HINDUSTAN STEEL LIMITED BHILAI Vs. PRESIDING OFFICER CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL- CUM - LABOUR COURT JABALPUR

JUDGEMENT

(1.) THIS is a petition by the Hindustan Steel Ltd. against an award of the Central Government Industrial Tribunal -cum- Labour Court, Jabalpur, directing that the management was not justified in charging rent for the accommodation provided by the management. The award is as follows:-

(2.) SO far as the liability to pay rent is concerned, Annexure A-l dated 2nd September 1963 and Annexure A-2 dated 23rd September 1963 clearly indicate that the rent was contemplated to be charged for these quarters when they were alloted. It must have, therefore, been known to the workers that whoever is allotted these quarters will have to pay rent when it is assessed. Ultimately, a committee was appointed to assess the fair rent for these quarters. This committee gave its report and determined that in view of the temporary nature of these quarters, instead of charging 7 per cent. rent in future should be charged at 5 per cent and for the past period up to 31st December 1965 rent would be only Rs. 3 per mensem. After this report, deduction of rent from the pay of the workers was started. An objection was raised to this deduction of rent. The representations were disallowed by the General Manager and it was clearly stated that if these few 70 workers, who were allotted these quarters, were not charged any rent, then it would be unfair to those who were not being allotted any quarters. The dispute was ultimately referred to the Tribunal, and the Tribunal has given the award as mentioned above.

(3.) UNDER the payment of Wages Act, value of house-accommodation is not a part of the "wages" as defined in section 2 (vi) and under section 7 (2)(d)rent for house-accommodation is a permissible deduction. There is, therefore, no illegality in making this deduction of rent from the wages.