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The Kolkata Municipal Corporation & Ors vs Sumit Paul & Ors
2024 Latest Caselaw 5035 Cal

Citation : 2024 Latest Caselaw 5035 Cal
Judgement Date : 27 September, 2024

Calcutta High Court (Appellete Side)

The Kolkata Municipal Corporation & Ors vs Sumit Paul & Ors on 27 September, 2024

Author: Joymalya Bagchi

Bench: Joymalya Bagchi

     Sl. No. 11




                     IN THE HIGH COURT AT CALCUTTA
                         CIVIL APPELLATE JURISDICTION
                                APPELLATE SIDE

     Present:
     The Hon'ble Justice Joymalya Bagchi
     And
     The Hon'ble Justice Gaurang Kanth


                                   MAT 1636 of 2022
i.


                       The Kolkata Municipal Corporation & Ors.
                                      -Vs-
                                 Sumit Paul & Ors.


     For the Appellant       :     Mr. Alok Kumar Ghosh, Adv.,
                                   Mr. Arijit Dey, Adv.


     For the State           :     Mr. Lalit Mohan Maha, AGP,
                                   Mr. Rudranil De, Adv.


     For the Respondents/

Writ Petitioners : Mr. Raghunath Chakraborty, Adv., Mr. Mahaboob Ahamed, Adv., Ms. Mohana Das, Adv.

     Heard on                :     02.08.2024, 27.08.2024 & 27.09.2024


     Judgment on             :     27.09.2024


     Joymalya Bagchi, J. :-

1. Writ petitioners/respondents are employed as Sub-Assistant

Engineers at Indira Gandhi Water Treatment Plant and other water

generating and busting pumping stations including drainage pumping

stations.

2. By Circular No.30 of 1997-98 dated 16.06.1997, the Corporation noted

Sub-Assistant Engineers in pumping stations have been declared as

workers within the meaning of Section 2(1) of the Factories Act, 1948 by

the Joint Chief Inspector of Factories, Government of West Bengal. In

light of such declaration, it was clarified, the said Engineers would be

entitled to overtime pay.

3. Thereafter, by Circular No.45 of 2008-09 dated 08.12.2008, the

Municipal Commissioner while laying down the guidelines for payment of

extra remuneration for performing extra work by employees in the cadre

of Sub-Assistant Engineers, inter alia, held wherever Factories Act is

applicable the mode of calculation of overtime allowance shall be as per

Circular No.10 of 2003-04 dated 02.07.2003.

4. Writ petitioners/respondents contend they were receiving overtime

allowance in terms of Circular No.45 of 2008-09. Suddenly, on

23.09.2011 Municipal Commissioner issued a Circular bearing No.35 of

2011-12 dated 23.09.2011 which stated Sub-Assistant Engineers working

on holidays or over staying beyond a complete shift of eight hours, shall

be entitled to tiffin allowance subject to a ceiling of Rs.700/-.

5. Relying on the aforesaid Circular, the overtime allowance of the writ

petitioners/respondents who were working at various pumping station of

the Corporation was stopped. Writ petitioners/respondents made

repeated representations before the Corporation Authorities as well as the

Inspector of Factories. Pursuant to their representation, Inspector of

Factories by letter dated 04.11.2011 called upon the Municipal

Authorities to release overtime pay to the Sub-Assistant Engineers of

Indira Gandhi Water Treatment Plant. Notwithstanding such direction,

overtime allowance was not released and writ petitioners/respondents

approached this Court, inter alia, praying for release of overtime

allowance with reference to Section 59 of the Factories Act and Circular

No.45 dated 08.12.2008.

6. After hearing the parties, the Hon'ble Single Judge by the impugned

order allowed the writ petition.

7. Mr. Ghosh for Corporation contends apart from Indira Gandhi Water

Treatment Plant, no other pumping station has been declared a factory

and the writ petitioners/respondents working in pumping stations other

than Indira Gandhi Water Treatment Plant are not entitled to protection

under the Factories Act. They were granted overtime in terms of Circular

No.45 dated 08.12.2008 which was subsequently revised by the

Municipal Commissioner by Circular No.35 dated 23.09.2011. Municipal

Commissioner has ample power to modify or alter an earlier circular in

respect of grant of overtime allowances to employees of the Corporation.

8. On the other hand Mr. Chakraborty for the writ

petitioners/respondents refers to Circular No.30 dated 16.06.1997 to

demonstrate Sub-Assistant Engineers working in the pumping stations

under the Kolkata Municipal Corporation were declared as 'worker' under

Section 2(1) of the Factories Act by the Joint Inspector of Factories. The

declaration has not been modified or recalled. Failure of Kolkata

Municipal Corporation to renew licences with regard to various pumping

stations under the Factories Act would not entitle them to avoid the

liability under the Act. Circular No.30 dated 16.06.1997 read with

Circular No.45 dated 08.12.2008 clearly acknowledges Sub-Assistant

Engineers working in pumping stations are covered by the Factories Act

and form a separate class from Sub-Assistant Engineers in other

departments of the Corporation. Overtime allowance granted to them

could not have been unilaterally reduced or modified by the Municipal

Commissioner in derogation of the Factories Act.

9. In support of his arguments Mr. Chakraborty refers to Salary

Calculation System formulated as per Circular No.10 dated 02.07.2003

wherein under serial No.16 'overtime allowance under Factories Act' was

paid to the writ petitioners/respondents till the impugned Circular No.35

dated 23.09.2011 was issued.

10. In view of the aforesaid submission made at the Bar, we called

upon the Municipal Commissioner to file an affidavit clarifying whether

the writ petitioners/respondents employed at various pumping stations

had been treated as 'workers' under the Factories Act and released

'overtime allowance under Factories Act' under serial No.16 of the Salary

Calculation System in terms of Circular No.10 dated 02.07.2003.

11. Affidavit has been placed on record wherein it is unequivocally

admitted by the Municipal Commissioner that the writ petitioner Nos.6 to

11 working at different pumping stations enjoyed overtime allowance at

the same rate as the Sub-Assistant Engineers working in Indira Gandhi

Water Treatment Plant and they received such allowance under the

heading 'overtime allowance under Factories Act' at serial No.16 of the

Salary Calculation System formulated as per Circular No.10 dated

02.07.2003.

12. Exception to the affidavit filed by the writ petitioners/respondents

discloses communication from the Joint Chief Inspector of Factories, West

Bengal to the Commissioner, Kolkata Municipal Corporation calling upon

the latter to renew the factory licenses of the other pumping stations.

13. This reinforces the case of the writ petitioners/respondents that the

pumping stations under Kolkata Municipal Corporation are declared as

factory under the Factories Act and the Sub-Assistant Engineers working

in the pumping stations are 'workers' under Section 2(1) of the said Act.

14. Circular No.30 dated 16.06.1997 reads as follows:-

"D.M.C.(P)'s Circular No.30 of 1997-98.

Sub-Assistant Engineers employed in the Pumping Stations and the Calcutta Municipal Corporation have been declared as Work (sic) within the meaning of Section 2(1) of the Factories Act, 1948 by the Joint Chief Inspector of Factories, Govt. of West Bengal. In view of this clarification, they are now allowed to the payment of over-time work as per existing rule subject to the matter of 48 hours in a quarter including Sundays and holidays and all subject to the following conditions:-

1. Pumping Station under any circumstances should not run without the presence of the Assistant Engineer in shifting duty-

2. The Sub-Assistant Engineer should be absent from duty without prior approval of leave by the leave sanctioning authority-

3. It may be clarified further that according to the opinion of Joint Chief Inspector of Factories, Govt. of West Bengal, S.A.E. of other establishment will not be treated as worker."

15. In the said circular, the Deputy Municipal Commissioner noted the

declaration of the Joint Chief Inspector of Factories, Government of West

Bengal that the Sub-Assistant Engineers employed at the pumping

stations of the Kolkata Municipal Corporation are 'workers' under Section

2(1) of the Factories Act. Accordingly, they allowed overtime pay as per

existing rule commensurate to such declaration.

16. To wriggle out of the said circular, Mr. Ghosh argues though license

was obtained under the Factories Act in respect of Indira Gandhi Water

Treatment Plant, no license was obtained with regard to other pumping

stations under the said Act. This argument is wholly fallacious. From the

documents annexed the exception taken by the writ

petitioners/respondents to the affidavit of Municipal Commissioner it

appears by letter dated 21.09.2023 Joint Chief Inspector of Factories,

West Bengal had called upon the Kolkata Municipal Corporation to renew

the licenses issued to all pumping stations under the Factories Act. This

establishes beyond any shadow of doubt that the other pumping stations

in addition to Indira Gandhi Water Treatment Plant were treated as

'factory' under the Factories Act and the Sub-Assistant Engineers

employed therein had been declared as 'worker' under Section 2(1) of the

said Act. Failure on the part of the Kolkata Municipal Corporation to

renew the licenses of the said pumping stations by no stretch of

imagination can deprive the writ petitioners/respondents of the beneficial

provisions of the social legislation.

17. Mr. Ghosh also argues overtime allowance was paid to the writ

petitioners/respondents in terms of departmental circulars which the

Municipal Commission had power to alter or vary.

18. In light of the aforesaid document placed on record, we are unable

to agree with Mr. Ghosh that the Circular No.30 dated 16.06.1997-98,

unequivocally records the declaration of the Joint Chief Inspector of

Factories that Sub-Assistant Engineers employed at pumping stations of

Kolkata Municipal Corporation are 'workers' under Section 2(1) of the

Factories Act. In terms of the said circular, Municipal Commissioner while

fixing the overtime scale for the Sub-Assistant Engineers cadre in Circular

No.45 dated 08.12.2006, inter alia, carved out an exception for the Sub-

Assistant Engineers employed at pumping stations where the Factories

Act was explicable vis-a-vis other Sub-Assistant Engineers in the

following manner :-

" xxx xxx xxx

3) Where the Factory Act is applicable the existing mode of calculation of O.T. Allowance as per Circular No.10 of 2003-04 dated 2nd July, 2003 will prevail. However, maximum O.T. hours per quarter (every three months) shall strictly be guided as per the DMC (P)'s Circular No.30 dated 16.06.1997.

4) Where the Factory Act is not applicable, individual Hourly rate of O.T. Allowance will be calculated on Basic Pay + Dearness Pay + 41% D.A. as on date subject to the ceiling of Rs.700/- for 8 hours shift. However, total O.T. hours will not exceed 96 hours in any quarter (every three months)."

19. The circular carves out an exception with regard to grant of

overtime allowance to the Sub-Assistant Engineers in departments where

Factories Act applies i.e. pumping stations vis-a-vis Sub Assistant

Engineers in other departments. This classification is based on a clear

differentia and has a reasonable nexus with the applicability of Factories

Act to pumping stations which are covered under the Factories Act in

comparison to other departments.

20. When the scheme envisaged under the aforesaid circular was to

grant overtime allowance to Sub-Assistant Engineers employed at

pumping stations at a higher rate by treating them as 'worker' under the

Factories Act, it was impermissible on the part of the Municipal

Commissioner to issue the impugned Circular No.35 dated 23.09.2011

and deprive them of such benefit by treating them on par with other Sub-

Assistant Engineers.

21. In doing so, it was incumbent on the Municipal Commissioner to

approach the authorities under the Factories Act and seek exemption of

the pumping stations from the operation of the said Act which had not

been done. Finally, it is argued this Court under Article 226 of the

Constitution of India can neither decide applicability of Section 59 of the

Factories Act to pumping stations nor determine the quantum of overtime

allowance payable under the said Act. These matters are to be

adjudicated by the industrial adjudication.

22. Fact that the Sub-Assistant Engineers working at pumping stations

have been declared as workers under the Factories Act by the Joint Chief

Inspector of Factories is acknowledged by the Corporation in its Circular

No.50 dated 16.06.1997. Subsequent to the impugned Circular No.35

dated 23.09.2011, Inspector of Factories directed the Corporation to

release overtime allowance under the Factories Act to engineers employed

at Indira Gandhi Water Treatment Plant. Other pumping stations were

also declared as factories under the Factories Act but the Corporation

negligently did not renew their licences. It is nobody's case the pumping

stations had been exempted from the operation of the Factories Act.

23. On the other hand, it is admitted by the Municipal Commissioner in

his affidavit averred that the writ petitioner nos.6 to 11 working in other

pumping stations were drawing overtime allowance on par with those

employed at Indira Gandhi Water Treatment Plant.

24. In such view of the matter, there is no dispute on facts which would

require adjudication before the Industrial Tribunal with regard to

entitlement of the writ petitioners working at various pumping stations to

extra pay i.e. overtime allowance for extra work. In fact they had been

enjoying overtime allowance under the Factories Act as per Circular No.45

dated 08.12.2008 till it was illegally discontinued as per impugned

Circular No.35 dated 23.09.2011.

25. In this factual matrix, Hon'ble Single Judge rightly directed the

overtime allowances be paid to the writ petitioners/respondents in terms

of Circular No.10 dated 02.07.2003 as reiterated in Circular No.45 dated

08.12.2008.

26. In light of the aforesaid discussion, we uphold the impugned

judgment and order.

27. We direct the outstanding dues as per Circular No. 45 dated

08.12.2008 shall be paid to the respondents/writ petitioners within three

months from date.

28. With this direction, the appeal is dismissed.

29. There shall be no order as to costs.

30. Photostat certified copy of this judgment, if applied for, be given to

the parties on compliance of all formalities.

I agree.

(Gaurang Kanth, J.)                              (Joymalya Bagchi, J.)


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