Case Note & Summary
The petitioners, initially appointed as Lower Division Clerks and later promoted as Upper Division Clerks at the Naval Armament Depot, were posted to the time keeping section on rotation basis for fixed tenure of three years. In that section, they were required to work overtime exceeding 48 hours per week or 9 hours per day. They claimed overtime allowance at twice their ordinary rate of wages under Section 59 of the Factories Act, 1948. The respondents did not dispute their entitlement to overtime allowance but computed it on the basis of prerevised pay scales, relying on an office memorandum dated 1st July, 1998 issued by the Ministry of Defence. The petitioners made representations which were turned down. Aggrieved, they filed Original Application No.446 of 2005 before the Central Administrative Tribunal (CAT), which was dismissed on 6th December, 2006. The petitioners then filed the present writ petition challenging the CAT's order. The legal issue was whether the overtime allowance should be computed on the basis of revised pay scales or prerevised pay scales. The court analyzed Section 59 of the Factories Act, which provides for overtime at twice the ordinary rate of wages. The court held that the ordinary rate of wages must be the current rate applicable to the employee, not a prerevised rate. The office memorandum could not override the statutory provision. The court allowed the petition, set aside the CAT's order, and directed the respondents to compute and pay overtime allowance on the basis of revised pay scales.
Headnote
A) Factories Act - Overtime Allowance - Computation on Revised Pay Scales - Section 59 of Factories Act, 1948 - Petitioners, employed as Upper Division Clerks at Naval Armament Depot, claimed overtime allowance on revised pay scales - Respondents computed allowance on prerevised scales relying on office memorandum dated 1st July, 1998 - Court held that Section 59 mandates overtime at twice ordinary rate of wages, which must be based on current pay scales - Memorandum cannot override statutory provision - Held that petitioners are entitled to overtime allowance on revised pay scales (Paras 1-5)
Issue of Consideration
Whether the petitioners are entitled to overtime allowance computed on the basis of revised pay scales instead of prerevised pay scales under Section 59 of the Factories Act, 1948
Final Decision
The court allowed the writ petition, set aside the judgment and order of the Central Administrative Tribunal dated 6th December, 2006, and directed the respondents to compute and pay overtime allowance to the petitioners on the basis of revised pay scales in accordance with Section 59 of the Factories Act, 1948
Law Points
- Overtime allowance must be computed on the basis of revised pay scales
- not prerevised scales
- under Section 59 of the Factories Act
- 1948
- Office Memorandum dated 1st July
- 1998 cannot override statutory entitlement
