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2025 Supreme(Online)(CAT) 8407

CENTRAL ADMINISTRATIVE TRIBUNAL
MR. VARUN SINDHU KUL KAUMUDI, AM
K.Bhagyavathi – Appellant
Versus
Union of India – Respondent
ORIGINAL APPLICATION NO.020/00125/2023



Advocates:
For the Appellants/Petitioners: Sri K.Altaf Hussain
For the Respondents: Sri A.Vijaya Bhaskar Babu, Addl.CGSC

Retention of Railway accommodation for a family member post-retirement due to medical incapacity depends on eligibility rules; equitable considerations may influence the final decision regarding rent demands.

Headnote:(A) Administrative Tribunals Act, 1985 - Section 19 - Seeking regularization of Railway accommodation - Applicant requested retention of quarters for son post-retirement due to medical incapacitation - Respondents rejected request citing eligibility rules and unauthorised occupation - Points of regularization eligibility and retention discussed. (Paras 2, 20, 26)

(B) The court ordered that further demands for damage/penal rent against the widow shall not be raised, with recovery from gratuity treated as final settlement - Equity considered in light of applicant's financial circumstances. (Paras 25-27)

Facts of the case:
The applicant sought to regularize the retention of Railway Quarters for his son after retirement due to medical incapacitation. Respondents contended the denial of such regularization was based on applicable rules regarding housing eligibility. (Para 2)

Findings of Court:
Recovery towards the amount withheld from the gratuity will be treated as final settlement, recognizing the applicant's widow's financial hardship. (Paras 25-26)

Issues: Whether the Railway accommodation could be regularized for the son? Can penal rent demands be waived? Should the withheld gratuity be released? (Para 20)

Ratio Decidendi: The court underscored adherence to existing rules regarding accommodation eligibility while considering the equitable circumstances of the widow's financial struggles post the applicant's death. (Paras 26-27)

Result: OA disposed of with directions against further penal rent demands.

Table of Content
1. request for railway quarters retention based on family member's eligibility. (Para 1 , 2 , 3)
2. non-eligibility of son for retaining type-ii quarters. (Para 6 , 21 , 22)
3. consideration of equity in recovering dues due to financial hardship. (Para 23 , 24 , 25)

ORDER

PER: HON’BLE MR. VARUN SINDHU KUL KAUMUDI, ADMINISTRATIVE MEMBER

1. The present Original Application has been filed by the Applicant under Section 19 of the Administrative Tribunals Act, 1985 , seeking the following relief:

“...to call for the files pertaining to the issuance of impugned proceedings dated 05.01.2021 and set aside the same and direct the Respondents to regularize the said Railway accommodation and collect only normal rent and release Gratuity amounts withheld and pass such other and further orders as this Hon’ble Tribunal deems fit and proper in the circumstances of the case.”

2. The facts of the case, as submitted by the Applicant, are summarised below:-

i. K.Rajashekar, the Applicant herein, was appointed as Khalasi at the Gooty Diesel Shed, and, subsequently, promoted as Technician-III, Technician-II and Technician-I, at the Diesel Loco Shed, Guntakal. After rendering unblemished service, he became seriously ill and was medically de-categorized and was allowed to retire w.e.f. 29.09.2018, owing to incapacitation. The Competent Authority considered his request for Compassionate Appointment to his son, and, accordingly, his son, K.Ajay, was given appointment as Helper in the Electrical Department, and he joined the Railways on 27.07.2019. While the Applicant was in service, he was residing at Railway Quarter No.1093/E, Twin Lane, Guntakal. The said Railway Quarter was suitable and convenient for visiting the Railway Hospital where he was availing continuous and constant medical treatment. Therefore, in view of the necessity, the Applicant requested the Respondents for retention of the Railway Quarters, in terms of the extant Rules, in favour of his son, Sri K.Ajay, Khalasi Helper, TRD/GTL. However, vide proceedings, dt.05.01.2021, Respondents rejected his request.

ii. It is claimed by the Applicant that, in terms of the extant Rules, Respondents had allowed retention of the said Railway quarters for a period of 2 years on normal rent from the date of his retirement.

iii. The Applicant submits that he was having two unmarried daughters and was financially in a very poor condition, due to his sudden retirement and health problems. Hence, the Applicant requested the DRM/GTL, vide representation, dt.12.03.2020, for regularizing the same quarters in the name of his son, K.Ajay. The then DRM, endorsed the said representation by writing – “Let’s try to allot same quarter. Please connect the Rule and put up”, and marked it to the Sr.DPO/GTL.

iv. The Applicant’s Gratuity amount was withheld by the Respondents, since his stay in the said Railway Quarters was not regularized. As such, the Applicant was facing severe finantial problems. Therefore, the Applicant once again requested the Respondents, vide his representation, dt.12.08.2020, for regularization of the period of stay in the said Railway Quarters.

v. It is contended that, in terms of the Master Circular No.49, the Applicant is entitled to regularization/retention of the said Railway Quarters. As per the said Circular, when a Railway Employee, who has been allotted Railway accommodation, retires from service due to medical incapacitation, his son may be allotted Railway accommodation, on out of turn basis, provided his son is a Railway Employee and eligible for Railway accommodation and had been sharing accommodation with his father for at least six months, before the date of retirement, etc. Further, if the Railway Quarters belong to a different pool, the deficiency, so caused, in that pool of quarters should be made good at the earliest opportunity, in order that the balance is restored.

vi. However, the Respondents, vide the impugned proceedings, dt.05.01.2021, rejected the request of t

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