(1.) Petitioners have approached this Court praying for quashing of the order dated 8.3.2011 (Annexure P-8) vide which the claim of the petitioners to grant them House Rent Allowance (for short HRA) at the rate of 7.5% of the basic pay stands declined on the ground that when the notification dated 9.1.1998 (Annexure P-2) was issued by the State of Punjab, the population of city Jagraon was less than 50000 and, therefore, fell in the category of unclassified towns and the employees of such towns were entitled to 5% HRA of the basic pay. Counsel for the petitioners placing reliance upon the details of the population of Jagraon city as given by the Secretary, Municipal Council, Jagraon dated 25.5.1998 (Annexure P-4) which stated that it was 60,582. His contention, thus, is that since the year 1998, the population of the city Jagraon is more than 50000, therefore, the city should have been classified as 'C' entitling the petitioners to the claim of 7.5% of the basic pay as HRA. In any case, he contends that Government of India carried out a census in the year 2001 and according to that census also, the population of Jagraon city is 60080 which comes to be more than 50000 entitling the city to be declared as 'C' class which would, therefore, entitle the petitioners to claim the benefit of 7.5% of the basic pay as HRA at least with effect from the year 2001. Accordingly, he contends that the impugned order deserves to be quashed and the writ petition allowed.
(2.) On the other hand, counsel for the respondents contends that the notification dated 9.1.1998 was issued by the respondents in the light of the recommendations made in the 4th Pay Commission which came into effect from 1.1.1996. As per the said recommendations of the 4th Pay Commission, the population of the city was to be taken from 1.1.1996 and on the said date, the population of Jagraon City was less than 50000 as the year, which was taken as the base year for classifying the cities, was 1991 when the census was held by the Government of India.
(3.) It is the further contention of the counsel for the respondents that the new recommendations of the 5th Pay Commission were made effective and since then Jagraon city has been classified as 'C' category entitling the employees posted there to the grant of 12.5% of the basic pay as HRA w.e.f. 01.08.2009. The said benefit has already been granted to the petitioners in accordance with law and, therefore, the writ petition deserves to be dismissed.