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2024 Supreme(AP) 866

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
RAVI NATH TILHARI, NYAPATHY VIJAY, JJ.
Indian Council of Agricultural Research, Rep.by its Director General, New Delhi and Another - Petitioners
Versus
Central Administrative Tribunal, Rep.by its Registrar, Hyderabad and Others - Respondents
Writ Petition No. 3536 of 2013
Decided On : 26-07-2024

Advocates Appeared:
For the Petitioners: Ms. C. Vani Reddy.
For the Respondents: Sri A. Rajendra Babu.

IMPORTANT POINT
House Rent Allowance is contingent upon the acceptance of government accommodation; failure to occupy within 15 days results in forfeiture of HRA.

Headnote:

HRA - House Rent Allowance - Article 226 - The court upheld the Tribunal's decision that employees who fail to occupy allotted quarters within 15 days are not entitled to HRA, interpreting HRA as a compensatory allowance contingent on the availability of government accommodation.

Fact of the Case:

The petitioners challenged a Tribunal order denying them House Rent Allowance (HRA) after they failed to occupy allotted government quarters within 15 days, despite having applied for them.

Finding of the Court:

The court found that the Tribunal correctly interpreted the relevant rules and guidelines, affirming that HRA is not a matter of right but a compensatory allowance that ceases when government accommodation is offered.

Issues: Whether the applicants are entitled to HRA after failing to occupy allotted quarters within 15 days.

Ratio Decidendi: HRA is a compensatory allowance that can be denied if government accommodation is offered and not occupied within the stipulated time, as per existing rules.

Result: The Writ Petition is dismissed.

JUDGMENT :

(Ravi Nath Tilhari, J.) :

Heard Ms C. Vani Reddy, learned counsel for the petitioners, through virtual mode, and Sri A. Rajendra Babu, learned counsel for the respondents 2 to 10.

2. This Writ Petition is filed under Article 226 of the Constitution of India, seeking the following relief:-

    “…to issue order or direction more particularly one in the nature of certiorari calling for the records in O.A.No.729 of 2009 on the file of the Central Administrative Tribunal, Hyderabad Bench and quash the order dated 18.01.2012 passed in the said O.A. ...”

3. Learned counsel for the writ petitioners submits that the respondents 2 to 10/applicants filed O.A.No.729 of 2009 before the Central Administrative Tribunal, Hyderabad Bench, feeling aggrieved from the note order dated 29.06.2009 and dated 07.03.2009 issued by the Directorate of Oil Palm Research the 2nd petitioner herein, under which they were held disentitled for the House Rent Allowance (H.R.A).

4. The applicants/respondents 2 to 10 were working in various capacities at the Directorate of Oil Palm Research, Pedavegi, West Godavari District under the control of Indian Council of Agricultural Research (in short ‘ICAR’). A circular Fan.50/Quarters/2008-09, dated 22-01-2009 was issued directing all the staff members to apply for residential quarters in the prescribed form, before 02.02.2009, to enable the office to take necessary action in the matter, with the condition that the employees who did not apply for allotment of the residential quarters or who failed to occupy the allotted quarters within 15 days, might not be paid House Rent Allowance (in short ‘H.R.A’) and the quarter might be allotted to next person in the priority list. The 1st petitioner had issued a letter dated 14.01.2009 that H.R.A. could be paid from March, 2009, only if the employee applied for a quarter and had been denied government accommodation by the office due to non availability and that the employees who did not apply for allotment of the residential quarter or who failed to occupy the allotted quarters within 15 days might not be paid H.R.A.

5. The applicants contended that in view of the said circular the applicants were compelled to apply for the allotment of quarters as per their entitlement. While applying for quarter the applicants informed the 2nd respondent that they are residing in their permanent houses purchased by taking loan and withdrawing the amounts from GPF after obtaining permission from the office of the respondents. The 2nd respondent without considering their requests had allotted the quarters as per their entitlement with the terms and conditions for allotment and informed that the normal licence fee of the residence shall be recovered from his/her salary bill from the date of occupation and he shall not be eligible for HRA and no request for change of residential accommodation will be entertained. 1st and 2nd applicants were allotted Type-V (No.2) quarters. They represented the matter to the 2nd respondent individually expressing their difficulties in occupying the quarters and further informed that the quarter allotted are not fit to occupy on various dates. 2nd respondent vide proceedings dated 29.06.2009 informed the applicants that the request was examined and the same cannot be accepted by the competent authority as per ICAR Rules in vogue. There upon the applicants submitted representation on 29-06-2009 to the 2nd respondent informing that as per the ruling of the Hon’ble Supreme Court and decisions of various benches of CAT government department cannot forcibly allot government quarter to an employee who does not apply for the same even if the quarters are vacant and government servants cannot be deprived of their HRA in case they do not occupy the quarters in view of the policy of the Government to encourage their own residences.

6. The applicants contended in O.A. that they could not be compelled to occupy the quarters and on account of their refusal to occupy, they c

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