JOSSIE Vs. FLAG OFFICERS COMMANDING IN CHIEF

JUDGEMENT

(1.) This original petition is filed challenging the order of the Central Administrative Tribunal (CAT), Ernakulam Bench, upholding the orders issued by the respondents to discontinue overtime wages was being paid on House Rent Allowance (HRA), City Compensatory Allowance (CCA), Transport Allowance (TA), Small Family Norm Allowance (SFA) etc. We have heard Senior Counsel Sri N. N. Sugunapalan, appearing for the petitioner and have also gone through the orders of the CAT, impugned in the original petition.

(2.) Petitioners are civilian employees or union representatives of such employees, employed in the Naval Establishment at Kochi. They have been getting extra wages for overtime work under Section 59(1) of the Factories Act, 1948, which is at twice the ordinary rates of wages. For payment of overtime wages in terms of Section 59(2) of the Act, respondents have been reckoning the above four items of compensatory allowances as forming part of ordinary rate of wages. However, based on the instructions issued by the Ministry of Defence, the first respondent's office issued order dated 23-7-2009 stating that the employees are not entitled to overtime wages on the four items of compensatory allowances namely, House Rent Allowance, Travelling Allowance, Small Family Norm Allowance and City Compensatory Allowance. Later, follow up orders were issued vide Ext. P-5 directing recovery of excess overtime wages paid from July, onwards. It is against these orders, the petitioners approached the Tribunal, which, following an order in the same subject issued by the Madras Bench of the Tribunal, dismissed the applications, against which this original petition is filed.

(3.) The only question to be considered is whether the four items of allowances referred to above form part of "ordinary rate of wages" as referred to in Section 59 of the Factories Act. Section 59(1) and (2) of the Factories Act reads as follows: