Authority: High Court at Calcutta

Order Date: 10 July 2026

Case Overview

  • Petitioner: Eastern Coalfields Limited (ECL), a subsidiary of Coal India Limited, represented by Mr. Manik Das.
  • Respondents: Union of India (Mr. S.N. Dutta) and others, including workman Shri Dipak Karmakar (mechanical fitter).
  • Dispute arose from the termination of 'House Rent Allowance' after the workman surrendered the quarters (Quarter No. NHS/36/359) allotted to him at Bejdih Colliery, Sodepur Area.
  • The Central Government Industrial Tribunal‑cum‑Labour Court, Asansol (Reference Case No. 13 of 2011) awarded HRA arrears from 01‑03‑2007 to superannuation, directing payment within three months (Award dated 23 May 2025).
  • ECL appealed, arguing that the Tribunal failed to consider Clause 8.1.2 of the National Coal Wage Agreement (NCWA) VII & VIII, which bars HRA entitlement once residential accommodation is provided, even if later surrendered.
  • The Tribunal relied on a management circular dated 28‑06‑2006, which unilaterally altered the terms of the bipartite agreement, and on the absence of a collective decision with the union.
  • The Court examined the NCWA provisions, the 2006 circular, and the Supreme Court decision in Divisional Engineer, G.I.P. Railway vs Mahadeo Raghoo (1955), which held HRA is not payable to employees offered government quarters.

Final Outcome

  • The award dated 23 May 2025 is quashed and set aside.
  • ECL is directed to allot a residential quarter to Shri Dipak Karmakar at the earliest, treating the application date as 10 July 2026.
  • The workman is not entitled to any arrears of HRA; HRA will be payable only from the date of this order until a quarter is allotted, governed by the Company’s rules applicable to other ECL employees.
  • All connected applications and interim orders are disposed of; a certified copy of the judgment shall be supplied to the parties.

Topics: House Rent Allowance, Industrial Dispute, Labour Law