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IN THE HIGH COURT OF DELHI
V. Kameswar Rao, J.
Ashutosh Vasant - Appellant
Versus
Chairman and Managing Director Railtel Corporation of India Limited - Respondent
W.P.(C) 7798 of 2020 & CM. No. 25671 of 2020
Decided On : 09-12-2021




Retention of government accommodation on educational grounds requires competent authority's approval; penal rent must adhere to applicable Railway rates, not IRCON rules, when calculating unauthorized occupancy penalties.

Headnote:(A) Indian Engineering Services Rules and Regulations - Railway Services (Temporary services) Rules, 1965 - Writ petition challenging orders demanding payment of damage/penal rent for unauthorized retention of accommodation during periods of transfer - Petitioner claims entitlement under educational grounds for retention on the basis of Railway Board Circulars. (Paras 1, 9, 11, 41)

(B) Retention of Government Accommodation - Retention of accommodation for educational purposes is subject to approval of competent authority and grounded in valid reasons as per applicable rules. (Paras 56, 70)

Facts of the case:
The petitioner, an employee absorbed in RailTel, challenges orders issued for recoveries of damages up to Rs.38,20,877/- for unauthorized possession of accommodation, asserting rights based upon various Railway Board guidelines and transfers impacting his children’s education. (Paras 2, 60, 65)

Findings of Court:
The court acknowledged unauthorized retention of accommodation but ruled that penal rent should follow Railway rates not IRCON rules, hence determining the need for recalibration of the penalty based on correct jurisdiction. (Paras 71)

Issues: Whether the petitioner was legally entitled to retain accommodation in Ahmedabad despite multiple transfers, and if the demanded damages were justified. (Paras 60, 71)

Ratio Decidendi: The court highlighted the necessity for proper authorization in retention claims and held that the calculated rent for unauthorized occupation must conform to Railway guidelines rather than those of IRCON. (Paras 70, 71)

Result: Impugned orders set aside; recalculation of damage rent ordered under Railway rates.

JUDGMENT

V. Kameswar Rao, J. The instant Writ Petition has been filed with the following prayers:

    "On the premises set forth hereinabove, it is most humbly prayed that this Hon'ble Court may graciously be pleased to:

    (a) Quash the Office Orders dated 08.04.2020, 29.04.2020, para (ii) of 15.07.2020 and 24.07.2020 issued by the Respondents directing the Petitioner to pay damage/penal rent to the tune of Rs.38,20,877/- (Rupees Thirty eight lakhs twenty thousand eight hundred and seventy seven only) for the period from 09.04.2012 to 31.03.2020;

    (b) Direct the Respondents to refund a sum of Rs.2,25,000/- (Rupees Two lakhs twenty five thousand) illegally deducted from the salary of the Petitioner for the months of June, July and August 2020;

    (c) Issue appropriate Order to permit the Petitioner to retain the House/Quarter No.941-A, New Sabarmati Railway Colony, Ahmedabad on normal rent till the end of the Bharatnet Project in Gujarat;

    (d) And pass such other or further order/orders as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case and in the interest of justice."

2. The petitioner qualified for the Indian Engineering Services in the year 1990 and subsequently joined Indian Railway Service in Indian Railway Service of Signal Engineers (`IRSSE', for short) as a probationer on December 02, 1991. On January 31, 2002, he joined RailTel Corporation of India Limited (`RailTel', for short), a Central Public Sector Undertaking (`CPSU', for short) under the Ministry of Railways, on deputation. He joined RailTel as Deputy General Manager and was promoted to Joint General Manager and subsequently to Additional General Manager. In June 2010, the petitioner was allotted a Quarter bearing number 941-A, New Railway Colony, Sabarmati, Ahmedabad constructed and owned by RailTel under PSU Scheme of Ministry of Railways.

3. On April 30, 2008, the petitioner resigned from Railway Service and sought absorption in RailTel. On May 01, 2008, he was absorbed to RailTel as General Manager (Marketing), Western Region and Territory Manager at Ahmedabad.

4. It is averred that he was subjected to six mid-session transfers between April 2012 and March 2017. He was transferred from Ahmedabad to Delhi/NCR in the same grade vide order dated February 24, 2012. It is also stated that at this time, the elder son of the petitioner was promoted to Class IX in the academic session of 2012-13 and the father of the petitioner was suffering from Parkinson's Plus disease with no known cure. Therefore, he retained the accommodation at Ahmedabad. It is further contended that IRCON RESIDENTIAL ACCOMMODATION RETENTION RULES , 2009 (`IRCON Rules', hereinafter) and the Master Circular No. 49 dated August 20, 2019 issued by the Railway Board, Ministry of Railways, Government of India provide for retention of accommodation on educational grounds.

5. The petitioner was transferred from Delhi/NCR to Ahmedabad vide order dated July 04, 2013, while his elder son was pursuing Class X in the academic session 2013-14. He was further transferred from Ahmedabad to Delhi/NCR vide order vide order dated May 20, 2014, while his elder son was pursuing class XI in the academic session of 2014-15 at Ahmedabad.

6. It is stated that he was again transferred from Delhi/NCR to Ahmedabad vide order dated August 05, 2015. I may note that this transfer order was issued pursuant to a request made by the petitioner in that regard vide representations dated June 27, 2015 and July 02, 2015. It is also stated that, during this period, the elder son of the petitioner was pursuing Class XII and his younger son had entered Class IX in the academic session of 2015-16. On October 30, 2015, the petitioner was again transferred from Ahmedabad to Delhi/NCR.

7. It is submitted that he was transferred from Delhi/NCR to Bangalore vide transfer order dated May 06, 2016, for a period of six months. At the expiry of the said six months, the posting was extended to May 10, 201

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