1984 PLP 1289 (PLC(CS))

‑‑House Rent‑Railway employees (Guard)‑Pay includes 55% running allowance for purposes of deducting house rent as 5% of pay. Syed Intisar Hussain and Hamid Mahmood Malik for Appellant, Syed Ibrar Hussain for Respondents. Date of hearing : 8th April, 1984. The two appeals captioned above arise from the decision, dated 30th November, 1982 passed by the learned Presiding Officer, Punjab Labour Court No. 9, Multan, accepting the grievance petition of the respondents. As the facts and law points involved in the two appeals are common, both the appeals are being decided together through this single judgment.

2. The respondents in the two appeals are guards. They have been provided quarters not in commensuration with their status. Previously rent at 5% of pay, subject to maximum of assessed rent was being deducted from their pay but from July, 1980 rent is being calculated at 5% of the pay plus 55% running allowance from the guards whose pay exceeds Rs. 1,

000. The claim of the respondents is that 55% running allowance cannot be included in pay for the purpose of deducting rent at 5%. The appellant relies upon letter No. 839‑E/O‑VIII‑Bill, dated 22nd June, 1980. A reference is made in the said letter to a circular No. E‑77‑P.C. 1/30, dated 1st August, 1978, which states that in view of the Supreme Court's judgment, only assessed rent be recovered from the employees to whom Payment of Wages Act applies and from the rest at 5% of pay be recovered. Payment of Wage ‑ Act applies vide its section 1 (4) to the employees employed upon Railways. Guards belonging to running staff obviously are employed upon Railway and thus vide the circular of 1978, referred to above, from them only assessed rent can be recovered. Of course from the employees whose pay exceeds Rs. 1,OOU rent at 5 y. of pay can be recovered. Learned counsel for the appellant has cited para. 1916, Chapter XIX heading Buildings and Rent of Pakistan Government Railways Code for Engineering Department, according to which, the term `emolument' has been defined to include 55% running allowance, It has been argued by the learned counsel for the respondents that the employees who have not been provided quarters and are paid house rent allowance are being treated differently. While calculating house rent allowance 55% running allowance is not included in their pay because if it is done, the rate of house rent allowance increases. This argument has no force. When for the purpose of charging rent, emoluments include 55%1 running allowance, this allowance is to be added to the pay while calculating; the rent. If by the inclusion of 55 / running allowance the pay exceeds Rs. 1,000 rent will be charged at 5% on the pay plus 55 /Q running allowance. The learned lower Court erred in holding that 55% running allowance is not part of the pay for the purpose of charging rent of quarter supplied to the guards and other running staff.

3. As a result, the appeal is accepted and setting aside the impugned decision of the learned lower Court, the grievance petitions of the respon dent are dismissed. A. E. Appeal accepted.