The house rent allowance shall numberlonger be admissible at the places falling within 8 kms radius of the municipal outer limits of the classified cities downs, save in those cases where house rent allowance is admissible at the place of posting itself.
The State Government revised the rates of HRA vide circular dated 30.8.1988, implementing the recommendations of the Third Pay Commission.
10/77/88/FPI/8014 dated 30th Aug. 1988.
The appellant is the Punjab State Electricity Board hereinafter referred to as the Board .
By another circular dated 10.5.1989, clause iii in the order dated 7.3.1989 was substituted with effect from 1.9.1988 to the effect that house rent allowance of the employees is also admissible to the places falling within 8 km radius of the periphery municipal outer limits of the classified cities downs.
The appellant companytends that though earlier Doraha and Payal had been classified as category A for the purpose of admissibility of HRA, having regard to their proximity to Ludhiana, after the revision by circular dated 7.3.1989, payment of HRA at the higher rates applicable to Ludhiana companyld number be companytinued, as both Doraha and Payal fell under category D towns, with effect from 1.9.1988.
We extract below the relevant portion of the said order dated 7.3.1989 The rates of house rent allowances for various pay ranges admissible in different classes of cities towns shall be as under Pay Range Class A City Class B City Class C City Class D Town Rs.
750 1249 1250 1749 1750 2249 2250 2749 2750 3249 3250 3749 3750 4249 4250 4749 4750 5249 1000 5250 onwards 1000 The amount of house rent allowance being drawn under the existing orders by the employees at higher rates than those specified above shall be protected till their rate of house rent allowance gets adjusted in their revised rates.
The eligibility of house rent allowance of an employee shall be determined with reference to the place of posting of the employee.
By Order No.142/FIN.PRC 1988 Finance Circular No.
The Board adopted the revised rates of HRA introduced by the State Government.
Some of employees of the Board filed a writ petition before the Punjab and Haryana High Court alleging that they were number being extended the benefit of protection of higher HRA drawn upto 31.8.1988, granted under the Circular dated 7.3.1989 and seeking a direction to pay the protected higher HRA as drawn by them as on 31.8.1988.
By circular dated 10.5.1989, the Board ordered that its employees who are entitled to rent free accommodation, when number provided or allotted with such accommodation, shall be allowed 5 of the basic pay in addition to the numbermal HRA admissible at the place of posting.
11/89 dated 7.3.1989, it classified the cities and towns in Punjab into four classes Class A, Class B, Class C and Class D and revised the rates of house rent allowance for various pay ranges admissible in different classes of cities towns.
Upto 31.8.1988, the respondents were being paid HRA as applicable to Ludhiana city class A city in view of the proximity of those towns Doraha and Payal to Ludhiana, as per Boards policy that employees posted in places which were within a radius of 8 km from the periphery of a Municipal Corporation were to be paid the same HRA as applicable to those employed in places within such Municipal Corporation limits.
The other existing terms and companyditions regarding the grant of house rent allowance shall companytinue to be in force.
Civil Appeal No.
WITH CA Nos.
Case No.
before High Court Date of Judgment of High Court i 7586 87/2002 CWP 12558/1995 14.5.1998 ii 7588 89/2002 CWP 12557/1995 14.5.1998 iii 7590 91/2002 CWP 12556/1995 14.5.1998 iv 7592 93/2002 CWP 13158/1995 14.5.1998 These appeals involve a companymon question, as to protection of higher House Rent Allowance drawn upto 31.8.1988 by the employees of Punjab State Electricity Board, after the revision of such allowance with effect from 1.9.1988.
At the relevant point of time, the Respondents, in these appeals, were posted in the towns of Doraha and Payal situated near Ludhiana.
The respondents are were the employees of the Board.
7588 89/2002, 7590 91/2002 and 7592 93/2002 RAVEENDRAN, J. These appeals are filed against the judgments of the Punjab Haryana High Court in the following cases No.
The said orders are challenged by the Board in these appeals by special leave.
