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2026 Supreme(Online)(CAT) 5122

CENTRAL ADMINISTRATIVE TRIBUNAL
B.K. Shrivastava, Member (J), Santosh Mehra, Member(A)
C. Arogyanathan – Appellant
Versus
Union of India – Respondent
ORIGINAL APPLICATION NO.170/00264/2024



Advocates:
For the Appellants/Petitioners: Shri B.S. Venkatesh Kumar
For the Respondents: Shri S. Sugumaran

Retention of railway quarters post-transfer limited to academic session end (last exam +15 days); excess occupation deemed unauthorized attracting telescopic damage rent, but period recalculated per rules with Covid relaxation consideration.

Headnote:(A) Railway Accommodation Rules - Master Circular No.49 - Paras 10, 11, 15 - Retention of quarters on transfer - Permitted for two months at normal rent, extendable six months on educational/medical grounds at double licence fee, further on educational grounds to end of academic session (last exam paper +15 days) - Beyond permissible limits, occupation deemed unauthorized automatically, attracting telescopic damage rent from date of cancellation/vacation - Damage rent calculated as 40 times normal rent first month, increasing progressively up to 5 times, per Ministry of Urban Development guidelines adopted by Railway Board letters dated 10.05.2018, 16.07.2018, 14.08.2018. (Paras 3,5,6,7)

(B) Covid-19 Relaxations - Railway Board Memo E(G)2021 RN 2-8 dated 26.07.2021 - General Managers empowered to grant/regularize additional three months retention beyond permitted period in extenuating pandemic circumstances. (Para 8)

(C) Judicial Review of Damage Rent - Full telescopic rates not mechanically applied where rules permit extended retention on educational grounds till last exam +15 days; period of unauthorized occupation recalculated accordingly - No evidence of formal allotment cancellation or notice receipt; sympathetic consideration warranted in pandemic context, limiting liability. (Paras 6,7,8)

Facts of the case:
Retired railway employee transferred, permitted quarter retention till 19.07.2021 on medical/educational grounds. Continued occupation till 27.01.2022 citing Covid-19, daughter's final exams (last paper 20.09.2021), wife's treatment. Treated unauthorized from 20.07.2021; damage rent Rs.4,07,355 recovered from salary/DCRG. Challenged imposition as arbitrary, sought quashing and refund.

Findings of Court:
Unauthorized occupation from 06.10.2021 (post last exam +15 days) to 26.01.2022 (3 months 21 days), not 20.07.2021. Damage rent calculation correct in method but period erroneous. Respondents to recalculate, consider 3-month Covid extension, refund excess with 6% interest if applicable.

Issues: Extent of permissible retention on educational grounds; start date of unauthorized occupation; applicability of Covid relaxations; validity of telescopic damage rent without formal cancellation notice.

Ratio Decidendi: Retention rules strictly limit extensions; educational retention till last exam +15 days mandatory. Automatic deeming unauthorized post-permissible period, but actual liability computed from rule-compliant date. Pandemic memo empowers regularization; absence of cancellation proof limits full penal recovery.

Result: OA partly allowed. Impugned memo set aside; unauthorized period reduced to 3 months 21 days; recalculation/refund directed; Covid extension consideration ordered.

Table of Content
1. factual background of transfer and quarter retention. (Para 1 , 2)
2. applicant's contentions on covid, medical, education grounds. (Para 3 , 4)
3. respondents' defense on rules and unauthorized occupation. (Para 5)
4. applicant's rejoinder refuting notice and calculations. (Para 6)
5. court's analysis of timeline, rules, covid memo. (Para 7)
6. modified unauthorized period and refund order. (Para 8)

CENTRAL ADMINISTRATIVE TRIBUNAL BANGALORE BENCH, BENGALURU ORIGINAL APPLICATION NO.170/00264/2024 ORDER RESERVED ON: 07.04.2026 DATE OF ORDER: 18.04.2026 CORAM:

HON’BLE MR. JUSTICE B.K. SHRIVASTAVA ..MEMBER (J) HON’BLE MR. SANTOSH MEHRA ..MEMBER(A)

1. C. Arogyanathan, S/o M. Charles, Aged about 61 years, Retired Chief Ticket Inspector, S.W. Railway, Mysore, R/a Door No. 62, 15th Cross, V.V. Mohalla, Mysore-570 002 …...Applicant (By Advocate, Shri B.S. Venkatesh Kumar)

Vs.

1. Union of India, Represented by General Manager, South Western Railway, Headquarters Office, Rail Soudha, Gadag Road, Hubli-580 020

2. The Senior Divisional Personnel Officer, Mysore Division, South Western Railway, Mysore-570 001

3. The Additional Divisional Railway Manager, Mysore Division, South Western Railway, Mysore-570 001 …..Respondents (By Advocate, Shri S. Sugumaran)

O R D E R Per: Hon’ble Shri Santosh Mehra ……Member(A)

Through this OA, the applicant has sought the following reliefs:

“(a) Call for records of the case from the respondents and on perusal (b) Quash and set aside the Memorandum bearing No.Y/P 555/Regularisation of Qtrs on Tran Vol V(C.No.17035) dated 28.3.2022/31.3.2022 (Annexure A3) passed by the second respondent declaring the same to be illegal, arbitrary and unsustainable;

(c) Issue a consequential direction to the respondents to refund the entire amount of Rs.4,07,355 to the applicant along with interest from the date of recovery to the date of payment;

(d) Grant such other relief/s as this Hon'ble Tribunal deems fit to grant to the applicant in the circumstances of the case including an order as to costs of this OA for unnecessarily imposing the avoidable litigation on the applicant in the interests of justice.

2. The facts in in a nutshell are as follows:

The applicant, while working as Chief Ticket Inspector in Mysore Railway station was transferred on 03.04.2019 and subsequently relieved on 20.11.2020. On his request which was based on medical grounds of his wife and academic grounds of his daughter, he was given permission for retention of quarters from 20.11.2020 to 19.07.2021. Subsequently, despite notice being issued to him, he did not vacate the quarter. Hence, the period of occupation from 21.07.2021 to 27.01.2022 was treated as unauthorised and damage rent amount of Rs. 4,07,355 was imposed upon him by the Respondents. Despite repeated representations by the applicant, the Respondents did not condone imposition of damage rent upon him and made recoveries from his pay bills and subsequently from the DCRG. Hence, he has approached the Tribunal for relief.

3. Applicant (i) The Learned Counsel for the applicant submits that the applicant while working as Chief Ticket Inspector in Mysore Railway station was in occupation of Railway Quarters. On his relieving upon transfer on 20.11.2020 the applicant submitted a letter on 23.11.2020 addressed to the second respondent requesting for retention of the quarters in his occupation for a period of one year. He also enclosed a letter addressed to the Senior Divisional Medical Officer, Railway Hospital, Hospital, Mysore asking for a Medical Certificate of regular treatment of his wife in the Railway hospital and a Study Certificate dated 23.11.2020 indicating that his daughter Ms. Sharon Jenifer, was studying 5th Year B.A.LLB course in Vidyavardhaka Law College, Mysore. The respondents permitted the applicant to retain the quarters upto 20.7.2021 vide Office Memorandum dated 19.1.2021.

(ii) However, due to second wave of Covid in 2021 the situation worsened and the final year LLB examinati

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