already implemented and started paying HRA to their employees as per the reclassification of the cities done by the Government of India vide Office Memorandum dated 7th September 2015. Even financial constraints also may not be a ground to deny them their legitimate Page 7 of 9 HC-NIC Page 7 of 9 Created On Mon Oct 02 00:17:09 IST 2017 C/SCA/4593/2017 JUDGMENT claim; more particularly when even as per the respondents, there are only 80 employees working in Ahmedabad.
10. In view of the above and for the reasons aforestated, the present writ petition succeeds. The respondents herein are hereby directed to pay House Rent Allowance to the employees of the respondent no. 1 at Ahmedabad @ 30% of their basic pay, as per reclassification of the cities made by the Government of India vide Office Memorandum dated 7th September 2015. The arrears of HRA from October 2015 till September 2017 be calculated and paid to all the concerned employees working in Ahmedabad; including those who have retired on attaining the age of superannuation, within a period of three months from today. However, the existing employees at Ahmedabad be paid HRA @ 30% commencing from October 2017 onwards.
Rule nisi made absolute accordingly. No costs. Direct service is permitted.
Page 8 of 9 HC-NIC Page 8 of 9 Created On Mon Oct 02 00:17:09 IST 2017 C/SCA/4593/2017 JUDGMENT [M.R Shah, J.] [B.N Karia, J.] Prakash Page 9 of 9 HC-NIC Page 9 of 9 Created On Mon Oct 02 00:17:09 IST 2017