MASTER CIRCULAR NO. 3 RAILWAY INSTITUTES/CLUBS CONTENTS Part I 1. Background 2. Role of Railways 3. Cost of Building and Maintenance 4. Cost of other Items 5. Rent 6. Residential Accommodation for Class IV 7. Authority to Frame Rules 8. Management 8.1. Privilege to Staff 9. Condition of Appointment of Staff 10. Procedure for giving Permission to recognised Unions for Holding Meetings in Institutes/Clubs 11. Absorption of Institute Staff in Railways 12. Checking of Accounts 13. General Part III Original Orders/Circulars from which Consolidation has been made 1. Paras 2808-2811 of IREM of 1968 Ed. 2. No. E.49-ISI/3 dated 09.02.1950 3. No. E.49-ISI/3 dated 12.09.1950 4. No. E.53-FU1/3 dated 30.05.1955 5. No. E.55-LRI/4 dated 25.04.1956 6. No. E(G)58PS5-4/1 dated 09.11.1959 7. No. E(L)60-UT1-33 dated 09.02.1960 8. No. E(G)58PS5-4/1 dated 18.03.1960 9 No. E(NG)III/73/NR/1/27 dated 30.10.1973 10. No. E(LR)III/80 UT3/23 dated 08.05.1980 11. No. E(W)80/IS 1/1 dated Oct. 1980 12. No. E(W)79PS5-4/1 dated 08.01.1980 13. No. E(W)86-ISI-2 dated 03.06.1986 14. No. E(W)86-ISI-1 dated 21.01.1987; RBE 8/87 15. No. E (W)87SC2-13 dated 20.01.1988 16. No. E(NG)II 87/RR4/5 dated 23.08.1988 17. Supreme Court Judgement dated 27.02.1990 on Writ Petition No. 1389 of 1987 (forwarded to Railways under No. E (W)87IS 1 -12 dated 30.04.1990) 18. No. E(W)91S/1-3 dated 02.12.1992; RBE 204/92 19 Other Railway Board Orders on the Subject RAILWAY INSTITUTES/CLUBS At present the orders relating to Railway Clubs/Institutes are contained in a number of Office Circulars/Orders issued from time to time. The question of consolidation of these existing orders/circulars into one Master circular has been under consideration of the Ministry of Railways. They have now decided to issue a consolidated order on the above subject as below for the information and guidance of all concerned. 2. The Railway Administrations provide, as part of staff amenity, Institutes/Clubs to promote esprit de corps among Railway employees and also to encourage them to participate in sports, cultural programmes, etc. As such a Railway Institute should be looked upon as a club provided by the Railway, rent-free for the benefit of its employees. On principle, therefore the Railway Administrations should provide everything which a landlord ordinarily would and the Institute/Club should pay for all that a tenant would usually be liable. 3.The Railway Administration will bear: – (i) The first cost of the building including the cost of electric installations (including electric fans) with necessary furniture, roads, fences, tennis courts and other playgrounds. Wherever possible, a garden will also be provided. Note: The term “furniture” is not intended to include billiards table, pianos and pictures. It includes lambs, other than billiards table lamps and locks and keys of almirahs. (ii) The cost of maintenance and alterations except in the case of tennis courts and other playgrounds, the Railway Administration will bear only the cost of ordinary Engineering repairs. 4. The institute/club funds will bear-: (a) the cost of rolling, watering, grass-cutting and other maintenance charges of playgrounds, other than engineering repairs. (b) me cost of maintenance of its gardens and ornamental grounds; (c) the cost of maintenance and renewal, whether partial or complete, of electrical installations including fans payable at a Hat rate of Rs.5 per annum on the capital cost of the installations; (d) the cost of electric current consumed and hire of meter, (e) occupiers’ share of Municipal taxes for specific direct services rendered to an institute by a Municipality such as conservancy, water and the like taxes as distinct from taxes of general nature: (f)water charges calculated at so much per tap, each Railway Administration fixing is own rate of charges. Note:In the case where large quantities of water are supplied as in case of swimming pools, the actual cost of water supplied should be recovered. However, in cases where waste water from the swimming pools is utilised for definite railway purposes, e.g. flushing of sewers and watering of grounds, etc. no charges for supply of water of swimming pools should be recovered. 5. No rent is recoverable in the case of Institutes/Clubs where the building is erected by the Institute/Cub at its cost on Railway land. Also, no rent is recoverable in the case of Institutes/Clubs: (i) if the buildings are specifically constructed after obtaining the sanction from the Railway Board; (ii) if any additional expenditure is incurred in converting an existing building into a Club/Institute or providing ancillaries to make it suitable as an institute/club had the prior approval of the Railway Board. 6. The Class-IV Staff employed in Railway Institutes/Clubs may be given residential accommodation rent-free if such accommodation forms part and parcel of the Institute/Club building and is not required for any other Railway purpose or cannot be rented to outsiders and would otherwise lie vacant. [Paras 2802 to 2811 of IREM, 1986 -for paras 2 to 6] 7.The General Managers of the Railways are competent to frame rules with regard to the running of the Railway Institutes/Clubs taking into account the local requirement of the Railway Administration and other circumstances of the place. [Para 2817 of IREM, 1968] 8.The Membership of the Institute/Club is optional. The running of Institutes/Clubs are to be managed by a committee, representing its members. The committee engage such staff as are required and meet the cost of their wages and allowances. The cost of running the Institutes/Clubs is met from funds at the disposal of the Institutes Management Committees derived from membership fees and grants from the Staff Benefit Fund. In view of the limited funds available at the disposal of the Managing Committee, they should employ only part-time workers and the whole-time workers should be engaged only when absolutely necessary in which case they should be paid adequate wages in consonance with such market conditions. [No. E(W) 86-ISI dated 21.01.1987, No.E (W) 80IS1-1 dated Oct. 1980 and No. E.55. LRIG dated 25.04.1956 ] 8.1.The whole-time staff of the Railway Institutes may also be issued privilege passes as indicated below: First two years of service : NIL 3rdto 20th year of service: One set of passes per annum 21 st year onward : Two sets of passes per annum [No. E(G)58PS5-411 dated 09.11.1959 & No. E (G) 58PS5-4/1 dated 08.03.1960 and No. E (W)79PS5-411 dated 08.01.1980 ] 9.Since the staff of the Institutes/Clubs arc not regular Railway employees, the Managing Committees should add a suitable clause to this effect while giving offer of appointment to the entrant in their employ. Existing staff should also be suitably advised of this. In this connection the Supreme Court in their recent judgement in Civil Writ No.1389 of1987 dated27.2.90 upheld the contention of the Ministry of Railways (Railway Board) that the staff employed by the Railway Institutes/Clubs are not regular Railway employees and hence dismissed the Petition. [No. E(W) 861S1I dated 21.01.1987 and E(W)871S1-12 dated 31.04.1990] 10.The following procedure should be followed by all the Railways in the m alter of giving permission of recognised unions for holding meetings in Railway Institutes/Clubs: (i) Prior permission of the Railway would be necessary before the Railway Institutes/ Clubs could be used; (ii) The requestfor permission should reach the Administration at least three days before the meeting is sought to be held; (iii) No political subject would be discussed in the meeting but the Railway Administration would not insist for a copy of the agenda; (iv) In addition to obtaining permission from the Railway Administration, the responsibility for obtaining permission from the civil authorities or the Managing Committee of the Institutes/Clubs, whenever necessary, would be with the trade unions concerned; (v) The time and date of the meeting should also be intimated by the Union while applying for permission. The Railway Administration should ensure that granting of refusing permission are issued promptly to the Unions. Permission cannot be given to use Railway Land/premises by the unrecognised unions for holding meetings etc. (vi) There would be a ban on the use of railway premises for any religious function except that the functions for which permission had been given in the past for being held in a particular railway premises would be allowed as hithertofore. It is desirable that specific mention is made by the Railway Administrations in their local Rules framed with regard to running of the Railway Institutes/Clubs on the above aspect. [No. E(L)60UTI-33 dated 09.02.1960, No. E(LR)III-80UT2/23 dated 08.05.1980, No. E(W) 86IS-2 dated 03.06.1986 and No. E (W) 87-SC-2/13 dated 20.01.1988] 11.It has been decided that where direct recruitment to Group ‘D’ posts is made from the open market in the Workshops or in Electrical/Diesel Loco Sheds, as permissible under extant instructions, persons employed in Railway Institutes attached independently to a Workshop (not to the Division) may apply direct provided they possess the educational qualification prescribed for the said direct recruitment. Applications of such persons can be considered by the Railway Administration alongwith other applications. Such candidates can also be allowed age concession to the extent of five years or service rendered in the institutes, whichever is less for absorption in Class-IV categories and appearing before Railway Recruitment Board for selection of Class-III categories. [No. E(NG)III 73-RR1-27 dated 30.10.1973 and No. E (NG) II/87-RR4/5 dated 23.08.1988] 12. The Railway Board have no objection to the checking of Institutes/Clubs Accounts being done by selected Accounts staff outside their office hours on payment of a fee from the Institutes/Cubs fund. 13.General: (a) The consolidation made in the Master Circular should be construed only as a key to the original circular and not a substitution. In case of any doubt, the original circulars) referred to in the Master Circular will be relied upon as authority. (b) It should be noted that orders/instructions issued under the various circulars have only prospective effect from the date of issue of the relevant original letter(s), unless specifically stated otherwise in the concerned letter. Hence, for dealing with old cases, the instructions in force at the relevant time have to be referred. (c) Though all efforts have been taken to include all the relevant circulars on the subject, if any circular which has not been superseded happens to be omitted, the circular which has been omitted through oversight will still hold the field. Anyone coming across such a circular may bring it to the notice of a Railway Board for suitable action for issuing a supplementary circular. [1] Not Printed [Paras 2808-2811 of IREM. 1968 Ed.} ___________________________________________________________________________ [2] Subject :Railway Institutes. [No. E 49ISI/3, dated 09.02.1950] The present position in regard to the welfare activities existing in the various Railways and the expenditure incurred upon them has been reviewed by the Board and they have decided that in so far as the provision and running of institutes, clubs games etc. are concerned the following policy should be observed. All railway employees including officers should be entitled to enjoy the benefits derived from railway grants made for these purposes. They further consider that for the present there is no necessity for incurring any capital expenditure and it will be sufficient to see that the existing institutes function properly. They desire however that the grants made to the Railway institutes for recurring expenditure should in future be assessed on the basis of their subscription revenue. It is hoped that this will stimulate enlistment of members. ___________________________________________________________________________ [3] Subject : Railway Institutes. [No. E491S1/3, dated 12th Sept.1950] A reference is invited to Railway Board’s letter No. E49ISI/3 dated 09.02.1950. A question has been raised whether it is the Board’s intention that grants may be paid to Officers’ Clubs even from the Staff Benefit Fund. The Board desire to make it clear that this is not the intention that the instructions refer only to grants from Railway revenues. In this connection your attention is invited to Board’s confidential letter No. E44IS12(R) dated 22.11.1945 which provides for the capital cost of Railway Institutes and their engineering maintenance being borne by the railway revenues. The Board’s intention in issuing letter No. EW 9 ISI/3 dated 09.02.1950 was only that officers’ clubs also should get the benefit of such facilities. For the present such expenditure should be limited to provision of premises and equipment and the amount spent on this should not exceed the New Minor Works limit. 2.Before expenditure on Officers’ Clubs is authorised the Board desire that their prior sanction should be obtained. 3. No financial assistance should be given from the railway funds for the actual running of officers’ clubs. [4] Subject :Salary of Inspectors of Institute Accounts. [No. E53FU1-3. dated 30.05.1955] Reference your letter No.21527-T/212 dated the11th May1953 on the above noted subject. The Board have no objection to the checking of Institute Accounts being done by selected Accounts staff outside their office hours on payment of a fee which should be borne by the Institute’s, Funds. ___________________________________________________________________________ [5] Subject :Institute Staff. [No. E55LR1-G. dated 25.04.1956] The Railway Board have received, from time to time, complaints from staff employed in certain institutes on Railways that their scales of pay are very low as compared with the scales of pay applicable to non-gazetted Railway servants. The Board consider that there can be no uniform conditions of service or scales of pay for Institute staff, as each Institute engages persons on the terms it can afford. The Board are also aware that in some Institutes, the workers are part-time workers. The Board desire that the Institutes should be advised by you (i) to encourage the spirit of service amongst their members (ii) to reduce the number of paid staff and (iii) to keep pan-time workers and (iv) that they should engage whole-time workers only when absolutely necessary, and that when such workers are engaged whole-time, Institute should see that they pay them adequate wages in consonance with the local market conditions. ___________________________________________________________________________ [6] Subject :Railway Employees Co-operative Credit or Consumer Societies/Bank—grant of passes to [No. E (G)58 PS 5-4/1, dated 09.11.1959] The Railway Board have reviewed the question of further liberalisation in the matter of grant of passes/PTOs to the Directors and employees of Railway Employees Co-operative Credit or Consumer Societies/Banks. In partial modification of the orders contained in the Board’s letter noted in margin, they have decided as under: A) On Duty Account for Co-operative Credit Societies/ Banks only i) Cheque passes may be issued to the Directors of the Co-operative Credit Societies/Banks when they go either to inspect the branch offices or to meet the Divisional officers in connection with the recovery of loans and other dues. ii) Cheque pass may be allowed when it is necessary for an employee of a Co-operative Society to go to an Accounts Office to reconcile discrepancies but only when the necessity for such reconciliation of accounts has been accepted by the General Manager or the F.A.&C.A.O. B)On privilege Accounts/or Co-operative Credit and Consumer Socieities/Banks All staff may be permitted privilege passes on the same scale at which these are at present given to the subordinate staff, i.e. 1st two years of service • Nil 3rdto 20th years of service One set of passes per annum. 21st year onward Two sets of passes per annum. 2.Board have also considered the question of grant of (i) duty passes to the staff of the Railway Employees Consumer Co-operative Societies to visit production centres/market places form making purchases of stores/goods etc. for the Consumer Co-operative Stores and (ii) post retirement complimentary passes and PTOs for staff of Co-operative Credit and consumer Societies, and have decided that these cannot be agreed to. ___________________________________________________________________________ [7] Subject : Facilities to recognised Unions. [No. E(L)60UT1-33, dated 09.02.1960] (I) Holding meetings in Railway lands:(1)The following procedure, which is prevalent on the Eastern Railway, should be followed by all the Railways in the matter of giving permission to recognised unions for holding meetings in Railway premises. (a) Prior permission of the Railway would be necessary before Railway premises/land could be used; (b) The request for permission should reach the Administration at least three days before the meeting is sought to be held; (c) No political subject would be discussed in the meeting, but the Administration would not insist on a copy of the Agenda being given to the Railway; (d) The responsibility for obtaining permission from the Civil authorities or from the Managing Committee of Institutes, wherever necessary, would be with the Trade Union concerned. But it is essential to obtain permission from the Railway authority in addition to obtaining permission of the Institute ManagingCommittee or Civil authorities. The time and date of the meeting should also be intimated by the union while applying for permission. It should be ensured that orders granting or refusing permission are issued promptly to the union, even by using control phone, if necessary. If the union does not get a reply to their application promptly, they should be permitted to pass on telephonic message to the officers concerned. Permission for holding meetings should normally be given, and it is only for valid reasons that permission should be refused. (II)For the purpose of holding meetings of recognised unions, the Railway Administrations may consider the desirability of granting a general permission to unions in respect of specified areas in Railway premises at their discretion for a specified period or for an indefinite period, subject to the condition that the permission granted is liable to cancellation at any time without giving any reasons. ___________________________________________________________________________ [8] Subject : Railway employees Co-operative Creditor Consumer Societies/Banks—grant of passes to Reference : Your letter No. (i) P(F.P.) 473/xiii/3 dt. 03.12.1959 (ii) P.B./Pass/U dt. 03.12.1959. [No. E (G) 58 PS 5-4/1 dated 18.03.1960] The staff of the Co-operative or Consumer Stores/Credit Societies/ Banks etc. shall continue to be issued PTOs on the scale laid down in the Railway Board’s letter No. 463-TG dated19.09.1951. The orders contained in para ‘B’ of letter of even number dated 09.11.1959shall also apply to the whole time staff of the Railway Institute, Libraries and Canteens etc. ___________________________________________________________________________ [9] Subject : Relaxation in age for the staff of the Quasi-administrative Offices or Organisation [No. E (NG)III-73 RRI/27 dated 30.10.1973] The Board have decided that the staff of quasi-administrative Offices or Organisations such as Railway Consumer Co-operative Societies, Canteens and Institutes etc. should be given relaxation in age limit to the extent of5 years or service rendered in such Organisation, whichever is less, for absorption in ClassIV Categories and appearing before Railway Service Commissions for selection to Class III categories. ___________________________________________________________________________ [10] Subject :Facilities to recognised unions use of railway land/ premises for union meetings. [No. E(LR)nil801UT3123, dated 08.05.1980] An extract from Railway Board’s letter No. E (L) 60 UTl -33 dated 09.02.1960inter alia containing instructions on the above subject is attached. The policy enunciated in this letter holds good even now in giving permission to recognised unions for holding meetings in Railway premises. As will be seen from these extracts, railway land/premises cannot be given for unrecognised unions for holding their meetings, etc. Board desire that these instructions should be scrupulously followed. ___________________________________________________________________________ [11] Subject :Institute Staff. [No. E (W) 801S1-1 dated 10.1980] Attention is invited to Ministry of Railways letter No. E. 55LR1-G, dated 25.04.1956 (copy enclosed) in which it was indicated, inter alia, that the number of paid staff in Institutes should be minimum that only part-time workers be kept, that the Institute Management should engage whole-time workers only when absolutely necessary and that when such workers are engaged whole-time, Institute should see that they pay them adequate to wages in consonance with the local market conditions. The Ministry of Railways desire to reiterate the above instructions for strict implementation. ANNEXURE Copy of Board’s letter No E 55 LR1 G. dated 25.04.1956 Subject : Institute staff The Railway Board have received, from time to time, complaints from staff employed in certain Institutes on railways that their scales of pay are very low as compared with the scales of pay applicable to non-gazetted Railway servants. The Board consider that there can be no uniform conditions of service or scales of pay for Institute staff, as each Institute engages persons on the terms it can afford. The Board are also aware that in some Institutes, the workers are part-time workers. The Board desire that the Institutes should be advised by you (i) to encourage the spirit of service amongst their members (ii) to reduce the number of paid staff and (iii) to keep-part-time workers and (iv) that they should engage whole-time workers only when absolutely necessary, and that when such workers are engaged whole-time. Institute should see that they pay them adequate wages in consonance with the local market conditions. ___________________________________________________________________________ [12] Subject :Grant of privilege passes/PTOs to the staff of canteen staff. [No. E(W)79RS5-4/J, dated 08.01.1980] Para1526 (B) (ii) of the Indian Railways Establishment Manual provides that Secretaries and Managers will be eligible for the same number of privilege ticket orders as for class III railway servants, the class being left to the discretion of the General Manager to be determined on pay-cum-status basis. The Ministry of Railways desire to clarify that the passes/PTOs to the staff of Cooperative Societies/Banks/Canteens etc. including Secretaries and Managers may be regulated in terms of the instructions contained in their letter No. E(G)58RS5-4/1 dated 09.11.1959, No. E(G)58RS5-4/1 dated27.11.1959 andNo. E(G)58RS5-4/1 dated 18.03.1960 (Copies enclosed). To this extent, provision in IREM will stand modified. [13] Subject : Use of Railway premises/Institutes/Clubs etc. by outside parties. [No. E(W)86/SI-2, dated 03.06.1986] As per para2817 of IREM, the General Managers are competent to frame rules with regard to the running of Railway Institutes and Clubs, taking into account the local requirements of Railway Administration and other circumstances of the place. 2. Certain guidelines have, however, been issued by the Board with regard to: (i) the holding of meetings on railway lands by recognised unions (the Board’s letter No. E (L) 60UTl-33 dated 09.02.1960). These guidelines stipulate among others, that no political subject should be discussed in the meeting for which permission has been given by the Administration to a recognised union; (ii) prohibiting the grant of permission to unrecognised unions for holding their meetings, etc. on railway land/premises (the Board’s letter No. E(LR)III/80/UT3/23 dated 08.05.1980); and (iii) restrictions on the use of any railway land for holding election meetings and/or public meetings (the Board’s wireless message N0.11/W2/18/23 dated01.02.1971) 3. While the Railways may be already observing these stipulations, it is desirable that specific mention is made in the local rules framed with regard to the running of Institutes/Clubs. ___________________________________________________________________________ [14] Subject: Appointment of staff in Railway Institutes/Clubs by Managing Committees. [No. E(W) 86 IS 1-1, dated 21.01.1987; RBE 8/87] A number of representations are continuously being received from the employees of the Railway Institutes/Clubs for grant of regular status of Railway employees to them. Recently, the Labour Federations have represented that though these Institutes are technically under the control of the Managing Committees, the fact that the Railway Administrations are the principal employer cannot be overlooked and that their case for being treated as regular Railway employees may be considered. 2. As the Railways are aware, Railway Institutes/Clubs have been provided for the benefit of Railway employees but these are managed by a committee representing its membership who engage such staff as are required on honorarium/part-time and/or full time basis and meet the cost of their wages and allowances. It has been seen that due to the limited funds at the disposal of the Managing Committees, staff are usually employed on part-time basis. In view of this, it is difficult to compare them with staff employed in Railway Canteens, as the latter are more or less employed on regular basis and are being paid through Railway revenues in the form of subsidy. 3.The Ministry of Railways would like to make it clear that there is no question of employees of Railway Institutes/Clubs being granted status of regular Railway employees. Accordingly, the Ministry would like to reiterate that the Managing Committees, who employ these staff, may be suitably instructed to make this point clear to the staff already working under them. They should also add a suitable clause to this effect while giving offer of appointment to fresh entrants in their employ in various Railway Institutes/Clubs. Necessary instructions in this regard may please be issued to all concerned and a confirmation to this effect given to this office at the earliest. 4. In the meantime, receipt of this letter may be acknowledged. A copy of the appointment letter being given by the Managing Committees while appointing staff in Railway Institutes/Clubs may also be sent to this office while acknowledging receipt. ___________________________________________________________________________ [15] Subject : Use of Railway premises/Institutes/Clubs etc. [No. E(W)87 SC2-13, dated 20.01.1988] In continuation of Board’s Circular No. E(W) 86 ISI-2 dated 03.06.1986 on the above subject. Ministry of Railways hereby clarify that there would be a ban on the use of railway premises for any religious function except that the functions for which permission had been given in the past for being held in a particular railway premises would be allowed as hitherfore. ___________________________________________________________________________ [16] Subject :Consideration of staff of Cooperative Societies for employment in Railways. [No. E(NG)II/87/RR/5, dated 23.08.1988] The question whether in the direct recruitment to Group ‘D’ posts from the open market (wherever the same is permissible under extant instructions), applications of the staff employed by Cooperative Societies attached to workshops should be entertained direct without requiring their names to be nominated by the concerned Employment Exchange, has been considered by the Railway Board. It has been decided by the Board that where direct recruitment to Group ‘D’ posts is made from the open market in the workshops or in Electric/Diesel Loco Sheds, as permissible under extent instructions, persons employed in Railway Co-operative Societies and Canteens attached to the particular workshop or shed may apply direct, provided they possess the educational qualification prescribed for the said direct recruitment. This will also apply to the staff of such of the Railway Institutes attached to a workshop (i.e. it should be an independent one attached to the particular workshop and not of the Division). 2. Applications of such persons can be considered by the Railway Administration alongwith other applications which can be entertained under extant instructions. [17] Subject :Engagement of staff in the Railway Institutes and Clubs – Status of. [No. E(W)87ISI-12. dated 30.04.1990] As you are aware the All India Railway Institute Employees’ Association had filed a Writ Petition No.1389 of1987 in the Supreme Court of India praying for grant of status of Railway servants to the staff engaged in the Railway Institutes and clubs. The Hon’ble Supreme Court in their judgement delivered on27.02.1990 have dismissed the Writ Petition. A copy of the judgement in question is sent herewith for information and guidance. The Board take this opportunity to reiterate the instructions contained in their letter No. E 55LRI -G dated 25.04.1956 indicating inter-alia that only part-time should be engaged in the institutes and clubs, whole time workers should be engaged only when absolutely necessary and that when such workers are engaged they should be paid adequate wages in consonance with the local market conditions. Compliance of this may please be ensured; ANNEXURE Supreme Court of India Civil Writ Petition No. 1389 of 1987 All India Railway Institute Employees’ Association through the General Secretary …Petitioner Versus Union of India through the Chairman, … Respondent Railway Board Decided on 27.02.1990 JUDGEMENT SAWANT J. This petition is filed as stated in the petition by an Association of about 2000 employees working in500 Railway Institutes and Clubs in various parts of the country. Their grievances, as in the case of the petitioners in the matters pertaining the Railway canteens, is that they are not treated railway employees. It is their case that although the Institutes/Cubs in which they work are non-statutory, they are on par with the employees in the statutory canteens run in the Railway establishments proper. According to them, the Railway Institutes and Clubs were set up to provide recreational facilities to the railway employees. They are managed by Committees consisting of representatives of all the members of the Institutes/clubs elected periodically. The Institutes/Clubs have the following category of employees: (1) Manager(2) Accountant(3) Clerk(4) Librarian in-charge (5) Librarian(6) Watchman(7) Daftry(8) Watermen(9) Canteen employees (10) Billiards Marker etc. These employees are appointed by the Committee and their salaries are paid out of the contributions received from the members of the respective Institutes/Clubs and the grants-in-aid given by the Railway Board to the Institutes/Clubs. The Committee of management is presided over by a president who is the concerned Divisional Railway Manager or his nominee. The Railway Administration has the right to dissolve or to form an ad hoc committee. 2. According to the petitioners further, the Railway Board has always treated the Institutes and Clubs as an integral part of the Railways, since they not only receive grants-in-aid but also other facilities from the Government. Section B of ChapterXXVIII of the Railway Establishment Manual makes a special provision for the Institutes and Clubs. Paragraph, 2808 of the Manual states that a Railway Institute should be looked upon as a club provided by the Railway, rent free for the benefit of its employees and therefore, the Railway should provide everything which a landlord ordinarily would, and the Institute should pay for all that a tenant would usually be liable to pay. Paragraph2809 states that the Railway Administration will bear (a) the first cost of the building including the cost of electric installations with necessary furniture, roads, fences, tennis courts and other f play-grounds. Wherever possible a garden will also be provided; (b) the cost of maintenance and alterations. In the case of tennis courts and play-grounds the Railway Administration will bear only the cost of ordinary engineering repairs. The said paragraph however, requires that the Institutes funds should bear (a) the cost of rolling, watering, grass-cutting and other maintenance charges of playgrounds, other than engineering repairs; (b) the cost of maintenance of its gardens and ornamental grounds; (c) the cost of maintenance and renewal, whether partial or complete, of electric installations (which include electric tans) payable at a flat rate of5 per cent per annum on the capital cost of the installations; (d) the cost of electric current consumed and hire of meter, (e) the occupier’s share of municipal taxes for specific direct services rendered to an Institute by a municipality such as conservancy, water and the like taxes as distinct from taxes of a general nature; (t) water charges calculated at so much per tap, each Railway Administration fixing its own scale of charges. In cases where large quantities of water are supplied by the Railway Administration, as in the case of swimming baths, the actual cost of water supplied should be recovered. Paragraph2810 provides that (i) no rent is recoverable in the case of Railway buildings used as officers’ club provided conditions stipulated in para1942-E are fulfilled; (ii) no rent is recoverable in the case of Railway buildings used as officers’ clubs if the buildings are specially constructed against amounts specifically sanctioned by the Railway Board (iii) no rent is recoverable in the case of clubs, if additional expenditure is incurred in converting an existing building into a club or providing ancillaries to make it suitable as a club, if the expenditure is incurred with the specific approval of the Railway Board and (iv) no rent is recoverable in the case of clubs where the building is erected by the club at its costs on Railway land. Paragraph2811 further provides that ClassIV staff employed in Railway Institutes may be given residential accommodation free of rent provided such accommodation is either part and parcel of the Institute building and its recognised out-houses, or is not required for any other railway purpose, or cannot be rented to outsiders and would otherwise lie vacant. According to paragraph2813 the membership of the Institute/Club is optional. Paragraph2817 gives powers to the respective General Managers to frame rules to suit local requirements of the Railway Administrations and other circumstances of the place. The employees of the Institutes/Clubs are entitled to free passes, and to get medical facilities provided by the Railway Hospitals. The employees belonging to ClassIV are eligible for absorption in the Railways and for that purpose they are given relaxation in age. The petitioners, therefore claim that they should be treated on the same par as the employees in statutory canteens and non-statutory canteens there being no difference in their status. 3. The petition is resisted on behalf of the respondent Union of India. According to the respondents, the Institutes and Clubs have their origin in the rules regarding Staff Benefit Fund which is provided for in ChapterVIII of Railway Establishment Code Vol.1(1985 edition). According to the rules contained in this Chapter as clarified/modified by the administrative instructions from time to time, the main objectives of the Fund are to provide additional amenities to the railway servants and their families in the sphere of education, recreation, relief to the distressed, financial assistance during sickness and development of sports and scouting activities. The Fund consists of contribution from Railway revenues at the rate of Rs.14 per capita of the sanctioned strength of non-gazetted employees as on 31st March of each year. The contribution of Rs.14 is broadly apportioned amongst various spheres of activities as under: (i) (a)Education 2.50 (b) Recreation other than sports 2.00 (c) Relief of distress sickness etc. 3.50 (d) Miscellaneous items 0.50 (ii) Sports activities 2.50 (iii) Scouts activities 1.00 (iv) Recreational facilities to officers and Supervisory staff 2.00 According to the respondents further, as per the provisions of the Railway Establishment Code and the Establishment Manual, the Institutes and Clubs are managed by a committee representing its membership. It is the Managing Committee which engages such staff as is required and meets the cost of their wages and allowances. The conditions of service including the scales of pay of the staff are decided upon by the respective Managing Committees and hence they vary from Institute to Institute and Club to Club. The cost of the staff running the institute including the pay bill of the staff is met by the Managing Committee from membership fees and from grants received from the Staff Benefit Fund. As will be evident from the apportionment of the per capita grant among the various activities, only a sum of Rs.4 per capita comes to the share of the recreational facilities. The funds available for recreational facilities are further limited because the membership of the Institutes/Clubs is optional. These facilities further, in the nature of things, are availed of by the members for a few hours beyond working hours. The Managing Committees therefore, engage only part-time staff. They engage full-time staff only when it is considered absolutely necessary. There are about449 Institutes and332 Clubs and they have engaged about 1741 employees of whom about887 are on full-time basis, the rest being engaged on part-time basis. The whole time employees are allowed passes and Privilege Ticket Orders on a restricted scale in terms of para1526 of the Railway Establishment Manual. It is, therefore, contended on behalf of the respondents, that the Railways are not the principal employers of the staff engaged in the Institutes/Clubs and they have no control whatsoever on it. The staff is not paid directly from the Consolidated Fund of India. Whatever facilities are provided to the whole time staff are provided only as a special case, and not on account of any obligation under any law. It is also contended that in fact it is the Managing Committees who have engaged the staff and they ought to have been joined as parties to the petition. The respondent Union of India having no relationship with the employees, the petition is liable to be dismissed on account of non-joinder/mis-joinder of parties. The respondent have also questioned the locus standi of the present Association to file the petition since according to them no such Association exists. 4.The respondent further points out that the Managing Committees of the Institutes/Clubs do not receive any subsidy or loan from the Railways for meeting specifically the wage bill of the employees as do the Managing Committees of the statutory/non-statutory recognised canteens and, therefore, the present employees stand on a different footing than that of the employees in the statutory/non-statutory recognised canteens. In reply to the contention of the petitioners that the rules framed for the constitution of Managing Committees of the Institutes/Clubs give power to the Railway Administration to dissolve the Managing Committees or to appoint ad hoc committees, it is pointed out that these rules arc framed locally by General Managers of Zonal Railways, Production Units etc. in terms of the provisions contained in para2817 of the Establishment Manual. They are not uniform and not all rules so framed provided for either the dissolution of the Managing Committee or appointment of ad hoc committee by the Railway Administration. The respondents also deny that the Railway Board has treated Institutes/Clubs as an integral part of the Railways. It is also pointed out that the Railway free passes and privilege ticket orders are given only to the full-time employees as a special case. But even they arc given on a restricted scale. As regards the medical facilities again it is pointed out that it is given to the employees and not to their family members or dependent relatives. As regards the facilities of absorption in the Railways by relaxing the age limit, the respondent points out that it is not only this staff but also the staff of cooperative societies, canteen commission bearers, vendors of departmental canteen who are eligible for such relaxation in age limit to the extent of the service rendered in such organisation whichever is less, for appointment in Group “D” categories. But they have to appear before Railway Service Commissions/Railway Recruitment Board alongwith casual labourers and substitutes, and they are considered only after the eligible casual labourers and substitutes are considered. It is lastly submitted on behalf of the respondents that although there is no obligation on the Railways, the Railways have issued administrative instructions to the Zonal Railways etc. that whenever it is found absolutely necessary by the Managing Committees of the Institutes/Clubs to employ staff on full-time basis they should be paid remuneration keeping in view the local market conditions. 5.It is also the contention of the respondents that the Railways are providing financial assistance/grants-in-aid for various non-welfare activities and to non-railway agencies such as private schools run in the railway colonies, co-operative societies/banks etc. Since the employees engaged in these activities non-railway organisations do not ipso facto become railway servants, the employees of these institutes/Clubs can also i not become the railway employees for the same reason. The service in the , railway Institutes/Clubs is purely in the nature of private employment. On the other hand, the railway employees are recruited according to the rules of recruitment. They are subjected to rigorous standards with regard to age limit, educational qualifications, medical fitness, interviews, character verification etc. as well as to stiff competition. To treat the employees in Railway Institutes/Clubs as railway employees would amount to a backdoor entry of these employees to Government service without following the regular procedure. It is also contended by them that the letters of appointment offered to these employees by the respective Managing Committees make it clear that they are not to be treated as railway servants. For all these reasons, these employees form a separate class and they are not comparable with any other category of staff of the Railways. It is also submitted on behalf of the respondents that the analogy of the employees in railway canteens is not applicable to these employees because the status of the canteen employees is itself being contested that if this Court deems it proper to treat the full-time employees of the Institutes/Clubs as railway servants it will have to be left open to the Respondents to frame such rules as it Institutes/Clubs and for engaging such staff as are considered necessary. If the employees concerned are then directed to be absorbed only subject to the requisite standards of age, educational qualifications etc. and only such of them as are found suitable, many of the present employees may be faced with unemployment which will not be in the interests of the employees themselves. 6.After considering the respective contentions of the parties and the documents on record, we are of the view that there is a material difference between the canteens run in the Railway establishments, and the Railway Institutes and Clubs. In the first instance, the canteens are invariably a part of the establishments concerned. They are run to render services during the hours of work since the services, by their very nature are expected directly to assist the staff in discharging their duties efficiently. The lack of canteen facilities is ordinarily bound to hamper and interfere with, the normal i working of the staff and affect their efficiency. The importance of the services rendered by the canteens to the staff in the day to day discharge of their work therefore needs no further emphasis. Suffice it to say that the canteen services are today regarded as a part and parcel of every establishment. So much so that they have been made statutorily mandatory under the Factories Act,1948 in establishment governed by the said Act where more than250 workers are employed. The canteen services are thus no longer looked upon as a mere welfare activity but as an essential requirement where sizable number of employees work. That is why even the Railway Administration has, by its Establishment Manual made a provision for canteens even where the Factories Act does not apply, and has laid down procedurefor their registration and approval and for extending to them almost the same facilities and monetary assistance as in the case of the statutory canteens. However, the same cannot be said of the Institutes and Clubs. Although for them also the Railway Establishment Manual makes provisions in the same ChapterXXVIII dealing with Staff Welfare, the provisions are of a materially different nature and pattern. In the first instance, there is no provision either for subsidy or loan directly from the funds of the Railway Administration. The Institutes/Clubs have to run on the membership fees and fixed grants received from the Staff Benefit Fund. The Fund consists of receipts from the forfeited Provident Fund and bonus and of fines. The grant is made as pointed out by the Respondents, to each Institute/Club at the rate of Rs.14 per capita of the non-gazetted staff employed at the relevant establishment. Out of this contribution, only Rs.4 per capita are spent on the activities of the Institutes and Clubs, the rest of the amount being spent on education, relief in case of distress and sickness, sports scouts activities and for other miscellaneous purposes. There is further no dispute that the wages and allowances of the staff of the Institutes/Clubs are paid by the Institutes/Cubs themselves and they are not subsidised by the Railway Administration as in the case of the statutory and non-statutory recognised canteens. 5-A By their very nature further the services of the Institutes/Clubs are availed of beyond working hours only. It is common knowledge that not all members of the Railway staff avail of them. One has to be a member to do so by paying fees. The membership is also optional. That is why most of the staff employed in the Institutes/Clubs is part time. As has been stated by the respondents, out of about1741 employees engaged in449 Institutes and332 nearly half are part-time employees. The services rendered by the employees are not of a uniform nature. They are engaged for different services with different service conditions according to the requirement. The Institutes/Clubs further do not engage in uniform activities, the activities conducted by them varying depending upon the infrastructure and the facilities available at the respective places. 7. What is more important as far as the issue involved in this petition is concerned, is that the provision of the Institutes/Clubs is not mandatory. They are established as a part. of the welfare measures for the Railway Staff and the kind of activities they conduct depend, among other things, on the funds available to them. The activities have to be tailored to the budgets since by their very nature the funds are not only limited but keep on fluctuating. If the costs of the activities go beyond the means, they haveto be curtailed. So also, while starting a new activity it is necessary to take into account its financial implications and the capacity of the Institute/Club to raise the necessary funds. The only varying component of the funds is the membership fee which is uncertain. 8. If as contended by the petitioner Association the workers engaged in these Institutes/Clubs are treated as Railway employees, the danger is that these welfare activities which are otherwise encouraged by the Railway Administration may in course of time shrink and cease altogether for want of funds. This will not be in the interests of workers themselves. One cannot lose sight of the fact that today the emoluments of government servants including those of the Railway employees, may they belong to ClassIV or to a higher category, arc substantial and inhibit fresh recruitment. The services rendered by the Institutes/Clubs and the benefits which flow from them, an increase in their administrative expenditure which may result from granting the status of the railway employees to their workers, will be disproportionately high and forbidding. This will also have a snow-balling effect on other welfare activities carried on by the Railways and similar activities carried on by all other organisations. We also cannot lose sight of fact that the workers engaged in the welfare activities today are drawn from the respective localities without restrictions of the qualifications of education, age etc. whatever little scope for employment is also vanish with the cessation of these activities. After all, the number of employees who may benefit by becoming railway employees does not today exceed887 who are the full-time employees scattered all over the country. But, they may deprive many of their bread in the present and in the future. For, as pointed out by the Respondents, if the Railway service rules are made applicable many of the present employees will also have to face immediate unemployment. This is of course yet a larger related socio-economic consideration. 9.On the facts placed before us which we have discussed above, we are also not persuaded to hold that there is a relationship of employer-employee between the Railway Administration and the employees engaged in the Institutes and Clubs. Neither law nor facts spell out such relationship. If the present service conditions of these employees are unsatisfactory, the remedy lies elsewhere. 10.Since we are disposing of the petition on merits, it is not necessary to deal with the legal contentions raised on behalf of the Respondents that the petitioner Association has no locus standi and that the petition is not maintainable for non-joinder and/or mis-joinder of the parties. 11.In the result, we dismiss the Writ Petition and discharge the rule with no order as to cost. Sd/- Sd/- Sd/- (RANGANATH MISRA) (P.B. SAWANT) (K. RAMASWAMY) ___________________________________________________________________________ [18] Subject : Consideration of staff of Railway Institutes for employment in Railways—Relaxation in age etc. [No. E (W) 92IS 1-3, dated 02.12.1992: RBE 204/92] It has been represented to the Board that in the case of employees of Railway Institutes, the extant orders regarding relaxation in the age etc. and absorption in regular Railway employment are not being followed by certain Railways. In this connection, attention is invited to Railway Board’ s letter No. E(NG) 1II/73/RRI/27, dated 30.10.1973 stipulating that quasi-administrative offices or organisations like Institutes should be given relaxation in age limit to the extent of five years or service rendered in such organisations, whichever is less, for absorption in Group’ D’ categories and appearing before Railway Recruitment Board for selection to Group ‘C’ categories. It was stipulated vide Board’s letter No. E(NG)-II/87/RRI/5, dated 23.08.1988 that where direct recruitment to Group ‘D’ posts is made from the open market in the Workshops or in Electric/Diesel Loco sheds as permissible under extant instructions, persons employed in Railway Institutes attached to a Workshop may apply direct, i.e., without being sponsored through Employment Exchange provided they possess the educational qualifications prescribed for the said direct recruitment. Applications of such persons can be considered by the Railway Administration alongwith other applications which can be entertained under extant instructions. In considering applications of such candidates, the Railway Administrations can allow them age concession to the extent admissible in terms of the instructions quoted above. 2.Board desire that the above instructions should be reiterated to all concerned for compliance. ___________________________________________________________________________
