Service Law - Government had right to withhold the gratuity by deducting the amount which is found due and payable towards penal charges for unauthorised occupation of Govt. accommodation.

S.S.Nijjar, J.

1. This judgment will dispose of C.W.P. Nos. 5604-CAT and 5698-CAT of 2000,as the facts and the points of law involved in both the writ petitions are common.

2. The petitioners in both the writ petitions have retired from Central Government Service between 31.8.1996 and 30.10.1997 from the office of Accountant General (Audit), Punjab and Accountant General (A&E), Punjab and Accountant General (Audit) Haryana. During their service they had been allotted government quarters in Sector 7, Chandigarh. These allotments were made between the years 1975 to 1986 from the General Pool Residential Accommodation (GPRA). In the year 1992, Central Public Works Department constructed a separate colony for the staff of Accountant General Offices in Sector 41, Chandigarh. On the completion of construction, the petitioners were allotted accommodation in the aforesaid colony. The allotments made to the petitioners were subject to the condition contained in Supplementary Rules, 1922 . Non-statutory clause SR 317-B-22 was introduced in the supplementary rules which is as under:-

S.R. 317-B-22: Where after an allotment has been cancelled or is deserved to be cancelled under any provision contained in these rules,the residence remains or has remained in occupation o f the officer to whom it w as allotted or of any person claiming through him, such officers shall be liable to pay damages for use andoccupation of the residence, services, furniture and garden charges,as may be determined by Government from time to time.

2. Relying on the aforesaid provision, the allotment made in favour of the petitioners was cancelled by stereo-type orders w.e.f. 16.12.1995. Copy of one such order has been attached with C.W.P. No. 5604 of 2000 as Annexure P-1. The orders of cancellation were issued on the directions of the Directorate of Estates, New Delhi-respondent No. 2. The petitioners were informed that failure to vacate the accommodation by the due date will render them liable to payment of damages at a specified rate per month. The cancellation orders further stated that failure to vacate the accommodation by due date will render the officers liable to payment of damages and action will also be taken for vacation of the accommodation under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 (hereinafter referred to as "the Act"). It was further observed that the accounts of the officers may not be settled without obtaining No Demand Certificate from the office of the Assistant Manager-cum-Estate Officer, Directorate of Estates, Chandigarh. Around the same time, the Census Department filed O.A. No. 833-CH-1994 seeking a direction to Assistant Estate Manager, Chandigarh (respondent No. 3 ) to cancel the allotment of General Pool Residential Accommodation (GPRA) to the staff of the offices in which the petitioners were working. These officers were specifically impleaded as respondents No. 2, 3 and 4 in the aforesaid O.A. It was stated that the Department Pool Accommodation was available for the staff of the Offices of Accountant General. This fact was admitted by the counsel appearing for respondent No. 2 to 4. It was also accepted that Government Residence (General Pool in Delhi) Rules, 1963 had been adopted by U.T. Chandigarh. These rules came into effect on 1.5.1969. Under these Rules, respondents No. 2 to 4 had become ineligible for allotment of residential quarters from G.P.R.A. It was also pleaded that the orders contained in O.M. dated 3.10.1969,which were incorporated in the Residences (General Pool in Chandigarh) Rules, 1969 laid down that those Central Government Offices who have got any separate pool accommodation for their staff are not eligible offices under these rules for the purpose of allotment from GPRA. After considering the submissions made on behalf of the parties, the Tribunal in its order dated 20.7.1995 held that employees of the A.G. Office are not eligible for allotment of residential accommodation ou