Swami Nath Singh vs D/o India Post
- Court
- Central Administrative Tribunal
1
O.A./350/45/2018
CENTRAL ADMINISTRATIVE TRIBUNAL
KOLKATA BENCH, KOLKATA
No. O.A. 350/45/2018 Heard on: 01.10.2026
Date of order: 15.10.2026
Coram : Hon’ble Dr. Lata Baswaraj Patne, Judicial Member
Hon’ble Mr. Sisir Kumar Ratho, Administrative Member
Swami Nath Singh, Ex-Assisant Post Master,
Raniganj Head Post office, Residing at flat
number- 1/3, Annandamela co-operative housing
society, Kumarpur more, Asansol -713305, P.S -
Asansol (north), District - Paschim Bardhman.
…….. Applicants.
- V E R S U S –
1. Union of India, to be represented by Secretary,
Ministry of Communication, Govt. of India, New
Delhi.
2. Chief Post Master General, Kolkata 700001.
3. Senior Superintendent of Post office, Asansol
Division, Asansol -713301.
……. Respondents.
For the Applicant : Mr. N. Ganguly, Counsel
For the Respondents : Mr. S. Banerjee, Counsel
O R D E R
Per : Mr. Sisir Kumar Ratho, Administrative Member:
The applicants have filed this Original Application under section 19 of
Administrative Tribunal Act, 1985, seeking for the following relief(s):
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
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O.A./350/45/2018
“8.(a) To issue necessary direction upon the respondent authorities to refund back
the amount of Rs. 4,62,397 (four lakh sixty two thousand three hundred and ninety
seven rupees only), together with interest from the date of deposition to, the date of
actual payment holding that then respondent authorities acted illegally compelling
to deposit the aforesaid amount of Rs. 4,62,397 (four lakh sixty two thousand three
hundred and ninety seven rupees only) and to quash and set aside the memo 2nd
march 2017 holding the same is bad in law.
8.(b) To issue further direction to pay the 18% interest for delayed payment of
gratuity amounting to Rs. 10,16,532, (ten lakh sixteen thousand five hundred and
thirty two rupees only), holding that the respondent authorities, exceeded their
jurisdiction by withholding the DCRG amount for more than 6 months.
8.(c) To produce all relevant records with a copy to this applicant for proper
adjudication and for doing conscionable justice.
8.(d) For full cost of this application and the compensation for mental torture and
humiliations as may be assessed by the Hon'ble tribunal, and for deduction of the
compensation amount from the concern responsible officer of the respondent
department
8(e) To pass any other order or orders to which may be found entitled to under law
and equity.”
2. Facts of the case:
2.1 The applicant while serving as sub post master in Hindustan cable post
office, one quarter had been allotted to him being numbered -3 B Street no.
27, at Chittranjan township, P.S- Chittranjan, District -Paschim Bardhman.
2.2 That the applicant had been transferred on and from 01.10.2012 from
Hindustan cable post office, to Burnpur Mukhya Dak Ghar, and thereafter he,
had transferred to Raniganj Head Post Office from Burnpur Mukhya Dak Ghar,
on and from 05.09.2013, and he retired as Assistant Post Master from
Raniganj head post office on and from 31.12.2016.
2.3 That the applicant had done his service in Burnpur Mukhya Dak Ghar
and in Raniganj Head Post Office, coming from the quarter aforesaid, allotted
to him by postal authority and he used to pay rent regularly for occupation of
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
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the said quarter, the postal authority never asked for vacation of the said
quarter and never issued any memo stating any inconvenience or stating any
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O.A./350/45/2018
queue for allotment of the said quarter, and the quarter under reference is
still lying vacant and there is no one to stay in that quarter.
2.4 That the applicant after retirement from his service on and from
31/12/2016 he submitted an application for allowing him to reside in the said
quarter, up to 30/04/2017 for some unavoidable circumstances vide his
application dated - 23/01/2017.
2.5 It is most unfortunate that respondent authorities instead of
considering the humble prayer of the applicant issued a memo dated 2nd
march 2017 with allegations, that the applicant without the permission of the
competent authority availed the staff quarter aforesaid at an ineligible station
from-01/10/2012 to 31/12/2016, and threatened that in case of no reply
within 3 days applicable Licence fee for unauthorised occupation of staff
quarter will be charged to be credited through U.C.R / recovered from DCRG.
For clear appreciation the copy of the letter dated 2nd march 2017 is annexed
herewith marked annexure A-2.
2.6 That the respondent authority in utter defiance of all norms and rules
of natural justice, humiliated the applicant, for no fault on his part when the
fact remains the respondent authority deducted house rent and electricity
charges for all these years, which is evident from the pay slip of the applicant,
and for clear appreciation of facts the copy of the payslip for month of
November 2016 is annexed here with marked annexure A-5.
2.7 In spite of the aforesaid clear cut fact which is as good as water, the
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
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respondent authority compelling the applicant to deposit the aforesaid sum,
release the DCRG amount, vide memo dated -22/06/2017, which ought to
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O.A./350/45/2018
have been paid on 01/01/2017, for clear appreciation of facts the copy of the
letter dated - 22/06/2017 is annexed herewith marked annexure A- 6.
2.8 The quarter under reference so occupied by the applicant cannot be
said to be unauthorised occupation and ineligible station because the
applicant occupied the same on the basis of valid allotment by the respondent
authority, and for which the the applicant paid rent regularly which accepted
by the respondent authority and he was nevwe asked for vacation of the
quarter reference an dsuch being the position the utterance of the word
unauthorised occupation and ineligible station is not only illegal but also
smacks corruption on the part of the respondent number 3, who remain mum
from 01.10.2012. to 31.12.2016, and also remain mum over other similar
circumstanced incidents which tenta mounts to discrimination and thereby
violations of the provisions of the constitution of India.
2.9 There is no iota of doubt that the respondent authority instead of
functioning as a socialist and model employer, tortured the applicant who
served the department to the best of his ability, without any stigma from any
corner, and no iota of doubt that the respondent authority acted illegally,
compelling the applicant to deposit a sum of Rs. 4,62,397 (four lakh sixty two
thousand three hundred and ninety seven rupees only), and simultaneously
withholding the DCRG amount to the tune of more than Rs. 10 lakhs, and they
are in duty bound to return back the amount deposited together with interest
and for payment of interest over delayed payment of DCRG amount.
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
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2.10 The applicant had no special attraction or affection towards the quarter
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under reference and he could easily vacate the same if he had received any
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O.A./350/45/2018
order from the respondent authority, but as because he was never knocked
and the respondent authority had deducted the rent regularly, he never
expects such blow after faithful service decades together, and the conduct of
the respondent authority are not only illegal but also inhumane and their such
conduct towards the applicant for no fault on his part are not permissible
under any canons of law.
2.11 The applicant after knocking almost daily with convincing argument
having no relief demanded justice through his advocate, vide its letter dated-
21/12/2017, but more than 10 days have been passed the respondent
authority, neither replied to the same nor taken any steps, for granting the
prayer of the applicant prayed for in the demand justice dated-21/12/2017,
for clear appreciation of facts the copy of the demand justice dated-
21/12/2017 is annexed herewith marked annexure A-7.
2.12 That for the reason the applicant has been compelled to file this
application for the relief prayed in this application.
3. Submission of the Applicants :
3.1 The quarter under reference being no. 3B, Street No. 27 at Chittaranjan
Township had been allotted to the applicant while he was serving in
Hindustan Cables Post Office.
3.2 On and from 01.10.2012 he has been transferred from Hindustan
Cables Post Office to Burnpur Mukhya Dakghar and thereafter on and from
05.09.2013 he has been transferred from Burnpur Mukhya Dakghar to
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
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Raniganj Head Post Office. While he was serving in Raniganj Head Post Office
he retired from his service on and from 31.12.2016. The applicant used to
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O.A./350/45/2018
attend his duty at Burnpur Mukhya Dakghar and Raniganj Head Post Office
from the aforesaid quarter.
3.3 After retirement on and from 31.12.2016 he made an application for
allowing to stay in the quarter up to 30.04.2017 for some unavoidable
circumstances.
3.4 The respondent authority instead of considering the same had charged
license fee for unauthorized occupation of the staff quarter for the period
from 01.10.2012 to 31.12.2016 and also directed to vacate the quarter
immediately and issued further direction to deposit a sum of Rs. 4,62,397/-
and in case of non-deposition the gratuity amounts of Rs. 10,16,532/- will not
be released and aforesaid sum will be deducted from gratuity which has been
stated in paragraph 4.1 to 4.9 of the application.
3.5 That after payment of the aforesaid amounts the gratuity amounts had
been paid after 8 months from the date of retirement.
3.6 Challenging the aforesaid action on the part of the respondent
authority, the applicants rushed before this Hon'ble Tribunal with a prayer for
issuance of direction to refund back the aforesaid sum of Rs. 4,62,397/ and to
quash the memo dated 2nd March, 2017 and to award interest at the rate of
18% over delayed payment of gratuity and to pass any other order or orders
to which the Tribunal may deem fit and proper.
3.7 The applicant has made out his case in his application as under:
(i) The applicant has never been issued any memo to vacate the said
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
Reason: I am the author of this document
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quarter within the period from 01.10.2012 to 31.12.2016
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O.A./350/45/2018
(ii) There was no queue for the said quarter and even after handing over
the quarter, the quarter remains vacant.
(iii) The respondent authority all along deducted rent, electricity charges
and other charges for the said quarter and never questioned the occupation
of the said quarter by the said applicant.
(iv) The applicant could have vacated the same if any memo issued to him
asking him to vacate the said quarter.
(v) After retirement the respondent authority has no right to issue any
memo demanding penal rent amounting Rs. 4,62,397/- and withholding
gratuity for a period of about 8 months.
(vi) The applicant's respectful submission that the respondent authorities
accepted rents for all these years and after retirement they have no right to
demand any penal rent because the applicant had no fault on his part.
(vii) It is not the case that in spite of asking the applicant had not vacated
the said quarter and in support of this contention the applicant is relying one
Supreme Court Decision reported in (2001) 6 SCC 591, the relevant
paragraphs are paragraph nos. 4, 5 and 6. The copy of the Decision is annexed
herewith.
(viii) That from the reply so submitted on behalf of the respondents is full
evasive denial and failed to substantiate their action empowering them to
claim a bulk amount of Rs. 4,62,397/- after retirement keeping themselves
mum over the matter in relevant period more so after accepting the rent,
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
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electricity charges and other charges for the said quarter.
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O.A./350/45/2018
(ix) In view of the aforesaid facts and submission your applicant most
humbly prays before your Lordships to pass necessary order allowing this
application and to grant the reliefs prayed for.
4. Ld. Counsel for the respondents have opposed the relief prayed by the
applicant on the following grounds:
4.1 On receipt of application from Sri Swami Nath Singh, he was allotted
staff quarter no. 3/B, Street no. -27 at Chiattaranjan, Asansol during his
incumbency at Raniganj Head Post Office as Assistant Postmaster vide Senior
Superintendent of Post Offices, Asansol Division memo no.-
D/SQ/Allot/CRN/Dated- 11/08/2008.
4.2 The said allotment was done by the then SSPOs, Asansol Division may
be reason that to avoid loss of Govt. revenue as it is hired quarter for which
prescribed rent is being paid to the Chittaranjan Locomotive Works authority
whether it is occupied by the postal employees or remain vacant. As that time
there was no eligible and willing official to take the said quarter at the locality
of Chittaranjan and thus the quarter was allotted to Sri Swami Nath Singh
during his incumbency only at Raniganj Head Post Office. As per said
allotment memo, Sri Swami Nath Singh was entitled to avail, the quarter
st
during his 1 posting at Raniganj Head Post Office i.e. from 29/04/2008 to
14/04/2009. Said Sri Swami Nath Singh retired from service on
superannuation on 31.12.2016 (Α/Ν). During the period from 29/04/2008 to
31/12/2016, the said official worked at different offices under Asansol
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
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Division which is as follows:-
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O.A./350/45/2018
Period
Place of Posting
29.04.2008 to14.04.2009
Raniganj Head Post Office as Assistant
Postmaster.
15.04.2009 to 30.09.2012
Hindusthan Cables Sub-Post Office at Sub-
Postmaster.
01.10.2012 to 04.09.2013
Burnpur Mukhya Dak Ghar as Assistant Sub-
Postmaster (ASPM)
05.09.2013 to 31.12.2016
Raniganj Head Post Office as Assistant
Postmaster.
4.3 After his posting as SPM at Hindusthan Cables Sub-Post Office on
15/04/2009, he was issued a notice to vacate the quarter no. 3/B, Street No-
27 at Chiattaranjan vide Sr. Superintendent of Post Offices, Asansol Division
letter No. D- 25/H.Cables/dated-11/05/2009 as there was a post-attached
quarter at Hindusthan Cables Sub-Post Office.
4.4 It was dearly mentioned in the aforesaid letter dated 11.05.2009 that if
said Sri Swami Nath Singh does not surrender the quarter within three days,
penal rent will be charged without issuing any further reminder. But he did
not surrender the said quarter and submitted an application wherein he
stated about the uninhabitable condition of post quarter and prayed tor
retention in the said quarter. Sri Singh was further transferred from
Hindusthan Cables Sub-Post Office to Burnpur Mukhya Dak Ghar on
01/10/2012 and he worked as Assistant Sub-Postmaster, Burnpur Mukhya Dak
Ghar up to 04/09/2013 and thereafter he was further transferred as APM,
Raniganj HO on 05/09/2013 where he worked up to 31/12/2016 i.e. till
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
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retirement. During the period of availing the quarter from 11/08/2008 to
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O.A./350/45/2018
31/12/2016 department deducted House Rent Allowance. License fee,
Surcharge from Sri Singh as per prescribed rate.
4.5 After retirement Sri Singh submitted an application dated 28/01/2017
wherein he prayed for retention of the said quarter up to April-2017. The
prayer of Sri Singh was rejected by the Senior Superintendent of Post Offices,
Asansol Division vide letter no. D-82/SQ/Vac./Notice/Ch-II/Dated-02/03/2017
and he was given an opportunity to submit the documents/permission letter
of the competent authority for availing the said quarter from 01/10/2012 to
31/12/2016, but he could not submit it. Accordingly, his retention of quarter
from 01/12/2012 to till surrender has been treated as unauthorized
occupation for which a sum of Rs. 4,57,170/-has been charged as penalties up
to 31/03/2017 vide this office letter по. 04/04/2017. D-82/SQ/Vac/Notice/Ch-
II/Dated-04/04/2017.
4.6 Retention of quarter for the period from 01/10/2012 to 30/11/2012 has
not been treated as unauthorized occupation in accordance with D.G., P.& T.'S
instructions no. 6-A below FR-45A vide which the Govt. Servant has been
permitted to r etain the quarter on payment of licence fee at the normal rate
in the event of transfer of a Govt. Servant.
4.7 Sri Singh finally surrendered the quarter on 17/04/2017. At the initial,
erroneously Rs.4,62,397/- was recovered from said Sri Singh for unauthorized
occupation of quarter from 01/10/2012 to 31/12/2016 incorporating the
charge from 01/04/2017 to 16/04/2017 as per terms and conditions laid down
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
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in Col-6 of said allotment memo and in accordance with Directorate of Estates
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O.A./350/45/2018
OM No. 18011/2/2006 Pol.III dated 04.06.2016 by applying the following
method.
Period
Method of
Amount of L/F
01/10/2012 to 30/11/2012 Normal L/F
245 X 2 (Month) = Rs 490/
01/12/2012 to 31/01/2013 Double L/F
490 X 2 (Month) = Rs- 980/
01/02/20 13 to 31/03/20 13 Four times L/F
980 X 2 (Month) = Rs- 1960/
01/04/2013 to 30/05/20 13 Six times L/F
1 470 X 2(Month) = Rs- 2940/
01/06/2013 to 3 1/03/20 17 Forty times L/F
9800 X 46(Month) = Rs-450800/
01/04/2017 to 16/04/2017 Forty times L/F
(9800/30) X 16 (Days) =
Rs.5227/-
Total
Rs.462397/-
4.8 But latter on it came to light that normal licence fee was already
deducted from said Sri Singh during his incumbency habitable. But after
joining at Burnpur Mukhya Dak Char on-01/10/2012, Sri Singh should have
surrendered the quarter within two months from the date of joining in
accordance with Senior Superintendent of Post Offices, Asansol Division
vacation notice communicated under letter no. D-25/H. Cables/dated-
11/05/2009 as the distance from Burnpur to Chittaranjan is more than 8 k.m.
But during his incumbency at Burnpur Mukhya Dak Ghar and Raniganj Head
Post Office from 01/12/2012 to 04/09/2013 and from 05/09/2013 to
31/12/2016 respectively, Sri Singh neither submitted any application before
the competent authority for retention the quarter nor indented to surrender
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
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the quarter. Sri Singh surrendered the quarter on 17/04/2017. As he had no
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retention order of the competent authority for availing the quarter from
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O.A./350/45/2018
01/12/2012 to 16/04/2017 thus the period has been treated as unauthorized
occupation and penal rent has been imposed accordingly.
4.9 Sri Swami Nath Singh was requested to credit the amount at Asansol
Head Post Office/Chittaranjan Mumhya Dak Ghar by the Sr. Superintendent of
Post Offices. Asansol Division vide his letter no.
D82/SQ/Vac/Notice/Ch.II/Dated-04/04/2017 failing which the amount would
be recovered from the Retirement Gratuity as per departmental rule. Said Sri
Swami Nath Singh has credited the said amount at Raniganj Head Post Office
only on 03/08/2017 vide Unclassified Receipt Number No- A-2432 dated-
03/08/2017. Retirement Gratuity of Sri Sawmi Nath Singh Rs. 10,16,532/ has
been paid to him on the very next date i.e. on 04/08/2017. Being aggrieved,
Sri Singh has filled this OA before Hon'ble CAT Kolkata Bench.
5. We have heard the Ld. Counsel for both the parties at length and
perused the material available on records.
6. Findings and Conclusion
The undisputed fact that emerges is that the respondent-employer
6.1
maintained absolute silence throughout the applicant's remaining tenure of active
service, never once issuing an eviction order, a notice of unauthorized occupation,
or a warning regarding the levy of penal rent. By continuously accepting the
standard license fees without protest, the management created a legitimate
expectation that the applicant's occupation carried tacit administrative approval. The
sudden, retroactive assessment of penal rent immediately following the applicant’s
superannuation cannot be countenanced in law. An employer cannot be permitted
to sit over its rights during the currency of service and then unilaterally transform a
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
Reason: I am the author of this document
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Date: 2026.10.21 12:57:38+05'30'
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Subrata
Bandyopadhyay
peaceful occupation into an "unauthorized" one the day after the employee retires.
13
O.A./350/45/2018
Such a post-facto imposition operates as an impermissible penalty and is hit directly
by the doctrine of estoppel by conduct.
6.2 It is a well-settled principle of service jurisprudence, reinforced by the Hon'ble
Supreme Court in Gorakhpur University & Others v. Dr. Shitla Prasad Nagendra
& Others , that terminal benefits such as pension and gratuity are not to be withheld
at the sweet will of the employer. They are hard-earned property rights occurred
through decades of faithful public service. The respondents have fundamentally
erred in treating the retiral dues as a tool for administrative leverage. While an
employer undoubtedly possesses independent statutory avenues to recover
legitimate dues or seek eviction under proper public premises regulations, it cannot
bypass the due process of law by summarily adjusting un-notified, unquantified, and
highly disputed penal rent claims against the final settlement of a retiring employee.
d6.3 Furthermore, the action of the respondents suffers from a fatal violation of
the principles of natural justice. In line with the landmark ruling in R. Kapur v.
Director of Inspection , any demand that directly impacts an individual's retiral
property must be preceded by a formal show-cause notice, a clear quantification of
dues based on prevailing service rules, and a fair opportunity of hearing. In the
present case, by serving a sudden demand notice post-retirement without any prior
adjudication or domestic inquiry, the respondents have reduced a mandatory quasi-
judicial exercise to a mere administrative afterthought. The judgments in ONGC v.
V.U. Warrier and SAIL v. Raghbendra Singh , relied upon by the respondents to
justify the deduction, are completely distinguishable; in those instances, the
employers had issued explicit, timely notices rejecting retention requests prior to
retirement, which is noticeably absent in the factual matrix before us.
6.4 We have also carefully considered the judgment of the Hon’ble Calcutta High
Court in Eastern Coalfields Limited &Anr. v. Union of India & Ors. (2026) , to
assert an absolute right to deduct penal rent from terminal benefits. However, we
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
Reason: I am the author of this document
Location:
Date: 2026.10.21 12:57:38+05'30'
Foxit PDF Reader Version: 2026.2.1
find that the ratio in the ECL line of cases is completely distinguishable from the
Subrata
Bandyopadhyay
unique factual matrix before us. In those matters, the employees had explicitly and
unlawfully refused to vacate company quarters post-retirement despite being served
14
O.A./350/45/2018
valid administrative mandates, thereby directly depriving serving employees of
essential housing. Furthermore, the deductions there were governed by clear, pre-
notified statutory agreements and corporate guidelines. In the present case, the
respondent-employer maintained absolute silence throughout the applicant's
service, continuously accepted standard license fees, and failed to issue a single
eviction warning or notice. The sudden, post-retirement levying of penal rent—
without any prior adjudication, show-cause notice, or domestic inquiry—reduces the
recovery to an arbitrary penalty that violates the principles of natural justice. The
respondents cannot hide behind the ECL precedent to validate a clear case of
administrative afterthought and procedural high-handedness."
6.5 Consequently, we hold that the withholding of, or deduction from, the
applicant's Death-cum-Retirement Gratuity (DCRG) and other pensionary benefits
on the strength of this arbitrary demand notice constitutes a severe and culpable
administrative lapse. The impugned demand for penal rent is hereby quashed and
set aside. The respondents are directed to refund the entire withheld amount of the
applicant’s retiral benefits within a period of two months from the date of receipt of a
certified copy of this order. Given that the applicant has been wrongfully deprived of
his rightful terminal funds during his twilight years without any legal justification in
case of texture, the respondents shall also pay interest at the rate of 6% per annum
on the delayed payment from the date allowed in this order until the date of actual
payment.
6. Accordingly, the O.A. is allowed. No order as to cost.
( Sisir Kumar Ratho)
Administrative Member
(Dr. Lata Baswaraj Patne)
Judicial Member
Digitally signed by Subrata Bandyopadhyay
DN: C=IN, CN=Subrata Bandyopadhyay, O=Central Administrative
Tribunal, OU=Department of Personnel and Training, ST=West
Bengal, postalCode=700020, serialNumber=
6d079e120ec1fabd2e591405ec10ace4fed99b6a0607694428d3202d8
47d4227, telephoneNumber=
ecea01182960d6b9364f64b0c7d5ba0c134e202d835afa75289b48017
1b9c5dd
Reason: I am the author of this document
Location:
Date: 2026.10.21 12:57:38+05'30'
Foxit PDF Reader Version: 2026.2.1
Subrata
Bandyopadhyay
Subrata Bandyopadhyay
Private Secretary (Consultant)