FUNDAMENTAL RULES Vol – I

CHAPTER V ADDITIONS TO PAY

F.R.44. Subject to any restrictions which the Secretary of Authority

competent to
State in Council may by order impose upon the powers of the grant
Governor-General in Council or the Governor in Council, as the compensatory
allowance.
case may be, and to the general rule that the amount of a
compensatory allowance should be so regulated that the allowance
is not on the whole a source of profit to the recipient, a local
Government may grant such allowances to any Government servant
under its control and may make rules prescribing their amounts and
the conditions under which they may be drawn.

S.S.O.1. (1) The Secretary of State in Council has decided Payment of

Compensatory
that where an officer who has made arrangements to spend less Allowance equal
then six months on leave in the United Kingdom during the fiscal to British Income
Tax.
year becomes liable to British Income-Tax though being detained
on duty beyond that period, he may be granted a compensatory
allowance equal to the Income-Tax on leave pay, up to maximum
of six months, which he would have escaped but for such detention
on duty.

(2) The decision, however, has not been embodied in the

India Office rules regulating travelling, etc., allowances.

[G.I.,F.D.No.F-17(1)-CSR-25, dated 29-7-1925]

S.S.O. 2. The Secretary of State for India in Council has Equipment

allowance of a
decided that the equipment allowance of a gentleman who is Member of the
habitually resident in India at the time of receiving notice of his Council of India.

intended appointment as Member of the Council of India shall for

the further be fixed 250. The allowances of Pounds 100 each way
granted for the voyage to England on appointment and the return
voyage to India on termination of officer, remains unaltered.

[G.I.,F.D.No.F-17(1)C.S.R., dated 28-7-1924]

S.S.O.3. The following decisions have been reached by the

Secretary of State and his Advisers:-

CHAPTER V ADDITIONS TO PAY 1 of 44

 FUNDAMENTAL RULES Vol – I

(1) Compensatory allowances are to be regarded as

included in remuneration for the purposes of the proviso to
section 247 (1) and section 250 (3) of the Government of
India Act, 1935.

(2) These allowances can be withdrawn or reduced on

satisfactory proof that the circumstances on which the grant
was based have in fact altered to an extent justifying
withdrawal or reduction.

(3) Rules regulating these allowances should continue

[unless and until the Secretary of State decides to exercise
his rule making powers in respect of such allowances under
section 247 (1) (b) of the Act] to be made by the
Government in India.

(4) As regards Secretary of State's officers, the authorities

competent both to decide the question of fact in (2) and to
authorise withdrawal or reduction of allowances (other than
travelling allowances) are-

(a) In the case of officers to whom sub-section (3) of

Section 258 of the Government of India Act, 1935,
applies, the Secretary of State.

(b) In the case of other officers, the Governor

exercising his individual judgement as regards officers
serving in connection with the officers of a province.

[G.I.,F.D.Endt. No. F-19 (27) -Ex-1/39, dated 29-8-

39]

A.G.I.1. Where the condition mentioned in clause (2) of

S.S.O. 3 above, is fulfilled it is permissible-

(i) for the competent authority as defined in clause (4) ibid to

deliberalize the rules or orders having the force of rules,
regulating compensatory allowances other than travelling
allowances; and

CHAPTER V ADDITIONS TO PAY 2 of 44

 FUNDAMENTAL RULES Vol – I

(ii) for the competent authority as defined in the' Travelling

Allowances (Secretary of State's Officers) Rules, 1939', to
deliberalize the rules or orders having the force of rules,
regulating travelling allowances in their application to all
Secretary of State's Officers and such a modification under
such condition does not amount to giving less favourable
terms as respects remuneration within the meaning of the
proviso to Section 247 (1) and sub -section (3) of Section
250 of the Government of India Act, 1935.

The decision is based on the consideration that the amount of a

compensatory allowance has always been subject to the condition
that the allowance should not be a source of profit to the recipient
(vide Fundamental Rule 4) and if the amount of the allowance is
reduced to make it conform to this condition, recipient cannot be
said to be adversely affected or to suffer any deliberalization in the
terms of their remuneration.

[Auditior General's U.O. Note No.68-A/256-12, dated 2-12-1943

copy received with G.I.,F.D. Endt. No. F-5 (107)-R-1/43, dated
12-12-1943]

G.I.O.- It is within the competence of the local Government

to sanction, under Fundamental Rule 44, compensatory allowance
the cost of which is debited to provincial revenues for military
officers on the personal staff of Governors.

[G.I., H.D. letter No. F.269-32-Ests.]

A.G.I. Hill allowances fall under "Compensatory Hill allowance a

compensatory
Allowances" local Government have powers to sanction them Allowance.
under Fundamental Rule 44.

S.R.1.- A compensatory allowance attached to a post will be

drawn in full by a Government servant performing the duties of that
post, and if such a Government servant is transferred to a post to
which a compensatory allowance of a like nature is attached, he
may draw the allowance during joining time, provided that if the
rates of allowances differ, he may draw the lower rate only.

CHAPTER V ADDITIONS TO PAY 3 of 44

 FUNDAMENTAL RULES Vol – I

S.R.2.- Compensatory allowances, other than house-rent

allowances, may not be drawn by Government servants on leave
except in special cases and with the sanction of Government.
1
[Compensatory allowance granted while on duty to Public Health
and Medical personnel including those serving in Labour
Department shall be admissible to them during leave subject to the
following conditions:-

(i) the leave is not one preparatory to retirement;

(ii) the allowance shall be admissible only during the first

four months of each period of "leave on average pay" or during the
period of 'earned leave' according as the Government servant
concerned, is subject to the leave rules in Fundamental Rules or the
Revised Leave Rules, 1934;

(iii) the head of office certifies in writing that the loss of

private practice continues during leave; and

(iv) the allowance during leave shall be based on leave

salary and not pay.]

S.R.2-A.- A House-rent allowance may be drawn by a

Government servant during the first four months of each period of
leave on average pay or full pay or for six months in the case of
leave admissible under the special concession referred to in Note 1
to Fundamental Rule 89, provided that (a) the leave is not
preliminary to retirement; (b) the leave is taken from a post on
which such an allowance is attached; and (c) the Government
servant certifies that his previous rate of expenditure for a house
continues during leave and that he places his house, free of rent, at
the disposal of the Government servant, if any, who officiates in his
post. The officiating Government servant cannot in such case draw
the house rent allowance attached to the post. If, however, the
officiating Government servant, for a reason which a competent
authority considers to be sufficient, refuses the accommodation

1
Subsituted by F.D. Notification No. 389-IV-R-II-66, dated 26.2.66.

CHAPTER V ADDITIONS TO PAY 4 of 44

 FUNDAMENTAL RULES Vol – I

placed at his disposal he, and not the absent Government servant
will draw the allowance.

S.R. 2-B.- [Deleted]

S.R. 2-C.- The drawal of a house-rent allowance is

contingent on the Government servant's incurring the full amount of
expenditure to meet which the allowance is granted. A claim on
account of house-rent allowance should, therefore, be supported
by a certificate in the following form to be furnished by the officer
himself (if he is a gazetted officer) or by the drawing officer in the
case of non-gazetted establishments, with each bill containing a
charge for house-rent allowance:-

"Certified that Government quarters have not been

provided and that the actual expenditure incurred for the
hire of the house is not less than the allowance claimed."
2
[In case of a Government servant on study Leave, the
Drawing Officer should furnish a certificate:-

" Certified that the Government servant on Study Leave

for whom House Rent Allowance is drawn in the leave
salary bill is likely to be reposted to his former post and
that his family continues to reside at the station where the
Government servant was residing prior to his proceeding
on study leave."]

A.G.I. The maximum period during which a Government Compensatory

allowance to be
servant can be allowed to draw compensatory allowances while on drawn only
leave is four months (or six months in the case of leave admissible during leave on
average pay for
under the special concession referred to in note 1 to Fundamental four months.
Rule 89). The length of the total period of leave is irrelavent, but
compensatory allowance cannot be drawn during any period of
leave which is not leave on average pay.

2
Inserted by F.D. Notification No. 2266-639-IV-R-I, dated 16.7.63.

CHAPTER V ADDITIONS TO PAY 5 of 44

 FUNDAMENTAL RULES Vol – I

F.R. 45. A local Government may make rules laying down

Provision of
Government the principles governing the allotment to officers serving under its
residences. administrative control, for use by them as residences, of such
buildings owned or leased by it, or such portions thereof, as the
local Government may make available for the purpose. Such rules
may lay down different principles, for observance in different
localities or in respect of different classes of residences, and may
prescribe the circumstances in which such an officer shall be
considered to be in occupation of a residence.

N.B.- For rules made by the local Government see Appendix

XVI.
Assessment and F.R.45-A. 1. This rule applies, with effect from the 1st April
recovery of
3 1924, to members of the services and to Government servants
[License fee].
holding the posts included in the Schedule to this rule and to
Government servants who hold in a substantive capacity posts
borne on the cadre of the services included therein.

II. For the purpose of the assessment of license fee, the

capital cost of a residence owned by Government shall include the
cost or value of sanitary, water supply and electric installations and
fittings, but exclude the cost or value of site (including expenditure
on its preparation) and shall be either-

(a) the cost of acquiring or constructing the residence

and any capital expenditure incurred after acquisition
or construction; or, when this is not known,

(b) the present value of the residence.

Note.- The cost of restoration or special repairs shall not be

added to capital cost of present value, unless such
restoration or repairs add to accommodation or involve
replacement of the existing type of work by work of a more
expensive character:

Provided that-

3
Substituted by F.D. Notification No. 284-R-331-IV-R-I, dated 21.3.70.

CHAPTER V ADDITIONS TO PAY 6 of 44

 FUNDAMENTAL RULES Vol – I

(i) a local Government may make rules providing the maner

in which the present value of residences shall be determined;

(ii) a local Government may make rules determining what

expenditure is to be regarded, for the purpose of sub-clause
(a) above, as expenditure upon the preparation of a site;

(iii) a local Government may, for reasons which should be

recorded, authorise a revaluation of all residences of a
specified class or classes within a specified area to be
conducted under the rules referred to in proviso (i) above,
and may revise the capital cost of any or all such residences
on the basis of such revaluation;

(iv) the capital cost, however calculated, shall not take into
consideration (1) any charges on account of establishment
and tools and plant other than such as were actually charged
direct to the work in cases in which the residence was
constructed by Government, or (2) in other cases, the
estimated amount of such charges;

(v) a local Government may, for reasons which should be

recorded, write off a specified portion of the capital cost of a
residence-

(1) when a portion of the residence msut be set aside,

by the officer to whom the residence is allotted for the
reception of official and non-official visitors visiting
him on business, or

(2) when it is satisfied that the capital cost, as

determined under the above rules, would be greatly in
excess of the proper value of the accommodation
provided;

(iv) in assessing the cost or value of the sanitary, water-

supply and electric installations and fittings, a local
Government may by rules determine what are to be regarded
as fittings for this purpose.

CHAPTER V ADDITIONS TO PAY 7 of 44

 FUNDAMENTAL RULES Vol – I

A.G.I. :- A question having arisen wheter, under provisos (i)

and (iii) to Fundamental Rules 45 A-II, a local Government is
competent to determine the present value of a residence, the capital
cost of which is already known, the Government of India have
issued the following interpretation:-

The substantive part of the rule provides that for the purpose
of the assessment of licence fee the capital cost of a residence shall
be either-

(a) the cost of acquiring or constructing the residence and

any capital expenditure incurred after acquisition or
construction; or, when this is not known,

(b) the present value of the residence.

Clause (i) in the proviso obviously does not more than

supplement (b) in the substantive part by settling the manner in
which the present value is to be determined in cases in which the
factors specified in (a) are not known. Clause (iii) which unlike
clause (i) is a true proviso, alters the operation of the substantive
part of the rule by empowering the local Government to substitute
for the capital cost determined in accordance with (a) in the
substantive part, in a case when the factors specified in (a) are
known, a new capital cost represented by the present value
calculated in accordance with the rules made under proviso (i) for
the primary purpose of determining the present value in cases to
which (b) in the substantive part is applicable.

(c) In both cases standard licence fee shall be expressed as

standard for a calender month and shall be equal to one
twelfth of the annual licence Fee as calculated above, subject
to the proviso that, in special localities or in respect of
special classes of residence, a local Government may fix a
standard licence fee to cover a period greater than one month
but not greater than one year. Where a local Government
takes action under this proviso standard licence fee so fixed
shall not be a larger proportion of the annual licence fee than

CHAPTER V ADDITIONS TO PAY 8 of 44

 FUNDAMENTAL RULES Vol – I

the proportion which the period of occupations as

prescribed under clause I above bears to one year.

Notes.- (1) For the purpose of sub-clauses (a) and (b) above, the
addition for both ordinary and special maintenance and repairs,
shall not include anything for the establishment and tools and plant
charges, except to the extent allowed under proviso (iv) to clause
II.

(2) A local Government may by rules permit minor additions and

alterations, the cost of which does not exceed a prescribed
percentage of the capital cost of the residence, to be made during
such period as the rule may determine, without the licence fee of the
residence being increased.

III. The standard licence fee of a residence shall be

calculated as follows:-
4
[(a) (i) in the case of leased residence, the standard licence
fee shall be the sum paid to the lessor;

(ii) in the case of a requisitioned residence the standard

licence fee shall be the compensation payable to the owner of
the building;

plus in both cases as addition determined under rules which

a local Government may make, for meeting, during the period
of lease or requisition, as the case may be, such charges for
both ord inary and special maintenance and repairs and for
capital expenditure on additions or alterations as may be a
charge on Government and for the interest on such capital
expenditure, as also for muncipal and other taxes in the
nature of house or property tax payable by Government in
respect of such residence.]

(b) In the case of residences owned by Government, the

standard licence fee shall be calculated on the capital cost of
the residence, and shall be either-

4
Substituted by F.D. Notification No. 1369-CR-1600-IV-R-I, dated 16.9.66.

CHAPTER V ADDITIONS TO PAY 9 of 44

 FUNDAMENTAL RULES Vol – I

(i) a percentage of such capital cost equal to such rate

of interest as may from time to time be fixed by the Secretary
of State in Council plus an addition for municipal and other
taxes in the nature of house or property tax payable by
Government in respect of the residence and for both
ordinary and special maintenance and repairs, such addition
being determined under rules which a local Government may
make, or

(ii) 6 per cent per annum of such capital cost,

whichever is less.

G.I.O. The term "property tax" as used in the rule should be

interpreted in the general sense and not in the technical sense
assigned to it in any particular Act or Code; and it should therefore
not be considered to include taxes levied for specific services
rendered for the benefit of the occupier. Such taxes should in all
cases be excluded from the Standard Licence Fee and recovered
from the occupier, irrespective of whether they were by local rule
or custom, payable in the first instance by landlord or by the
occupier.

These orders apply also in cases where Government servants

are provided with Government accommodation, free of Licence
fee.
[Government of India, Finance Department letter No. F. 25 (27) Ex-
II-42, dated the 26th June 1942]

Rate of interest. A.G.I. The rates of interest given in the following table
should be applied in calculating the Standard licence Fee of
residences, under clause III (b) of Fundamental Rules 45-A and 45-
B-
Date of accquisition or Rate of interest
construction of the residence
Building Building
occupied on occupied
or before the after the 19th
19th June June 1922
1922

CHAPTER V ADDITIONS TO PAY 10 of 44

 FUNDAMENTAL RULES Vol – I

Befor 1st April 1919 .. 3 1/2 per 4 per cent

cent
1st April 1919 to 31st July 1921 .. - do - 5 per cent
1st April to 31 December 1921 .. - do - 6 per cent
Frin 1st January 1922 until further 6 per cent - do -
orders

Note.- The date of construction referred to in column (1) of this

table should be taken as the date on which the accounts of the
estimate for the construction of the residence are closed. In respect
of expenditure on additions and alteration to residences the interest
should be calculated at the rate applicable on the date on which the
accounts of the estimates for the addition or alteration are closed.

IV. When Government supplies an officer with a residence

5
[leased or requisitioned] or owned by Government, the following
conditions shall be observed-

(a) The scale of accommodation supplied shall not, except at

the officer's own request, exceed that which is appropriate to
the status of the occupant.

(b) Unless in any case it be otherwise expressly provided in these

rules, he shall pay (i) licence fee for the residence, such licence Fee
being the standard licence fee as defined in clause III above or 10
per cent; of his monthly emoluments, whichever is less; and (ii)
municipal and other taxes payable by Government in respect of the
residence not being in the nature of house or property tax.

A.G.I. A Government servant who, at his own request, is When residence

of a higher class
supplied with a residence owned or leased by the Central owned by Central
Government, of a class higher than that for which he is eligible, Government is
supplied.
when a house of his class is available for him, should be charged
the full Standard Licence Fee fixed for the residence and should not
be given the benefit of 10 per cent concession afforded by clause
IV (b) of Fundamental Rules 45-A and 45-B.

5
Substituted by F.D. Notification No. 929-CR-820-IV-R-I, dated 2.5.62.

CHAPTER V ADDITIONS TO PAY 11 of 44

 FUNDAMENTAL RULES Vol – I

(c) Notwithstanding anything contained in sub-clause (b)

above, a local Government may-

(i) at any time after the standard licence fees have been
calculated under the provisions of clause III above, group a
number of residences, whether in a particular area or of a
particular class or classes for the purpose of assessment of
licence Fee subject to the following conditions being fulfilled:-

(1) that the basis of assessment is uniform; and

(2) that the amount taken from any officer shall not exceed
10 per cent of his monthly emoluments;

(ii) by general or special order, provide for taking a licence fee in

excess of that prescribed in sub-clause (b) above from an
officer-

(1) who is not required or permitted to reside on duty at the

station at which the residence is supplied to him, or

(2) who, at his own request, is supplied with accommodation

which exceeds that which is appropriate to the status of the
post, held by him, or

(3) who is in receipt of a compensatory allowance granted on

account of dearness of living, or

(4) who is permitted to sublet the residence supplied to him;

or

(5) who sublets without permission the residence supplied to

him; or

(6) who does not vacate the residence after the cancellation
of allotment.
6
[(d) (i) where the standard licence fee of a residence cannot
be determined for reasons to be recorded in writing at the

6
Inserted by F.D. Notification No. 1930-CR-2381-IV-R-I, dated 26.10.63.

CHAPTER V ADDITIONS TO PAY 12 of 44

 FUNDAMENTAL RULES Vol – I

time of its allotment, the Government servant shall pay such

licence fee as may be fixed by the Government on the basis
of the actual expenditure on the construction or the cost of
acquisition of the building, the cost of fittings therein and the
known and anticipated liabilities relating thereto plus 10 per
cent of the amount so arrived at or 10 per cent of his
monthly emoluments whichever is less.

(ii) the licence fee so fixed shall remain effective till the
standard licence fee for that building is determined on
completion of the building and will not be increased in any
case during the interim period.]

A.G.I. 1. Under clause IV (c) (ii) of Fundamental Rules 45 - Recovery of

licence fee in
A and 45-B, a local Government may, recover licence fee in excess excess of 10 per
of 10 per cent of a Government servant's emoluments, but not in cent of
emoluments.
excess of the standard licence fee as defined in clause III of the
rule.

A.G.I. 2.- A.G.I.1. above embodies an interpretation of

Fundamental Rules 45-A given by the Governor-General in Council
under Fundamental Rule 8 and is intended to apply in the case of all
Secretary of State's officers in all the circumstances mentioned in
clause IV (c) (ii) of Fundamental Rules 45-A, irrespective of
whether they are on leave or, being on duty at one station, are
allowed to occupy a Government residence at another station.

[Audtr. Genl's letter No. 503-A-270-41, dated 16-12-41]

V. In special circumstances, for reasons which should be

recorded, a local Government-

(a) may, by general or special order, grant licence fee free

accommodation to any Officer or class of Officers, or

(b) may by special order, waive or reduce the amount of

licence fee to be recovered from any officer, or

(c) may, by general or special order, waive or reduce the

amount of municipal and other taxes not being in the nature

CHAPTER V ADDITIONS TO PAY 13 of 44

 FUNDAMENTAL RULES Vol – I

of house or property tax, to be recovered from any officer or

class of officer.

S.S.O. Government servants granted licence fee

concessions under old F.R. 45 (e).- Government servants to
whom Fundamental Rule 45-A applies and who have been granted
licence free quarters under old Fundamental Rule 45 (e) but without
exemption under clause (f) of that rule from additional licence fee
on account of sanitary, water supply and electric installations in
respect of quarters occupied after the 1st April 1924, on the ground
that the standard licence fee of a residence under Fundamental Rule
45-A includes also licence fee on account of such installations.

[G.I.F.D., letter No. F-3-VII-R-I-28, dated the 7th June 1928]

A.G.I. In exercise of the powers granted to him by the

Fundamental Rule 8, the Governor-General in Council has ruled
that it is permissible to deal under clasue V(b) of Fundamental Rule
45-A or 45-B, not only with individuals but also with classes of
Government servants.

VI. If a residence is supplied with services, other than water

supply, sanitary or electric installations and fittings, such as
furniture, tennis court, or garden mainitained at the cost of
Government, licence fee shall be charged for these in addition to
the licence fee payable under clause IV. The tenant will also be
required to pay the cost of the water, electric energy, etc.,
consumed. A Local Government may make rules prescribing how
the addtional licence fee and charges shall be determined and such
rules may also authorize the remission or reduction of the additional
licence fee or charge in special circumstances for reasons which
should be recorded.

G.I.O.- The Government of India have decided that a (1)

frig'daire and (2) portable electric heater or water-heater should be
classified as furniture.

[(1) Controller of Civil account's letter No. 1368-Admn. 185-30,

dated the 1st September 1930 received with Accountant Genral,

CHAPTER V ADDITIONS TO PAY 14 of 44

 FUNDAMENTAL RULES Vol – I

Central Provinces letter No. T.I.1589, dated 24th September

1930]

[(2) Auditor-General's letters NO. T-458-Admn. II-96-36, dated

29th June 1936 received with Accountant-General, Central
Provinces memorandum No. W.915-151, dated the 4th August
1936.]

L.G.O.- Both Frig'daire and electric water-heater should be

treated as special service for the purpose of the above rule.

A.G.I.- The question has been raised whether the value of

the site should be excluded in calculating the additional licence fee
payable under Fundamental Rule 45-A for the special services
referred to therein. Clause II of Fundamental Rule 45-
A definitely excludes the cost of site from the calculation of
ordinary licence fee with object inter alia that there should be no
inequality in licence fee merely on account of site values.
Inequalities of the same kind and due to the same cause would,
however arise if the licence fee charged for services included the
cost of site. Ordinarily, houses of the class affected by the rule in
question already have a compound large enough to accommodate
the special service. If the house had no special service provided no
licence fee would be payable for the site and it would not be
reasonable to commence to charge licence fee for site, because of
the provision of a special service in cases where the site remains the
same. The Governor-General in Council has therefore decided that
the value of the site should be excluded in calculating the llicence
fee or special service under Rundamental Rule 45-AVI.

VII.- A local Government may by rule prescribe that this rule

shall apply with effect from any date not earlier than the 1st April,
1924 to any Government servant or class of Government servants
other than those mentioned in the rule.

VIII.- Nothing contained in this rule shall so operates as to

require payment of licence fee for the occupation of residences
supplied by Government, by those servants of the Crown in India
who have been exempted from such payment by order of the

CHAPTER V ADDITIONS TO PAY 15 of 44

 FUNDAMENTAL RULES Vol – I

Secretary of State in Council, or to affect the amount of licence fee

or charges payable by those servants of the Crown in India, in
whose case the amount so payable is prescribed by the Secretary
of State in Council.

SCHEDULE TO RULE 45-A

A- Service
Indian Civil Service
Indian Police.
Indian Agricultural Service.
Indian Educational Service.
Indian Forest Service.
Indian Forest Engineering Service.
Indian Medical Service (Civil).
Indian Service of Engineers.
Indian Veterinary Service.
Indian Audit and Accounts Service.
Superior Service Officer of the Military Accounts
(Department of Mints and Assay Department).
Imperial Customs Service.
Superior Telegraph Engineering and Wireless Branches
of Indian Posts and Telegraphs Department.
Geological Survey of India (Director, Superintendent,
Assistant Superindents and Chemists).
Indian Meteorological service (Director-General of
Observatories and Meteorologists.)
Department of Mines in India.
Archaeological Department .
Zoological Survey of India.
Survey of India, Class 1.
Indian Ecclesiastical Establishment.
Political Department of the Government of India.
Medical Research Department (Excluding Indian
Medical Service Officers).
Opium Department excluding officers who joined the
Department after the 2nd April 1907.
Bengal Pilot Service.

CHAPTER V ADDITIONS TO PAY 16 of 44

 FUNDAMENTAL RULES Vol – I

B - POSTS
1. Indian Posts and Telegraph Department -
(i) In the postal department -
Deputy Director General.
Postmasters General.
Deputy Postmaster General.
Assistant Directors General.
Presidency Postmasters (including
Postmaster, Rangoon).
(ii) In the Telegraph Traffic Branch-
Deputy Director General.
Assistant Director General.
First Division of Superior Traffic Branch.

2. Commissioners and Assistant Commissioners

of Income-Tax.

3. Commissioner, Deputy Commissioner and

General Managers of the Northern
Indian Salt Revenue Department.

4. Officer of the Government Department if on the

Supernumerary List.

G.I.O. 1.- [Deleted]

G.I.O. 1.- The Government of India have decided that the

following procedure should be observed in regulating the recovery
of licence fee from officers of the Provincial Government for whom
residential accommodation is provided by the railway
administration as also for the recovery of licence fee from railway
officer occupying residential accommodation belonging to the
Provincial Government :-

(1) Railway quarters specifically constructed for the

Police Department - The provisions of Railway Department
(Railway Board) Circular No.932 W, the 10th October 1936, will
apply in these cases.

CHAPTER V ADDITIONS TO PAY 17 of 44

 FUNDAMENTAL RULES Vol – I

(2) State Railway quarters occupied by civil servants of

Madhya Pradesh Governemnt by mutual arrangements - The
licence fee will be limited to 6 percent on the capital cost excluding
cost of land, subject to 10 percent of pay.

(3) Quarters belonging to Madhya Pradesh

Government occupied by railway employees by mutual
arrangement - In these cases civil servant will apply, i.e. the
licence fee will be limited to 6 percent on the capital cost excluding
cost of land, subject to 10 percent of pay.

[Government of India, Railway Department (Railway Board) end

or- sement No. 5464-F, dated the 6th June 1936]

N.B.- For supplementary Rules made by the Local

Government see Appendix XVI.
Assessment and F.R. 45-B. 1. This rule applies to Government servants
recovery of
Licence Fee. other than those to whom rule 45-A applies or is made applicable
under the provisions of clause VII of that rule, or than those
occupying residences belonging to a State Railway, or rented at the
cost of railway revenues.

II. For the purposes of sub -clause (b) of clause III, the
capital cost of a residence owned by Government shall not include
the cost or value of such special services and installations
(including furniture, tennis courts and sanitary, water-supply or
electric installations and fittings) as it may contain and shall be
either-

(a) the cost of acquiring or constructing the residence,

including the cost of the site and its preparation and
any capital expenditure incurred after acquisition or
construction; or, when this is not known,

(b) the present value of the residence including the

value of site.

Note.- The cost of restoration or special repairs shall be added to

capital cost or present value, unless such restoration or repairs add

CHAPTER V ADDITIONS TO PAY 18 of 44

 FUNDAMENTAL RULES Vol – I

to accommodation or involve replacement of the existing type of

work by work of a more expensive character-

Provided that-

(i) a local Government may make rules providing the manner in

which the present value of residences including sites, shall be
determined;

(ii) a local Government may make rules determining what

expenditure is to be regarded for the purpose of sub-clause (a)
above as expenditure upon the preparation of a site;

(iii) a local Government may, for reasons which should be

recorded authorize a revaluation of all residence of a specified class
or classes within a specified area to be conducted under the rules
referred to in proviso (i) above, and may revise the capital cost of
any or all such residences on the basis of such revaluation;

(iv) the capital cost, howsoever calculated, shall not take into
consideration (1) any charges on account of establishment and
tools and plant other than such as were actually charged direct to
the work in cases in which the residence was constructed by
Government, or (2) in other cases, the estimated amount of such
charges;

(v) a local Government may, for reasons which should be

recorded, write off a specified portion of the capital cost of
residence-

(1) when a portion of the residence must be set aside, by

the Government servant to whom the residence is allotted,
for the reception of official and non-official visitors visiting
him on business; or

(2) when it is satisfied that the capital cost, as determined

under the above rules, would be greatly in excess of the
proper value of the accommodation provided;

CHAPTER V ADDITIONS TO PAY 19 of 44

 FUNDAMENTAL RULES Vol – I

(vi) in assessing the cost or value of the sanitary, water-supply

and electric installations and fittings, a local Government may, by
rules, determine what are to be regarded as fittings for this purpose.

III. The standard licence fee of a residence shall be

calcualted as follows:-
7
[(a)(i) in the case of a leased residence, the standard
licence fee shall be the sum paid to the lessor;

(ii) in the case of requisitioned residence the

standard licence fee shall be the compensation payable
to the owner of the building;

plus in both cases an addition determined under rules

which a local Government may make, for meeting,
during the period of lease or requisition, as the case
may be, such charges for both ordinary and special
maintenance and repairs and for capital expenditure on
additions or alterations as may be charge on
Government and for the interest on such capital
expenditure, as also for municipal and other taxes in
the nature of house or property tax payable by
Government in respect of such residence.]

(b) In the case of residences owned by

Government, the standard licence fee shall be
calculated on the capital cost of the residence, and shall
be a percentage of such capital cost equal to such rate
of interest as may from time to time be fixed by the
Secretary of State in Council, plus an addition for
municipal and other taxes in the nature of house or
property tax payable by Government in respect of the
residence and for both ordinary and special
maintenance and repairs, such addition being
determined under rules which a local Government may
make.

7
Substituted by F.D. Notification No.1369-CR-1600-IV-R-I, dated 16.4.66.

CHAPTER V ADDITIONS TO PAY 20 of 44

 FUNDAMENTAL RULES Vol – I

(c) In both cases standard licence fee shall expressed

as standard for a calendar month and shall be qual to
one-twelfth of the annual licence fee as calculated
above, subject to the proviso that, in special localities
or in respect of special classes of residence, a local
Government may fix a standard licence fee to cover a
period greater than one month but not greater than one
year. Where a local Government takes action under this
proviso standard licence fee so fixed shall not be a
larger proportion of the annual licence fee than the
proportion which the period of occupation as
prescribed under clause I above bears to one year.

Notes.- (1) For the purpose of sub-clause (a) and (b)

above, the additions for both ordinary and special
maintenance and repairs shall not include anything for
the establishment and tools and plant charges, except
to the extent allowed under proviso (iv) to clause II.

(2) A local Government may by rules permit minor

additions and alterations, the cost of which does not
exceed a prescribed percentage of the capital cost of
the residence, to be made during such period as the
rule may determine, without the licence fee of the
residence being increased.

G.I.O. The term "property tax" as used in rule should be

interpreted in the general sense and not in the technical sense
assigned to it in any paricular Act or Code; and it should therefore
not be considered to include taxes levied for specific services
rendered for the benefit of the occupier. Such taxes should in all
cases be excluded from the standard licence fee and recovered
from the occupier, irrespective of whether they were by local rule
or custom, payable in the first instance by the landlord or by the
occupier.

These orders apply also in cases where Government servants

are provided with Government accommodation, free of licence fee.

CHAPTER V ADDITIONS TO PAY 21 of 44

 FUNDAMENTAL RULES Vol – I

[Government of India, F.D. letter No. F25 (27)-Er.II-42, dated 26th

June 1942]

IV. When Government supplies a Government servant with a

8
residence [leased or requisitioned or] owned by Government, the
following conditions shall be observed:-

(a) The scale of accommodation supplied shall not, except at

the officer's own request, exceed that which is appropriate to
the status of the occupant.

(b) Unless in any case it be otherwise expressly provided in

these rules, he shall pay (i) licence fee for the residence, such
licence fee being the standard licence fee as defined in clasue
III above or 10 per cent of his monthly emoluments,
whichever is the less; and (ii) municipal and other taxes
payable by Government in respect of the residence not being
in the nature of house or property tax.

(c) Notwithstanding anything contained in sub-clause (b)

above a local Government may:-

(i) at any time, after the standard licence fee have been
calculated under the provisions of clause III above,
group a number of residences, whether in a particular
area or of a particular class or classes for the purpose
of assessment of licence fee subject to the following
conditions being fulfilled:-

(1) that the basis of assessment is uniform, and

(2) that the amount taken from any Government

servant shall not exceed 10 per cent of his
emoluments;

(ii) by general or special order, provide for taking licence fee

in excess of 10 per cent of his emoluments from a
Government servant-

8
Inserted by F.D. Notification No. 929-CR-820-IV-R-I, dated 2.5.62.

CHAPTER V ADDITIONS TO PAY 22 of 44

 FUNDAMENTAL RULES Vol – I

(1) who is not under its own administration control, or

(2) who is not required or permitted to reside on duty

at the station at which the residence is supplied to him,
or

(3) who, at his own request, is supplied with

accommodation which exceeds that which is
appropriate to the status of the post held by him, or

(4) who is in receipt of a compensatory allowance

granted on account of dearness of living;
9
[(d) (i) where the standard licence fee of residence
cannot be dtermined for reasons to be recorded in
writing at the time of its allotment, the Government
servant shall pay such licence fee as may be fixed by
the Government on the basis of the actual expenditure
on the construction or the cost of acquisition of the
buildings, the cost of fittings therein and the known
and anticipated liabilities relating thereto plus 10 per
cent of the amount so arrived at or 10 per cent of his
monthly emoluments, whichever is less.

(ii) The licence fee so fixed shall remain

effective till the standard licence fee for that building is
determined on completion of the building and will not
be increased in any case during the interim period].

V. In special circumstances, for reasons which should be

recorded, a local Government-

(a) may, by general or special order, grant licence fee free

accommodation to any Government, or class of Government
Servants, or

(b) may, by special order waive or reduce the amount of

licence fee to be recovered from any Government servant, or

9
Inserted by F.D. Notification No. 1930-CR-2381-IV-R-I, dated 26.10.63.

CHAPTER V ADDITIONS TO PAY 23 of 44

 FUNDAMENTAL RULES Vol – I

(c) may, by general or special order waive or reduce the

amount of municipal and other taxes, not being in the nature
of house or property tax, to be recovered from any
Government servant or class of Government servants.

VI. If a residence is supplied with one or more or the

following or similar services, furniture, installation (including
fittings) fir water water or electricity supply or for sanitary
purposes, tennis court, or garden maintained at the cost of
Government, licence fee shall be charged for these in addition to
the licence fee payable under clause IV. The tenant will also be
required to pay the cost of the water, electric energy etc.
consumed. A local Government may make rules prescribing how
the additional licence fee and charges shall be determined, and such
rules, may also authorize the remission or reduction of the
additional licence fee or charge in special circumstances for reasons
which should be recorded.

VII. Nothing contained in this rule shall so operate as to

require payment of licence fee for the occupation of residences
supplied by Government to those servants of the Crown in India
who have been exempted from such payment by order of the
Secretary of State in Council or to affect the amount of licence fee
or charges payable by those servants of the Crown in India, in
whose case the amount so payable is prescribed by the Secretary
of State in Council.

N.B.- For the rules for the occupation of cottages in Starky

Town made by the Local Government under rule 4(1) of the Civil
Services (Governor's Provinces) Delegation Rules, see Appendix
XVII.

Emoluments for F.R.45-C. For the purpose of rules 45-A and 45-B
purposes of
recovery of emoluments mean-
licence fee.
(i) Pay;

(ii) Payments from general revenues and fees, if such

payments or fees are received in the shape of a fixed addition

CHAPTER V ADDITIONS TO PAY 24 of 44

 FUNDAMENTAL RULES Vol – I

to monthly pay and allowances as part of the authorised

remuneration of a post;

(iii) Compensatory allowances, other than travelling

allowance, uniform allowance, clothing allowance, outfit
10
allowance, special outfit allowance [city compensatory
allowance] uniform grant and grant for horse and saddlery,
11 12
[non-practicing allowance], [project allowance] whether
drawn from the Consolidated Fund of India or of a State or
from a Local Fund.

[Finance Department Notification No. 763-CR-2060-57-IV-

R-I, dated 21-3-1960]

(iv) Exchange compensation allowance.

(v) Pension, other than a pension drawn under the

provisions of Chapter XXXVIII, Civil Service Regulations,
or compensation received under the Workmen's
Compensation Act, 1923, as subsequently amended.
13
[(vi) In the case of a Government servant under suspension
and in receipt of a subsistence allowance, he shall be allowed
to occupy the Government residence during the period of
suspension on the same licence fee which he was paying
prior to such suspension.]

Note.- This amendment shall have retrospective effect, i.e., it shall

be deemed to have come into force from 6th July 1960.

It does not include allowances attached to the Victoria Cross, the

Military Cross, the King's Police Medal, the Indian Police Medal,
the Order of British India or the Indian Order of Merit.

10
Inserted by F.D. Notification No. 703-3695-76-R-I-IV, dated 14.6.77.
11
Inserted by F.D. Notification No.773-104-IV-R-I-69, dated 30.6.69.
12
Inserted by F.D. Notification No. 51/R-2295/R-I/81/IV, dated 12.1.81.
13
Substituted by F.D. Notification No. 228-2791-IV-R-I, dated 11.12.66.

CHAPTER V ADDITIONS TO PAY 25 of 44

 FUNDAMENTAL RULES Vol – I

Notes.- (1) The emoluments of a Government servant paid at

piece-work rate shall be determined in such manner as the Local
Government may prescribe.

(2) The emoluments of an officer on leave means the emoluments

drawn by him for the last complete calendar month of duty
performed by him prior to his departure on leave.
14
[ (3) The amount of pension to be taken into account will be the
amount originally sanctioned, i.e. before commutation, if any, and
will also include the pension equivalent of death-cum-retirement
gratuity and other forms of retirement benefits, if any, e.g.,
Government's contribution to a Contributory Provident fund,
Commuted Value of Pension etc.]

L.G.R. For the purpose of rule 45-C (ii) only that portion of
the fees received by a Government servant which he is allowed to
retain for himself should count as 'emoluments.'

[Government of India, Ministry of Finance, Office memo No. F.17

(13) -EG-I-49, dated 12-5-49]

G.I.O.- The term "pension" occurring in this rule should be

held to mean the full sanctioned pension prior to commutation.

[G.I.F.D. letter No.F-32 (8)-R-I-30, dated 12-5-1949.]

Fees and F.R. 46 (a.) Fees Subject to rules made by the Governor-
honoraria.
General in Council under rule 46-A, a local Government may permit
a Government servnat, if it be satisfied that this can be done
without detriment to his official duties or responsibilities, to
perform a specified service or series of services for a private
person or body or for a public, including a body administering a
local fund or for an Indian State or for anther Government and to
receive as remuneration therefore, if the service be material, a non-
recurring or recurring fee.

14
Inserted by F.D. Notification No. 809-119-IV-R-I, dated 24.3.60.

CHAPTER V ADDITIONS TO PAY 26 of 44

 FUNDAMENTAL RULES Vol – I

Note.- This clause does not apply to the acceptance of fees by

medical officers in civil employ for professional attendance which
is regulated by the orders of the Secretary of State in Council.

(b) Honoraria.- A local Government may grant or permit a

Government servant to receive an honorarium as remuneration for
15
work performed which is occassional [or intermittent] in character
and either so laborious or of such special merit as to justify a
special reward. Except when special reasons, which should be
recorded in writing, exist for a departure from this provision,
sanction to the grant or acceptance of an honorarium should not be
given unless the work has been undertaken with the prior consent of
the local Government and its amount has been settled in advance.

L.G.R. 1. Manner of sanction and payment.- When an

honorarium is to be given from provincial revenues to a
Government servant serving in one department for work in another
department, sanction to its payment should be issued by the
department which has to bear the charge with the concurrence of
the department in which the Government servant is serving at the
time. If this is done, there will be no need to issue separate
sanctions for the payment and acceptance of the honorarium.

L.G.R. 2 Copies of sanction to the grant of an honorarium Procedure

regarding
should be forwarded to the aud it office as soon as they are communication of
accorded, and not when the payment becomes due, in order to sanction to the
payment of
enable it to watch in audit, cases in which work has been honorarium.
undertaken without the prior sanction of the competent authority.

In the case of examinations, it will be sufficient if the

sanctioning authority specifies the names of the persons appointed
as examiners and the rates at which honorarium is to be allowed.
16
[L.G.R. 3.- A question has been raised whether under
F.R.46 (b) an honorarium can be granted to a Government servant
in consideration of (1) temporary increase in work; (2) long hours

15
Inserted by F.D. Notification No. 4776-IV-R-II, dated 13.8.60.
16
Inserted by F.D. Notification No.277 P.K. 316-IV-R-2-71, dated 5.2.71.

CHAPTER V ADDITIONS TO PAY 27 of 44

 FUNDAMENTAL RULES Vol – I

of work put in by an officer in connection with setting up of a

Corporation/Companies, etc., which forms part of their normal
duties; and (3) performing the duties of another sanctioned post in
addition to his own. It has been decided as under:-

(1) No honorarium is admissible for temporary increases in

work which are normal incidents of Government work and
form part of the legitimate duties of Government servants
according to general principle enunciated in F.R. 11.

(2) Honorarium should not be granted to officers engaged in

work in connection with setting up of Companies/
Corporations, etc., which forms part of their legitimate
duties, even if they work after the office hours.

(3) Honorarium has been defined in F.R.9 (9) as a recurring

or non-recurring payment granted to a Government servant
from the consolidated Fund of India or Consolidated Fund
of the State as remuneration for special work of an
occasional or intermittent character. When a post is
sanctioned the duties attached to it can hardly be regarded as
occasional or intermittent in character. Hence when in
addition to his own duties a Government servant is required
to perform the duties of another sanctioned post, he should
be deemed to be performing additional duties which are not
occasional or intermittent in character, even though he may
be asked to perform such additional duties for a short
period. Honorarium under F.R. 46 (b) will not be admissible
to a Government servant who is required to perform the
additional duties of another sanctioned post.]

(c) Fees and Honoraria.- In the case of both fees and

honoraria the sanctioning authority shall record in writing that due
regard has been paid to the general principle enunciated in
Fundamental Rule 11, and shall record also the reasons which in his
opinion justify the grant of the extra remuneration.

Honoraria to G.I.O. The Government of India have decided that neither

medical officer in
Civil employ. Fundamental Rule 47 nor Fundamental Rule 46-A is intended to

CHAPTER V ADDITIONS TO PAY 28 of 44

 FUNDAMENTAL RULES Vol – I

limit the general power of local Government to sanction under

Fundamental Rule 46 honoraria from general revenues to medical
officers in civil employ for serving as examiners.

A.G.I. 1. The rule requires that the reasons for the grant Reasons to be
recorded.
should be recorded in writing, as it is intended that the grant of an
honorarium or fee should be carefully controlled by Government
and scrutinized by audit, and that audit should be given an effective
opportunity of comment if it be deemed necessary. Audit officers
may, therefore, require that the reasons for the grant of an
honorarium or fee should be communicated to them in each case.

A.G.I. 2. The honorarium paid to an officer selected as an Honoraria to

lecturers and
examiner or lecturer on purely personal grounds irrespective of his examiners.
position under Government, though these grounds may bring about
his appointment in successive years, or for a term of years should
be dealt with under Fundamental Rule 46 and not treated as a
recurring charge.

L.G.R. In all letters conveying sanction to the acceptance of Sanction to state

whether the fee is
a fee by a Government servant, it should be stated whether the fee to be paid directly
is to be paid direct to the Government servant or through the or through
Government.
intermediary of Government [vide F.R. 9(6-A).]

F.R. 46-A. The Governor-General in Council may make Honoraria or fees

to medical
rules prescribing the conditions and limits subject to which a fee officers in civil
may be received by a medical officer in civil employ for services employ.

other than professional attendence.

N.B.- (1) See G.I.O. below Fundamental Rule 46.

N.B.- (2) The procedure regulating the acceptance of fees by

Indian Medical Service Officers in civil employ and officers of the
Madhya Pradesh Provincial and Subordinate Medical Services for
giving evidence in a court of law is laid down in paragraph 219-A of
the Madhya Pradesh Medical Mannual.

G.I.O.- The Government of India consider that a duty

imposed on a Government servant by statue must ordinarily be
performed without extra payment. There is therefore no reason for

CHAPTER V ADDITIONS TO PAY 29 of 44

 FUNDAMENTAL RULES Vol – I

giving a Civil Surgeon or other medical officer a fee for performing

his statutory duties under the Tea Districts Emigrants Labout Act
and rules made thereunder. If, however, medical officers are asked
by Employees or Employees Associations to give assistance in
respect of matters relating to emigration to Assam which are not
part of their statutory duties, the Local Government if it considers,
fit, may permit them to accept fees for such work.

[Government of India, Industries and Labour Deptt. Letter no.

13029, dated 26-2-1934]

Rule made by the Governor-General in Council under

Fundamental Rule 46-A.

Unless the Governor-General in Council by special order

otherwise directs, no portion of any fee received by a medical
officer in civil employ for services other than professional
attendance shall be credited to general revenues.

Rule made by the local Government under rules 41 and

44 (d) if the Civil Services (Classification, Control and
Appeal) Rules.

The above rule also applies to medical officers of the

Madhya Pradesh Provincial and Subordinate Services.

Powers to frame F.R. 47. Subject to the provisions of the rules made by the
rules regarding
grant of Governor-General in Council under rule 46-A a local Government
honoraria. may make rules prescribing the conditions and limits subject to
which authorities subordinate to it may sanction the grant or
acceptance of honoraria, and the acceptance of fees, other than the
acceptance of fees by medical officers in civil employ for
professional attendence.

N.B.- See G.I.O. below Fundamental Rule 46.

General rules. S.R. 1. Subject to the provisions of Supplementary Rules 2

to 8 below, a competent authority may sanction the grant of an
honorarium to a Government servant under his administrative
control or the acceptance by such a Government servant of an

CHAPTER V ADDITIONS TO PAY 30 of 44

 FUNDAMENTAL RULES Vol – I

honorarium or fee. No Government servant may accept an

honorarium or a fee without such sanction.

S.R. 2. A Government servant may not, without the previous Sanction required
to undertaking
sanction of the local Government undertake any work not work.
connected with his public duties for which a fee is offered.

Exception 1.- The Director of Public Instructions,

Inspectors of Schools or Principals of Colleges, as the case may
be, may permit members of the teaching staff employed in
Government Schools and Colleges under their control to take up
private tuition of individual students, provided that they have the
power to sanction the acceptance of fees for the tuition work under
item 73 and 73-A in Appendix II, part II.

The Director of Public Instructions may also permit the

above-mentioned officers to undertake tuition work in private
institutions, provided that the fees payable for the tuition work are
within his powers of sanction (vide item 73 in Appendix II, Part II).

Exception 2 - The Director of Public Instructions may

permit the Government servants under his control to undertake the
preparation of text books for use by pupils or teachers subject to
the condition that the author disposes of the book for a lump sum
not exceeding Rs. 1,500 in each case (vide serial no. 73-C,
Appendix II, Part II) and retains no interest in the sale of the book.
17
[Exception 2-A.- The Director of Technical Education
may permit the Government servants under his control to undertake
the preparation of books for use by pupils or teachers subject to
the condition that the author disposes of the book for a lump sum
not exceeding Rs. 1,500 in each case (vide serial No. 73-C,
Appendix II, Part II) and retains no interest in the sale of the book.]

Exception 3. - The Director of Veterinary Services may

permit officers of his department to undertake the supervision of

17
Inserted by F.D. Notification No. 886-506-IV-R-II, dated 5-5-1967.

CHAPTER V ADDITIONS TO PAY 31 of 44

 FUNDAMENTAL RULES Vol – I

slaughter houses and to accept fees therefor from the funds of the
local bodies subject to the following conditions:-

(1) that the work is undertaken outside Government

hours and that it does not interfere with the legitimate
duties of the department; and

(2) that the total fee offered for the work does not
exceed Rs. 25 per mensem.
Examination work Exception 4. - In the following cases no sanction is required
for which fee or is
offered. either for undertaking the work or accepting a fee therefor:-

(i) Literary work of an occasional character and

research work.
18
[(ii) Review of books for use as Liberary Books and
Prize Books in schools, and periodicals and magazines
for use in school received for approval from
publishers.]
19
[(iii) Examination work on behalf of Government of
India or any State Government or any University/
Board of Education constituted under any Statute or
by any State Government or Government of India.]
20
[Note.- The examinations conducted by the Madhya
Pradesh.Nurses Registration Council are covered by
the above items]

Expert evidence Exception 5. - A Government servant called upon by a

and commission.
court of law to act as a Commissioner, or to give evidence on
technical matters may comply with the request, provided that the
case is not of such a nature as will be likely to come before him in
the course of his official duties. He may also accept such fees as

18
Inserted by F.D. Notification No.886-506-IV-R-II-67, dated 5.5.67.
19
Insert ed by F.D. Notification No.1510-CR-105-IV-R-II, dated 5.4.61.
20
Inserted by F.D. Notification No.5112-IV-R-III, dated 21.11.61.

CHAPTER V ADDITIONS TO PAY 32 of 44

 FUNDAMENTAL RULES Vol – I

are fixed by the court, provided he obtains the sanction of the head
of department to the acceptance of the fees.

S.R. 3. No Government servant may act as an arbitrator in Action as

Arbitrator.
any case which is likely to come before him in any shape by virtue
of any judicial or executive post which he may be holding.

S.R. 4. When a Government servant of an educational Limits of sanction

of tuition fees.
service is permitted to receive fees for private tuition, the financial
limit of the power of sanction accorded to a competent authority
shall be considered to apply to the total amount of fees to be
accepted by such Government servant during any particular
scholastic term or vacation.
21
[S.R. 5. One third of the fee paid to a Government servant Share creditable
to general
should ordinarily be credited to general revenues and the balance revenues.
two-third paid to Government servant concerned]

Note.- (1) This rule does not apply to the acceptance of fee by
medical officer in civil employ for services other than professional
attendance. Such fees will be regulated by the orders issued under
Fundamental Rule 46-A and those contained in Appendix XXXIV
to the Madhya Pradesh Medical Mannual.

(2) The rule is also not applicable in the cases covered by

exceptions (1) to (4) and (5) below Supplementary Rule 2,
provided that when a Government servant of the Survey and
Settlement and Land Records Department is permitted to receive
fees for the execution of a commission during the time which would
otherwise be spent in the performance of official duties, a sum
equal to his pay including good conduct allowance, conveyance
allowance and dear district allowance, where admissible and that of
any other Government servant who accompanies him for the
number of days spent in travelling and executing the commission
shall be credited to general revenues.

21
Inserted by F.D. Notification No.F.B> 1-75-R-IV-, dated 11.11.75 effective from 1.10.75.

CHAPTER V ADDITIONS TO PAY 33 of 44

 FUNDAMENTAL RULES Vol – I

(3) Officers of the Education Department who are permitted to

receive a fee of Rs. 25 for the inspection of each State High School
in the Bastar, Kanker, Khairagarh, Korea, Nandgaon, Raigarh and
Surguja States will not be required to credit any portion of it to
provincial revenues.

[Education Dept.Endorsement No. 1624-Estt, dated 15-10-42].

(4) The rule is not applicable in the case of fees received under the
existing convention when the services of a Governmet servant are
lent by one Government to another for a short priod [c.f. para 3 of
State Government Order (ii-A) under direction 2 in Section I of
Appendix II, Financial Rules, Volume II.]

[Finance Department (R) File No. 13-18 of 1950]

Condition of S.R. 6. An honorarium shall not be granted for all round

sanction of
honorarium. good work falling within the scope of the ordinary duties of the
Government servant performing it, however, outstanding its quality.

Notes.- (1) Temporary increase in work, e.g. on account of the

holding of special departmental conferences or in connection with
inter-departmental committees are normal incidents of Government
service and therefore form part of the legitimate duties of
Government servants. Those so employed have therefore no claim
to extra remuneration.
22
(2) [Deleted]
Examination work S.R. 7. The work in connection with the following
for which
Honorarium is examination for which definite rates of remuneration have been
granted. prescribed may be undertaken and an honorarium drawn without
special sanction:-

(a) High School Certificate Examination held by the Madhya

Pradesh Board of High School Education;

22
Inserted by F.D. Notification No. F.B.1-1-76-R-II-IV, dated 27-1-1976.

CHAPTER V ADDITIONS TO PAY 34 of 44

 FUNDAMENTAL RULES Vol – I

(b) Vernacular Teacher's Certificate Examination (Men and

Women);

(c) Secondary Grade Women's Howbagh (Jabalpur) Training

College Examination;

(d) Final Examination of different courses of the Governemnt

Engineering School, Nagpur;

(e) Shorthand and Typewriting Examination; and

(f) Examination held by Public Service Commission; and

(g) Setting question and valuing answer books in connection

with the examination held by the Posts and Telegraphs
Department for recruitment to certain subordinate service.
Provincial Government servants are not however permitted to
undertake invigilation work in connection with this
Examination.

[Education Dept. Memo. No. 692-Acd. S., dated 23-4-42]

S.R. 8. Except in those cases in which definite rates of Amount how

determined.
remuneration have been prescribed the amount of an honorarium or
fee must be fixed with due regard to the value of the service in
return for which it is given.
23
F.R. 48. Any Government servant is eligible to receive and Additional
remuneration,
except as otherwise provided by a general or special order of the when permissible
with sanction.
Governor to retain without special permission-

(a) the premium awarded for any essay or plan in public

competitions;

(b) any reward offered for the arrest of a criminal or for

information or special service in connection with administration of
justice;

23
Substituted by F.D. Notification No. 648-3583-IV-R-II, dated 6.2.61.

CHAPTER V ADDITIONS TO PAY 35 of 44

 FUNDAMENTAL RULES Vol – I

(c) any reward payable in accordance with the provisions of any

Act or Regulation or Rules framed thereunder;

(d) any reward sanctioned for services in connection with the

administration of the excise laws; and

(e) any fees payable to a Government servant for duties which

he is required to perform in his official capacity under any special
or local law or by order of Government.

F.R. 48-A.- A Government servant whose duties involve the

carrying out of scientific or technical research shall not apply for or
obtain, a patent for an invention made by such Government servant
save with the permission of the local Government and in
accordance with such conditions as the local Government may
impose.

General instructions for regulating the grant of permission

for the taking out of patents by Government servants whose
duties involve the carrying out of scientific or technical
research.

L.G.R. In these instructions-

(1) "Inventor" means any Government servant whose duties

involve carrying out of Scientific or Technical Research.

(2) "Department" means the department of the Provincial

Government incharge of any Research Organisation.

(3) "Research Organisation" means any technical or scientific

establishment under the Provincial Government where
research work is carried out, and includes also an
establishment where research work is carried out in addition
to any other routine work.

(4) "Secretary" means Secretary of the Commerce and

Industry Department.

2. An inventor should not, without the previous permission

of the Provincial Government employ a Patent Agent or disclose

CHAPTER V ADDITIONS TO PAY 36 of 44

 FUNDAMENTAL RULES Vol – I

the invention to any person otherwise than as provided in clause 4

or publish or join any person not connected with the invention in
his application for a patent, or file a Complete Specification, or
make any application for a patent in any Indian State or any other
country.

Untill the Provincial Government make a decision under

clause 18, the particulars about any invention disclosed by an
inventor should be treated as confidential and deemed to belong to
and held in trust for the Government.

3. Every inventor should if so ordered, do everything

necessary for obtaining a patent whether in Indian Dominion or any
other country under such conditions as may be prescribed by the
Provincial Government.

4. Every inventor who evolves an invention should promptly

disclose it to the Head of the Research Organisation where he is
working.

5. Where an inventor discloses his invention to the Head of

his Research Organisation, with or without a request for permission
to file an application for a patent accompanied by a Provisional
Specification, the Head of the Research Organisation should,
through a secret communication, forward the information to the
department concerned togethear with his remarks on-

(i) the connection, if any, between the invention and the

inventor's official duties;

(ii) the extent to which the inventor has used the facilities
provided at Government expenses;

(iii) whether the results are of such a nature that they should
be published instead of being patented;

(iv) patenting the invention in foreign countries;

(v) the estimated needs of the department concerned and the

Government as a whole;

CHAPTER V ADDITIONS TO PAY 37 of 44

 FUNDAMENTAL RULES Vol – I

(vi) the probable contribution to public welfare; and

(vii) his recommendations, if any, as to further action deemed

appropriate.

6. An inventor may file an application for a patent

accompanied by a Provisional Specification after obtaining the
permission of the Head of the Research Organisation where he is
working:

Provided that in case the inventor is himself the Head of a

Research Organisation he may file such application without
obtaining previous permission of the Provincial Government.

7. The Provincial Government hereby authorise the Head of

every Research Organisation to grant, in his discretion, to any
inventor working under him, permission under Fundamental Rule
48-A to file an application for a patent accompanied by a
Provisional Specification:

Provided that, where the Head of Research Organisation

does not deem it fit to grant the permission, for instance, where the
invention is likely to have utility for Defence purposes or for the
department concerned, he should forward the papers to the
department together concerned with his remarks.

8. Where an inventor desires to obtain permission in

accordance with clause 6, his request to the Head of his
Organisation should be made on the prescribed form, shown in
Appendix A, which should be filed in quadruplicate.

9. If the Head of a Research Organisation decides to grant

the permission, he should sign all the four copies of the forms,
return one copy to the inventor, retain one copy and forward the
remaining two copies along with two copies of the Provisional
Specification to the Department concerned.

10. If the request for permission is accompanied by a

Complete Specification (which should be in duplicate) the Head of
the Research Organisation should, through a secret communication,

CHAPTER V ADDITIONS TO PAY 38 of 44

 FUNDAMENTAL RULES Vol – I

forward the papers to the department concerned together with his

remarks on points referred to under sub-paragraph (i) to (vii) in
clause 5.

11. Upon receipt of a communication of an invention from

the Head of the Research Organisation the department concerned
should examine the case. If they consider that the results proposed
to be patented are of such a nature that they should be published
instead of being patented, they will refuse the inventor's request for
permission to take out a patent. The department may take such
steps as they consider expedient for publishing the invention, or for
otherwise disposing of the invention. On receipt of intimation of
such refusal, the inventor shall abandon his application for patent, if
any, filed on the basis of a Provisional Specification. In all other
cases the department concerned should, within 15 days of their
receipt of the communication from the Research Organisation,
forward the papers to the Secretary with their recommendations.
While forwarding the papers to the Secretary the following
documents should be supplied through a secret communication.-

(i) if the invention was disclosed un accompanied by a

request for permission to take out a patent, full particulars of
the invention so disclosed;

(ii) if an application has been made on the basis of a

Provisional Specification, a copy each of the application
and the Provisional Specification filed at the Patent Office;
and

(iii) if a request for permission has been made to take out a

patent on the basis of a Complete Specification; a copy of
the Complete Specification.

12. Upon receipt of the foregoing communication from the

department concerned Government in the Commerce and Industry
Department will consider whether the permission asked for under
Fundamental Rule 48-A should be granted, with or without
conditions.

CHAPTER V ADDITIONS TO PAY 39 of 44

 FUNDAMENTAL RULES Vol – I

13. If the Government are satisfied that the invention has not
connection whatever with the inventor's official duties, or does not
fall within a technical field of activity of the department concerned
they will, if the inventor has applied for permission to take out a
patent, grant him the permission under Fundamental Rule 48-A
without any restriction.

14. If Government consider that the invention has been made

in the course of the inventor's official duties or that the invention
has resulted from facilities provided at Government's expense, they
will decide whether an application for a patent should be made
through the Controller of Patents and Designs on the basis of a
Complete Specification.

15. If Government decide that an application for a patent

should be made on the basis of a complete specification, the
Secretary will, if necessary, obtain from the inventor further
particulars required for the drafting of the Complete Specification,
and take the necessary steps to prepare and file the Complete
Specification within 9 months from the date of the Provisional
Specification, if any. The application will be made in the name of
the inventor, on the understanding that he will hold the patent in
trust for the Provincial Government and will, in due course, assign
his rights to the Provincial Government.

16. The Complete Specification and the drawings, if any,

required for filing and prosecuting the applications for patents will
be prepared by the Research Organisation when facilities exist for
such purposes, and in other cases, by the Secretary, or by such
agency as may be appointed by Government.

17. All fees up to the stage of acceptance in respect of every

application prosecuted by the Secretary, will be borne by the
Provincial Government.

18. On filling a complete specification Government in the

Commerce and Industry Department will consider.-

CHAPTER V ADDITIONS TO PAY 40 of 44

 FUNDAMENTAL RULES Vol – I

(i) whether the invention should be published for free use by

public; or

(ii) whether a patent should be taken out for exploitation by

the Provincial Government; or

(iii) whether the inventor should be allowed to take out a

patent for his own benefit.

19. If the department concerned or Government in the

Commerce and Industry Department decide that the invention
should be published for free use by the public, they will refuse the
Inventor's request, if any, for permission under Fundamental Rule
48-A and the Secretary will not prosecute the application for patent
beyond the stage of its acceptance. In all such cases the
Government in the Commerce and Industry Department on the
advice of the department concerned will determine the ex-gratia
payment, if any, and will advise the department concerned
accordingly.

20. If Government in the Commerce and Industry

Department decide to take out a patent for exploitation, the
Secretary will proceed with the application, and on obtaining the
patent, take the necessary steps to get the inventor's rights under
the patent assigned to the Provincial Government.

21. In all cases where the Government in the Commerce and

Industry Department decide to take out patents for exploitation,
they will decide also the manner in which the patents should be
exploited.

22. Inventions which the Government in the Commerce and

Industry Department consider are of no interest to the Provincial
Government either for commercial exploitation orpublication for
free use to the public, will be returned to the inventors, if they so
desire, and they will be allowed to take out patents for their own
benefit subject to.-

CHAPTER V ADDITIONS TO PAY 41 of 44

 FUNDAMENTAL RULES Vol – I

(i) the reservation of the right of the Provincial Government

to the use of the invention either without payment or on such
terms as the Government may consider reasonable; and

(ii) the condition that the inventor will not assign or deal with
or grant licences to any person without obtaining the prior
permission of the Government.

CHAPTER V ADDITIONS TO PAY 42 of 44

 FUNDAMENTAL RULES Vol – I

APPENDIX A
Request for permission to file an application for a patent
accompanied by a Provisional Specification direct to the
Patent Office.

(To be filled in quadruplicate)

I/We hereby request permission to file an application for an

Indian Patent accompanied by a Provisional Specification in
respect of ......................................(here give title of invention). In
consideration of grant of such permission I/we agree and declare as
follows:-

2. I/We declare that this invention has/had not been evolved

in the case of my/our official duties and as a result of the research
and facilities provided at Government expense.

3. Four copies of the Provisional Specification which it is

proposed to forward to the Controller of Patents and Designs,
Calcutta (or an equivalent description of the invention), accompany
this request. Immediately after dispatching the application I/We will
submit two extra copies of the documents forwarded to the
Controller of Patents and Designs.

4. I/We wish to apply for a patent, in my/our name on the

understanding I/We would hold the patent when granted, in trust for
the Governor (hereinafter called Provincial Government) and will
assign the same to the Provincial Government whenever called
upon to do so.

5. I/We will, if so ordered, withdraw my/our application for a

patent.

6. I/We will not file the Complete Specification in respect of

this invention without the prior permission of the Provincial
Government or in the manner as may be directed in the matter.

7. I/We will not apply for a patent in any other country or an

Indian State in respect of this invention without the prior permission
of the Provincial Government.

CHAPTER V ADDITIONS TO PAY 43 of 44

 FUNDAMENTAL RULES Vol – I

Date ........................................................................
Inventor's Signature, Designation
My/Our address for service .......................................... in
the Dominion of India is ...............................................
Permission granted.
Date ................. Signature of the Head of the
Research Organisation, Designation.
Received one copy. Signature of Inventor or Inventors.
Date ...............

[Govt. of the C.P. & Berar Commerce & Industry Dept. Memo
No.3984-1453-VII, dated 6-7-1948]

F.R.48-B.- If a question arises whether a Government

servant is a Government servant to whom rule 48-A applies the
decision of the local Government shall be final.

F.R. 48-C.- [Deleted].

CHAPTER V ADDITIONS TO PAY 44 of 44