THE DIVISIONAL ENGINEER, G.I.P. RAILWAY vs MAHADEO RAGHOO AND ANOTHER.

The Supreme Court ruled that house rent allowance does not qualify as 'wages' under Section 2(vi) of the Payment of Wages Act, 1936, if the employee has been offered government quarters and refuses to occupy them. The Court held that the entitlement to house rent allowance ceases when an employee declines the accommodation offered, as per Rule 3(i) of the statutory rules. Thus, the allowance is not an indefeasible right and is contingent upon the acceptance of government-provided housing.